Women Owned Horse Women Owned Horse Farms:Farms:

A Formula for SuccessA Formula for Success

Sandy Hamm, Research AssociateUniversity of Arkansas, Division of

AgricultureOwner/Manager, Sandy Hamm Horses

EconomicEconomic ImpactImpact

$102 Billion Industry$102 Billion Industry$32 Billion Recreation$32 Billion Recreation 9.2 Million Horses9.2 Million Horses 1.4 Million Jobs1.4 Million Jobs Source: American Horse Council, June 2005Source: American Horse Council, June 2005

Why Horse Farming?Why Horse Farming?Agritourism - Horse Recreation

industry generates $32 billion annually

Small Farm Advantage – acreage requirements are minimal

Urban Sprawl – Agritourism prospers with city growth

Horse Farming GrowthHorse Farming Growth

Agritourism ImpactAgritourism Impact

Agritourism – Horse Agritourism – Horse RecreationRecreation

Why Women Owned?Why Women Owned?Women run farms increased 58%

from1978 to 1997 (2002 census of Agriculture)

Historically women have operated small acreage livestock farms (ERS/USDA)

The overall increase in equine competition sports encourages women owned farms

Women are Operating a Women are Operating a Larger Share of U. S. FarmsLarger Share of U. S. Farms

U.S. Farms with Women as U.S. Farms with Women as Primary OperatorsPrimary Operators

Horse Farming Horse Farming What You Need to KnowWhat You Need to Know

Initial InvestmentInitial Investment

FarmlandQuicken BooksWebsite

www.sandyhammhorses.comEquipment

FinancingFinancingBusiness Plan

◦‘A Must Have’ to secure financing◦Strategic planning for horse business◦Business goals

Lending entity

Getting Started – Financing Getting Started – Financing (Blue Ribbon Business)(Blue Ribbon Business) Borrowing Phase Risk Level Funding Source

Start-up Stage Extremely High Four F’sAngel Investors

Early Stage Extremely High to Very High

Four F’sAngel InvestorsVenture Capitalists

Expansion Stage Moderate to High Venture CapitalistsGo PublicBanks

Later Stage Moderate to Low BanksVenture CapitalistsStock SalesBond Sales

Farm Income – Deciding How Farm Income – Deciding How to Specialize to Specialize

57.%

33.%

9.%

56.% 27.% 15.%

66.%

22.%

12.%

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

Boarding Sales Lessons

2005

2006

2007

BoardingBoarding

BoardingBoarding◦Flourishes with urbanization◦Small farm advantage◦Who is your target customer?

Performance horse owner Large initial investment Stabling and limited turn-out, labor intense

Trail and pleasure horse owner Content with paddocks and turn-out sheds Happy to ride in meadows and on trails

Boarding – What is Boarding – What is ImportantImportant

◦Contracts Used to secure agreements

◦Nutrition Know how to feed the different types of

horses

◦Specialize in grouping horses 3-4 in a pasture All eat similar ration Personalities

◦On sight caretaker

Boarding – Average Monthly Boarding – Average Monthly CostsCostsTarget Performance Pleasure

Stall (shavings $5/day)

$190/month $0

Pasture $6.50/month $6.50/month

Grain (6-10 lbs/day) $39.60-$66.00/month

$.88/$1.32/month

Hay (22lbs/day) $97.50/month $66-$86/month for 7 months

Labor ($11/hour) 8 hours per day/total horses

2 hours per day/total horses

Other (insurance, fuel)

$31/day/total horses

$31/day/total horses

Boarding - RatesBoarding - Rates

Target Performance Pleasure

Total Monthly Costs

$452.60-$479.00 $115.38-$135.82

Total Boarding Fee $550.00-$600.00 $250.00-$300.00

Profit $97.40-$121.00 $134.62-$164.18

Feed Rations – Performance Feed Rations – Performance Horse Horse Ration

#1 Pellets Alfalfa Grass Hay

Total

8lb@.22/lb 2lb@.24/lb 22lb@.09/lb

$4.22/day

#2 Sweet Feed

Alfalfa Grass Hay

Total

8lb@.18/lb 4lb@.10/lb 16lb@.03/lb

$2.32/day

#3 Rice Bran Alfalfa Grass Hay

Total

2lb@.68/lb 4lb@.10/lb 16lb@.03/lb

$2.24/day

Hay CalculatorHay CalculatorHorse Name Horse's Weight (lbs)Trump 1200Truman 1200Shody 1000Neptune 1000Heat 1100Penny* 1000

Number of months you plan to feed hay 7

The combined weight of your horses 6500The amount of monthly hay in pounds 4030The amount of yearly hay in pounds 28210The amount of monthly Square bales (avg. wt. 50lbs) 67.16666667The amount of monthly Round bales (avg.wt. 1000 lbs.) 4.03The amount of yearly Square bales 470.1666667The amount of yearly Round bales 28.21

*If you need room for more horses, insert rows below

UA Horse Hay Feeding Calculator

Sales – Renewable HorsesSales – Renewable Horses

Sales & Marketing – Sales & Marketing – Renewable HorsesRenewable HorsesSpecialty Niche Market -

Giving retired thoroughbred race horses a second career

Reaching Your Target Customer

Riding Lessons, Trail Rides Club participation Working Students

Sales & Marketing – Sales & Marketing – Renewable HorsesRenewable HorsesAdvertising

◦Word of mouth◦Website◦U-tube (video)◦Horse rental◦Horse shows

Breeding vs. Buying to Breeding vs. Buying to SellSellAvg. Yearly Expenses

Breeding to Sell Operation

Buying to Sell Operation

Purchase Price 3000 1500

Grain (2-8 lbs. per day)

672 546

Hay (20-30 lbs. per day)

1170 1170

Veterinary (annual) 150 150

Blacksmith 150 563

Breeding Expenses 2320 0

Foal 424 0

Sale 500 0

Breeding vs. Buying to Breeding vs. Buying to SellSellAvg. Yearly Expenses

Breeding to Sell Operation

Buying to Sell Operation

Total Invested 1st Year

$8,386 $3,929

Total Costs each additional year

$5,386 $2,429

Break-evenYear two

$13,772 $6,358

Riding LessonsRiding Lessons

Riding LessonsRiding Lessons

Useful Marketing Tool

Lessons Buy Board

Riding LessonsRiding Lessons◦Low-cost supplement to farm income

One lesson horse & schooling tack required

Your time 1985 - $25/one hour 2008 - $35/half hour

◦Tax deductions can apply Equipment, feed, hay

◦Certifications available Teaching and Training

SummarySummary◦“Business success is based on 2

main criteria: Fair Prices and Good Service” (Horse Economics)

SummarySummary◦Track daily costs◦Monitor grain and hay prices closely

Adjust feeding rations when needed

◦If selling horses, watch break-even point Be ready to drop price and sell

◦Stay on top of current farming practices and trends by attending classes and reading

◦Consult a tax accountant for savings tips

References & Suggested References & Suggested ReadingsReadings

1. O’Brien, Catherine E., “Horse Economics”

2. Olsen, Lisa Derby, “Blue Ribbon Business”

3. ERS/USDA “Amber Waves” , issues Sept. 2006 & Dec. 2007

Women + Horses = Women + Horses = Success!Success!