N.S. fisheries loan board sees big demand from new entrants

A rising tide of seafood exports coupled with the retirement of older workers has more young people casting a line into the fishing industry, according to the acting chair of the Nova Scotia Fisheries and Aquaculture Loan Board.

Bob Verge was part of a group who appeared before the legislature's public accounts committee on Wednesday to discuss the most recent reports from the fisheries and farm loan boards.

Nova Scotia exported $2.5 billion in seafood in 2021, an increase of 21 per cent from five years ago, deputy fisheries minister April Howe told the committee. Figures from the loan board show just how many new people are trying to reel in a piece of that seawater-soaked pie.

In the 2021-22 fiscal year, 38 per cent of the applications approved by the fisheries loan board were for new entrants.

A fair bit of optimism

"They clearly see a future for themselves in this industry and, by and large, we do, too, because we review those loan applications and we have to approve them," Verge told reporters following the meeting.

"So I think there's a fair bit of optimism these days among young people about the future of the fishery."

That optimism is reflected in fishermen investing in newer and bigger boats and new fishing gear, said Verge, purchases that often involve the loan board.

The board advanced $70.1 million in new loans and had outstanding loans totalling $263.8 million in 2021-22. Lending was up 18 per cent over the previous year, with a total of 724 clients holding 986 loans.

Generational change continues

Signs point to a continued interest in new people entering the sector.

Verge said generational change is happening through people taking over an operation from a family member, or perhaps someone who has worked on a boat learning the skills of the trade before deciding they want their own enterprise.

Although this fiscal year is not yet complete, a department spokesperson said applications for new entrants are trending even higher than 2021-22. As of December, new entrants for 2022-23 made up 42.4 per cent of approved applications by the loan board.

Despite the increase in loans, committee members heard Wednesday that arrears remain low, at about three per cent. Historically, fishing is an industry of boom and bust cycles and Verge said the board works with clients to manage financial risks through good times and through bad.

"We want to set people up for success, not failure."

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