Delaware Equine 2004

Dear Friend of Delaware Agriculture:
I am very pleased and proud to present the results of the 2004 Delaware Equine Study, the first ever comprehensive
study of this important segment of our agricultural industry. I want to thank Governor Ruth Ann Minner, the
Delaware General Assembly, the racing commissions, and the Delaware Standardbred Breeders’Fund for
providing the funding for this project. I also want to thank the Delaware Equine Council for their help and each
and every person who voluntarily participated in this very important study.
As clearly shown by the numbers contained within this report, the equine industry’
s importance to Delaware’
s
economy is significant and growing. In addition to the expenditures Delaware equine owners and operations make
into the state economy, our racetracks, equine show and competition facilities, breeding, training, and boarding
operations attract thousands from outside of Delaware who also expend significantly into our state economy. Not
only does the industry directly provide jobs for thousands of Delawareans, but also indirectly through expenditures
made for feed and bedding, veterinarian services, equipment, grooming and tack supplies, maintenance and repair
and other sectors of the industry’
s infrastructure.
Equine and equine operations make significant contributions to the quality of life in Delaware by keeping land in
open space, and providing a wide diversity of recreational activities available to the general public. As spectators
or participants, countless Delawareans enjoy equine racing, shows and competitions, pony rides, trail and pleasure
riding, and much more. For many, the view of Delaware from atop a horse is the best one. I know firsthand how
important equines are and have been socially and recreationally to my family and to the quality of life of many
others in Delaware.
We have accomplished our goal of quantifying the total number of equine in Delaware and the economic impact of
the equine industry on the state economy. The number of equine operations in Delaware is increasing each year. It
is important we continue to be an “
Equine Friendly State”in order to keep the growth of the industry moving
forward by attracting new equine operations and businesses to Delaware.
Special thanks go to Chris Cadwallader, Director of the Delaware Agricultural Statistics Service, for his hard work
in designing, implementing, evaluating this study and preparing it for publication. Also, to Titus Awokuse,
professor in the University of Delaware’
s Department of
Food and Resource Economics for his important efforts in
conducting the economic impact analysis of Delaware’
s
equine industry which is also contained in this bulletin.
Sincerely,

Michael T. Scuse
Secretary of Agriculture

A.M. Ambrose, Jr.

Delaware Department of Agriculture
Michael T. Scuse, Secretary

National Agricultural Statistics Service, USDA
R. Ronald Bosecker, Administrator

Harry D. Shockley, Deputy Secretary
Delaware Agricultural Statistics Service
Chris Cadwallader, Director

University of Delaware
College of Agriculture & Natural Resources
Department of Food & Resource Economics
Thomas W. Ilvento, Chair
Titus Awokuse, Assistant Professor

Kelly Mills

ACKNOWLEDGEMENTS
EQUINE SURVEY ADVISORY COUNCIL
Delaware Standardbred Breeders’Fund Program

Delaware Standardbred Owners’Association
Salvatore DiMario, Executive Director

Judy Davis-Wilson, Director

Delaware Cooperative Extension Service

Delaware Equine Council

Susan Truehart Garey, Extension AgentAnimal Science

Brenda Lewis, President

The staff of the Maryland Agricultural Statistics Service, Annapolis, MD.
The staff of the NASS Northeastern Regional Mail Center in Trenton, NJ.
Katy Lantagne, Bryan Durham and Glenda Shepler in the NASS Oklahoma State Office.
The NASDA Telephone Enumerators of the NASS Oklahoma State Office and the NASDA Field
Enumerators of the NASS Maryland/Delaware State Offices.
USDA-NASS Washington, D.C.
Don Allen, Mathematical Statistician

Richard Hopper, Agricultural Statistician

Chad Crouse, Mathematical Statistician

Lynn Shaw, Agricultural Statistician

Tom Pordugal, Mathematical Statistician

Beth Edwards, Computer Specialist

THE EQUINE OPERATIONS, OWNERS, TRAINERS, AND RACETRACKS WHO VOLUNTARILY
PROVIDED THE BASIC DATA FOR THE 2004 DELAWARE EQUINE SURVEY.

SPECIAL RECOGNITION:
Alexandra Riley, Mathematical Statistician, USDA-NASS, Washington, DC. - For providing
outstanding technical expertise in edit, analysis and summarization of the Delaware Equine Survey data.
Matthias Guilbeau, Agricultural Statistician, NASS Louisiana State Office - For the sacrifice of being
separated from his family for a one-month detail in the NASS Maryland State Office to work on the
Delaware Equine Survey.
Kelly Mills, Delaware Department of Agriculture - For providing outstanding technical and creative
expertise in the preparation of this bulletin.

Cover photography by Kelly Mills, Nigel Soult,
John F. Wayne, and Winbak Farms
Kelly Mills

TABLE OF CONTENTS
Delaware Equine Organizations and Programs
Delaware Equine Council…………………....…........….…………………………………………..…...…1
Delaware Certified Thoroughbred Program…..................……………………………………………….…2
Delaware Standardbred Breeders’Fund…........……….……………………………………………...…....3
Delaware Standardbred Owners’Association…….…........…………………………………………....…..3

Delaware Racetracks
Delaware Park…….……….…………………..………….……………………………………….…...…...4
Dover Downs……………….…………………..……..………………………………….……………...…5
Harrington Raceway…………...........…………..………………………………………….……………....6

2004 Delaware Equine Survey
Design and Methodology ……….…………..……..…………………………………….…………....……7
Statistical Reliability……........…..………...………..……………………..…………………………….…8
Respondent Comments……..…………………........……………………………………………….………9
Equine Inventory………………………...........………..…………………………………….……………10
Equine Operations…………………...........……………..………………………………………….……..12
Equine Acreage……………………...........…………..…………………………………………………...13
Equine Expenditures....……………...........…………..………………………………..….………………16
Equine Assets…………………………...........…………..……………………………………….……….21
Equine Income….....……………………...........……......…………………………………….………...…23
Equine Labor………………………………...........…......………………………………………….……..23
Other Breeds of Equine………………………...........…..………………………………………….……..24

Delaware Equine Industry Economic Impact Analysis
Introduction…………..……………...........…..…………………………………………………….….….25
Direct Economic and Social Contributions......….............…………………………………………..…….25
Indirect and Induced Economic Contributions…................................……………………….……………26
Total Economic Contributions……….………………..………..…...........………………………………..28
Racetrack Expenditures…………….…………..........………...…………………………………………..29
Racing and Non-racing Expenditures……….…...........…..……………………………………………….30
Horse Show, Competition and Racing Event Expenditures….......….…………………………………….31
Equine Industry’
s Impact on Delaware’
s Economy…….......................….……………………………….32
2004 Delaware Equine Survey Questionnaire…….….............…..………………………………………..33

DELAWARE EQUINE COUNCIL

The mission of the Delaware Equine Council is to promote, protect and enhance the keeping of
equines in Delaware. We are a nonprofit organization representing all breeds, public stables, weekend
trail riders, mule owners, driving enthusiasts, show circuit participants and any equine professionals.
With the memberships and organizations involved, we now represent over 4,600 equine owners!
We provide equestrians with contacts, education, information, and updates on equine health and
political issues. To promote our industry, we publish a newsletter and maintain a website to inform the
public. This year finds us involved in the Delaware Department of Agriculture’
s Equine Survey in
addition to partnering with the Delaware SPCA to provide a program called “
Helping Horses.”This new
program targets neglected and abused equine in the First State. We continue to participate in the
Department of Agriculture activities, including mentoring programs in Delaware schools and numerous
equine-related events throughout the state.
The equine industry impacts many Delaware jobs (vets, farriers, equine dentists, etc.), agriculture,
(grain, hay, bedding, etc.), breeding farms, insurance and farmland preservation. We are not in
competition with other equine groups, stables or businesses. The purpose of the Delaware Equine
Council is to support ALL equine endeavors in the First State. We continue to practice this while
addressing issues such as the equine liability law, equine farm insurance knowledge, nutrient management
and trail access and use. We are a member of the American Horse Council.
For more information, please visit our website at:
www.delawareequinecouncil.org

Pete Clark

1

DELAWARE CERTIFIED THOROUGHBRED PROGRAM

The Delaware Certified Thoroughbred Program began with the 2003 meet, and is sponsored by
the Delaware Thoroughbred Horsemen’
s Association. By providing a purse enhancement incentive for
horsemen, the DCTP seeks to enhance the racing conditions and long-time economic prosperity of
Delaware agriculture, and to stimulate the preservation of Delaware farmland.
In order to be certified, a Thoroughbred must spend a minimum of 90 consecutive days (subject to
verification) on a Delaware farm or training facility prior to March 31 of its two-year-old year, and it must
race at Delaware Park. The certifier must submit a Delaware Certified Thoroughbred application form
within ten days of the thoroughbred’
s arrival at an approved DCTP farm or training facility. Days will
not count until all paperwork has been received by DCTP. The one-time registration fee is $50 for
weanlings and $100 for yearlings. Upon validation, the thoroughbred is certified for life, even with
changes in ownership.
The certifier of the thoroughbred will receive an additional fifteen percent of the purse share if the
Delaware Certified Thoroughbred finishes first, second, or third in any race, including stake races at
Delaware Park. The owner will receive fifteen percent of the purse share for first, second, or third place
finishes in any race, including Delaware Park stake races. Owner bonuses are included in purse
distributions, and certifier bonuses are paid at the end of the meet. Delaware Certified Thoroughbred
horses will also receive preference when entering races at Delaware Park, and will be identified as such in
Delaware Park’
s racing programs.

Delaware Certified Thoroughbred Program
777 Delaware Park Blvd.
Wilmington, DE 19804
(302) 994-2398 or (302) 994-2521 ext. 7289
(302) 994-3392 fax
[email protected]
www.dtha.com

Kelly Mills

2

DELAWARE STANDARDBRED BREEDERS’FUND

The Delaware Standardbred Breeders’Fund is a state agency that is a rebirth of the “
Delaware
Development Fund”of the late Sixties. The “
Fund”evolved as a result of the VLT legislation which
placed slot machines at the state’
s three racetracks. Pursuant to SS 4815 (b) (3) of Title 29 of the
Delaware Code, the Fund started accruing money in 1999 but did not become active until September of
2001.
The Fund encourages and supports the breeding of Standardbred horses via the program, which
regulates specific purse money and administers all registrations of participating stallions and racehorses
(i.e., two- and three-year-old trotters and pacers). The Fund oversees 16 stake races a year, which
culminate with $100,000 finals for each gait and sex at the two harness tracks. Bonus payments are
awarded for progeny of registered stallions and broodmares who meet the requirements of the program.
A record number of 512 mares were bred to Delaware stallions in 2004.

Standardbred Breeders’Fund
2320 S. DuPont Highway
Dover, DE 19901
(302) 698-4610
(302) 233-3047
[email protected]

Vickie Duke

DELAWARE STANDARDBRED OWNERS’
ASSOCIATION

The Delaware Standardbred Owners’Association, Inc., is a 1,150 member trade association
that represents the harness horsemen and horsewomen who compete at Dover Downs and Harrington
Raceway.
The D.S.O.A is governed by a 12-member Board of Directors who are elected by and from the
membership. The D.S.O.A. promotes harness racing and advocates on behalf of horsemens’issues in
Delaware. Additionally, for its members, the D.S.O.A. serves as a voice on governmental issues at both
the local and national level. The D.S.O.A. is a member of Harness Horsemen International, an
international trade association comprised of local horsemens’associations throughout the United States
and Canada. Anyone interested in becoming a member of D.S.O.A. may contact our Dover office at
(888) 227-0658.

3

DELAWARE PARK

Rich in history and tradition, Delaware Park Racetrack and Slots has the reputation of being
the most beautiful and friendly racetrack in the country. While Delaware Park is open year round (with
the exception of Easter and Christmas) for simulcasting and slots, the track hosts a six-month
Thoroughbred and Arabian meet beginning in the spring. The track, which is situated in the middle of
key racing points throughout the Mid-Atlantic region, is located 30 miles south of Philadelphia and 50
miles north of Baltimore.
The track opened in 1937, and many of racing’
s greatest champions have raced at Delaware Park
over the decades. Some of these include Stymie from the 1940s, Flower Bowl and Cavan from the
1950s, Kelso, Damascus, and Buckpasser from the 1960s, Spectacular Bid and Relaxing from the 1980s,
and Captain Bodgit and Xtra Heat from the 1990s. Delaware Park will distribute approximately $35
million in total purses this year. This figure includes overnight, overnight stake, stake and incentive
purses for Thoroughbreds and Arabians. The $4.6 million stakes schedule is highlighted by the Grade II
Delaware Handicap for fillies and mares and the Grade II Delaware Oaks for fillies. Both of these races
carry on the tradition of providing championship racing to the local area and nationally as part of the
Racing to the World Thoroughbred Championships Series which is televised annually on ESPN.
Location:

Route 7 and Route 4, Exit 4B I-95, New Castle County
Delaware Park Racetrack and Slots
777 Delaware Park Blvd.
Wilmington, DE 19702
(302) 994-2521
www.delawarepark.com

Delaware Park Racetrack and Slots

4

DOVER DOWNS

It took Dover Downs a quarter century to reach its current position in horseracing. The
racetrack opened with its first season in 1969 and enjoyed moderate success, but since the mid-1990s,
Dover Downs has advanced to the highest echelon in harness racing. Today, Dover Downs is the only
racetrack to campaign a six-month long season, six days a week offering 15 races daily.
Starting each November and continuing into December, the capital city raceway boasts the top
horses and horsemen in the Standardbred sport racing for purses of nearly $4 million in major stakes
events.
The raceway’
s signature event is the $425,000 Progress Pace. Over the meet’
s opening two
Sundays, the top three-year-olds battle it out in $25,000 eliminations followed by a $325,000 final. In
addition, the track presents eight divisions of the prestigious Matron Series, one of the sports oldest
stakes, for two and three-year-old trotters and pacers.
The finest young horses bred in the First State also vie in four Delaware Standardbred Breeders
Fund (DSBF) events for two-year-olds. Each of four divisions culminate with a $100,000 final, then
three-year-old finals are held in April. Every third year, Dover Downs presents all four Classic Series
finals for older horses, each with a $250,000 purse. Annually during the latter part of each meet, the
Classic Series leads off a new season with $85,000 elimination divisions of the Classic Pace, Classic Trot,
Distaff Pace and Distaff Oaks.
Since 1996 at Dover Downs, a keen level of competitive quality racing has resulted in Riyadh
setting a world record by pacing a 1:49.1 mile, only matched by Cam Knows Best four years later. A
number of other world records have also been set over the lightning fast five-eighths mile oval.
Location: 1131 N. DuPont Highway, Dover
Dover Downs Harness Racing
P.O. Box 1412
Dover, DE 19903
(302) 674-4600
www.doverdowns.com

Vickie Duke of Photo Won

5

HARRINGTON RACEWAY
Located in the hub of Delaware, Harrington Raceway is known for having a rich history and
humble roots. The track is in its 59th year of operation and was formerly known as the Kent and Sussex
Raceway. The pre-slots era boasted minimal race days and purses did not exceed $5,000 in a night. Since
the inception of slot machines at the racetrack in 1996 however,
Harrington Raceway’
s schedule has ballooned to 104 racing days
with approximately $14 million in purses annually.
Some of the sport’
s finest horses have raced on Delaware’
s
half-mile track, including the legendary trotter Magician, who began
his stakes career at Harrington in 1998. In 2004, the track hosted
two races of national significance, the $350,000 Messenger Stakes,
the sport’
s second leg of pacing’
s Triple Crown, as well as the
$135,000 War on the Shore Invitational, in which Royal Mattjesty
paced the fastest mile in track history (1:51). In 2002, harness
racing’
s all-time leading driver and winner of more than 15,000
races, Herve Fillion, made his return to the racetrack at Harrington,
winning three races.
Live racing is conducted on a Sunday through Thursday schedule
with a 5:30 p.m. post time.
Kelly Mills

Location:

Route 13, Harrington, DE

Harrington Raceway
15 West Rider Road
Harrington, DE 19952
(302) 398-7223
www.harringtonraceway.com

Kelly Mills

6

2004 DELAWARE EQUINE SURVEY DESIGN AND METHODOLOG Y
Introduction
The 2004 Delaware Equine Survey was conducted by the Delaware Agricultural Statistics
Service (DASS) in cooperation with the Delaware Department of Agriculture. DASS is one of 45 state
statistical offices of the USDA’
s National Agricultural Statistics Service (NASS). NASS is the USDA’
s
statistical agency which has for the past 141 years been responsible for producing accurate, unbiased
official statistics on United States agriculture.
Survey Objectives
The Delaware equine industry is a complex, dynamic part of the state’
s economy. The size and
importance of the entire industry has never been statistically measured. While it has been commonly
believed the equine industry has been rapidly expanding in recent years, the extent of growth was
unknown.
The Delaware Department of Agriculture, representatives from both the racing and non-racing
sectors of the equine industry, and the Delaware General Assembly wisely recognized the need for
accurate statistics on Delaware’
s equine community.
The objective of Delaware Equine Survey was to measure the number of equine operations by
type, acreage used for equine, the number of equine by bred and use, equine-related expenditures, equinerelated assets and income, and the number of people employed directly by equine operations.
Population of Interest
Only operations, owners and trainers of equine who had equine-related expenditures in Delaware
during 2003 and operations having equine on Delaware acreage as on May 1, 2004, were included in the
target population for this survey. Also, the three racetracks in Delaware were included in the survey. The
equine community includes many segments which were NOT included in the population of interest for
this survey. For example, veterinarians, farriers, drivers, jockeys, grooms, tack businesses, feed and
bedding suppliers, equipment dealers, and other enterprises within the infrastructure of the equine
industry are excluded from the economic totals from this study.
Survey Methodology
A list was built for the target population of equine operations, owners, and trainers. Some of the
sources of names included equine breed associations, Coggins test documents, NASS’
s census of
agriculture list, racing owner and trainer licensing lists and others. The list was built with control
indicators for each record to designate whether they were a racehorse operation/owner/trainer or a nonracehorse operation/owner. In addition, a control indicator also specified residential status as Delaware or
out-of-state.
It is cost-prohibitive to build a state-level equine operation/owner/trainer list which is 100 percent
complete. Therefore, an area sampling frame was utilized to measure the incompleteness of the survey
list. A probability sample of 50 segments of land approximately one square mile in size was selected and
canvassed by National Association of Departments of Agriculture (N.A.S.D.A.) field enumerators to
identify equine operations/owners/trainers who were not on the survey list. Information collected by
those not on the survey list was expanded to represent all others in the state who did not make it onto the
2004 Delaware Equine Survey List.

7

After a first and second request mailing of the questionnaire to all operations/owners/trainers on
the survey list, telephone data collection was attempted for all who did not respond by mail.
After telephone data collection was completed, there were operations/owners/trainers for which
reports had not been received. Therefore, a representative probability sample of racehorse and nonracehorse operation/owner/trainer records was selected for personal interviews. The data collected from
this sample was expanded to account for the other operations/owners/trainers who did not report. There
were 3,528 completed reports used to summarize the 2004 Delaware Equine Survey. The Delaware
response rate was 62 percent while the out-of-state response rate was 49 percent.
Survey Summary Notes
Equine operations are diverse in terms of size, type of equine, and activities engaged in. For this
publication, if an operation reported they had one or more racehorses, their economic data was
summarized under racing even if they had more non-racehorses than racehorses. Any operation reporting
racehorses was summarized as a commercial racing operation.
Trainers who board horses at Delaware Park Racetrack and Harrington Raceway may be there for
the entire six-month meet or only for a few days. Some of the trainers surveyed had mailing addresses at
the racetrack and they were summarized as in-state reports whereas some
trainers who were at the track for the entire meet had an out-of-state
mailing address and their data was summarized as coming from out-ofstate.
In the racing industry, the “
boarding fee”or “
training fee”
charged to racehorse owners by trainers is often an all-inclusive fee. The
trainer’
s fee portion and the boarding cost frequently could not be broken
out by horse owners and was therefore included in the expenditure
category reported; either “
boarding of equine”or “
training fees.”
The number of equine workers cited in this study excludes
owners of equine operations, equine trainers, veterinarians, grooms,
jockeys, farriers, drivers, and many others in the industry who are hired
for services but are not employees of a particular equine trainer or
operation.
Winbak Farms

Statistical Reliability
Statistically, the survey was designed to estimate at the state level. The reliability of survey
results is affected by sampling variability and non-sampling errors. Sampling variability is a measure of
how the estimates would differ if other samples had been drawn. The sampling variability expressed as a
percent of the estimate is called the coefficient of variation (cv). For major data items, the cv at the state
level was: Number of Equine Operations –3%, Acreage used for Equine –8%, Number of Equine –4%,
Equine Expenditures –3%, Assets –5%, and Income –14%.
At the county level, the cv’
s ranged as follows; Number of Equine Operations –9% -13%,
Acreage used for Equine –14%-19%, and Number of Equine –9%-11%.
Non-sampling errors occur during a survey process but, unlike sampling variability, are difficult to
measure. They may be caused by respondents or interviewers failing to follow instructions,
misunderstanding of survey questions by respondents, non-response, or data handling mistakes between
collection and publication. In this survey, all survey procedures and analyses were carried out in a
consistent and orderly manner to minimize the occurrence of these types of errors.

8

2004 DELAWARE EQUINE SURVEY RESPONDENT COMMENTS

“
My horses race at Delaware Park but winter
in Maryland. I love Delaware Park and all of
Delaware, I think it is great horse country!”
-James Acker, Manchester, NY

“
The equine industry in the state of Delaware
provides more financial exchange than the
population realizes. It is an expensive hobby!”
-Madeline Moses, Georgetown, DE

“
Horse racing and breeding are very valuable
to the economic well-being of the state of
Delaware. The industry creates many jobs
and increases farm values.”
-The Paul Family, Wilmington, DE

“
We were glad to participate in this survey
and hope it will show how much money
equines bring to Delaware’
s economy. We
need to open more riding areas on public
lands.”
-Mark Rogers, Millsboro, DE

“
The state has really done a lot to make
Delaware one of the elite places to show
horses. Harrington is the best place to show,
facility-wise, in the Mid-Atlantic.”
-Heather Hevlow-Miller, Earleville, MD
Kelly Mills

“
I hope and believe you will find that the equine contribution to the
Delaware economy, whether pleasure or business, is quite substantial.”
-Don Poore, Jr, Smyrna, DE

9

EQUINE INVENTORY
There were a total of 13,000 equine in Delaware as of May 1, 2004. Of the total inventory,
racing-related horses (racehorses plus Arabian, Standardbred, and Thoroughbred racing-related breeding
stock) accounted for 41 percent (5,350), non-racing-related horses 50 percent (6,500), ponies 7 percent
(900), and donkeys, burros and mules 2 percent (250).
Standardbreds lead all breeds of equine with 4,300 of which 70 percent were racehorses. Thoroughbreds
had the second largest total with 1,800 of which 72 percent were racehorses. Quarter Horses at 1,300
came in third, followed by Arabians with 700 (43 percent were racehorses), and Paints with 600.
EQUINE INVENTORY AND AVERAGE
VALUE BY BREED, MAY 1, 2004*
Breed

EQUINE BY PRIMARY USE
Show or
Competito
n
1,100

All Other
1,800

Breeding
1,600

14%
12%

9%

Percent
of
Total

Pleasure
3,900

Appaloosa

250

2

3,100

Arabian

700

5

15,300

Half Arabian

150

1

4,300

Miniature Horses

450

4

1,400

Paint

600

5

4,100

1,300

10

4,000

Other Light Horse
Breeds

700

5

4,000

Crossbred/Grade Horses

350

3

2,200

Haflingers

350

3

2,200

Other Warmbloods

300

2

14,700

Standardbred

4,300

33

16,000

Thoroughbred

1,800

14

19,000

Belgian

300

2

2,000

Percheron

250

2

2,900

Other Draft Horses

50

Quarter Horse
Racehorses
4,600

Average
Value
Per Head
(Dollars)

Light Horse Breeds

30%

35%

Number

Warmbloods

Race Horse Breeds

EQUINE INVENTORY AND VALUE BY
COUNTY, MAY 1, 2004*

County

Number

Average
Value Per
Head

Draft Horses

Total Value

Dollars

4,600

Ponies

New Castle

3,600

15,718

56,585,000

Kent

6,000

9,100

54,600,000

Sussex

3,400

7,229

24,580,000

Total

13,000

10,443

135,765,000

Other

*Includes horses at racetracks

Shetland

150

1

1,100

Welsh

200

2

4,200

Other Ponies

550

4

1,500

Donkeys and Burros

150

1

600

Mules

100

1

1,200

Total

13,000

100

10,443

*Includes horses at racetracks

10

EQUINE INVENTORY, TOTAL VALUE, AND PRIMARY USE BY BREED, MAY 1, 2004*
Primary Use of Equine

Breed

Number

Show or
Competition

Breeding

Total Value

Brood
Mares

Stallions

Dollars

Trail
Riding/
Pleasure
Riding/
Sports

Racing

Other
(Work,
Retired, etc.)

Number

Light Horse Breeds
Appaloosa

250

775,000

20

10

30

160

30

Arabian

700

10,710,000

60

15

100

190

Half Arabian

150

645,000

5

-

35

80

30

Miniature
Horses

450

630,000

155

20

50

210

15

Paint

600

2,460,000

70

15

110

360

45

Quarter Horse

1,300

5,200,000

100

20

250

830

100

Other Light
Horse Breeds

700

2,800,000

55

5

90

500

50

Crossbred/
Grade Horses

350

770,000

10

-

35

260

45

Haflingers

350

770,000

60

10

30

150

100

Other
Warmbloods

300

4,410,000

35

5

100

140

20

Standardbred

4,300

68,800,000

500

45

25

130

3,000

600

Thoroughbred

1,800

34,200,000

150

10

75

200

1,300

65

300

35

Warmbloods

Race Horse Breeds

Draft Horse Breeds
Belgian

300

600,000

45

10

-

30

215

Percheron

250

725,000

35

5

5

30

175

Other Draft
Horses

50

230,000

-

-

-

30

20

Shetland

150

165,000

10

5

35

70

30

Welsh

200

840,000

20

5

50

90

35

Other Ponies

550

825,000

55

10

80

330

75

Donkeys and
Burros

150

90,000

15

10

-

50

75

Mules

100

120,000

-

-

-

60

40

Total

13,000

135,765,000

1,400

200

1,100

3,900

Ponies

Other

*Includes horses at racetracks

11

4,600

1,800

EQUINE INVENTORY BY COUNTY
Sussex
3,400

New Castle
3,600

26%

28%

46%
Kent
6,000

Kelly Mills

NUMBER OF EQUINE OPERATIONS
Of the total 2,000 operations in Delaware with equine as of May 1, 2004, noncommercial
equine operations accounted for 65 percent of the total while commercial racing operations accounted for
25 percent and commercial non-racing operations accounted for 10 percent.
Kent county had the largest number of operations with equine at 1,000 or 50 percent of the total, followed
by Sussex with 700 or 35 percent, and New Castle with 300 or 15 percent. In addition, Delaware Park
Racetrack is located in New Castle County while Dover Downs and Harrington Raceway are in Kent
County.
Of the 2,000 equine operations, 23 percent have had equine on their current operation for less than 4
years, 20 percent for 5-8 years, and 57 percent for 9 or more years.
At the county level, the percent of operations having equine on their current operation for less than 4
years was New Castle—20 percent, Kent—24 percent, and Sussex—22 percent. The percent of
operations having equine for 5-8 years was New Castle—20 percent, Kent—22 percent, and Sussex—17
percent. The percent of operations having equine 9 or more years was New Castle—60 percent, Kent—
54 percent, and Sussex—61 percent.
EQUINE OPERATIONS BY TYPE OF OPERATION AND COUNTY, MAY 1, 2004*
Type of Operation

New Castle

Kent

Sussex

Delaware

Commercial Racing Operations

60

250

190

500

Commercial Non-racing Operations

40

80

80

200

Noncommercial Operations

200

670

430

1,300

Total

300

1,000

700

2,000

*Excludes racetracks

12

LAND USED FOR EQUINE
Excluding racetracks, the 2,000 places with equine as of May 1, 2004, operated a total of
120,000 acres of which 27,000 were used for equine-related purposes. Of the 27,000 acres,
noncommercial equine operations had 52 percent of the total, commercial racing operations had 37
percent, and commercial non-racing operations had 11 percent.
Kent county had 12,000 acres used for equine-related
purposes, (45 percent of the total), while Sussex county
had 9,000 acres (33 percent), and New Castle county had
6,000 acres (22 percent).
Racetracks had an additional 415 acres used for equine.
Over 5,700 acres have been converted to equine-related
use within the past 4 years, and an additional 4,800+ acres
were converted to equine-related use 5-8 years ago.

Kelly Mills

EQUINE ACREAGE AND VALUE BY COUNTY AND
RACETRACKS, MAY 1, 2004
Total Value*
Acres

Average Value
per Acre*

Within the past 4 years, Kent and
Sussex counties both had over 2,500
acres converted to equine-related use
and New Castle had over 600 acres.

Dollars
New Castle

6,000

130,000,000

21,667

Kent

12,000

160,000,000

13,333

Sussex

9,000

129,000,000

14,333

415

141,000,000

339,759

27,415

560,000,000

20,427

Racetracks

Total

Of the 5,700+ acres converted to
equine use within the past 4 years, 81
percent was previously used for crop
farming, 12 percent was previously
used for livestock farming, and 7
percent was not used for agricultural
purposes.

*Includes value of equine buildings and fencing

LENGTH OF TIME LAND HAS BEEN
USED FOR EQUINE BY CURRENT
OPERATORS*

LENGTH OF TIME HAVING HAD
EQUINE ON CURRENT OPERATION*

23%
9+ Years
1,153
Operations

1-4 Years
450
Operations

9+ Years
14,415
Acres

57%
20%

5-8 Years
400
Operations

26%

1-4 Years
7,000 Acres

52%
22%
5-8 Years
6,000 Acres

*Includes racetracks

*Includes racetracks

13

EQUINE ACREAGE AND VALUE BY TYPE OF OPERATION
Operation Type

Average Value per
Acre*
Dollars

Total Value*

Acres

Commercial Racing Operations

10,000

177,000,000

17,700

Commercial Non-racing Operations

3,000

70,000,000

23,333

Noncommercial Operations

14,000

172,000,000

12,286

415

141,000,000

339,759

27,415

560,000,000

20,427

Racetracks

Total

*Includes value of equine buildings and fencing.

EQUINE OPERATIONS AND ACREAGE BY LENGTH OF TIME BY COUNTY,
MAY 1, 2004*

County

Number of
Operations

Total Acres
Operated

Acres Used
for Equine

Less Than 4
Years

5-8 Years

9+ Years

Number

Acres

Number

Acres

Number

Acres

300

16,600

6,000

60

1,000

60

1,000

180

4,000

1,000

37,600

12,000

240

3,000

220

3,000

540

6,000

Sussex

700

65,800

9,000

150

3,000

120

2,000

430

4,000

Total

2,000

120,000

27,000

450

7,000

400

6,000

1,150

14,000

New Castle
Kent

*Excludes racetracks

DELAWARE EQUINE ACREAGE BY LENGTH OF TIME AND PREVIOUS USE*
Time Frame the
Current Operator
has had Equine on
Acreage

Previous Use of Land
Crop
Farming

Livestock/
Poultry
Farming
(Excludes
Equine)

Horse
Farm**

Total

Land was not
Used For
Agricultural
Purposes

Previous Use
Not Known

Acres
2001-2004
(1-4 Years)

4,600

700

800

400

500

7,000

1993-2000
(5-8 Years)

3,600

500

600

700

600

6,000

1992 and earlier
(9+ Years)

7,000

1,800

2,600

800

1,800

14,000

*Excludes racetracks
**Previous owner used acreage for equine-related purposes.

14

NEW CASTLE COUNTY EQUINE ACREAGE BY LENGTH OF TIME AND PREVIOUS USE*
Time Frame the
Current Operator
has had Equine on
Acreage

Previous Use of Land
Crop
Farming

Livestock/
Poultry
Farming

Horse
Farm**

(Excludes
Equine)

Total

Land was not
Used for
Agricultural
Purposes

Previous Use
Not Known

Acres
2001-2004
(1-4 Years)

400

100

300

100

100

1,000

1993-2000
(5-8 Years)

400

100

100

100

300

1,000

1992 and earlier
(9+ Years)

1,400

800

1,000

300

500

4,000

*Excludes racetracks
**Previous owner used acreage for equine-related purposes

KENT COUNTY EQUINE ACREAGE BY LENGTH OF TIME AND PREVIOUS USE*
Time Frame the
Current Operator
has had Equine on
Acreage

Previous Use of Land
Crop
Farming

Livestock/
Poultry
Farming

Horse
Farm**

(Excludes
Equine)

Total

Land was not
Used for
Agricultural
Purposes

Previous Use
Not Known

Acres
2001-2004
(1-4 Years)

2,100

300

300

100

200

3,000

1993-2000
(5-8 Years)

2,000

200

300

300

200

3,000

1992 and earlier
(9+ Years)

3,400

500

1,000

200

900

6,000

*Excludes racetracks
**Previous owner used acreage for equine-related purposes

SUSSEX COUNTY EQUINE ACREAGE BY LENGTH OF TIME AND PREVIOUS USE
Time Frame the
Current Operator
has had Equine on
Acreage

Previous Use of Land
Crop
Farming

Livestock/
Poultry
Farming

Horse
Farm**

(Excludes
Equine)

Total

Land was not
Used for
Agricultural
Purposes

Previous Use
Not Known

Acres
2001-2004
(1-4 Years)

2,100

300

200

200

200

3,000

1993-2000
(5-8 Years)

1,200

200

200

300

100

2,000

1992 and earlier
(9+ Years)

2,200

500

600

300

400

4,000

**Previous owner used acreage for equine-related purposes.

15

EQUINE-RELATED EXPENDITURES
A total of $279.7 million in expenditures was made in Delaware for equine-related purposes
during 2003. Of the total, racetracks expended $119.3 million (43 percent of the total) which included
$72.6 million in purse and stake payments. Delaware residents expended $107.1 million (38 percent of
the total), and out-of-state residents expended $53.3 million (19 percent of the total).
Racing operations, owners, and trainers had a total of
$125.9 million in expenditures accounting for 45 percent of
the total while non-racing operations and owners had $34.5
million or 12 percent of the total. The racetracks accounted
for the remaining 43 percent.
Excluding purse and stake payments, purchases of equine
accounted for the largest expenditure amount at $36.2
million followed by labor expenses at $35.8 million,
training fees at $19.0 million and equipment purchases at
$15.5 million.
Kelly Mills

2003 EQUINE-RELATED EXPENDITURES
Delaware Non-racing
Operations & Owners
$28.6 Million

2%

Out-of-State
Non-racing Owners
$5.8 Million

10%
Out-of-State Racing
Owners & Trainers
$47.5 Million

17%

43%

Delaware Racetracks
$119.3 Million

28%
Delaware Racing
Operations,
Owners & Trainers
$78.4 Million

2003 RACING-RELATED Delaware
EXPENDITURES
Operat ions,

2003 NON-RACING-RELATED
EXPENDITURES
Out-of-State
Owners
$5.8 Million

17%
83%

Delaware
Racetracks
$119.3
Million

Delaware
Operations &
Owners
$28.6 Million

16

32%
49%

19%

Owners
& T rainers
$78.4
Million
Out -of-State
Owners &
T rainers
$47.5
Million

EQUINE-RELATED EXPENDITURES MADE IN DELAWARE IN 2003:
RACETRACKS, DELAWARE RESIDENTS, OUT-OF-STATE RESIDENTS AND TOTAL

Expenditure Category

Delaware
Residents

Racetracks

Out-of-State
Residents

Total

Dollars

-

20,750,000

15,430,000

36,180,000

3,890,000

6,700,000

10,590,000

Veterinarian and Health

830,000

6,370,000

3,540,000

10,740,000

Feed and Bedding

30,000

9,760,000

2,780,000

12,570,000

Grooming Supplies and Tack

420,000

3,710,000

1,530,000

5,660,000

Insurance Premiums

1,710,000

1,870,000

520,000

4,100,000

Fuels and Utilities

1,450,000

2,350,000

520,000

4,320,000

Maintenance and Repair

1,880,000

2,650,000

250,000

4,780,000

Farrier

-

3,330,000

1,280,000

4,610,000

Breeding Fees

-

3,750,000

660,000

4,410,000

Rent and Lease

690,000

1,360,000

130,000

2,180,000

Land Taxes

160,000

1,600,000

-

1,760,000

Equipment Purchases

420,000

12,240,000

2,810,000

15,470,000

-

7,570,000

11,460,000

19,030,000

50,000

830,000

1,760,000

2,640,000

1,100,000

280,000

90,000

1,470,000

540,000

550,000

100,000

1,190,000

Sales Fees and Commissions

-

260,000

130,000

390,000

Interest Paid

-

1,070,000

50,000

1,120,000

230,000

2,030,000

2,350,000

4,610,000

Contract Services

3,910,000

490,000

170,000

4,570,000

Capital Improvements

3,360,000

4,620,000

-

7,980,000

-

4,720,000

-

4,720,000

24,220,000

10,660,000

870,000

35,750,000

110,000

280,000

150,000

540,000

Other Expenditures

5,580,000

80,000

10,000

5,670,000

Purses and Stakes

72,600,000

-

-

72,600,000

Total

119,290,000

107,070,000

53,290,000

279,650,000

Purchases of Equine
Boarding of Equine

Training Fees
Travel and Lodging
Advertisement and Marketing
Professional Fees

Entry and Nomination Fees, Licenses,
Registrations, and Memberships

Real Estate Purchases
Labor Expenses
Other Contracted Labor

17

EQUINE-RELATED EXPENDITURES MADE IN DELAWARE IN 2003:
RACETRACKS, RACING, NON-RACING AND TOTAL

Expenditure Category

Racing
Operations,
Owners and
Trainers

Racetracks

Non-racing
Operations and
Owners

Total

Dollars
Purchases of Equine

-

33,350,000

2,830,000

36,180,000

Boarding of Equine

-

8,860,000

1,730,000

10,590,000

Veterinarian and Health

830,000

8,040,000

1,870,000

10,740,000

Feed and Bedding

30,000

7,770,000

4,770,000

12,570,000

Grooming Supplies and Tack

420,000

3,610,000

1,630,000

5,660,000

Insurance Premiums

1,710,000

1,990,000

400,000

4,100,000

Fuels and Utilities

1,450,000

2,180,000

690,000

4,320,000

Maintenance and Repair

1,880,000

1,690,000

1,210,000

4,780,000

Farrier

-

3,280,000

1,330,000

4,610,000

Breeding Fees

-

3,990,000

420,000

4,410,000

Rent and Lease

690,000

1,220,000

270,000

2,180,000

Land Taxes

160,000

580,000

1,020,000

1,760,000

Equipment Purchases

420,000

8,540,000

6,510,000

15,470,000

-

17,590,000

1,440,000

19,030,000

50,000

1,710,000

880,000

2,640,000

1,100,000

200,000

170,000

1,470,000

540,000

540,000

110,000

1,190,000

Sales Fees and Commissions

-

300,000

90,000

390,000

Interest Paid

-

920,000

200,000

1,120,000

230,000

3,430,000

950,000

4,610,000

Contract Services

3,910,000

520,000

140,000

4,570,000

Capital Improvements

3,360,000

2,650,000

1,970,000

7,980,000

Real Estate Purchases

-

2,220,000

2,500,000

4,720,000

24,220,000

10,290,000

1,240,000

35,750,000

110,000

360,000

70,000

540,000

Other Expenditures

5,580,000

70,000

20,000

5,670,000

Purses and Stakes

72,600,000

-

-

72,600,000

Total

119,290,000

125,900,000

34,460,000

279,650,000

Training Fees
Travel and Lodging
Advertisement and Marketing
Professional Fees

Entry and Nomination Fees, Licenses,
Registrations, and Memberships

Labor Expenses
Other Contracted Labor

18

NON-RACING-RELATED EQUINE EXPENDITURES MADE IN DELAWARE IN 2003:
DELAWARE RESIDENTS, OUT-OF-STATE RESIDENTS AND TOTAL

Expenditure Category

Delaware Residents

Out-of-State
Residents

Total

Dollars
Purchases of Equine

2,380,000

450,000

2,830,000

Boarding of Equine

870,000

860,000

1,730,000

Veterinarian and Health

1,590,000

280,000

1,870,000

Feed and Bedding

4,300,000

470,000

4,770,000

Grooming Supplies and Tack

1,200,000

430,000

1,630,000

Insurance Premiums

330,000

70,000

400,000

Fuels and Utilities

620,000

70,000

690,000

Maintenance and Repair

1,100,000

110,000

1,210,000

Farrier

1,120,000

210,000

1,330,000

Breeding Fees

140,000

280,000

420,000

Rent and Lease

270,000

-

270,000

Land Taxes

1,020,000

-

1,020,000

Equipment Purchases

5,340,000

1,170,000

6,510,000

Training Fees

1,050,000

390,000

1,440,000

Travel and Lodging

320,000

560,000

880,000

Advertisement and Marketing

150,000

20,000

170,000

Professional Fees

110,000

-

110,000

Sales Fees and Commissions

80,000

10,000

90,000

Interest Paid

200,000

-

200,000

Entry and Nomination Fees, Licenses,
Registrations, and Memberships

500,000

450,000

950,000

Contract Services

140,000

-

140,000

Capital Improvements

1,970,000

-

1,970,000

Real Estate Purchases

2,500,000

-

2,500,000

Labor Expenses

1,240,000

-

1,240,000

Other Contracted Labor

70,000

-

70,000

Other Expenditures

20,000

-

20,000

28,630,000

5,830,000

34,460,000

Total

19

RACING-RELATED EQUINE EXPENDITURES MADE IN DELAWARE IN 2003:
RACETRACKS, DELAWARE RESIDENTS, OUT-OF-STATE RESIDENTS AND TOTAL

Expenditure Category

Racetracks

Delaware
Residents

Out-of-State
Residents

Total

Dollars
Purchases of Equine

-

18,370,000

14,980,000

33,350,000

Boarding of Equine

-

3,020,000

5,840,000

8,860,000

Veterinarian and Health

830,000

4,780,000

3,260,000

8,870,000

Feed and Bedding

30,000

5,460,000

2,310,000

7,800,000

Grooming Supplies and Tack

420,000

2,510,000

1,100,000

4,030,000

Insurance Premiums

1,710,000

1,540,000

450,000

3,700,000

Fuels and Utilities

1,450,000

1,730,000

450,000

3,630,000

Maintenance and Repair

1,880,000

1,550,000

140,000

3,570,000

Farrier

-

2,210,000

1,070,000

3,280,000

Breeding Fees

-

3,610,000

380,000

3,990,000

Rent and Lease

690,000

1,090,000

130,000

1,910,000

Land Taxes

160,000

580,000

-

740,000

Equipment Purchases

420,000

6,900,000

1,640,000

8,960,000

-

6,520,000

11,070,000

17,590,000

50,000

510,000

1,200,000

1,760,000

1,100,000

130,000

70,000

1,300,000

540,000

440,000

100,000

1,080,000

Sales Fees and Commissions

-

180,000

120,000

300,000

Interest Paid

-

870,000

50,000

920,000

230,000

1,530,000

1,900,000

3,660,000

Contract Services

3,910,000

350,000

170,000

4,430,000

Capital Improvements

3,360,000

2,650,000

-

6,010,000

Real Estate Purchases

-

2,220,000

-

2,220,000

24,220,000

9,420,000

870,000

34,510,000

110,000

210,000

150,000

470,000

Other Expenditures

5,580,000

60,000

10,000

5,650,000

Purses and Stakes

72,600,000

-

-

72,600,000

Total

119,290,000

78,440,000

47,460,000

245,190,000

Training Fees
Travel and Lodging
Advertisement and Marketing
Professional Fees

Entry and Nomination Fees, Licenses,
Registrations, and Memberships

Labor Expenses
Other Contracted Labor

20

EQUINE-RELATED ASSETS
The value of all equine-related assets held by Delaware equine operations, owners, and trainers
as of May 1, 2004, totaled $777.2 million. Equine-related land, buildings and fencing assets accounted
for 72 percent of the total followed by equine inventory at 17 percent, vehicles and equipment at 9
percent, and tack and supplies at 2 percent.
Racing operations, owners, and trainers accounted for 37 percent of the total value of assets while
non-racing operations and owners accounted for 41 percent and
racetracks accounted for 22 percent.
Excluding racetracks, racing operations, owners and trainers held 74
percent of the total value of equine inventory assets. Non-racing
operations and owners held 58 percent of the total asset value of
equine-related land, buildings and fencing.
EQUINE-RELATED ASSETS

Feed, Supplies &
Tack
$15.1 Million

2%
9%
72%

Vehicles &
Equipment
$66.3 Million

17%

Land, Buildings
& Fencing
$560.0 Million

Equine
Inventory
$135.8 Million

Kelly Mills

DELAWARE EQUINE INDUSTRY ASSETS, MAY 1, 2004
Asset Category

Racing Operations,
Owners and
Trainers

Racetracks

Non-racing
Operations and
Owners

All Operations,
Owners and
Trainers

Dollars
Equine Inventory

81,130,000

25,785,000

28,850,000

135,765,000

Land, Buildings, and Fencing

177,000,000

141,000,000

242,000,000

560,000,000

Vehicles and Equipment

27,350,000

1,850,000

37,100,000

66,300,000

Feed and Supplies

1,200,000

-

1,900,000

3,100,000

Tack

4,740,000

1,030,000

6,230,000

12,000,000

291,420,000

169,665,000

316,080,000

777,165,000

Total

21

DELAWARE EQUINE INDUSTRY ASSETS BY TYPE OF OPERATION, MAY 1, 2004*
Asset Category

Racing Operations*

Non-racing Operations

All Operations

Dollars
Equine Inventory

81,130,000

28,850,000

109,980,000

Land, Buildings and Fencing

177,000,000

242,000,000

419,000,000

*Excludes racetracks

NEW CASTLE EQUINE INDUSTRY ASSETS BY TYPE OF OPERATION, MAY 1, 2004*
Asset Category

Racing Operations*

Non-racing Operations

All Operations

Dollars
Equine Inventory

27,800,000

6,000,000

33,800,000

Land, Buildings and Fencing

52,000,000

78,000,000

130,000,000

*Excludes racetracks

KENT EQUINE INDUSTRY ASSETS BY TYPE OF OPERATION, MAY 1, 2004*
Racing Operations*

Non-racing Operations

Equine Inventory

37,900,000

13,700,000

51,600,000

Land, Buildings and Fencing

70,000,000

90,000,000

160,000,000

Asset Category

All Operations

Dollars

*Excludes racetracks

SUSSEX EQUINE INDUSTRY ASSETS BY TYPE OF OPERATION, MAY 1, 2004
Asset Category

Racing Operations

Non-racing Operations

All Operations

Dollars
Equine Inventory

15,430,000

9,150,000

24,580,000

Land, Buildings, and Fencing

55,000,000

74,000,000

129,000,000

Kelly Mills

22

EQUINE INDUSTRY INCOME
BY TYPE OF OPERATION, 2003*
Racing*

$60,000,000

Non-racing

$5,000,000

Total

$65,000,000

*Excludes racetracks

Kelly Mills

EQUINE INDUSTRY LABOR BY TYPE OF OPERATION, 2003*
Racing

Non-racing

Total

Number of Full-time Equine Workers

970

130

1,100

Number of Part-time Equine Workers

950

150

1,100

1920

280

2,200

$34,510,000

$1,240,000

$35,750,000

Value of Non-cash Items to Workers

$980,000

$270,000

$1,250,000

Cash Expenditures for Contract Labor

$470,000

$70,000

$540,000

Total Workers
Cash Expenditures for Labor

*Data represents only workers who were employees of equine operations. Includes racetracks and trainers’employees at racetracks.
.
Excludes contract workers, veterinarians, farriers, etc.

Kelly Mills

23

OTHER BREEDS OF EQUINE IN DELAWARE
Light Horses
American Saddle Horse
Buckskin
Hackney
Kentucky Mountain
Morgan
Mustang
Palomino
Paso Fino
Kelly Mills

Peruvian Paso
Pinto

Warmbloods

Rocky Mountain

Anglo Trakehner

Spotted Saddle Horse

Danish

Tennessee Walking Horse

Dutch
French - Selle Francaise
German Trakehner
Hanovarian
Hessen
Oldenburg
Swedish
Ponies
American Paint
Chincoteague
Connemara
Hackney
Norwegian Fjord
Pony of America
Trottingbred
Draft
American Cream

Kelly Mills

Clydesdale
North American Spotted
24

ECONOMIC IMPACT ANALYSIS OF DELAWARE EQUINE INDUSTRY
Titus O. Awokuse and Thomas W. Ilvento
Department of Food and Resource Economics
University of Delaware
INTRODUCTION
The Delaware equine industry study involves two major components: 1) a survey of operations,
owners and trainers who had equine-related expenditures in Delaware during 2003, and 2) a
corresponding quantitative economic impact analysis of the direct, indirect, and induced contributions of
the equine industry to Delaware’
s economy. The survey results have been covered in the first part of this
bulletin. This section focuses on the economic impact analysis. Together, they provide the first
comprehensive study of the Delaware equine industry. The results of this work will enhance our ability
to understand the diverse nature of the equine industry and provide the public and policymakers with
more accurate information on its economic contribution to the state.
An earlier study (1999) measured the economic value of Delaware’
s equine industry, but was
limited to just the racing sector and did not include non-racing equine activities and events. Furthermore,
the former study underestimated the importance of the equine industry to Delaware’
s economy because it
only captured direct economic effects, not the indirect and induced effects. Indirect and induced effects
show the additional contributions the industry makes from expenditures into the economy, and can only
be obtained from an economic model. Given the national growth of the industry in the last few years and
the limited scope of the 1999 Delaware equine study, there was a need for a more up-to-date and
comprehensive study which captures direct, indirect, and induced effects of equine and equine-related
activities on Delaware’
s economy. The economic impact analysis component of the study shows the
complex interconnections between the equine industry and other industries in the state of Delaware and
provides quantitative estimates of direct, indirect and induced effects.
In order to accurately capture the economic importance of this industry, it is appropriate to first discuss
the components and linkages that define Delaware’
s equine industry. Subsequent sections discuss the
research approach and methodological details, as necessary.
DIRECT ECONOMIC AND SOCIAL CONTRIBUTIONS
The 2004 Delaware Equine Survey gathered equine-related information about the types of
operations and land acreage devoted to equine use, the number by breed and use of equine, and economic
data from horse operations, owners and trainers. The survey expenditures represent only the direct
effects of the equine industry.
The equine industry provides economic value to the state through income and job creation.
Equine-related economic activities include services and sales for other businesses, equestrian shows,
competitions, and racing events. Equine-related jobs are created for trainers, veterinarians, tack shop
employees, farriers, accountants, sales agents, and feed and hay producers, among others.
In addition to its economic impact, the equine industry also has a significant social effect through
its contributions to the stability of communities, to the environment, 4-H and other educational programs,
and physical and mental health therapy. The Delaware equine industry plays a pivotal role in the
preservation of agricultural acreage as open space in the more densely populated regions of the state (for
example, New Castle County). Thus, horses add to Delawareans’quality of life by helping to preserve
the rural agricultural character and scenic beauty in the state. The equine industry also provides quality
entertainment and recreation value.
25

Recreational activities on horseback have an economic effect by generating employment for some
Delaware residents. Furthermore, equine have social value in helping children and adults develop
personal responsibility as they provide care to their horses, ponies, mules, burros and donkeys.
Delaware has 2,003 operations having 13,000 equine on 27,415 acres in Delaware’
s three
counties. To put into perspective the size of the equine industry, Delaware ranks third nationally in the
number of equine per county behind Arizona and Nevada. Furthermore, Delaware’
s racing-related equine
accounted for 41% of the state’
s total equine. This is likely the highest percentage of any state. No other
state in the country can claim to have a ratio of one commercial racetrack per county.
Economic expenditures at the racetracks, Arabian, Standardbred and Thoroughbred racing, are
major sources of economic stimuli to other sectors of the state economy. Delaware’
s three racetracks
inject a total of $119.3 million in direct spending into the state economy. The detailed breakdown of
racetrack expenditures can be found in Table 1. Furthermore, these commercial enterprises also generate
significant tax revenues for the state government.
Direct expenditures reported from the 2004 Delaware Equine Survey are impressive in scale. In
2003, the average cost of taking care of an equine in Delaware was $3,581 for non-racing-related equine
and $10,430 for racing-related equine. Racing and non-racing operations generated $160.4 million in
spending in Delaware in 2003 (see Table 2). This expenditure amount includes horse purchases, upkeep,
equine-related activities, labor expenses, capital improvements, etc. Another important area of spending
occurs through spectators and participants at horse shows, competitions and racing events. This sector
contributed $16.4 million to Delaware’
s economy in direct spending (was not included in the NASS
survey expenditure total) (see Table 3).
INDIRECT AND INDUCED ECONOMIC CONTRIBUTIONS
In Delaware, the equine industry has a far reaching impact on other industries in the state economy
in terms of expenditures on equine and related products made by equine operations, owners, trainers, and
racetracks. Non-equine industries benefiting from equine expenditures include real estate, vehicle and
equipment sales, services, wholesale, retail, manufacturing, and other related industries. Delaware equine
owners and operations support their equine activities with land purchases, capital investments, and
equipment purchases. Equine owners utilize a variety of other industry support goods and services, many
of which help stimulate the economic well-being of non-equine businesses including farming operations.
In addition, horse shows, competitions, and racing events held across the state are an important
component of the indirect and induced economic value provided by the equine industry.
Economic impact analysis involves the development of a detailed accounting of inter-industry
activities and linkages. Such an economic analytical framework is commonly described as input-output
analysis. Wassily Leontief, a Nobel Prize winner in economics, developed this method of analysis.
Input-output analysis uses a mathematical modeling approach to model the transactions between various
industries in the economy. The input-output model requires the collection of economic data for a specific
geographic region (county, state, or nation). The main emphasis is on the economic activity of a group of
industries that both produce goods (output) and consume goods from other industries (input) in the
process of producing the specific industry’
s output.
For instance, the equine industry in Delaware demands (consumes) the outputs of other industries
such as real estate, feed and bedding, labor, boarding, veterinary and farrier services, equipment purchase
and repair, and insurance. The Delaware equine industry then uses these inputs from other Delaware
industries to produce outputs captured as horse racing, riding lessons/clinics, breeding services, trail
riding, shows and competitions, and more. All of these diverse economic activities in the equine industry
have a far-reaching impact on Delaware’
s economy.

26

The economic impact analysis of the Delaware equine industry was done to account for the interindustry activities and linkages and determine how much value the equine industry adds to the rest of the
economy of Delaware. This analysis uses the expenditure data from the survey conducted by the National
Agricultural Statistics Service (NASS), state level data from non-equine industries, and data from a
special survey of participants and spectators at horse shows and racing events. The model estimates an
input-output table which shows all the economic transactions generated by impacted industries in the state
of Delaware. The analysis builds a set of outputs which identify the purchase and sale transactions
between industries within a state system and with neighboring regions (imports and exports).
The analysis generates a set of multipliers which represent a quantitative measure of the extent
that change in employment or expenditures is expected to generate in additional effects throughout the
economy. Multipliers translate the consequences of change taking into account the complicated linkages
in the economy. For example, a state employment multiplier can be estimated which relates a change in a
state's equine sector employment to the resulting total employment change in the state. In input-output
analysis, there are many different multipliers that can be estimated and reported.
Most studies report the direct, indirect, and induced multiplier effects of a particular industry on
the overall economy’
s output, income, and employment levels. The direct effect measures the direct
contribution of equine expenditures to Delaware’
s economy. The indirect effect measures effect of equine
expenditures on non-equine industries that supply inputs and services used by the equine industry.
Finally, the induced effect measures the impact of expenditures by households that receive income from
the equine industry –in other words, the effect of household spending as a result of income from equine.
The input-output analysis and corresponding multipliers were derived using the nationally
accepted software called IMPLAN (Impact Analysis Planning). The IMPLAN model was originally
developed at the University of Minnesota for the US Forest Service. Table 4 provides detailed
information on the economic impact analysis results and estimates of various multipliers. Multipliers are
often called estimators of the “
ripple”effect of an industry or a change in the impacted industries. The
IMPLAN manual recommends the use of the Type SAM multiplier and it is obtained as follows:
Type SAM multiplier = (direct effect +indirect effect + induced effect) / direct effect.
Additional definitions of the numbers in Table 4 include:
Industry Output Multipliers represent the total dollar value of
output generated in the economy by a $1 change in final
demand for the products of a particular sector (e.g., equine).
Value Added Multipliers represent the total effect of a $1
change in output on employee compensation, plus proprietary
income plus other property income plus indirect business tax. This is an alternative
income multiplier that accounts for other incomes beyond equine labor income.

Kelly Mills

Labor Income Multipliers represent the total change in statewide household labor income due to a
$1 change in the labor expenditure of a given sector in response to change in demand for the
sector.
Employment Multipliers measure the total employment change in the state resulting from a change
in employment of a given sector as a result of a change in final demand.
27

TOTAL ECONOMIC CONTRIBUTIONS
Results from the input-output analysis are presented in Table 4. The table shows the total effect
broken down into direct, indirect, and induced contributions of the Delaware equine industry. Separate
results are provided for racetracks, racing and non-racing operations, and participant and spectator events.
The data for the spectator events was collected through a supplemental survey of horse show and racing
event participants and spectators conducted by the University of Delaware’
s Department of Food and
Resource Economics.
As shown in Table 4, the total economic contribution of all four categories of equine activity is
$360.3 million in total industry output. A portion of this amount goes to Delaware workers and equine
owners in the form of wages, salaries, and profits. The industry contributes $111.7 million in value added
activity, and $81.6 million in labor income. The total value is the sum of direct, indirect, and induced
effects. The estimated total number of jobs supported by the equine industry is 3,062 jobs in 2003. The
employment figures include full-time, part-time, and seasonal employment.
The three racetracks in Delaware (Dover Downs,
Harrington Raceway, and Delaware Park) make significant
contributions to the state’
s economy. The racetrack operations
account for a total industry output of $137.8 million (38% of
total) and a total of 1,094 jobs. These output figures translate
to a total effect of $25.8 million in labor income. The racing
operations, owners, and trainers account for the largest portion
of the total industry output in the amount of $159.1 million
(44% of the total) and a total of 1,472 jobs. Non-racing
operations and owners contribute $42.4 million in total
industry output to Delaware’
s economy (12% of the total) and
304 jobs.

Kelly Mills

Equine participant and spectator events also contribute a non-trivial amount to the state’
s
economy. This equine activity provided a direct impact of $16.4 million into Delaware’
s economy. In
total, direct, indirect and induced spending for equine events have an annual economic impact of $21.1
million to Delaware (6% of the total). They support 192 jobs and $6.3 million in labor income. These
jobs and the labor income include employees working at the equine events, but the majority of the impact
is felt at local businesses supported by horse show and racing event attendees.
CONCLUSIONS
This study shows that the equine industry makes a major contribution to Delaware’
s economy.
The economic impact analysis of equine data provides businesses, government officials, and community
planners with important information necessary for making better decisions about future investment
opportunities and economic growth potentials of the equine industry in the state of Delaware. Many
Delawareans are directly or indirectly involved in the equine industry. Delaware’
s equine industry
consists of three major activities: private (pleasure, work, etc.), commercial (racing, breeding, boarding,
etc.), and participant and spectator events (racing, shows and competitions, etc.). These components of
the equine industry make significant contributions to the Delaware economy in terms of output, value
added, labor income and employment. The state of Delaware has 13,000 equine of which 41% are used
for racing-related purposes and 59% are used for non-racing-related purposes. Direct effect of equine
expenditures is estimated at $296.0 million while the “
ripple”effect (indirect and induced effects) of the
direct expenditures generated an additional $64.3 million. Thus, the total economic impact of the equine
industry output is estimated at $360.3 million in 2003. In addition, the equine industry also contributes a
total of 3,062 jobs to the state economy.

28

TABLE 1.
EQUINE-RELATED EXPENDITURES MADE IN DELAWARE BY RACETRACKS, 2003
Expenditure Category

Average per
Racetrack

Category as
Percent of Total

Total

$276,667

$830,000

0.70

$10,000

$30,000

0.03

Grooming Supplies and Tack

$140,000

$420,000

0.35

Insurance Premiums

$570,000

$1,710,000

1.43

Fuels and Utilities

$483,333

$1,450,000

1.22

Maintenance and Repair

$626,667

$1,880,000

1.58

Rent and Lease

$230,000

$690,000

0.58

$53,333

$160,000

0.13

$140,000

$420,000

0.35

$16,667

$50,000

0.04

Advertisement and Marketing

$366,667

$1,100,000

0.92

Professional Fees

$180,000

$540,000

0.45

$76,667

$230,000

0.19

Contract Services

$1,303,333

$3,910,000

3.28

Capital Improvements

$1,120,000

$3,360,000

2.82

Labor Expenses

$8,073,333

$24,220,000

20.30

$36,667

$110,000

0.09

$1,860,000

$5,580,000

4.68

Purses and Stakes

$24,200,000

$72,600,000

60.86

Total

$39,763,334

$119,290,000

100.00

Veterinarian and Health
Feed and Bedding

Land Taxes
Equipment Purchases
Travel and Lodging

Entry and Nomination Fees, Licenses,
Registrations, Memberships, etc.

Other Contracted labor
Other Expenditures

Source: 2004 Delaware Equine Survey, National Agricultural Statistics Service (NASS), USDA.

Kelly Mills

29

TABLE 2.
EQUINE-RELATED EXPENDITURES MADE IN DELAWARE IN 2003:
RACING, NON-RACING AND TOTAL
Expenditure

Racing*

Non-racing

Total

Category as
Percent of
Total

Purchases of Equine

$33,350,000

$2,830,000

$36,180,000

22.56

Boarding of Equine

$8,860,000

$1,730,000

$10,590,000

6.60

Veterinarian and Health

$8,040,000

$1,870,000

$9,910,000

6.18

Feed & Bedding

$7,770,000

$4,770,000

$12,540,000

7.82

Grooming Supplies and Tack

$3,610,000

$1,630,000

$5,240,000

3.27

Insurance Premiums

$1,990,000

$400,000

$2,390,000

1.49

Fuels and Utilities

$2,180,000

$690,000

$2,870,000

1.79

Maintenance & Repair

$1,690,000

$1,210,000

$2,900,000

1.81

Farrier

$3,280,000

$1,330,000

$4,610,000

2.87

Breeding Fees

$3,990,000

$420,000

$4,410,000

2.75

Rent and Lease

$1,220,000

$270,000

$1,490,000

0.93

$580,000

$1,020,000

$1,600,000

1.00

$8,540,000

$6,510,000

$15,050,000

9.38

$17,590,000

$1,440,000

$19,030,000

11.87

$1,710,000

$880,000

$2,590,000

1.62

Advertisement and Marketing

$200,000

$170,000

$370,000

0.23

Professional Fees

$540,000

$110,000

$650,000

0.41

Sales Fees and Commissions

$300,000

$90,000

$390,000

0.24

Interest Paid

$920,000

$200,000

$1,120,000

0.70

$3,430,000

$950,000

$4,380,000

2.73

$520,000

$140,000

$660,000

0.41

Capital Improvements

$2,650,000

$1,970,000

$4,620,000

2.88

Real Estate Purchases

$2,220,000

$2,500,000

$4,720,000

2.94

$10,290,000

$1,240,000

$11,530,000

7.19

$360,000

$70,000

$430,000

0.27

$70,000

$20,000

$90,000

0.06

$125,900,000

$34,460,000

$160,360,000

Land Taxes
Equipment Purchases
Training Fees
Travel and Lodging

Entry and Nomination Fees, Licenses,
Registrations, Memberships, etc.

Contract Services

Labor Expenses
Other Contracted Labor
Other Expenses

Total

*Excludes Racetracks
Source: 2004 Delaware Equine Survey, National Agricultural Statistics Service (NASS), USDA.

30

100.00

TABLE 3.
EQUINE-RELATED EXPENDITURES MADE IN DELAWARE IN 2003:
HORSE SHOWS/COMPETITIONS AND RACING EVENTS
Expenditure
Category

Horse Shows

Racing Events

Total

Feed and Bedding

$625,000

$1,200,000

$1,825,000

Lodging

$155,000

$620,000

$775,000

Transportation

$110,000

$1,040,000

$1,150,000

Food and Drink

$65,000

$1,210,000

$1,275,000

Souvenirs

$55,000

$240,000

$295,000

Recreation

$145,000

-

$145,000

Supplies

$935,000

$870,000

$1,805,000

$1,520,000

-

$1,520,000

$390,000

-

$390,000

$30,000

$260,000

$290,000

-

$6,930,000

$6,930,000

$4,030,000

$12,370,000

$16,400,000

Entry Fees
Stall Fees
Miscellaneous
Off-track Betting
Total

Source: Survey of Delaware horse shows and racing events, University of Delaware.

Winbak Farms

31

TABLE 4.
IMPACT OF THE EQUINE INDUSTRY ON DELAWARE’
S ECONOMY IN 2003:
RACETRACKS, RACING, NON-RACING, EQUINE EVENTS AND TOTAL
Direct Effect
Racetracks

Indirect
Effect

Induced
Effect

Total Effect

Multiplier

$119,289,999

$6,726,549

$11,771,253

$137,787,801

1.16

Value Added

$22,822,830

$3,567,925

$7,431,680

$33,822,435

1.48

Labor Income

$19,240,519

$2,164,433

$4,384,719

$25,789,671

1.34

927

53

114

1,094

1.18

$125,900,000

$15,122,691

$18,043,568

$159,066,259

1.26

Value Added

$35,047,771

$8,847,909

$11,391,648

$55,287,328

1.58

Labor Income

$27,627,605

$5,456,669

$6,721,126

$39,805,400

1.44

1,152

146

174

1,472

1.28

$34,460,000

$3,491,634

$4,404,364

$42,355,998

1.23

Value Added

$9,614,217

$1,982,608

$2,780,657

$14,377,482

1.50

Labor Income

$6,834,924

$1,232,110

$1,640,600

$9,707,634

1.42

231

30

43

304

1.31

$16,399,054

$1,879,567

$2,842,611

$21,121,232

1.29

Value Added

$5,273,523

$1,101,313

$1,794,657

$8,169,493

1.55

Labor Income

$4,512,854

$735,739

$1,058,857

$6,307,450

1.40

147

18

27

192

1.31

$296,049,053*

$27,220,441

$37,061,796

$360,331,290

1.22

Value Added

$72,758,341

$15,499,755

$23,398,642

$111,656,738

1.53

Labor Income

$58,215,902

$9,588,951

$13,805,302

$81,610,155

1.40

2,457

247

358

3,062

1.25

Industry Output

Employment (# of Jobs)
Racing
Industry Output

Employment (# of Jobs)
Non-racing
Industry Output

Employment (# of Jobs)
Equine Events
Industry Output

Employment (# of Jobs)
Total
Industry Output

Employment (# of Jobs)

*Total direct effect is the sum of NASS Equine Survey expenditures plus the University of Delaware survey on horse show and racing
event expenditures.
Source: IMPLAN-based economic impact analysis model.

Kelly Mills

32

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Delaware’
s

Rainbow Blue

Dave Landry

3-Year-Old Pacing Filly of the Year - 2004
Harness Tracks of America and U.S. Harness Writers’Association

Delaware Agricultural Statistics Service
Chris Cadwallader, Director
2320 South DuPont Highway
Dover, DE 19901-9982
(800) 282-8685 - in state
(302) 698-4500
E-mail: [email protected]
Home Page: www.nass.usda.gov/DE