05/31/1995

Council Formed to Promote Growth in $561 Million Horse Industry

AUBURN, Ala. - Equine industry representatives met at Auburn University recently to establish the Alabama Horse Council, a group which will promote the development of an industry whose major economic impact has long been obscured by its fragmentation and lack of a unified voice.

"The horse industry's lack of a unified voice keeps it relatively invisible," said Joe Molnar, an AU rural sociologist who conducted an Alabama Agricultural Experiment Station (AAES) study of the horse industry. "People think of horses as a small aspect of life in Alabama, but they are actually a pervasive presence. Every county has horse farmers and owners, as well as horse clubs and activities of various kinds."

"The total direct impact of the horse industry in Alabama is estimated to exceed $561 million in employment, business, horse owner and tourism expenditures," he said. "Every transaction in the horse industry creates a ripple effect that stimulates demands in indirectly related sectors. The industry's overall impact could be two to three times the amount of direct horse-related expenditures."

Joe Spivey, a horse rancher from Pinson who initiated the effort to organize the Alabama Horse Council, credited Molnar's AAES study as a major impetus for forming the new equine organization.

"The Experiment Station study showed that the horse industry plays a bigger role in Alabama's economy that anyone ever dreamed," said Spivey, who is chief financial officer of the American Racking Horse Breeders Association. "When I realized we were spending more than $500 million a year and we have no representation, I recognized the need for establishing one voice to speak for all the horse interests in the state of Alabama.

"We need one voice with the Legislature, we need one voice with regulatory agencies and we need one voice with the tourism industry," Spivey said. "There are dozens of horse organizations in Alabama, but their priorities are to promote the interests of their own particular breeds or activities. Generally, our goal is to promote and protect what I like to call the 'generic horse.'"

In February, Alabama Horse Council founders elected a bylaws and constitution committee, which Spivey chairs. Spivey said he expects the council to be officially incorporated in mid-April and hopes to schedule the group's first membership meeting in the fall. "We're probably three years away from being completely organized and having a real impact," he added.

Other horse council directors include Nolan Williams of Newton, a former Alabama legislator and author of the Equine Liability Protection Act; and Ed Murray of Pell City, a veterinarian and officer in American Quarter Horse Association. J.T. Vaughan, dean of the AU College of Veterinary Medicine, serves as an ex-officio member of the board. Molnar, along with Cindy McCall, AU Extension horse specialist and associate professor of animal science, are advisors to the council.

"What impedes the equine industry's recognition is the lack of a unified voice in the affairs of the state," Vaughan said. "This was also a national weakness until the establishment of the American Horse Council (AHC). Since that time, the AHC has become the official spokesman for the industry, which has greatly benefitted from the national council's influence on public policy and legislation affecting every aspect of horse ownership.

"Alabama is wise to follow the example with its own horse council," Vaughan added. "One need look no further than the Alabama Cattlemen's Association to find abundant reason for the various breed associations and related groups to band together and speak as one."

Molnar said the Alabama Horse Council can influence a variety of "practical matters having to do with the health, welfare and financial aspects of horse ownership."

"An example is mandatory testing for equine infectious anemia, better known as the sleeping sickness," Molnar explained. "In all states surrounding Alabama, you can't haul a horse that hasn't been tested for the sleeping sickness. Testing is an extra expense, but it provides a collective benefit -- protecting horse herds from this deadly disease. However, owners must decide collectively to impose mandatory testing, and there must be nearly full participation for it to be effective.

"Without a unified voice from the horse industry, legislators will not be motivated to address such issues until a state of crisis exists, and then it might be too late," Molnar said. "Planning and crisis avoidance are possible if the industry is organized."

Another area where the horse council can make a difference is the use and development of public facilities for equine activities in the state. The council can help plan new facilities and work to secure funds for them, Molnar said.

"There are more and more horse events in Alabama, and this activity could be even greater if we had more state-of-the-art equine facilities," Spivey said. "There are only two major facilities in Alabama: Garret Coliseum in Montgomery and the Racking Horse Celebration Show Grounds in Decatur. No others are large enough to support major, multi-day shows."

According to the U.S. Equine Marketing Association (USEMA), Alabama in 1993 had 45,481 horse-owning households with a total of 122,798 horses. USEMA reported that the state has almost $3 billion in capital investment related to the horse industry, including the horses themselves, along with land, facilities and equipment.

Molnar's study found that annual care and maintenance expenditures average $15,390 for each race horse, $11,005 for each show horse and $3,140 for each recreational horse in the state. These figures are based on 1989-90 information and are likely to be higher now, Molnar said.

In addition to these direct expenditures, the equine industry generates revenues from tourism and other sources, Molnar said. For example, the Birmingham Race Course had an impact of almost $46 million in 1990. In addition to racing, an estimated 67 saddle clubs sponsor at least 100 open shows a year. Including travel and related tourism expenses, show horse owners spent $9.7 million in 1989. Fifty-six rodeos in 35 counties attracted 381,476 people in 1989. Rodeos generated approximately $4.2 million. Alabama also has polo clubs, hunt clubs and trail riding activities.

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News from:

Office of Ag Communications & Marketing

Auburn University College of Agriculture
Alabama Agricultural Experiment Station
3 Comer Hall, Auburn University
Auburn, AL 36849
334-844-4877 (PHONE) 334-844-5892 (FAX)

Contact Jamie Creamer, 334-844-2783 or jcreamer@auburn.edu
by Robyn Hearn

May 31, 1995