The war stories abound in this time of a severe downturn in the horse market brought about by the closure of the kill plants in the U. S. and the passage of bills by the Congress and the states that limit what you can or can not do with your horses. BUT-there is still a market for horses if you will do several things. This writer has written for several years that this was going to happen and made suggestions about what you should do to combat this.
I live in an area that has a large population of Amish and Mennonite horse people. There is also a large population that is still trail riding and doing other recreational riding. The market for those horses is good if not excellent. Good riding horses or harness horses are bringing very good prices. From $1500 to several thousand. The horses that are bringing next to nothing are those that are not broke, are not of good conformation and do not have the pedigree to accomplish anything.
For years the price of horses depended on the price of cattle. If cow prices were high so was the price of horses. But they were cheaper than cattle and as such they were attractive to the European market that does not have the same view of horses as the US. In fact, during WWII, we ate horse meat and did not die from it. Since that time, the minority groups have stepped in and created romance stories and myths about the horse in North America. The wild horses that exist in the US today are so far removed from the Conquistador's horses that there is not any resemblance to them in blood or type. The wild horse today is the cast-off of the horses that the early settlers and ranchers did not need or could not use for one reason or the other.
With the falling dollar, apprehension that there may be a recession and environmental conditions in many areas, horse owners are trying to sell, give away or otherwise dispose of their horses. These are the very same horses that were supposedly worth lots of money a short time ago. In former times, these animals would have gone to Europe and the market would have adjusted to fewer animals. Now the rescue groups are buying them and then trying to resell them to the public by adopting them out. And the hobby horse breeders keep on producing animals of little or no value and flooding an overstocked market, driving prices even lower.
If the average horse owner would try to be more innovative and find different ways to market their product as well as reducing the number of horses they produce, they will survive the current downturn in market conditions. Let me suggest a few ways that may work for you.
The deflated dollar can work for you. The overseas market that hesitated to invest in US horses before, can and will buy horses now. Why? Their dollar will buy a better horse than before. But that horse must have those qualities that set it apart from the rest. Here in the states, studs and mares that are by leading sires are still bringing very good prices. The ones that are not are by studs that have not done or produced anything worth noting.
The upcoming stimulus package and the low interest rate should be used to improve your business. If you are not a business, that may be one of your problems. Instead of being a farm, consider becoming a business. You can do so much more if you are an S Corporation or LLC than if you are not plus you can shield your assets. You can depreciate the horses that you buy for use in your program, farm equipment, trucks, trailers, your computer and supplies, barns and arenas, plus much more. You can expense your feed, farrier, show expenses, office supplies and the list goes on and on. While your profit may be minimal, at least you can show a profit in most cases.
You may want to geld old super stud, making a useful gelding that has some value in the marketplace. You can always breed the mares to a stud that has done something and thereby increase the value of the foals. In case, you have not noticed, geldings are bringing better prices than fire-breathing studs, halter broke broodmares and those horses under 18 months old. The well broke gelding will always be in demand. In fact, horses that have some sort of training will bring a better price regardless of the market.
If you have excess stalls or pasture with available hay, consider letting the Animal Control people know that you can take care of X amount of horses. As time goes on, there will be a greater demand for that type of facility. While you won't get rich, you can generate income in addition to your present income. Once it becomes known that you take in horses, you will have more horses than you wished. Get a bill of sale for each horse that you take in or you may have to share the proceeds with the original owner. If possible, charge the owner for taking in the horse. Pick the horses that you take in. Do not take in every horse just because it is free.
Those with serious health or mental issues are not worth dealing with. Suggest to the owner that they have that type of animal euthanized. They will moan and groan but it is still the logical thing to do. This brings up the next opportunity if you have the land. Set up a horse cemetery for these owners. Sell them a plot to bury their horse and charge an annual fee for grounds upkeep. It may be a better alternative to the rendering plant for many horse lovers. You can become a retirement facility providing complete care for the aged horse providing for his last years and then bury him in your cemetery.
I am sure that there are many other ways to deal with the horse population and as time goes on, people will think of them. The NAIS system will come to pass and gives us a better estimation of the true horse populace in the US. It will severely limit the switching of registered animals. It will be used by registries to identify horses that they register. It will be used to track animals in and out of a country and identify those animals that carry disease or genetic defects. The states that tax the sales of horses will be able to do so more easily.
Remember in order to increase the prices that people have to pay for horses is to; 1. Decrease the numbers of horses, 2. Produce horses that have a better pedigree and 3.Become more active (either pro or con), in promoting the changes that will occur in the horse industry.
M. R. Bain has been a horseman all his life and a professional trainer since 1955. He is an owner and breeder and has been employed as a breeding and stable manager. His intent on writing these articles is to educate horse people on how to operate a successful horse business. You may contact him at MRBain@businessofhorses.com with your questions and comments.
He has written a book titled, 'The Business of Horses--Creating A Successful Horse Business' It is available from the author or at your bookstore.
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