Federal officials may soon label Suffolk County a disaster area following a severe blow to this year’s oyster harvest. Such a designation would make the region’s struggling oyster farms eligible for low-interest federal emergency loans intended to offset millions of dollars in losses after roughly 30 percent of the county’s oyster crop was wiped out by this winter’s extreme conditions.
Peter Stein, who founded Peeko Oysters in New Suffolk on the North Fork, said the damage to his operation alone was massive. He estimates more than a million oysters were lost during the winter. According to Stein, the financial impact on his business falls somewhere between the high six-figure range and the low seven figures.
The losses are not only affecting shellfish farmers but are expected to reach consumers as well. Industry representatives say oyster prices are likely to climb because the supply has dropped while demand remains strong. A spokesperson for the Long Island Shucking Truck, a mobile raw-oyster bar operating across Long Island, said basic economics will drive the price increases. With fewer oysters available and steady demand, the cost to customers will inevitably rise.
Oyster prices have already surged over the past two decades. Data from the National Oceanic and Atmospheric Administration Fisheries shows that the price of Eastern oysters nationwide climbed from about $2 per pound in 2000 to nearly $10 per pound by 2020. On Long Island, prices have climbed even higher, with some local menus now listing oysters at roughly $20 per pound. Additional increases are expected as the summer season approaches.
The scale of the damage has placed the region’s oyster industry in a precarious position, with some farms facing the possibility of bankruptcy. In response, New York Governor Kathy Hochul has asked the U.S. Department of Agriculture to grant Suffolk County a Secretarial Disaster Designation.
In a statement, Hochul called on the USDA to act quickly so oyster growers can access the help they need to recover and continue operating. She said prolonged freezing weather and icy waters earlier this year forced farms to stop working for weeks and caused extensive damage to equipment, creating losses that could reach millions of dollars.
Overall, Long Island’s oyster farms lost about one-third of their harvest, which translates into millions of oysters. If the federal government issues the disaster declaration, oyster and kelp farmers in the area would become eligible to apply for low-interest emergency loans of up to $500,000. The funds could be used to replace damaged equipment, cover production costs, and help farmers meet essential living expenses.
A USDA representative confirmed that the agency has received Hochul’s request and is moving resources to local Farm Service Agency offices while the disaster designation is being reviewed.
Should the request be approved, farmers in Suffolk County would have eight months from the date of the declaration to submit applications for the emergency loan program.