Horse industry on bumpy ride through recession

Like the rise and fall of painted horses on a carousel, some aspects of the horse industry in mid-Missouri are ascending while others are descending.
Although the expense of owning a horse has increased, the value of most horses -the price sellers can get- has plummeted.

The popularity of equine-related events nationally has also declined. But as with other areas of the economy during this recession, it appears that mid-Missouri is more insulated from the downturn in the horse industry than either coast.
Missouri’s equine industry goes back to the early 1800s when Texans began driving half-wild mustangs into Missouri markets. It was about the same time that cowboys began droving large herds of cattle up the Osage Trace to markets at railheads in Kansas City, Sedalia and St. Louis. Missouri still ranks high in the nation in horse population – No. 3 since 2002, behind Texas and California, with more than 280,000 head statewide.
The University of Missouri Division of Animal Science estimates the value of all breeds in Missouri at $400 million. The American Association of Equine Practitioners estimates that nationally, the horse industry has a direct impact of nearly $40 billion per year.
Horse feed, hay, veterinarian bills, trailers, fencing, barns, shoeing and tack all add to the cost of owning a horse. AAEP estimates the minimum cost of keeping a horse for a year is $1,800, and that doesn’t include shoeing or vet bills.

SLIDE IN HORSE PRICES BLAMED ON SLAUGHTER BAN
Terry Moreland, owner of TNT Ranch & Rodeo, has been involved with horses and cattle his entire life. Since 1998, he’s also been a rodeo stock contractor in Shelby County. Moreland and other horse breeders have seen a huge drop in the selling prices of their colts. “I used to raise and sell 2-year-old registered colts for $500-600,” Moreland said. “I’m lucky now to get $50.”
Performance horses that have been trained and shown are still getting a decent price, but younger horses with little or no training are nearly worthless, Moreland said. “The time and effort it takes to train and continue to feed the horses can add a few years to how long it takes to recoup your money,” he said.
In addition to the poor economy, Moreland blames the lack of a horse slaughter market for the current situation. “Used to (be), the slaughter price was the foundation for all other pricing,” he said. For example, if a horse was worth $500 at the slaughterhouse, that was its bottom-dollar value. Now that horse slaughter is unavailable in the U.S., the bottom has fallen out of the pricing system.
In 2006, Congress proposed a bill to end the slaughter of horses. Although the bill did not pass, the only two states with horse slaughter operations, Texas and Illinois, passed state laws outlawing the practice. Currently, there are five states, including Missouri, that are working on legislation that would allow state government, rather than the federal government, to regulate horse slaughter facilities.
The closing of horse slaughter facilities prompted the slide, in Moreland’s view, and then the worsening economy made the situation desperate for some horse owners. “I had a guy call me the other day and try to give me his horses,” he said.
Moreland, who has around 60 head of horses on his 500-acre ranch, said that the past 12 months are the worst he’s ever experienced. “I’ve never seen anything like it,” he said. “To tell you the truth, I’m thinking about getting out of the horse market. I know I’ll take a loss, but I don’t see a future in it.”
Janice Spears, feed products marketing manager for MFA, Inc., said the big drop in horse prices has been “very scary for horse owners.”
Sharon Marohl, president of the Missouri Equine Council, said her group is testifying before legislators in Jefferson City to try to get horse slaughter reinstated. “There are too many unwanted, starving horses,” she said. “What will we do with all of them?”
Although the value of horses has declined dramatically, Spears is finding that sales of horse feed have actually increased for the 125 retail MFA stores in Missouri this year over last year. “We introduced a premium line of feed, and in our stores where it’s sold, it’s even increasing sales of other products,” Spears said.
Spears’ opinion is that new horse owners or those not emotionally invested in their horses will leave the horse market in response to the economic downturn. “We still have people who love their horses,” she said. “They may pass on a family vacation, but they are passionate about their horses and will find a way to feed them premium feed.”

LOCAL HORSE FAIRS BUCKING NATIONAL TREND
While some horse owners are trying to rid themselves of their animals, some are stepping in and rescuing unwanted animals. One of the state’s most popular equine events is the annual Horse Celebration at the Boone County Fairgrounds run by the Missouri Equine Council. One of the favorite shows at the event in January was the Jack Knife Hollow Hick Chicks. From Montgomery City, the 14-member mounted drill team is made up of youth riders, and all ride rescued horses.
“The crowd loved them,” Marohl said.
The event’s big draw was Ryan Gingerich, who hosts a weekly show on RFD-TV. Gingerich, a horse behaviorist, travels 32 weeks a year across the country, giving clinics and demonstrations. He primarily hosts events on the West Coast and in southern states. Gingerich was the celebrity trainer at the Horse Celebration.
Gingerich said he’s seen a decline in the number of participants and the size of crowds at equine-related events as well as and in the volume of sales by vendors at such events.
“You don’t see near as many people walking around with shopping bags,” Gingerich said. He noted that 2007 was “a banner year for one of the biggest events I attend. In 2008 we had half as many people at that same event.”
To accommodate his many fans, who may find it hard to afford his services, Gingerich began producing and selling training videos on his Web site. “I’ve seen a huge increase in Internet sales in the last year,” he said.
He saw a bit of a recovery at this year’s Horse Celebration, which he said was more highly attended than in 2008.
“It was very successful. We rented 55 booths, and I didn’t talk to a single vendor who wasn’t happy about the weekend,” Marohl confirmed.
Vendors sold a variety of items, including feed, tack, western wear, equine insurance, trailers, jewelry and cowboy home décor items.

The Horse Celebration differs from other equine events because it includes a wide range of activities and disciplines. Many horse shows or events are based on a particular breed of horse or a particular event. The three-day Horse Celebration hosted behavior clinics, like those Gingerich offered, but also had events for youth, professional trainers and the average horse lover.
Columbia’s two major equine arenas, Midway Exposition Center and Boone County Fairgrounds are hosting the same number of events as in previous years, but the turnout varies. “The show managers that put on a good show are still successful,” said Joe Bechtold, owner of the Midway facility. Meanwhile, “the shows that have struggled in the past are struggling even more now.”
George Harris, manager of the Boone County Fairgrounds is seeing similar patterns. “The entries for our March ‘Barrel Bash’ are very comparable to last year, but they put on a really good show with a good following.”
Harris said for his biannual sale, featuring draft horses and mules, the number of animals slated to be sold is down from last year. “Draft horse numbers are down about 50 head each day,” he said. “Usually we have 250 head a day; this year I have 200 a day.”
However, Harris said the number of attendees and the prices paid for horses are higher this year than last. Harris noted that more people requested sale catalogues prior to the sale than ever before. “They come from California, Pennsylvania, Florida, Wyoming, Montana, all over,” he said.  “They want to see what’s for sale before making the trip, I guess.”
Bechtold said he is not planning on canceling any equine events at Midway, but he is reconfiguring the front area of the horse arena building to accommodate an antique mall. “We’re just making the building more multiuse,” he said.