Impact of the Horse Industry in the United States
You might check with your accountant to see if you qualify for
Section 179 IRS
tax breaks as a horse owner.
Below is a list of how powerful
the horse industry's economics is and it's effect on the U.S. economy.
Information updated 5/19/10
Economic Impact of the Horse Industry in the
The horse industry is a very large and
important part of our national, state and local economies.
It is diverse,
involving agriculture, business, sport, gaming, entertainment and recreation.
Deloitte Consulting LLP conducted a study in 2005 for the American Horse
to determine the economic impact of the equine industry.
The study concluded that the horse industry is highly diverse, national,
serious and economically significant,
and deserves the attention of the
general public, media, and federal, state and local officials.
Numbers of Horses
The study found that there are 9.2 million horses in the United States,
including horses used for
racing, showing, competition, sport, breeding,
recreation and work.
This includes horses used both commercially and for
Specifically, the number of horses broken down by activity is:
Other 1,752,439 (farm/ranch work, rodeo, carriage
horses, polo, police work, informal competitions, etc)
4.6 million people are involved in the horse
industry in some way-either as owners, employees, service providers or
This includes 2 million horse owners, of which 238,000 are
involved in breeding, 481,000 in competing,
119,000 are service providers,
1.1 million are involved in other activities, and 702,000 are employees.
Another 2 million are family members and volunteers.
That means that 1 out
of every 63 Americans is involved with horses.
The Size and Impact of the Industry
Gross Domestic Product:
The study documents the economic impact of the
industry in terms of jobs and contribution to the Gross Domestic Product (GDP).
The study's results show that the industry directly produces goods and
services of $38.8 billion
and has a total impact of $101.5 billion on the
United States' GDP.
It is particularly strong in racing, showing and
recreation, with each contributing
between $10.5 and $12 billion to the
total value of goods and services produced by the industry.
the GDP effect from each (in billions of dollars) is:
Racing $10.6 $26.1
Showing 10.8 28.7
Recreation 11.8 31.9
Other 5.5 14.6
Total $38.8 $101.58
The industry employs 701,946 people directly.
However, some are part-time or seasonal employees, so this equates to
453,612 fulltime equivalent (FTE) jobs.
The industry supports a total of over 1.4 million FTE jobs across the
U.S. as follows:
Racing 146,625 383,826
Recreation 128,324 435,082
Other 79,612 212,010
industry pays a total of $1.9 billion in taxes to federal, state and local
governments as follows (in millions of dollars):
The Diversity of the Industry
The study shows that the horse business is a
highly diverse industry
that supports a wide variety of activities in all
regions of the country.
It combines primarily rural activities of breeding,
training, maintaining and riding horses
with the more urban activities of
operating racetracks, off-track betting parlors, horse shows and public sales.
The misperception that the horse industry is an
activity only for wealthy individuals is thoroughly dispelled by this study.
fact, the study shows that the horse industry is diverse and has many
including recreational and show horse riders, and
moderate-income track, show and stable employees and volunteers.
of all horse owners (46%) have an income between $25,000 and $75,000.
Approximately 34% of horse owners have a household income of less than $50,000,
compared to 28% with an annual income of over $100,000.
Over 70% of horse owners live in communities of
50,000 or less.
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