Labor Shortage Could Be The Next Big Challenge For Racing, Industry Experts Say

The racing industry had a number of hurdles ahead of it before the COVID-19 pandemic hit. Reducing fatal breakdowns, creating a national regulatory body, attracting new owners and horseplayers, along with many other challenges, were all at the forefront of discussions before March 2020. Speaking at this week's American Horse Council National Issues Forum, industry experts say 2020 may have worsened the next big problem facing racing — the labor shortage.

In the short term, the pandemic made it difficult for people to travel to work in the United States on a short-term basis, but that problem may have been solved. Earlier this year, President Trump issued three proclamations that suspended the entry of aliens from certain countries due to concerns about the novel coronavirus. Several groups, including Breeders' Cup, the National Thoroughbred Racing Association, Keeneland, Kentucky Thoroughbred Association, and Fasig-Tipton, worked with the Department of Homeland Security to get exemptions for people traveling into the United States to buy horses at the autumn sales or to run at the Breeders' Cup. The president's restrictions allowed for exemptions that were in “the national interest” and through a very specific and detailed explanation of Thoroughbred economics, the industry groups were able to get exemptions for certain key players in both events. That discussion could ultimately prove helpful down the road.

“We were happy we were able to get that done,” said NTRA President and CEO Alex Waldrop. “I think it's a good story to tell. At this point in time, I think the Department of Homeland Security is very familiar with our industry, the international nature of our industry, and they're supportive of the national interest exemption where it's appropriate.”

That doesn't mean that when the pandemic is over, the horse racing industry will no longer face restrictions on international movement that impact its bottom line. It's no secret that trainers and farms have had difficulty in recent years accessing H-2A and H-2B visa workers to fill seasonal needs for grooms, hotwalkers, exercise riders, and farm workers. Those restrictions have only gotten tighter under the current administration, according to the Bryan Brendle, director of policy and legislative affairs for the American Horse Council.

The Department of Homeland Security has discretion to allow visas above the statutory cap, and while it did authorize supplemental H-2B visas in March, it only released 35,000 and not the 60,000 it could have released. (Trainers have previously said even with supplemental visas released they struggled to find staff.)

The issuance of new H-2B visas was put on hold in June. In August, the U.S. State Department, which handles the visa process in the home countries of guest workers, did create an exemption for caretakers of non-farm animals, which is how horses are classified in the visa system. That only freed up people who had been granted visas prior to the freeze and then been told not to travel to the United States, so the State Department's action didn't result in many additional workers coming into the States.

Eric Hamelback, CEO of the National HBPA, said he still regularly hears from trainers, including high-profile operations like Chad Brown, Todd Pletcher, and Dale Romans, who are unable to find enough help despite high unemployment figures in the States this year. Hamelback said he knew of operations at smaller tracks that had to close altogether because they couldn't find employees to take care of horses.

“While we are all on different pages with some items in this industry we can't be on different pages as we push for our workforce shortages, whether it's developing new programs here in the States or continuing to push for H-2B visas,” said Hamelback.

Waldrop said the “elephant in the room” is the potential impact of the upcoming national election on this issue.

“You have to ask yourself — is there a difference between a Trump presidency and a Biden presidency?” he said. “My sense is, we've got an uphill battle, we've got tough sledding if we continue to work with the Trump administration. I think you're going to see difficult times ahead, certainly no talk of comprehensive immigration reform.

“I think you cannot say Trump will not develop a comprehensive policy and Biden will, but I do think you'll see some additional conversation taking place [if Biden wins].”

Of course, one solution would be to try to create a better pipeline for domestic workers to fill the jobs on the racetrack. Remi Bellocq, executive director of Equine Programs at Bluegrass Community and Technical College, said that progress could be on the horizon on this issue, but it's not going to be an easy one to solve. Bellocq recently collaborated with the Kentucky Chamber of Commerce and KEEP to create a one-year apprenticeship program for horse trainers. He also suggested Godolphin may soon launch an international educational initiative to help those interested in racing find the appropriate pathway to industry jobs in their country.

“On a greater scale, we need to look at what we do nationally,” Bellocq said. “My strong feeling is that until we approach the workforce issue the same way we approach unwanted horses or racing medication, this will continue to be a bigger and bigger challenge. One of the things I've found personally is you have a guest worker immigration issue you have to deal with, but the labor issue, which is a domestic training issue, is just as critical. Until we can incentivize and recruit domestic workers into our industry, pay them what they ought to be paid, find work/life balance, it's going to be a growing problem.

“What I find with a lot of our graduates is they'll go to work for a trainer but very quickly they'll want to move up, become an assistant trainer or a foreman, and we have to very quickly fill those lower skilled jobs again. That's one of the things we continue to try to find solutions for.”

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Guest Speakers Announced For American Horse Council’s National Issues Forum

Join professionals from all facets of the equine industry to learn and explore current issues facing the horse community.  On Wednesday, October 28th, The American Horse Council (AHC) National Issues Forum will feature four outstanding presentations, all given in Eastern Standard Time:

At 11 a.m., AHC staff, and possibly a guest staffer from the Senate, will provide a legislative and regulatory update and overview of numerous industry initiatives underway to help position the equine industry for the future. In advance of the November election, AHC will share insights into a first-time list of “top ten” congressional incumbents whose success would bode well for the industry moving forward. Horse enthusiasts will learn how COVID-19 restrictions have impacted this year's agenda, including advocating for Paycheck Protection Program (PPP) and tax flexibility to provide relief for equine business. On the labor front, horsemen and women will also learn more about the continuing need for guest worker visa flexibility. While the pandemic has added items to the agenda, it has also given new “urgency” to other priorities, including passage of the “Great American Outdoors Act of 2020.” Pushing this landmark trails bill over the finish line serves as a “text book” example of putting “horsepower” into the industry's grassroots network.

At 1 p.m., join David Fuscus, CEO of Xenophon Strategies, to hear about best practices for crisis management. The number and severity of crisis situations that now confront companies and organizations–and put their reputation, profits, and future at risk – underscore the importance of knowing how to communicate about and deal with a crisis. David has been heavily involved in crisis communications and has worked with the media on major national and international crises, including representing the airline industry following the 9/11 terrorist attacks and playing a key communications role in eleven major airline accidents.

At 2 p.m., look for an exciting and entertaining presentation by American Dude Ranch Association members on outdoor riding destinations featuring Russell True of the White Stallion Ranch and Cheri Amos-Helmicki of the Bar Lazy J Guest Ranch.

Russell, his brother Michael and their families own the White Stallion and under their management the ranch is consistently recognized as an award-winning property locally, nationally and internationally.  The ranch has been ranked No. 1 on TripAdvisor of 130 hotels in Tucson for 8 consecutive years and has received numerous TripAdvisor certificates and awards, including Certificates of Excellence, top customer service rankings and Hall of Fame honors. Additionally, the ranch was named “Best Family Resort” in USA Today's 10 Best Readers' Choice Awards in 2018.

Cheri and her husband, Jerry, have owned the Bar Lazy J Guest Ranch in Parshall, Colorado for 25+ years. An all-inclusive Colorado Dude Ranch vacation free of crowds, lines and stress. In addition to great lodging, you'll also enjoy exceptional meals and on-ranch activities including: horseback rides, Gold Medal fly fishing, trap shooting, Colorado River zip-line, guided hikes, mountain bikes, heated pool and hot tub, Kids' Program, unforgettable evening entertainment and much more.

At 3 p.m., join Dr. Veronica Lac of the HERD Institute to learn about expanding Diversity, and Inclusion in the equine industry.  A diverse industry (in age, race, religion, nationality, sexual orientation, and gender) brings diverse viewpoints and perspectives; these elements can help develop new approaches and great new ways to appeal to participants, fans and new customers.

However, diversity does not necessarily mean inclusivity. Yes, making diversity a priority is important; but so is the next logical step: creating a culture where people from all backgrounds feel included. Inclusivity is the key to actually maintaining (not just creating) diversity.

Dr. Lac has over 20 years of experience as a corporate trainer and mental health professional, as well as a certified therapeutic riding instructor through PATH Intl. Her academic background includes a Masters in Training & Performance Management, a Masters in Gestalt Psychotherapy, and a PhD in Psychology.

And join us at 5 p.m. for our Annual Awards Cocktail Party honoring Rolapp, Hickey and Van Ness Award Winners.

The AHC is known for convening the equine industry's visionaries and leaders in an intimate three days of informative and innovative discussion on some of the most relevant challenges and initiatives facing the industry. Attendees get to participate in discussions that help shape the industry and optimize existing and emerging legislative and regulatory issues.

Registration is open and video conference logistics will be sent to registered participants along with committee meeting agendas. Learn more here.

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American Horse Council’s Conference And National Issues Forum Schedule Released

The American Horse Council is pleased to announce the tentative program for its' October 26-28, 2020 Virtual Conference as follows:

Monday October 26 – Free and open to anyone to listen in – registration required

11 AM ET    Recreation Trails & Land Use Committee
1  PM ET     Racing Advisory Committee
3  PM ET     Health & Regulatory Committee
5  PM ET     Equine Welfare Committee
7  PM ET     Marketing Alliance – Time to Ride Program Update

Tuesday October 27 – Free and open to anyone to listen in – registration required

11 AM ET   Shows & Competition Committee
1   PM ET     United Horse Coalition & Equine Welfare Data Collective
Guest Speakers:  Retired Racehorse Project – Jen Roytz
Heart of Phoenix/Appalachian Trainer Face Off -Tinia Creamer

Wednesday October 28 – Paid registration required

11 AM ET   Legislative Update & Overview of AHC Initiatives
1  PM ET     Guest Speaker – Crisis Management – Davis Fuscus of Xenophon Strategies
2  PM ET     Guest Speakers – Dude Ranch Association members on outdoor riding destinations – Russell True of the White Stallion Ranch                        and Cheri Amos-Helmicki of the Bar Lazy J Guest Ranch
3  PM ET     Guest Speaker – Dr. Victoria Lac of the Herd Institute – Diversity, Equality and Inclusion
5 PM ET     Awards Cocktail Party honoring Rolapp, Hickey and Van Ness Award Winners

The AHC is known for convening the equine industry's visionaries and leaders in an intimate three days of informative and innovative discussion on some of the most relevant challenges and initiatives facing the industry. Attendees get to participate in discussions that help shape the industry and optimize existing and emerging legislative and regulatory issues.

Registration will open on or around September 1, 2020, and video conference logistics will be sent to registered participants along with committee meeting agendas and bios for guest speakers.

AHC will hold its 2021 meeting June 6-9 at The Le Meridien in downtown Denver, CO.

Contact AHC President at jbroadway@horsecouncil.org for more information.

Read more here.

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American Horse Council Shifts National Issues Forum To Virtual Format For 2020

After much deliberation, and in consultation with AHC members regarding their travel concerns due to the pandemic, AHC's Annual Meeting & National Issues Forum originally scheduled for June 7-10, 2020 and postponed to October 2020, has now made the decision to forego an in person meeting and will instead be hosted in an online virtual format the week of October 26-29, 2020.

The AHC is known for convening the equine industry's visionaries and leaders in an intimate three days of informative and innovative discussion on some of the most relevant challenges and initiatives facing the industry. Attendees get to participate in discussions that help shape the industry and optimize existing and emerging legislative and regulatory issues.

AHC President Julie Broadway stated: “While disappointed we won't be able to network and socialize, we are excited about the possibilities a virtual event allows us to embrace. We envision opening attendance to some speakers to anyone interested for free, while some educational content will be offered at a deeply discounted rate. We'd also like to have a virtual cocktail party and celebrate our Van Ness, Rolapp and Hickey Award winners.”

Registration will open on or around August 1, 2020 on the AHC website for the virtual conference www.horsecouncil.org. Guest speakers and specifics regarding meeting dates/times to be announced very shortly.

AHC will hold its 2021 meeting June 6-9 at The Le Meridien in downtown Denver, CO.

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