Fishing is the second most popular form of outdoor recreation in the United States ([23]) and is an important part of the national economy ([6]). In 2018, 49.4 million Americans fished, continuing an upward trend in the number of participants since 2007 ([24]). Almost $50 billion in retail sales was generated by these anglers, providing income for more than 800,000 people ([35]). Aquaculture production by publicly-owned hatcheries is essential for recreational fishing, as well as fisheries conservation and restoration in the United States ([16]; [12]; [36]; [13]). In 2013, government-run hatcheries produced over 26,000 metric tons of fish for recreational stockings ([32]). Hatchery-reared fish stocked into public fishing waters can have considerable economic benefits ([17]; [9]; [34]).

The South Dakota Department of Game, Fish and Parks, an agency of South Dakota state government, owns and operates three fish hatcheries, producing nearly 300,000 pounds of fish in 2025 ([29]). The state, just like many other governmental agencies in North America, stocks a large number of rainbow trout (Oncorhynchus mykiss) and these fish are mostly stocked at large, catchable sizes ([18]; [19]; [32]). Rainbow trout and other salmonids are not native to South Dakota and natural reproduction is very limited, requiring the regular stocking of hatchery-produced trout and salmon to maintain recreational angling opportunities ([2]). McNenny State Fish Hatchery in Lawrence County produced approximately one-half of the total biomass of rainbow trout and other salmonid species stocked in South Dakota in 2025.

The first economic contribution analysis of McNenny Hatchery was conducted by [3]. This, one of a very few analyses focusing entirely on an individual hatchery, was conducted for the 2017 production year. Subsequently, [22] used similar methodology to determine the economic contribution of Cleghorn Springs State Fish Hatchery, another South Dakota state-owned and operated fish hatchery in Rapid City, South Dakota. Economic contributions have been quantified for trout production on the federal level in the United States ([34]) and for individual fisheries maintained by hatchery-produced fish ([17]; [10]). Understanding the economic contributions of public hatchery operations is extremely important, given the stewardship obligations of governmental agencies, such as the South Dakota Department of Game, Fish and Parks ([26]). Because there have been considerable changes at McNenny Hatchery in the eight years since [3] initial economic investigation, this study was undertaken. Thus, the objective of this analysis was to reassess the economic contribution of fish production at McNenny State Fish Hatchery in 2025, using new data and updated methodology.

The economic contribution of McNenny State Fish Hatchery operations was assessed by aggregating the direct, indirect, and induced effects of both hatchery operational expenditures and recreational angler spending attributable to the trout and salmon produced and stocked by McNenny Hatchery. Direct effects are the initial financial injections into the economy. Indirect and induced effects comprise the multiplier effect occurring as the direct spending ripples through the South Dakota economy. Indirect effects are the multiplicative impacts of subsequent rounds of purchases made by linked industries within the supply chain ([38]). Induced effects are the multiplicative impacts of household spending generated by the salaries supported within those related industries ([20]). To calculate the total economic contribution, direct operational and recreational expenditures attributable to McNenny activities were estimated and then augmented to capture the indirect and induced outputs by industry-specific regional economic multipliers from the U.S. Bureau of Economic Analysis’s Regional Input-Output Modeling System II (RIMS-II).

The total economic contribution of McNenny State Fish Hatchery operations to the South Dakota economy in 2025 was an estimated $120 million. The estimated economic contribution per budgetary dollar spent was $133.

The economic output of $133 per budgetary dollar expenditure for McNenny State Fish Hatchery calculated in this analysis, exceeds the $51.68 previously reported for 2017 by [3]. However, [3] had a transposition error regarding angler expenses per day, as reported by [22]. In addition, both [3] and [22] also likely had a decimal place calculation error. Applying corrections to their original methodology, the 2017 McNenny Hatchery economic contribution per budgetary dollar spent increased to $380. Similarly, correcting the decimal place error in [22] increases the economic contribution for the budgetary dollar spent in 2019 at Cleghorn Springs State Fish Hatchery from $172 to $182.

Rather than indicating a true decline in the economic contribution of McNenny State Fish Hatchery or a lower economic contribution for Cleghorn Springs State Fish Hatchery, these differences are likely due to multiple methodological modifications from the initial analyses. First, the current analysis used more conservative methods to attribute angler expenses to McNenny Hatchery operations, generating a lower but possibly more accurate figure. Secondly, this analysis excluded a base value for stocked fish from the economic contribution calculation. Economic value is a conceptual framework and should theoretically be captured within the actual angler expenditures attributable to the hatchery. Third, this analysis incorporated in-state budgetary expenditures as a secondary source of economic contribution alongside angler expenditures. The methodology used in this study accounted for the indirect and induced effects of expenditures, where the original analysis only captured direct effects. Lastly, it is possible that changes over time in overall fish production poundage, coupled with changes in hatchery expenditures which can vary greatly from year-to-year, could explain the differences between the results of this study and those of [3] and [22].

The economic contribution of $133 per budgetary dollar spent at McNenny is similar to the $109 to $141 range reported for federal hatcheries stocking smaller, but still catchable-sized, trout in the southeastern portion of the United States ([33]). These results are likely comparable because of the high angling pressure for trout during the summer tourist season in the Black Hills ([1]). The [33] also used a methodology similar to that used in this study.

There are several limitations to the methodology utilized in this analysis. Because direct angler expense data for eastern South Dakota trout fishing waters were unavailable, the economic contributions for this region were imputed using Black Hills angler behaviors and expenses. Actual angler spending patterns by eastern South Dakota trout anglers differ from those in the Black Hills. Additionally, the analysis relied heavily on historical spending and survey data to establish current valuations, including data ranging from 2015 to 2021. While the expense figures were adjusted to 2025 values using Consumer Price Index inflation multiples, actual consumer spending behaviors and angler participation rates may have shifted in ways that strict inflation adjustments fail to capture. Further, using the proportion of stocked fish biomass to prorate angler expenditures assumes a direct, 1:1 correlation between the weight of fish stocked and angler dollars spent, which may not fully account for variations in species desirability or specific angler targeting behaviors.

The national-level economic contribution of McNenny Hatchery operations is likely much greater than reported in this analysis. Several large, regular expenditures, such as fish food purchases, were excluded from the analysis because the manufacturer was located outside of South Dakota. Additionally, region-specific input-output models exclude subsequent rounds of spending in out-of-state transactions. This analysis did not capture the long-term economic contributions of hatchery research and innovation ([15]; [37]; [4]). Although difficult to quantify, the considerable and consistent research output at McNenny likely produces substantial long-term economic benefits both within the South Dakota economy and well beyond the borders of the state ([14]; [25]; [5]). Lastly, this analysis also ignored the expenses and values of the relatively small biomass (approximately 1000 kg) of other fish species, which included 900 catchable-sized channel catfish (Ictalurus punctatus), 1,900 catchable-sized bluegill (Lepomis macrochirus), and 1,100,000 walleye (Sander vitreus) fry produced in a recirculating aquaculture system in 2025 at McNenny Hatchery.

The economic contribution of McNenny Hatchery reported in this study further confirms that hatchery rearing and stocking of trout and salmon for recreational fishing creates substantial economic output across the United States ([17]; [10]; [11]). The total economic contribution of $120 million by McNenny Hatchery occurred without the expenditure of any South Dakota government general tax revenue ([28]). This indicates that the current user-pay model, whereby anglers pay for hatchery operations by purchasing licenses and fishing equipment, is providing substantial benefits to the non-angling public. Direct spending on outdoor recreation and the associated indirect benefits are a substantial component of the economy of South Dakota ([31]).