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THE ECONOMIC IMPACT OF THE HORSE INDUSTRY ON THE UNITED STATES

The Power OF HORSES

Copyright © 2018 by the American Horse Council FoundationAll rights reserved including the right to reproduce this report or portions thereof in any form.

U.S. $40

When the streets of American cities teemed with horses and horse-drawn carriages, and horse-drawn plows tilled America’s farmland, the equine population stood at 25 million (in 1920). By 1960 that number had dropped to just 3 million.

However, breeds involved in racing, competition and recreation were off and running in a positive direction.

Over the course of the 20th Century, as the assembly line and other Industrial Revolution innovations solved the problem of production, the role of the horse in the American economy successfully transformed alongside the emergence of the consumer-based economy.

As their utilitarian roles declined, horses were put to work entertaining America’s growing consumer class instead. The ranks of recreation, racing, and competition enthusiasts swelled, contributing to a rebound in the United States horse population and the industry itself.

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Direct Indirect and Induced Total

Employment 988,394 756,018 1,744,412Labor Income $37,703 $41,469 $79,172Value Added $50,695 $70,914 $121,609Output $80,653 $134,565 $215,217

Total Economic Impact Summary ($MMs)

Economic ImpactWhile horses still perform traditional chores on American ranches and farms, and still transport people in Amish communities, people today use horses mostly for sporting, recreational or therapeutic purposes. No other domesticated livestock has bridged the gap from a production-based to a consumer-based role in the economy. This success, due in no small part to how horses tug at the human heart, has made the horse industry an enduring force in the U.S. economy almost a century after its utilitarian roles became mostly obsolete.

The economic activity involved in caring for the nation’s estimated

7.2 million horses, along with the spending by horse

enthusiasts in their pursuit of horse events and recreation, directly contributes

over $50 billion to America’s Gross Domestic Product.

Direct Contribution

to GDP:$50 billion

Direct Employment

Impact: 988,394

Jobs

Direct Wages, Salaries and

Benefits: $38

billion

From those direct effects, the horse industry’s contribution ripples out into other sectors of the economy. Adding these ripple

effects results in an estimate of the total contribution of the horse industry to the U.S.

economy of $122 billion.

Total Value Added to the

U.S. Economy: $122 billion

Total Employment

Impact: 1,744,747

Jobs

Total Wages, Salaries and

Benefits: $79

billion

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Horses by the NumbersSurveys of households in the U.S. resulted in an estimate of more than 7 million horses. Quarter Horses dominate the Competition, Recreation, and Traditional Work (such as farming and ranching) sectors, while Thoroughbreds dominate the racing sector.

Rescues and sanctuaries, Equine Assisted Activities Therapy (EAAT) operations, and academic programs own horses that were not captured in the household surveys. Moreover, horses owned by Amish households are not considered to have been captured in the household surveys, and an estimate for ownership was derived by third-party studies and Amish population estimates.

Racing Competition Recreation Work Other Total

Quarter Horse 245 416 929 281 266 2,137Thoroughbred 506 164 401 14 51 1,136Standardbred 332 6 180 1 87 606

UPHA Breeds 88 216 532 181 57 1,075All Other Breeds 54 425 1,099 60 499 2,137Total 1,224 1,228 3,141 537 959 7,090

Horse Population Estimate by Breed and Sector (000s): Household Surveys

Source: The Innovation Group. UPHA--United Professional Horsemen Association Breeds are: American Saddlebred, Arabian, Friesian, Hackney, Morgan and National Show Horse

Horse Ownership Household Surveys 7,090,405Institutionally Owned and Amish Owned Horses 156,430

Total Utilized for Economic Impacts 7,246,835

Total Horse Population Estimate, Including Institution and Amish Owned

Source: The Innovation Group

State Close UpAs in the past, Texas has the most horses, followed by California and Florida.

Horse Population Estimate by State (000s)

Source: The Innovation Group

State Horses

AK 9.1

AL 114.3

AR 132.3

AZ 142.0

CA 534.5

CO 205.3

CT 40.4

DC 0.7

DE 8.0

FL 387.1

GA 133.1

HI 6.1

IA 154.6

State Horses

ID 125.1

IL 150.4

IN 172.6

KS 138.6

KY 238.0

LA 120.5

MA 29.5

MD 101.5

ME 28.6

MI 188.9

MN 145.7

MO 229.0

MS 87.4

State Horses

MT 104.9

NC 205.2

ND 47.6

NE 117.1

NH 11.7

NJ 59.4

NM 113.5

NV 41.2

NY 154.0

OH 256.0

OK 252.7

OR 135.2

PA 223.6

State Horses

RI 2.6

SC 73.6

SD 96.5

TN 165.8

TX 767.1

UT 96.4

VA 183.6

VT 19.8

WA 197.2

WI 150.3

WV 69.8

WY 78.6

Total 7,247

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The following table shows the top 10 states supported by the horse industry, based on horse-owner expenditures and racetrack revenue.

Top Ten States: Horse Owner Expenditures and Racetrack Revenue (MMs)

Texas $5,866

California $5,055

Florida $4,993

Kentucky $3,124

Oklahoma $2,333

Pennsylvania $2,124

New York $2,111

Ohio $2,102

North Carolina $1,814

Missouri $1,793

This study has focused on the US domesticated horse population and does not include wild, feral and free roaming horses.

Horse Enthusiasts TodayWhile only a small percentage of Americans own horses— for every horse-owning household there are 22 other households that contain horse enthusiasts: people who participate in horse activities or attend horse events as a spectator.

In total, 30.5% of households—or 38 million—contain horse enthusiasts.

30.5%

Type US Households PercentOwner 1,609,122 1.3%Participant (Non-Owner) 20,152,335 16.0%

Spectator Only 16,550,967 13.2%Total Horse Enthusiast HH 38,312,424 30.50%

Horse Enthusiast Breakdown by Type

Own Horses

Participate in horse activities (but do not own a horse)

Spectate at horse events (but do not own or participate)

1.3%16.0%

13.2%

Percentage of U.S. households that:

Good news for the future: 38% of horse participants are under the age of 18.

Horse Enthusiast Age Distribution by Type

<18 years 18-24 years 25-34 years 35-44 years

75+ years45-59 years 60-74 years

Owner

median age: 38

22%

20%

23%

17%

2%

12%5%

median age: 22

1%

Participant38%

17%16%

11%

12%6%

Spectator

median age: 36

13%

14%

18%

13%21%

13%

8%

U.S. Census

median age: 38

10%

13%

20%

14% 23%

14%

6%

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While horse ownership tends to be concentrated in higher income groups, participation or interest in horse activities is more evenly distributed among income groups, with the largest percentages of horse enthusiasts falling within the middle income brackets.

$0 - $24,999 $25,000 - $49,999 $50,000 - $74,999

$75,000 - $99,999 $100,000 - $149,999 $150,000 +

Horse Ownership (AHC) and Enthusiasts (Balanced Start) Distribution by Income Bracket

U.S. Census

22%

23%

18%

12%

13%

11%

AHC Owners

12%

19%

16%22%

28%

4%

Balanced Start Horse Enthusiasts

9%

25%

22%

17%

16%

10%

Industry ParticipantsBehind every successful horse and equine operation, there is a expansive network of people who participate in the equine industry, both directly and indirectly.

Those participants include:• Associations

• Breeders

• Owners

• Trainers

• Jockeys and sulky drivers at racetracks

• Grooms and other caretakers of horses at farms

• Veterinarians, farriers, nutritionists and other practitioners

• Managers and other employees of farms, racetracks, show facilities-Insurance agents that specialize in equine-related coverage

• Mounted police officers

• Architects and designers that conceptualize, build and in some cases maintain barns, fences, farms, ranches and racetracks

• Farmers who raise grain and hay

• Manufacturers of saddles, tack and other equipment for horses and clothing for people

• Photographers, journalists and announcers at events

• Employees and Volunteers at equine rescues and sanctuaries

• Employees of companies that conduct auctions

• Transportation companies that ship horses by truck and/or airplane

• Researchers at universities and private organizations who improve the health and well-being of horses

• Employees and volunteers at therapeutic riding programs

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The Recreation SectorIn number of horses and participants, recreation is the largest sector of the horse industry. With more than 3.1 million horses being used, the economic impact of the recreational equine industry has several components.

Trail riding is the main equine recreational activity that allows people to experience public lands and parks on horseback. It allows many Americans to take a break from their everyday lives and connect with their horse for a few hours.

Percentage of U.S. households in 2016 that participated in:

Trai

l Rid

ing

Less

ons

or nearly 13 million householdsmore than 10%

The vast majority of trail riders—87%—utilize public lands.

8.4% or 10.6 million households Direct Indirect and Induced Total

Employment 162,805 110,451 273,256Labor Income $5,668 $6,109 $11,777Value Added $7,458 $10,557 $18,015Output $11,219 $20,363 $31,583

Recreation Sector Economic Impact Summary ($MMs)

The Recreation Sector

supports more than 162,000 direct jobs

adds $7.5 billion in direct value to the national economy

These direct impacts...

drive a further $10.5 billion in added value to the economy

create more than 110,000 jobs from indirect and induced effects

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The Racing SectorThe mainstream population of the U.S. has been exposed to, and become more familiar with, the racing sector of the industry primarily due to major races such as the Kentucky Derby, Preakness, and Belmont Stakes. In fact, the drought of a Triple Crown winner was finally ended back in 2015 when American Pharoah stormed his way into the hearts and minds of the American people!

The major racing breeds are Thoroughbred, Quarter Horse and Standardbred (Harness racing). Arabians and Appaloosas also participate in a small number of races typically at Thoroughbred or Quarter Horse tracks. Standardbred or Harness racing is predominantly limited to the Northeast, Midwest, and Mid-Atlantic states, while Quarter Horse racing is predominantly a Great Plains and Western sport.

Throughout American history, many racehorses have achieved a celebrity status that rival their human counterparts in other sports. The state of Kentucky has become a travel destination for those looking to connect with horse racing’s rich history, and even be able to feed treats and nuzzle with winners such as California Chrome and Smarty Jones.

The Racing Sector




drive a further $21 billion in added

value to the economy


The U.S. racing numbers for 2016:Approximately 80 tracks, half of those racing at least 30 days annually. Wagering of $11 billion involving 46,014 races, 5,612 live race days and total purses of $1.2 billion.

Thoroughbred and Quarter Horse Racetracks:

Combined purses of $1.6 billion

Harness Racetracks: Approximately 30 tracks and more than 200 fair racetracks. Wagering of $1.45 billion involving 38,762 pari-mutuel races, 3,675 live race days and total purses of $423 million.

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The Competition SectorThe wide variety of disciplines and tiers in the competition sector—from local shows that take place each weekend throughout the country to high-level national and international competitions— allows for participation by owners and riders at all levels, from beginner to professional!

The following four organizations alone sanction more than 6,000 events annually, generating substantial economic impact and opportunities for show organizers, vendors, host facilities and stables, and surrounding businesses like hotels, restaurants and convenience stores.

• U.S. Equestrian Federation (USEF): 11 breeds and 18 broad competitive disciplines, including the three equestrian disciplines held at the Olympic Games.

• The American Quarter Horse Association (AQHA): 22 additional disciplines such as barrel racing, cutting, and a variety of roping events.

• National Reining Horse Association (NRHA) involve the execution of precise movements related to cattle ranching, such as 360-degree spins done in place and hallmark sliding stops.

• United Professional Horsemen’s Association (UPHA) also hosts competitions focusing predominantly on American Saddlebred, Arabian, the Morgan Horse, the Hackney Pony and the National Show Horse.

USEF AQHA NRHA UPHA# of Events 2,394 2,031 1,674 214*# of Managers 690 700 264 NA

Competitions Licensed by Major National Organizations

*Non-USEF events only; UPHA is also involved with 66 USEF shows.

Other breed registries and equestrian associations have additional types of competitions unique to their breeds or interests, for example, rodeo and associated timed events, trail obstacle courses, mounted shooting competitions, team penning, equine driving, and team roping. There are also several state and regional associations that sponsor competitions, and an untold number of non-sanctioned events throughout the country.

Direct Indirect and Induced TotalEmployment 241,490 175,581 417,070

Labor Income $8,755 $9,643 $18,398Value Added $11,815 $16,548 $28,362Output $18,596 $31,634 $50,230

Competition Sector Economic Impact Summary ($MMs)

The Competition Sector






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Other Equine Activity

Direct Indirect and Induced TotalEmployment 42,633 28,140 70,773Labor Income $1,449 $1,545 $2,994Value Added $1,863 $2,688 $4,551Output $2,848 $5,138 $7,986

Traditional Working Horse Sector Economic Impact Summary ($MMs)

Therapy OperationsThere has been an incredible rise of Equine Assisted therapies for members of the military, children, and even adults. Equine-assisted therapy operations (EAAT) are certified by the Professional Association of Therapeutic Horsemanship International (PATH) and involve 4,800 instructors in 877 certified facilities. EAAT operations in the U.S. generate $311.7 million in revenues, supporting a workforce of 6,768 employees.

Rescues and SanctuariesThere are an estimated 602 equine rescues and/or sanctuaries currently active in the United States, having handled nearly 24,000 horses in 2016. Total operating expenses and capital investment for these operations are estimated to have been $63 million in 2016.

Equine Associations There are 308 equine-related associations active in the U.S., including State Horse Councils, breed registries, non-academic educational organizations, activity-based associations, libraries and museums. These non-profit organizations employ 4,227 people and contribute $213 million in employee compensation.

Traditional Working HorsesTraditional working horses—approximately 8% of the horse population—remain an important part of the industry, and not just on American ranches. In fact, cities like Washington, DC and New York City frequently have horses patrolling the streets, allowing individuals access to horses that they may not have otherwise had! Horses can also be found pulling carriages and adding charm to America’s cities and historic destinations.





more than 28,000 jobs from indirect and induced effects

The Working Horse Sector

8% account for approximately 8% of the horse population.

Traditional working horses

Quarter Horses and UPHA breeds make up the vast majority of working horses on ranches and farms.

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Draft horses and “warm bloods” are typically found in cities in mounted police units and carriage operations.

Other Horse Industry HighlightsLand Preservation The horse industry plays a significant role in preserving agricultural land. Of the AHC horse-owning respondents, approximately 63% reported owning or leasing a farm, barn, or stable. We estimate that the reported acreage in the AHC survey represents approximately 32 million acres of land owned and 49 million acres of land leased for horse-related uses. This is roughly the area of the state of New Mexico.

Volunteerism Horse owning respondents to the AHC survey reported a high incidence of volunteerism.

AcresOwned 31,823Lease 49,134Total 80,957

Acreage of Horse-Related Land (000s)

The Methodology Behind the Numbers

Determining the direct economic impact is a critical first step in conducting a valid economic impact analysis. The horse industry is unique because of its multiple segments and the dispersed nature of industry participants and activities.

To determine the direct economic impacts, the American Horse Council commissioned a series of household surveys — including a national survey balanced to the demographic composition of the U.S. population — to estimate:

• The number of horses in the United States

• The owner expenses involved in caring for and training horses

• The owner expenses related to using horses for racing, competition, and recreation

• The spending by non-owners on horse activities, such as riding lessons, trail riding, and going to the races

These surveys were supplemented by collection of proprietary operating data from racetrack operators and public reporting from state racing commission reports, IRS 990 forms, and other horse association data. Economic ripple effects were modeled through IMPLAN, a leading supplier of economic impact data and software used and relied upon by thousands of private developers and government agencies.

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21.2%Association households that reported using volunteers as part of their horse care, management, or activities.

There may be as many as 1.37 million people volunteering their time for horse-related activities.

1,370,000

Thank you and AcknowledgmentOrganized in 1969, the American Horse Council works daily to advocate for the social, economic and legislative interests of the United States equine industry.

The National Economic Impact Study was commissioned by the American Horse Council Foundation with major support from:

United Professional Horsemen’s AssociationOklahoma Quarter Horse Racing AssociationAmerican Paint Horse AssociationGlobal Gaming (Remington Park & Lone Star Park)National Horsemen’s Benevolent and Protective AssociationAmerican Farriers AssociationThoroughbred Racing Associations of North AmericaCarriage Operators of North AmericaCertified Horsemanship Association

United States Polo AssociationThoroughbred Racing Association of OklahomaUnited States Hunter Jumper AssociationFlorida Thoroughbred Breeders’ and Owners’ AssociationOak Tree Racing AssociationNorth American Equine Ranching Information CouncilBack Country Horsemen of AmericaProfessional Association of Therapeutic Horsemanship International (PATH International)Equine Land Conservation Resource

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For more information about the horse industry in the United States, contact:

American Horse Council1616 H Street NW, 7th Floor

Washington, DC 20006

202-296-4031

www.horsecouncil.org

[email protected]

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