Kentucky Equine Survey Final Report - 2012

2012 Kentucky Equine Survey
Released September 6, 2013

LINDA WILSON

In Appreciation
The undertaking of a comprehensive statewide equine survey requires the assistance and cooperation of
many organizations, institutions and individuals. This project would not have been possible without the
dedicated support from many people. A special note of appreciation is in order for the following groups
and individuals who provided significant contributions to the 2012 Kentucky Equine Survey.
The Governor’s Office of Agriculture Policy and the
Agricultural Development Board: GOAP provided grant
funding for much of the cost of this study. We appreciate
its willingness to recognize the equine industry as a vital
part of Kentucky’s agricultural industry and the crucial
need to assess its size and distribution.
University of Kentucky College of Agriculture, Food
and Environment: UK initiated this project with a substantial internal investment of funds, in addition to numerous administrative, faculty, staff and graduate student
hours to assist with grant development, industry fundraising, survey design, survey promotion across the Commonwealth and data collection and analysis from equine
events like horse shows, races and trail rides, as well as
directly from Kentucky residents.
The Kentucky Horse Council: KHC coordinated and submitted the grant proposal to GOAP, resulting in a successful grant request. In addition, KHC helped solicit equine
industry matching funds, including a large contribution
from its own reserves, and helped design the survey instrument. Finally, KHC assisted in collecting horse owner
names for submission to the surveying agency and in
compiling the final report.
National Agricultural Statistics Service, U.S. Department of Agriculture: NASS worked with UK and KHC to
design an appropriate survey instrument and served as
the sole data collection agency, ensuring confidentiality
of the results. In addition, NASS summarized the data and
produced the equine operation inventory results.
Industry Financial Contributors: Many equine associations, operations and individuals contributed financially
to this effort. A complete list is available in both the online
appendix and inside the back cover of this report.
Kentucky’s Equine Operation Owners: As with any survey, the accuracy of the results is a direct reflection of the
completeness of the database. More than 13,000 horse
owners sent their contact information to NASS in the in-

terest of benefiting the entire industry. In addition, many
of these individuals were responsible for completing the
survey itself.
Key Individual Contributors:
• Jennifer Battat, statistician, National Agricultural
Statistics Service
• Leland Brown, former director, National Agricultural
Statistics Service (retired March 2013)
• Shawn Clark, deputy director, National Agricultural
Statistics Service
• Bob Coleman, PhD, PAS, director for undergraduate
education in equine science and management and extension horse specialist in UK’s Department of Animal
and Food Sciences
• Nancy Cox, PhD, associate dean for research in UK’s
College of Agriculture, Food and Environment and
Kentucky Agricultural Experiment Station director
• Alison Davis, director of the Community & Economic
Development Initiative of Kentucky, director of undergraduate studies and associate extension professor in
UK’s Department of Agricultural Economics
• Ginny Grulke, executive director, Kentucky Horse
Council (retired August 2013)
• Audrey Jarrett, 2012 Kentucky Equine Survey project
coordinator
• Stephanie Johnson, graduate student in UK’s Department of Agricultural Economics
• Jeff Lemmons, statistician, National Agricultural Statistics Service
• Mary Rossano, PhD, associate professor in UK’s Department of Animal and Food Sciences
• Jill Stowe, PhD, director of UK’s Ag Equine Programs
and associate professor UK’s Department of Agricultural Economics
• Holly Wiemers, MA, communications director for UK’s
Ag Equine Programs

Key Findings
This comprehensive statewide survey of all breeds of horses, ponies, donkeys and
mules was the first such study undertaken in Kentucky since 1977.

Phase 1

Phase 2

Phase 1 of the study was a statewide survey of equine
operations that included an inventory of all breeds of
equine, including horses, ponies, donkeys and mules.
It included a look at sales, income, expenses and assets of those operations. Findings include:

Phase 2 of the project entailed an economic impact
analysis of Kentucky’s equine industry. According
to three of the most commonly-used measures of
economic impact:
• The output effect, or the increase in sales of
total goods and services due to the presence of
the equine industry, was measured at approximately $3 billion.
• The employment effect, or the number of jobs
created, was measured at 40,665.
• The value added effect, which is new income
paid to workers, profits earned by businesses or
dividends paid to shareholders, was estimated
to be $1.4 billion.

• Kentucky is home to 242,400 horses.
• There are approximately 35,000 equine operations in Kentucky.
• 1.1 million acres in Kentucky are devoted to
equine use.
• The total value of the state’s equine and equinerelated assets is estimated at $23.4 billion.
• The total of all equine-related sales and income
for equine operations in 2011 was about $1.1
billion.
• Total equine-related expenditures by equine operations in 2011 totaled about $1.2 billion; 77% of
operating expenses are spent in Kentucky.
Equine Breeds in Kentucky
Thoroughbred
Quarter Horse
Tennessee Walking Horse
American Saddlebred
Donkeys and mules
Mountain Horse breeds
Standardbred
Miniature Horses
Ponies
Paint

54,000
42,000
36,000
14,000
14,000
12,500
9,500
7,000
7,000
6,500

In addition, the tax contribution of the equine industry to the state of Kentucky was approximately
$134 million.

Arabian and Half-Arabian
Appaloosa
Belgian
Morgan
Percheron
Paso Fino
Hackney Horse
Pinto (excludes Paint)
Clydesdale
Other

Operations and
Inventory
Equine Operations
Inventory

3,340
20,900

7

2

1,800
10,400

3

4,080
20,600

8

2,760
15,600

6

2,740
16,200

4

5

9

7,140
82,800

6,580
42,500

1
3,220
19,200

Primary Use of Kentucky’s Equines
Trail riding/pleasure
79,500
Broodmares
38,000
Idle/not working
33,000
Competition/show
24,500
Yearlings, weanlings and foals 23,000
Racing
15,000
Other activities
13,000
Work/transportation
12,500
Stallions at stud
3,900

5,500
3,800
3,300
2,000
1,600
1,500
1,100
900
200
20,000

1,850
13,600

5

6

Background

A

LINDA WILSON

s with any key industry, the equine industry prospers when it is measured, growth opportunities
assessed, challenges defined
and solutions proposed and
endeavored. To effectively assess the industry, it is critical to
have a current inventory of the
existing population of horses
and equine operations.
While Kentucky promotes
itself as the “Horse Capital of
the World,” the last thorough
equine inventory in Kentucky
was undertaken in 1977, leaving the industry with 35 years of changes, growth
and contraction that were neither measured nor
analyzed.

The horse is the signature industry of Kentucky, but current benchmarks are needed
to evaluate the impact of future changes in the economy,
the regulatory environment,
the business climate and the
changing American lifestyle.
In addition, current benchmarks provide the information needed to assess opportunities for growth, corrections
for areas of contraction or
identification of new markets
or opportunities.

Finally, Kentucky’s national
image is heavily based on the presence of the
horse. Horses are one of the very cornerstones
of Kentucky’s culture. To allow these institutions
and landscape wonders to become devalued due
to neglect would affect jobs and income, not only
from equine operations, but also from the ancillary
businesses affected by tourism and hospitality, and
would ultimately take away the uniqueness and
cultural identity of Kentucky.

Kentucky’s equine landscape varies across the state.
In some areas, breeds and disciplines are localized,
while others can be found in all parts of the state.
And the equine industry extends far beyond “just”
horses. We know of the operation- and horse-related activities, but we may forget about the numerous other sectors the equine industry touches. The
equine industry offers a number of unique, equinerelated tourism opportunities. There are ancillary
supporting businesses such as veterinarians and
farriers, as well as providers of fencing, feed, bedding, insurance, laundry services, pharmaceuticals
and specialized educational
opportunities. Some have
even characterized Kentucky’s
equine industry, particularly
in the Central Bluegrass region, as an economic cluster, along with more familiar
economic clusters like Napa
Valley (wine), Silicon Valley (tech/computers) and the
Research Triangle of North
Carolina. The existence of this
type of business cluster justifies the support and enhancement of the existing equine
industry.

In response to these needs, in 2011, the University of Kentucky and the Kentucky Horse Council,
with support by industry organizations spearheaded by the Kentucky Quarter Horse Association,
the Kentucky Thoroughbred Farm Managers’ Club
and Kentucky Thoroughbred Association/Kentucky Thoroughbred Owners
and Breeders, and initial support from the University of
Louisville, finally succeeded in
securing funding for a largescale, comprehensive equine
survey upon which future industry plans could be built.
This was no small accomplishment, because many groups,
including
the
Kentucky
Equine Education Project,
spent years laying the groundwork that eventually helped
make this happen.

7

KENTUCKY HORSE COUNCIL

Purpose of the Study
The study’s purpose was to
determine an accurate inventory of all horses in the state by
breed and use, and to describe
the economic impact of the
entire equine industry, which
includes not only the equine
operations, but race meets,
horse shows, trail rides and
supporting businesses which
constitute the fabric of Kentucky’s unique culture. 

As in all of the United States,
the general population has
become detached from rural
and agricultural life. A healthy
equine industry is one way to
attract Kentuckians to agriculture, to educate them about
livestock husbandry, to teach
youth patience and responsibility and to provide a physically-active job or hobby.
This study provides data to
the equine industry to assess
some very practical outcomes,
including:

Kentucky’s economy, like the
rest of the country’s, has suffered a loss of jobs during the
Great Recession. Job stability and creation within
one of our largest industries is a critical component
to keeping our horse community healthy, as well as
helping Kentucky’s job market expand. Ultimately,
data from this study may be used to identify areas
of potential job creation and income expansion,
both within the industry, as well as in those businesses associated with industry activities.

SAVANNAH ROBIN

• What will the industry’s labor requirements be
in the next five years, and what education or
training is required for employees to be prepared for equine jobs?
• Are there shortages of equine-focused vets relative to the equine population in specific regions
of the state? Are there programs that can be instituted to entice veterinarians to these areas?

8

of the National Agricultural
Statistics Service (NASS),
which is an agency of the
United States Department of
Agriculture. NASS followed a
list-segment and area-segment
procedure, which is a sound
and widely-accepted statistical
methodology. NASS mailed
the questionnaire to 15,000
randomly-sampled equine operations across the state. In addition, NASS staff visited 279
segments of land. (Segments
were usually one to two square
miles and were chosen across
the state by NASS to represent rural, semi-rural or
urban fringe areas where horses might be located
but weren’t accounted for by any of the farm or association lists available. NASS staff members physically determined how many horses were located in
these areas through questionnaires and visits. More
details can be found in the technical methodology
in the appendix.)
KENTUCKY HORSE COUNCIL

• What are the community
economic benefits of horse
shows or trail rides? How
can we increase the number of shows or trail rides
throughout the Commonwealth and attract riders
from around the country?
How can we provide support for facilities based on
locally concentrated populations of equine participants?
• Are trail riders located
near known trailheads?
Are Kentuckians traveling
to Indiana, Ohio or Tennessee to ride because
there are no trails in their area? How can we
keep them here in Kentucky?
• Is the breeding segment of the industry being
optimally cultivated for all breeds? Are the ancillary businesses that support this segment being well-utilized by the operations that stand to
benefit most from them?
• Are areas of growth opportunities being pursued? Can resources be focused in additional
recruitment and engagement of new and growing endeavors?

Phase 2: Economic Impact Analysis
Phase 2 was conducted between June 2012 and
April 2013. To estimate the economic impact of
the equine industry on Kentucky, this income and
expenditure data from the NASS study was combined with an input-output (IO) model with 2011
IMPLAN data. The full economic impact of the
equine industry includes the “multiplier effect,”
which summarizes the total impact that can be expected from a change in a given economic activity.
Total statewide wagering was not included in the
analysis.

These and many other questions can be addressed
with a thorough understanding of where horses,
operations and infrastructure are concentrated
across the state.

Methodology and Timeline
Phase 1 of the study was a statewide survey of
equine operations that included an inventory of
all breeds of equine, including horses, ponies and
mules. It included a look at sales, income, expenses and assets of those operations. It also included
county-level results. Phase 2 of the project was an
economic impact analysis of Kentucky’s equine industry.

For an estimate of spending and economic impacts
of out-of-state attendees at horse shows and race
tracks, results are based on nearly 2,000 surveys
that were conducted at shows and races across the
state during the summer of 2012. Only out-of-state
visitors were included in the analysis because they
represented new money entering the Kentucky
economy.

Phase 1: Equine Operations Inventory
Phase 1 was conducted between July and October
2012. [Note: Data equine operations reported to
NASS about income and expenditures were from
the calendar year 2011. Inventory and assets were
measured on July 1, 2012.] The inventory of equine
operations was conducted by the Kentucky Field
Office (now the Eastern Mountain Region Office)

Technical Versions
Full details on methodology and terminology are
available electronically and can be requested by
contacting [email protected].

9

R E S U LT S

Phase 1: Equine Operations and Inventory
Defining Equine Operations

Primary Function of Land Used for Equine Operation
As of July 1, 2012

For the purposes of this study, an “equine operation” is defined as an address on which at least one
horse, pony, donkey or mule resides. From this
study, it was determined that an equine operation
encompasses the large breeding farms, property on
which equines are kept for personal use and other
land with a primary use that may not be equinerelated, such as a cattle operation or crop farm. It
is estimated that there are a total of 35,000 equine
operations throughout Kentucky. These equine
operations accounted for a total of 4.3 million acres
of land, of which 1.07 million acres were devoted to
equine-related activities.

19,500
10,500

1,100
Farm or
Ranch

A Place to Boarding, Breeding
Keep for Training, or Facility
Personal
Riding
Use
Facility

3,200

Other

is no profit motive. Survey respondents were asked
to estimate the percentage of equine-related activities on their operation that were conducted for
business purposes—in other words, to generate
income. These responses differed significantly according to primary type of the operation. Breeding
operations had the highest percentage of activities that are income-generating (73%), followed by
boarding, training or riding facilities (56%). Farms
or ranches indicated that 10% of activities were for
business purposes, followed by “other” (8%) and
operations on which equine are kept for personal
use (6%). So, about 95% of the equine operations
(farms and ranches, personal use, and other) have
10% or less of their equine-related activities for
business purposes, indicating a large hobby or recreational segment.

Kentucky Equine Operation Demographics
Number of equine operations
35,000
Total operation acreage
4,300,000 ac
Acreage for equine-related use
1,070,000 ac
Acreage in land preservation1
90,000 ac
Average years of the operation’s existence 18 yrs
1

700

Land preservation may include CRP, WRP, FWP, CREP, and land
trusts.

Farms or ranches comprised the largest component of equine operations by primary business
type. The survey results showed that 19,500 Kentucky equine operations (56%) were listed as farms
or ranches, and 10,500 operations (30%) were
properties on which equine were kept for personal
use. In addition, 1,100 operations (3%) were listed
as a boarding, training or riding facility, and 700
(2%) were listed as a breeding operation. Finally,
another 3,200 (9%) operations were identified as
“other,” which could include facilities like therapeutic riding centers, equine rescue operations or
some type of non-equine operation not identified
above.

Numbers, Types and Uses of Equine
According to the 2012 Kentucky Equine Survey,
there were an estimated 242,400 horses, ponies,
mules and donkeys in the state of Kentucky on July
1, 2012. The majority of the state’s equine are light
horse breeds, which accounted for 89.2% of the total. Donkeys and mules accounted for 5.8% of the
state’s equine, with ponies accounting for 2.9% and
draft horse breeds accounting for 2.1%.

Not all individuals participating in the equine industry do so for business reasons. For most, their
equine-related activities are recreational, and there

10

Kentucky Equine Inventory by County

e

Carroll

ell
pb
m
Ca
Kenton

B oon

Trim

Total Inventory
0 - 500
501 - 1,000
1,001 - 2,500
2,501 - 5,000
5,001 - 10,000
10,001 - 30,000
*Withheld
Union

PendleGallatin
Grant ton Bracken

9

ble

Mason
RobertGreenup
Lewis
Harrison son
Oldham
Nic
hola Fleming
Carter
s
Boyd
Scott
Bourbon
Shelby
Rowan
Jefferson
Bath
Elliot
Fayette
Lawrence
Spencer
n
M
erso
Bullitt
Clark
ea
Menifee Morgan
And
de
Johnson
Powell
Henderson
Martin
Nelson Wash- Mercer
Breckinridge
Wolfe
Madison
ington
Daviess
Ga
Hardin
Estill
rra
Boyle
Floyd
Lee
rd
Marion
Webster
Breathitt
Larue
Ohio
Pike
Lincoln
Grayson
Owsley
Rock- Jackson
Crittenden
Taylor
castle
Casey
Perry Knott
Ed
Hart
Hopkins Muh
Green
m
Butler
len
on
be
so
Clay
rg
n
Mc
Letcher
Pulaski
Laurel
Cra
Leslie
Adair
c
Ballard
ken
Lyon
Russell
Warren
Barren
Christian
Logan
Knox
Carlisle
Todd
Marshall
Harlan
CumberWayne
Trigg
Graves
Whitley
land
Allen
Simpson
Bell
Monroe
Hickman
McCreary
Clinton
Calloway
Fulton
Owen

Henry

8

o
tg
on

er

m

y

Ma

ffin
go

M

ea
cL

2

M

ck

ine

nco
Ha

sam
Jes
d
Woodfor

Fra
n

kli
n

7

6

n

sto

Me

n

ell
ldw
Ca

ing

Liv

1

lfe
tca

3

5

4

*Withheld to avoid disclosing data for individual firms.

Thoroughbreds were the largest breed in the state
(54,000), followed by Quarter Horses (42,000),
Walking Horses (36,000), American Saddlebreds
(14,000), donkeys and mules (14,000), Mountain
Horse breeds (12,500) and Standardbreds (9,500).
A complete listing of the estimated number of all

breeds is included in the NASS release in the appendix.
The number of equine was disclosed in all but
three of Kentucky’s 120 counties. The distribution
of equine across the state can be seen in the figure
above.

Kentucky Equine Inventory
As of July 1, 2012
Breed
Thoroughbred
Quarter Horse
Tennessee Walking Horse
American Saddlebred
Donkeys and mules
Mountain Horse breeds
Standardbred
Miniature Horses
Ponies
Paint
Arabian and Half-Arabian
Appaloosa
Belgian
Morgan
Percheron
Paso Fino
Hackney Horse
Pinto (excludes Paint)
Clydesdale
Other

Number Percent
54,000
22
42,000
17
36,000
15
14,000
6
14,000
6
12,500
5
9,500
4
7,000
3
7,000
3
6,500
3
5,500
2
3,800
2
3,300
1
2,000
1
1,600
1
1,500
1
1,100
<1
900
<1
200
<1
20,000
8

Morgan
Belgian
Appaloosa
Arabian and Half-Arabian

Percheron
Paso Fino
Clydesdale, Hackney, Pinto

Paint
Ponies
Miniature Horses
Standardbred

Thoroughbred

Mountain Horse
Quarter Horse
Saddlebred

Donkeys and Mules

All other breeds

11

Walking Horse

Primary Use of Kentucky Equine
As of July 1, 2012
Use
Trail riding/pleasure
Broodmares
Idle/not working
Competition/show
Yearlings, weanlings, foals
Racing
Other activities
Work/transportation
Stallions at stud

Number Percent
79,500
33
38,000
16
33,000
14
24,500
10
23,000
9
15,000
6
13,000
5
12,500
5
3,900
2

Stallions

Work
Other
Racing
Trail Riding/
Pleasure

Yearlings,
Weanlings,
Foals

Competition

Idle/not
working

Uses of Equine

Broodmares

reported value of equine-related land, fencing and
buildings was $13.9 billion. The value of equinerelated vehicles and equipment was reported to
be almost $3 billion. The reported value of tack
and equestrian clothing was $114 million and the
value of feed and supplies was $58 million. In total,
the value of all equine-related assets, including the
value of the equine in the state, was estimated at
$23.4 billion.

The primary use of equine in the state is recreational, such as trail or pleasure riding (32.8%).
Due to Kentucky’s active breeding industry, the
next most common primary use for equine is as
breeding stock, such as broodmares and stallions
(17.3%), followed by equine which are idle or not
working (13.6%), equine primarily used for competition or show (10.1%), and “growing” equine,
such as foals, weanlings and yearlings (9.5%). In
Kentucky, 5.2% of the equine are used for work or
transportation, and another 5.4% are used for other
activities, which may include therapeutic riding,
riding lessons, police mounts or other beneficial
activities like leadership training.

Equine Operation Revenues and Expenses
Revenues
Equine operations receive income through sales
of horses as well as services related to the operation, which may include breeding-related services,
such as stud fees and semen, broodmare care and
foaling of mares, along with other services, such as
boarding, lessons, training and transportation, to
name a few.

Value of Equine and Equine Related Assets
The value of the all horses, ponies, mules and
donkeys on July 1, 2012, was $6.3 billion. The estimated total value for Thoroughbred horses was
the highest ($5.5 billion), followed by American
Saddlebreds ($173 million), Quarter Horses ($146
million), Standardbreds ($119 million), Walking
Horses ($71 million) and Mountain Horse breeds
($31 million). A complete listing of all estimated
total values can be found in the appendix.

Income from sales of horses, ponies, mules and
donkeys was $522.1 million. Income from equinerelated services was $491 million, with $220 million coming from breeding services and $271 million coming from non-breeding services. These
figures suggest a dynamic industry, encompassing
a broad range of activities, including breeding, preparing horses for the market place, recreational use
and equine and human health endeavors.

Many assets, capital and otherwise, are required to
support equine and equine-related activities. The

12

Operating Expenditures, 2011
Expense ($)
149,000,000
123,000,000
85,000,000
71,000,000
69,000,000
48,000,000
41,000,000
38,000,000
34,000,000
34,000,000
34,000,000
27,000,000
26,000,000
25,000,000
21,000,000
14,000,000
839,000,000

% Spent in
Kentucky
73%
85%
77%
82%
60%
80%
77%
86%
85%
78%
70%
81%
79%
69%
85%
88%
77%

KENTUCKY HORSE COUNCIL

Category
Maintenance/repair
Feed
Breeding fees
Health
Training fees
Boarding fees paid to others
Insurance premiums
Utilities/fuel
Farrier
Taxes
Shipping and travel
Supplies
Miscellaneous
Fees and payments
Bedding
Rent/lease
Total operating expenditures

Equine Operation Employment

In total, equine-related income from sales and services for equine operations in 2011 was estimated
to be about $1.1 billion.

The 2012 Kentucky Equine Survey measured direct income as well as employment on equine
operations. This includes only those who work
directly on an equine operation in some capacity,
whether breeding, training, boarding, instruction
or in business functions, including finance and
marketing. These figures do not include the jobs or
income derived from the ancillary businesses and
professionals that support equine operations, like
veterinarians, farriers, therapists, facility maintenance, insurance, etc.

Expenses
Total equine-related expenditures in Kentucky
in 2011 amounted to $1.2 billion. Capital expenditures, which at $338 million accounted for 29%
of all equine-related expenditures, include the
purchase of real estate, horses, ponies, mules and
donkeys, and also account for expenditures on
improvements and equipment. Operating expenditures, excluding labor, include many items, such
as board, feed, bedding, veterinarian and farrier
services, supplies, tack and equipment, breeding
fees, maintenance and repair, insurance premiums,
utilities and fuel, taxes, rent or lease, fees and payments, transportation, training fees and other expenses. In 2011, operation expenditures, excluding
labor, totaled $839 million. Notably, 77% of these
operating expenses were spent in Kentucky.

According to the results, there were a total of
13,000 workers reported on Kentucky’s equine operations during 2011. This number includes 5,600
full-time and 7,400 part-time employees. The total
payroll expenses paid to these workers was estimated at $202 million. Additionally, non-wage
benefits, which include housing, utilities, meals,
clothing, transportation, horse boarding and riding lessons, totaled an estimated $16.7 million during the same period. Of the labor expenses, 40%
were attributed to breeding-related activities, 15%
for racing, 7% for competition, 1% for recreation
and 37% for other activities.

13

R E S U LT S

Phase 1: Inventory and Value by County
Concentration of Equine

• The seven counties just south of the Bluegrass
area (Anderson, Mercer, Washington, Garrard,
Boyle, Marion and Lincoln) have a population
of over 12,000 horses.
• The central Tennessee line area has seven counties (Barren, Metcalfe, Warren, Logan, Simpson, Allen and Monroe) that have a combined
population of over 12,000 horses and represent
another area of clustering.
• The Northern Kentucky area (Kenton, Boone,
Campbell, Pendleton, Bracken, Mason and
Grant counties) represent over 10,000 horses
and are natural cluster for services and programs.
• Other standout horse populations are in Pulaski County (2,920), Adair County (2,900), Harrison County (2,540), Christian County (2,520)
and Fleming County (2,100).
• Another 13 counties have over 1,000 horses:

As one might expect, there is a concentration of
horses in the Bluegrass area of Central Kentucky
including the seven counties (Fayette, Bourbon,
Woodford, Scott, Jessamine, Madison and Clark).
These seven counties alone account for over 39,000
horses, ponies, mules and donkeys, or 16% of the
state’s population.
However, there are other areas of the state with significant concentrations of equine:
• Shelby County has over 6,200 horse; 1,500 are
American Saddlebreds.
• Warren and Oldham Counties both have over
4,000 horses each.
• Four additional counties have over 3,000 horses each (Hardin, Jefferson, Boone and Mercer).
• The area just west of Louisville including the
six counties of Meade, Breckinridge, Hardin,
Grayson, Larue and Hart, have a combined
population of over 11,000 horses.

Henry
Hopkins
Laurel
McCracken

Morgan
Nelson
Taylor
Trigg

Wayne
Whitley
Wolfe

LINDA WILSON

Calloway
Carter
Daviess
Graves

14

Full County Inventory List
County
Adair
Allen
Anderson
Ballard
Barren
Bath
Bell
Boone
Bourbon
Boyd
Boyle
Bracken
Breathitt
Breckenridge
Bullitt
Butler
Caldwell
Calloway
Campbell
Carlisle
Carroll
Carter
Casey
Christian
Clark
Clay
Clinton
Crittenden
Cumberland
Daviess
Edmonson
Elliott
Estill
Fayette
Fleming
Floyd
Franklin
Fulton
Gallatin
Garrard
Grant
Graves
Grayson
Green
Greenup
Hancock
Hardin
Harlan
Harrison
Hart
Henderson
Henry
Hickman
Hopkins
Jackson
Jefferson
Jessamine
Johnson
Kenton
Knott

Inventory
3,400
2,400
1,400
300
3,600
1,200
200
4,300
13,000
1,200
2,000
1,200
300
1,900
1,500
500
1,600
1,900
1,800
300
400
2,000
1,400
2,700
2,200
600
1,000
900
700
1,400
900
600
1,000
24,600
2,300
800
1,200
100
400
1,700
2,700
2,400
3,000
1,100
1,400
600
4,300
200
3,500
3,300
1,300
2,500

1,900
1,300
7,400
4,500
700
1,200
100

Inventory Value*
$8,906,000
$6,611,000
$7,080,000
$596,000
$8,409,000
$2,599,000

$71,705,000
$861,403,000
$4,656,000
$15,508,000
$1,372,000
$341,000
$3,849,000
$5,778,000

$3,691,000
$6,549,000
$11,791,000
$371,000
$550,000
$3,584,000
$3,784,000
$5,026,000
$22,971,000
$2,466,000
$1,144,000

$1,475,000
$3,306,000
$849,000
$963,000
$2,686,000
$2,608,789,000
$4,442,000
$2,491,000
$11,518,000

$659,000
$11,509,000
$6,114,000
$10,372,000
$5,247,000
$3,016,000
$2,204,000

$20,622,000
$240,000
$9,975,000
$6,726,000

$13,921,000

$3,626,000
$1,994,000
$124,148,000
$332,552,000
$3,849,000
$5,415,000
$133,000

County
Knox
LaRue
Laurel
Lawrence
Lee
Leslie
Letcher
Lewis
Lincoln
Livingston
Logan
Lyon
Madison
Magoffin
Marion
Marshall
Martin
Mason
McCracken
McCreary
McLean
Meade
Menifee
Mercer
Metcalfe
Monroe
Montgomery
Morgan
Muhlenberg
Nelson
Nicholas
Ohio
Oldham
Owen
Owsley
Pendleton
Perry
Pike
Powell
Pulaski
Robertson
Rockcastle
Rowan
Russell
Scott
Shelby
Simpson
Spencer
Taylor
Todd
Trigg
Trimble
Union
Warren
Washington
Wayne
Webster
Whitley
Wolfe
Woodford

Inventory
600
1,700
1,900
500
800

200
1,400
3,000
1,200
1,700
400
3,100
1,100
2,000
1,300

1,000
1,900
300
400
2,000
900
3,700
1,600
1,300
1,600
2,300
1,300
2,800
1,200
1,000
4,700
600
700
2,200
400
200
800
3,200
400
800
1,000
1,400
7,000
6,500
800
1,000
2,100
1,300
1,200
900
1,100
4,500
1,900
1,900
700
1,700
1,800
11,900

Inventory Value*
$1,132,000
$2,168,000
$4,030,000
$778,000
$1,940,000

$166,000
$3,182,000
$11,718,000
$2,004,000
$1,771,000
$1,765,000
$10,745,000
$1,636,000
$6,305,000
$8,068,000

$6,458,000
$6,410,000
$315,000
$1,071,000
$7,360,000
$4,136,000

$1,408,000
$4,079,000
$3,986,000
$4,328,000
$7,890,000

$163,019,000
$1,525,000
$2,453,000
$6,343,000
$302,000

$1,550,000
$11,795,000
$296,000
$797,000
$2,585,000

$326,614,000
$140,851,000
$2,658,000
$4,745,000

$4,082,000
$4,970,000
$5,430,000

$11,328,000
$6,029,000
$3,679,000
$1,313,000
$2,961,000
$2,596,000
$1,036,568,000

*The inventory value represents the self-reported value of equine owned and boarded on operations in Kentucky

15

R E S U LT S

Phase 2: The Economic Impact
of Kentucky’s Equine Industry
Note: Figures reported in the
inventory section above were
compiled based on data collected by NASS. The economic
impact figures listed here represent both jobs created directly
by equine operations, as well as
jobs generated in the ancillary
businesses needed to support
equine operation activities.
LINDA WILSON

Kentucky’s equine industry
has long had an important impact on the state’s economy.
The economic impact of an
industry can be measured in
a number of ways; three measures often used include the
output effect, the employment
effect and the value added effect. The full economic impact
takes into account the “multiplier effect,” including both direct and “spinoff,” or indirect,
activities.

Value Added

Another important measure
of economic impact is the value added impact. Value added
is often interpreted as new
income paid to workers, profits earned by businesses or dividends paid to shareholders; in other
words, it is the amount that is actually earned by
an individual or business through the sale of goods
and services. The direct value added of the equine
industry is $813 million, with the full value added
impact estimated at $1.4 billion after accounting
for indirect and induced effects.

Output
The output effect is the increase in sales of total goods and services due to the presence of the
equine industry. In 2012, this impact was measured at approximately $3 billion, which includes
the direct effect of $1.8 billion and an additional
$1.2 billion in output due to indirect and induced
effects. This is a conservative estimate, as it does
not include banking, legal or accounting services
or any tourism impacts related to the equine sector. It also does not include pari-mutual wagering.
Of the $3 billion economic impact, it was estimated that $1.28 billion was generated by the racing
sector, $710 million by the breeding sector, $635
million from competition, $166 million from recreation and $194 million from all other sectors.

Note: The value added effect will always be smaller
than the output effect because it accounts not only
for the value of the goods and services sold, but also
for the cost of production and opportunity costs. In
this sense, it may be a more useful measure of economic impact.

Employment

Total Economic Impact of Equine Industry
Employment
(jobs)
Output
Direct equine
32,022
$1.78
industry impacts
billion
Total equine in40,665
$2.99
dustry impacts
billion

The employment effect measures the number of
jobs generated as a result of the presence of the
equine industry. An estimated 40,665 jobs are generated by Kentucky’s equine industry, with 32,022
directly employed by equine operations and businesses. Another 8,643 jobs are due to indirect and
induced effects.

16

Value
Added
$813
million
$1.40
billion

LINDA WILSON

Equine Events

Estimate of Impact by Sector
Sector
Breeding

Employment
16,198

Competition

2,708

Racing

6,251

Recreation
Other

594
14,914

Output
$710
million
$635
million
$1.28
billion
$166
million
$194
million

Value
Added
$333
million
$297
million
$601
million
$78
million
$91
million

Kentucky’s equine industry is a rich source of
tourism revenue. Tourism activities generate additional sales for the hospitality and transportation industries through hotel rooms, eating establishments, gasoline purchases and other sundry
expenditures at drugstores, apparel stores and
other entertainment venues such as movies and
vineyards. Tourism impacts were not included in
the numbers above, but the table below provides a
guideline about economic impacts at horse shows
of different sizes. These results are based on nearly
2,000 surveys from shows across the state collected
during the summer and fall of 2012. Only out-ofstate visitors were included in the analysis because
they represent new money entering the Kentucky
economy.

Tax Impact
State and local tax revenues are derived from all of
the direct and indirect activities generated by the
equine industry. In addition, the equine industry
contributes an above average share of sales tax to
Kentucky compared to the rest of the agricultural
industry because, unlike the rest of the state’s animal agriculture, such as beef cattle, dairy cattle,
swine, poultry and goats, equine farm purchases
are not exempt from Kentucky sales tax. It is estimated that the Kentucky tax impact of the equine
industry is approximately $134 million annually,
which includes tax revenue collected from state
income tax and sales tax, but does not include occupational license tax revenues.

Economic Impact of Horse Shows
Out-of-state
Size of Show Attendees Attendees
Small
200
80
Medium
Large

17

Total
Economic
Impact
$21,400

500

200

$53,600

2,000

800

$214,400

These benefits cannot be directly measured, but are just as
real as the economic impacts.
There is value to both area and
non-area residents in the existence of the rural landscapes
created by equine operations,
which may be recreational,
environmental and/or aesthetic benefits. The blend of
urban and rural landscapes
creates a unique culture which
is aesthetically pleasing and
can aid in employee recruitment for local businesses and
institutions. There is a value
to preserving these types of
landscapes created by the presence of the horse
industry.
LINDA WILSON

The state hosts many national and international events
which attract significantly
greater numbers of attendees (and, importantly, many
more out-of-state and outof-country attendees) than
those events listed on the
above table. For example, the
Rolex Three-Day Event averages over 50,000 spectators a
year. Using survey data from a
sample of 2013 Rolex visitors
collected by Jason Swanson,
PhD, assistant professor in the
Department of Retailing and
Tourism Management at the
University of Kentucky, preliminary estimates suggest that the economic impact of the 2013 Rolex
Three Day Event was approximately $14.2 million.

In a survey mailed to over 8,000 randomly selected
residents across the Bluegrass and non-Bluegrass
regions of Kentucky in 2013, a large majority of respondents were supportive of a free, hypothetical
program which would protect agricultural farm
land, including equine operations, from development. Of those that were supportive, more than
80% were willing to pay some amount of increased
taxes every year to preserve the equine industry at
its current size. Notably, more than 60% percent
were willing to pay $50 a year or more.

Racing is also an important contributor to Kentucky’s economy, and it boasts six major racetracks: Churchill Downs, Ellis Park, Keeneland,
Kentucky Downs, The Red Mile and Turfway Park.
While data available from these tracks vary, Keeneland alone estimated it generated a $15 million
economic impact from its spring and fall meets
in 2012. (http://www.keeneland.com/content/
keeneland-posts-numerous-records-spring-meet)

Rural Landscapes

Many respondents indicated their value for the
equine industry stems from the industry’s dynamic
role in Kentucky’s own culture, heritage and history.
Other respondents believed that the equine industry,
specifically horse farms, not only make Kentucky a
nicer, more beautiful place to live, but also have a positive impact on the Kentucky economy.

The value of Kentucky’s equine industry extends
beyond tourism impacts and transactions in the
marketplace. There are many benefits to a community which is home to a healthy horse economy.

Now that this data is available, the Kentucky Equine Survey team anticipates that policy makers
will have better data on which to set policy, entrepreneurs and business owners will have better
data from which to develop business plans and ideas, veterinarians can undertake better disease
surveillance, community planners can use the data to facilitate future projects and the state now
has a benchmark going forward.

18

Appendices
For a copy of the appendices, including the technical appendix, please visit
or contact the UK Ag Equine Programs office at [email protected] or 859-257-2226.
http://equine.ca.uky.edu/kyequinesurvey

•
•
•
•
•
•
•
•

Industry financial contributors
Sources of equine jobs and incomes
State-level estimates
Equine operations and values of equine, by
county
Inventory of breed and use, by county
Equine industry structure
NASS final release
Technical appendix
• Detailed methodology
• Kentucky Equine Survey tool
• KYCV study version
• KyES horse event attendance survey
• KyES horse race attendance survey
• KyES racetrack survey

Many Thanks
Many equine associations, operations and individuals
contributed financially to this effort. Our sincere gratitude
goes out to the organizations and individuals below who
made this survey possible.
Alltech

Kentucky Veterinary Medical Association

Beta-Rock Stables

Lexington Equine Surgery

Butler Schein Animal Health

Maplecrest Farm

Cane Run Farm

Masterson Station Equestrian Trust

Commerce Lexington

McMahon & Hill Bloodstock, LLC

Daniel Boone Distance Riders

Medical Association Foundation

Equine Medical Associates

Merck Animal Health

Fort Harrod Back Country Horsemen

Misty Ridge Farm

Hagyard Equine Medical Institute

Mountain Pleasure Horse Association

Hallway Feeds

North American Equine Ranching Information Council

Keeneland

Northern Kentucky Horse Network

Kentucky Association of Equine Practitioners

Pfizer, Inc.

Kentucky Dressage Association

Rood & Riddle Equine Hospital

Kentucky Equine Education Program

Shawhan Place

Kentucky Hunter Jumper Association

Siena Farm

Kentucky Paint Horse Club

Sierra Farm

Kentucky Quarter Horse Association

Society for Arabian Horses in the Bluegrass Area

Kentucky Ropers’ Association

Spycoast Farm

Kentucky Thoroughbred Association, Inc.

United States Equestrian Federation

Kentucky Thoroughbred Farm Managers Club

Webster Pharmaceuticals

Kentucky Trail Riders Association
Kentucky Veterinary

and many generous individuals