Equine Economic Study Finds Diverse Sectors And Employment Positively Impacted Since 2017

With increases since 2017 in both the total value impacted and equine-related employment, the 2023 findings of the Equine Economic Impact Survey by the American Horse Council (AHC) reflect the positive contributions of the equine industry on the U.S. economy, the organization said via a release Wednesday.

The survey offers a comprehensive overview of the economic impact and trends within the sector and highlights how the industry reaches far beyond the pastures and ranch land across the country.

Highlights include:

  • Diverse Economic Sectors Impacted: $177 billion. That's the total value added in 2023 from the equine industry, up from $122 billion in 2017. The equine industry's ripple effect extends beyond the traditional sectors, influencing a broad spectrum of industries. From agriculture and tourism to veterinary services and technology, the survey showcases the interconnectedness of the equine world with other economic realms.
  • Employment Boost: The survey reveals a substantial impact on employment with 2.2 million jobs linked both directly and indirectly to the equine sector. Not only are breeders, trainers, veterinarians and farriers represented, but so are truck drivers, nutritionists, chemists, police officers and journalists.
  • Slight Downshift in Population: While there is a slight downshift in the total population of horses from 2023 (6.6 million) compared to 2017 (7.2 million), that's only a slight consideration when compared to the growing numbers in jobs and expenditures.

“The Economic Impact Study is the most effective tool in our advocacy quiver,” says Julie Broadway, president of the AHC. “When the industry needs to take aim at an issue, this data is invaluable in helping us paint the picture of the contributions the industry makes and the breath & depth of its composition.”

Click here to purchase a copy of the study.

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Amid Daunting Industry Issues, A Message To Symposium Students: Don’t Give Up

A panel discussion titled “From Data to Dollars: Understanding Horse Racing's Economic Impact As Racing's Future is Questioned” during Wednesday's Global Symposium on Racing hosted by the University of Arizona Race Track Industry Program (RTIP) led off with moderator Alan Foreman confronting “the elephant in the room that we dodge.”

Foreman, the chairman and chief executive officer of the Thoroughbred Horsemen's Association, said racing is facing an “existential moment” at a time when industry stakeholders increasingly must make the case for the sport's so-called social license to exist in the face of intense pressure from anti-racing activists and a younger generation of Americans who hold the belief that animal-based entertainment is more cruel than cool.

“It's not about foal crop. It's not about field size. It's not about whether we have a core product,” Foreman said, ticking down the list of the common concerns that industry insiders often debate.

“The single biggest issue right now [is] should the federal government, and should our state legislatures, continue to support our business?” Foreman said.

Foreman then rephrased his rhetorical question more bluntly so there would be no misunderstanding: “Is it time to end horse racing in this country?”

Foreman certainly doesn't think so, and neither did the panelists who joined him at the podium.

But the group did try to offer pearls of wisdom as to how industry stakeholders might fight back when confronted with that question.

Julie Broadway | Horsephotos

Their answers largely centered on the sharing of strategies for getting across the industry's far-reaching scale and the potential ramifications of ceasing racing, and several speakers even articulated how some entities in the sport have effectively lobbied their respective states to secure financial incentives, bolster racing programs, and modernize facilities, like the currently underway rebuild of Belmont Park and the planned re-imagining of Pimlico Race Course.

Foreman pointed out that even though there is now federal oversight in the form of the Horseracing and Safety Act (HISA) Authority, racing in the United States remains primarily a state-sanctioned business, and how much of the industry operates under laws that were enacted for vastly different economic reasons decades ago than what we face now.

Every year at about this time when applying for next season's racing dates, Foreman said, track operators increasingly have to defend why their states should support our sport's way of doing business.

“The point is, what the state giveth, the state can taketh,” Foreman summed up.

And demonstrating that we are upholding that “social license” must take the form of deeds and not just words, Foreman said. He and the other panelists also concurred that the sport's narrative also must be backed up by accurate economic data, which helps to drive home points to legislators and regulators.

What we need to successfully convey, Foreman said, is “if you talk about the economics of this business; the value of horse racing to the economies, of our local communities, of our states, of our country…I think that we can overcome this very challenging environment that we are in.”

Julie Broadway is the president of the American Horse Council (AHC), a national organization whose work and data helps not only racing stakeholders, but everything equine-centric in the country, under a scope that ranges from broad national issues to smaller initiatives at the local government level.

“You cannot sit still and sit back and wait for people in [government] to figure out what goes on in our industry and what it's all about,” was Broadway's assessment of how to approach dealing with politicians who can help usher through changes via legislation.

Regardless of the level of government, Broadway said the approach is largely the same. Getting your message across means 1) educating decision-makers; 2) setting context and dispelling misinformation and inaccuracies about your position; 3) stating the positive and pointing out unintended and/or negative consequences, and 4) making the overall narrative relatable and personal.

Those points are all underpinned by being armed with the proper data, Broadway said.

Najja Thompson | Fasig-Tipton

Najja Thompson, the executive director of the New York Thoroughbred Breeders, said that a lot of times when racing people go in to make their cases to legislators, they have to be aware that they'll be dealing with a lower-level staffer at first. “And they're not listening to me unless I have the data to implore them to get their representative to speak to me directly on why racing is important in New York,” he said.

But, Broadway added, racing industry stakeholders can't benefit from that data if they don't join in to help compile it.

Broadway gave the example of a recently undertaken AHC economic impact study that sought to include feedback from the racing industry. The data will eventually be used to underscore the importance of horse racing within America's larger equine population, and it will be available for anyone who wants to cite it in making their case for support from legislators.

Yet only four Thoroughbred tracks responded.

“This survey was out for more than six months,” Broadway explained. “I'm sad to say that the Thoroughbred racing industry had a really low response rate. I mean, we really had to beg for data.”

Broadway contrasted that with participation from the harness racing industry, “because they really stepped up. They are getting their own breakout report just on Standardbred racing [that will] cut across all states where Standardbred racing occurs.”

Lonny Powell, the chief executive officer of the Florida Thoroughbred Breeders' & Owners' Association, said he was stunned to hear that support from Thoroughbred tracks was so low.

“That's amazing. That's tough. How are we going to tell our story if nobody's even trying?” Powell said.

“I'm always a track guy,” Powell continued, alluding to his years in track management prior to a career turn toward executive jobs with industry entities. “And I just don't get it. I don't get why you wouldn't want to tell the story.”

Tom Rooney, the president and chief executive officer of the National Thoroughbred Racing Association, pointed out that being a reliable broker of data is important, but that you need to also skillfully be able to tell the story of those numbers in a narrative form to get your point across to non-racing listeners.

“Clearly, the data is about jobs. It's about farms. It's about these things that we're used to going away, and maybe having to change the way that we work,” Rooney said. “If you work in the horse racing industry, you're kind of the subculture of skills that's probably applicable [in] very few other places. So we live in our own world, and we wouldn't be here if we didn't think that world was a good and beautiful endeavor to belong to.”

Added Powell: “You've got to be able to tell somebody what the consequences are if your industry goes away.”

Lonny Powell | Serita Hult

Powell also pointed out that reams of data are great, but that time in front of legislators is limited, so racing stakeholders need to distill it into manageable, relatable chunks.

“You've got to know it. You've got to believe it. You've got to have confidence in it. And you really have to care about the industry you're talking about. Otherwise, it's just a study,” Powell said. “Make your story relatable to those that aren't in our industry.”

Several panel participants underscored that people in racing have to take the time to forge personal bonds with legislators so the sport's stakeholders can be viewed as trusted sources.

In other words, don't go seeking help from politicians for the first time only when “your back's against the wall,” Powell cautioned.

“Are you kidding me? You've got to develop relationships. That takes years,” Powell said.

Foreman stressed that the racing industry needs to hone (and often repeat) the message that the sport is an economic engine, and that the money it generates often gets reinvested back into the community in ways that aren't apparent to legislators.

“Here's something that very rarely gets talked about, but legislators love to hear this,” Foreman said. “Racing is a community. We take care of our people,” he continued, giving examples of how in his home state of Maryland, the horsemen's health system provides full health care for the people who work in racing.

“That is something that doesn't fall back on the local economy, that doesn't fall back on social services. It doesn't fall back on the state,” Foreman said. “It's the racing industry that supports that. We take care of the people who work with us, [and] that resonates with legislators. And that's why they're willing to support the industry, because they understand the local impact that it has.”

To get that story across to political decision-makers, Foreman said, “we combined the economic impact with the social license aspects of it, and that's the takeaway.”

Powell, however, had a different message to impart, speaking directly to RTIP students. He prefaced his comments by letting the RTIP majors know that he is a graduate of that program who was attending his 41st edition of the annual symposium, and that he understood how some of the presentations over the past two days that focused primarily on industry problems might be giving students second thoughts about pursuing a career in the sport.

“Don't change your major,” Powell implored them, his voice at times cracking with emotion. “That's exactly why you're needed in leadership. That's exactly why you're needed in this business. Because we need people that believe you can make progress versus 'ride it all out.'”

“It's difficult. It's changing,” Powell said of horse racing. “But you can't give up.”

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AHC Board Elects New Officers, Approves Standing Committee Chairs

At the recent American Horse Council (AHC) Annual Meeting, the Board of Trustees elected new officers and filled standing committee chair positions, the organization said in a release Thursday.

The new officers are:

  • Dr Rick Mitchell, Chair; representing United States Equestrian Federation (USEF)
  • Marilyn Bertera, Vice Chair; representing United States Trotting Association
  • Matt Iuliano, Treasurer; representing The Jockey Club
  • Kristin Werner, Secretary; representing The Jockey Club

At the same event, the following standing committee chairs were approved:

  • Kathy Alm, of PATH International as chair of Equine Welfare
  • Katie Flynn, DVM, of USEF as chair of Health & Regulatory
  • Joe Wilson of TRA as chair of Racing Advisory
  • Randy Rasmussen of Back Country Horsemen's Association as chair of Recreation/Trails/Land Use
  • Billy Smith, PhD, of National Reining Horse Association as chair of Shows/Competitions

“The American Horse Council thrives on the variety of viewpoints and passions of our Board of Trustees and our committee chairs,” said President Julie Broadway. “With these new additions, we're comfortable moving into the next few years of providing a voice for the horse and the industry in Washington.”

Other business included the naming of Keith Chamblin, COO at National Thoroughbred Racing Association (NTRA), who will join the AHC Board of Trustees as the NTRA representative. Prior Chamblin served as V.P. of Marketing at Hollywood Park Racetrack from 1988-1994 and in various capacities at Remington Park before joining the NTRA in 1999.

“We look forward to Keith's contributions on the AHC Board,” said Dr. Mitchell. “He brings to the Board a wealth of experience and contacts within the Thoroughbred racing industry. His knowledge of the NTRA's legislative activities and grassroots organizing will be invaluable.”

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Barr Introduces Legislation To Make Racehorse Tax Depreciation Schedule Permanent

U.S. Congressman Andy Barr (KY-06) reintroduced legislation to incentivize investment in Kentucky's signature equine industry.  The Equine Tax Fairness Act would make the three-year depreciation schedule permanent for racehorses, regardless of their age when put into service. Currently, Congress must reauthorize this provision in the tax law on an annual basis.

Additionally, this legislation would reduce the holding period for equine assets to be considered long term capital gains, putting them on a level playing field with other similar assets. Congressman Barr's bill is endorsed by the National Thoroughbred Racing Association (NTRA), the Kentucky Thoroughbred Association, the Jockey Club, the Thoroughbred Owners and Breeders Association, Keeneland, and the American Horse Council.

“Permanently delivering tax incentives for owners and breeders will strengthen investment in our signature equine industry,” said Congressman Barr, who serves as Co-Chair of the Congressional Horse Caucus. “I want to continue the momentum started with the enactment of the Horseracing Integrity and Safety Act to push another key industry initiative across the finish line that will help solidify the sport for decades to come.”

“The three-year depreciation of racehorses (similar to other investment assets) is critically important to encourage robust investment in Thoroughbred horses and to maintain the vibrant economy and trade we have seen throughout this Thoroughbred sales cycle and consistently over the past 85 years at Keeneland,” said Shannon Arvin, President and CEO of Keeneland.  “We appreciate Congressman Barr's consistent support of this legislation and the entire Thoroughbred industry.”

“Congressman Barr understands the horse racing industry and appreciates the impact this bill would have on attracting and maintaining ownership in racehorses,” said Alex Waldrop, President and CEO of NTRA. “We thank him for introducing the Equine Fairness Act and for helping support an industry that is a job-creating economic engine for his home state of Kentucky and for other states.  Both provisions offer a level of tax fairness and flexibility that racehorse owners seek when determining their level of investment.  This bill simply is good for business.”

“The Jockey Club wholeheartedly supports the Equine Tax Fairness Act, introduced by Congressman Barr,” said James Gagliano, President of the Jockey Club. “This bill will put horse ownership on par with other investment assets.  The three-year depreciation schedule accurately reflects the typical career of a racehorse since nearly three-quarters of foals that race have a career of four years or less. This change has been enacted by Congress on a temporary, year-to-year basis since 2008, and needs to be permanent law.”

You can read the Jockey Club's full statement on the bill here.

“The Kentucky Thoroughbred Association endorses the Equine Tax Fairness Act, and is very grateful to Congressman Andy Barr for introducing it.  Kentucky breeders produce foals that become racehorses in 38 states, and the 3-year depreciation encourages racehorse ownership which we know supports 241,000 direct racing sector jobs nationwide as well as the 60,000 direct, indirect and induced jobs in the Commonwealth of Kentucky,” said Chauncey Morris, Executive Director of the Kentucky Thoroughbred Association.

“The Thoroughbred Owners and Breeders Association fully endorses Congressman Barr's bill to reward investment in our great sport,” said Dan Metzger, President of the Thoroughbred Owners and Breeders Association.  “We thank him for his consistent support for owners and breeders and the Thoroughbred horse racing industry as a whole.”

“The American Horse Council is pleased to endorse Rep Barr's Equine Tax Bill, which will help ensure growth and investment in the $122 billion equine industry,” said Julie Broadway, President American Horse Council.

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