DeFede

FLORIDA KEYS (CBS4 I-TEAM) ― Billy and George Niles are third and fourth generation lobster fishermen. The Niles family has been pulling lobster traps in the Florida Keys for a hundred years.

"I've been doing it now since I was 12-years-old and I'm 71," said Billy Niles, "so I've been doing it over 50 years. Seen a lot of changes. A lot of good times, a lot of bad times.

This year is the worst of times.

At $3 a pound, the price for lobster is at the lowest it has been in more than 25 years. And it is leaving fishermen like the Niles at risk of losing it all.

"When you get it in your blood, it's like anything else, if you love it," said Billy Niles, "you want to do it. And that's the way it is with us. And it hurts when somebody tries to take it from us. Its hard - it gets harder by the day."

Like George and Billy Niles in Key West, Gary Nichols fishing operation near Marathon is also a family affair.

"My daughter runs my 40 footer, the Miss Beth Two, which is my wife's name, and I run the 50-footer called the Life Force," said Nichols.

While Gary and his daughter are on the water, Gary's wife babysits their grandchild and handles the books.

"Yesterday she paid out about $12,000, my income was about $10,000," he said. "My line of credit is starting to shrink down. When you can buy lobster cheaper than hamburger it's just insanity."

There are two main reasons why prices are so low.

First, demand is down. With the economy tanking, people just aren't buying lobster. It is still seen as a luxury item.

The second reason: A change in trade agreements allowed foreign lobsters from Central America and the Caribbean to flood the market over the summer and really depress the price. "Imports are killing us," said George Niles. "They can import all summer long and we are only allowed to start fishing in August."

Last year, the price for lobster opened at more than $8 a pound. But as the economy worsened the price went down, closing slightly above $4 pound.

Lobster fishermen had hoped the price would open this year around $5 a pound and hold firm. Instead it opened at $3 – surprising everyone.

"To make a decent living in the keys we need above 5 dollars," said Gary Nichols. "At 4 dollars you might be able to pay your bills, pay your expenses to run your everyday business. At three dollars you are going backwards."

Like the coral reefs, the lobster fishermen of the Florida Keys are increasingly endangered. It's a trend that has been building for more than a decade.

"There used to be about 40 to 50 fishermen on this island,," Nichols recalled. "And we had about 30 of them at this little fish house, now there are about five fishermen left on the island."

It's a hard life for sure.

"We normally leave 5 in the morning, get back 5 or 6 in the afternoon and we run anywhere from 25 to 35 miles out," said Billy Niles.

"It's too hard for most people," agreed Billy Niles. "You're in the sun all day long. It's real hard work, back breakin' work."

Boat insurance can cost $10,000 a year. Permits and fees another $5,000. And every time the boat leaves the dock -- it is $500 on diesel and another $300 for the crew.

At $3 a pound, just to break even, they need to pull 300 pounds of lobster.

On the day we visited, Gary's daughter had pulled only 100 pounds of lobster

"I'm doing everything I know and it's not working out," said Nichols.

In Key West, George Niles was having one of his best days of the year. As he pulled up to the dock, his traps were full. He had netted 1,068 pounds.

"That qualifies as a great day," he said.

But the joy was short lived. Engine troubles threatened to cut into the day's profits. It turned out not to be too serious, but they all know they live one hurricane, one major mechanical problem away from losing it all.

"It wouldn't surprise me if half the lobster fishermen down here go out of business this year," said George Niles.

(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)

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