Study: Horses are a $39 billion industry

RICHARDSON, Texas -- Deloitte Consulting LLC estimates that the horse industry contributes $39 billion to the U.S. economy. That covers everything from the cost of saddles and salt blocks for backyard ponies to the earnings of millionaire jockeys and trainers. When indirect costs are included -- the money spent at grocery stores, car dealers and dry cleaners by people who work in the business -- the economic impact is $102 billion.

According to the report, the owning, showing and racing of horses supports 1.4 million jobs.

"Even though they're not used as much in commerce as they once were, horses are still an important part of many people's lives," said Jay Hickey, president of the horse council. "It's an agribusiness. It's a sport. It's gaming. It's a breeding industry."

Hickey said the horse groups had no particular aim for the study other than getting fresh research on their industry. However, trade groups in Washington frequently use such studies when lobbying Congress and the executive branch for policies that would help their industry, and the horse lobby has several of those.

Equine groups are pushing for more favorable capital-gain tax treatment of horses. They want to be eligible for federal disaster relief. Several states allow slot machines at racetracks, and racing interests in others, including Texas, want to do the same. They generally oppose laws that would ban or limit Internet betting.

The groups also are lobbying for more public land to be available for riding trails. In urban areas, from Long Island to Dallas, stables and other operations are being pushed out to make room for homes and other development.

Horse farms line the horizon in Pilot Point, about 40 miles northwest of Dallas, and account for nearly half the agricultural commodity production in Denton County. The horse farms began replacing cattle ranches in the 1970s.

"After the horse industry moved in, land prices started to escalate," said J. Raymond Davis Sr., chief executive of Pointe Bank. "It's had a real large impact here."

According to the Deloitte study, owners spend an average of $2,900 per year on their horses -- double that for racers.

David O'Connor, who won gold medals in equestrian events at the 1996 and 2000 Summer Olympics, said cost is a challenge for the sport.

"Not everybody can afford to own a horse, especially in urban areas," O'Connor said. "We've got to build up clubs so people don't have to own a horse but can come out and enjoy riding as a family experience, like soccer or tennis."

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On the Net:

American Horse Council: http://www.horsecouncil.org