Shrimp License Buyback

The 1995, the Texas Legislature recognized that the state’s inshore, “bay and bait” shrimp fishery was overcapitalized – that too many boats were competing for a finite quantity of shrimp, and shrimp size and numbers were declining. In one of the earliest large-scale, state-initiated efforts to address this “tragedy of the commons”, the state passed SB 750, capping the fishery, allowing no new licenses to be issued. Also, the state created a dedicated fund to buy back and retire licenses from willing sellers. The buyback program began in 1996, using a reverse bid process that prioritized purchase of the cheapest licenses on the biggest boats with the greatest seniority. The buybacks have helped protect benthic habitat, improve water quality, reduce bycatch, increase catch per unit effort, and give an exit for aging shrimpers to cash-out and retire.