It is a ten-year property right granted by the Department of Natural Resources (DNR) that allows a lessee to develop the state's tide and submerged lands into a shellfish or sea plant farm. The site must meet a production level in annual sales by the end of the 5th year of the lease, and continue to hold at least this production level for each year thereafter.

There are two ways you may obtain a lease:

The charge for the lease will be based on a fair market value appraisal or current fee schedule. The current fee schedule is $450 for the first acre plus an additional $125 per acre, or portion thereof. Also, if you have related upland or floating caretaker facilities, you will be charged other fees as set out in regulations or fee schedules. As with any lease, if you do not want to use the fee schedule, you may pay to have an appraisal done. The appraisal is done in accordance with appraisal instructions issued by DNR.

You will pay advertising costs. You may also be required to pay for a boundary survey. The survey is done in accordance with survey instructions issued by DNR.

Additionally there is a bond requirement, which is determined by such factors as projected site cleanup and restoration. The minimum bond amount is $2,500. However, if three or more lessees post an association bond to cover all of their leases, the minimum-security amount is 50 percent of the amount individually calculated for each lease. This bond is subject to periodic review.

Farmers should also be aware that other state agencies have fees as well.  The Department of Fish & Game requires a biomass survey fee of $2,000 - $5,000 for all on-bottom, inter-tidal or sub-tidal proposals.  The fee must be included with the multi-agency aquatic farm application.  The Department of Environmental Conservation requires a fee of $500 for the initial water classification.

Applicants should refer to Part I, Application Process Guidelines and Contacts for further information on agency fees.

An application opening for the on-going program is scheduled at least every other year from January 1 through April 30. The next filing period will begin in 2007.

If you are applying under the on-going program, you must obtain a coastal consistency finding through the DNR Office of Program Management and Permitting, an operations permit and/or a special area permit from the Department of Fish and Game (DF&G), and a water quality certification from the Department of Environmental Conservation (DEC) prior to the harvest and sale of your product. You will also need a permit from the U.S. Army Corps of Engineers. If you plan to use uplands in your operation, prior permission from the adjacent upland owner must be obtained.

If you are bidding on a lease through the Aquatic Farm Auction or obtaining an over-the-counter lease you do not need to go through the Office of Program Management and Permitting as these areas have already been found consistent with the Alaska Coastal Management Program. The other authorizations listed above still apply.

Currently, finfish farming is not allowed in the state.

State funding is not available. Aquaculture loans may be available through the USDA Rural Development Program. You may also contact the Department of Community and Economic Development, Small Business Development for other loan options at 907-269-4527 or visit their web site at: www.dced.state.ak.us/dca/smallbus/home.htm

No. However, you do need authorizations from the Department of Fish and Game and the Department of Environmental Conservation.

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