Sonoma State University
Economics Department
THE ECONOMIC VALUE
OF MARIN COUNTY EQUESTRIAN ACTIVITIES
By Carlos A. Benito
P ro fe s so r o f E co no mi c s
Eco no mi cs Dep art me n t
Sc ho o l o f B u si ne s s a nd Eco no mi cs 
with Kathleen R. Sundin
Re se arc h As so cia te
So no ma S tat e U n i ver s it y
This study was sponsored by the Marin Horse Council with the assistance of a
generous grant from the Marin Count y Board of Super visors
September 2001
C a r l o s A. B e n i t o , Th e E c o n o m i c V a l u e o f M a r i n C o u n t y E q u e s t r i a n A c t i v i t i e s
So no ma S tat e U n i ver s it y
THE ECONOMIC VALUE
OF MARIN COUNTY EQUESTRIAN ACTIVITIES
By Carlos A. Benito  
with Kathleen R. Sundin
The Significance of Horses in Marin's Quality of Life
The proximit y to the cit y of San Francisco, beautiful landscapes, a
rural historical heritage, and progressive institutions for land
conservation, have made Marin Count y an attractive place to live. These
very conditions have also induced population growth and the location of
new electronics industries. With population and industrial growth came
competition for land uses and therefore a challenge to the viabil it y of the
very conditions that made Marin count y so attractive. This is particularl y
true for the survival of its green spaces and rural cultural heritage.
The probabilit y that Marin count y can maintain its environmental
and cultural character will depen d both on institutions established through
governance, and the economic choices of its inhabitants. It will also
depend both on public interventions and private choices. Important
expressions of these private choices have been farming and ranching
activities and horseback riding. The existence of farming production and
horseback riding are being challenged by increasing land prices and by
the competition of alternative outdoor activities. Constraints to horseback
riding are graduall y manifested through fewe r open spaces and trails for
horseback riding.
The following study demonstrates the relativel y high significance of
the Marin equestrian econom y. As a consequence it makes apparent the
role that private choices have played in shaping the landscapes and
culture of Marin count y. Constraints to the equestrian economy, therefore,
have significant effects on horseback riding and horse commercial
operations that keep Marin Count y green and pastoral. These constraints
also have significant effects on the business and professional
opportunities of those who serve the equestrian sector.

C arlo s A. B e n ito i s p r o fe s so r o f eco no mi c s a t So no ma S tat e U n i ver s it y. Ka t hl ee n R.
S u nd i n i s a r es ear c h a s s o cia te at So no ma S ta te U ni ver s it y. T hi s st ud y wa s sp o nso r ed
b y t he Mar i n Ho r se Co u nc il . W e h a ve b e n e fi ted b y t he s up p o r t o f J ud i t h T eich ma n,
Mi ke Le wi s, a nd o t he r me mb er s o f t he Mar i n H o rse Co u n ci l.
1
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ECONOMIC VALUE OF THE MARIN EQUESTRIAN SECTOR
Size and Structure of the Marin County Equestrian Economy
In the year 2001, there are 3,381 horses in Marin Count y. Private
households control 2,949 horses, and stables and other commercial
boarding operations control 432 horses. Private households keep 1,883
horses in their backyards, and board 1,066 horses in boarding stables and
pastures or farms. Commercial boarding operati ons also serve numerous
people who do not own horses but take lessons or use rental horses for
trail riding.
Figure 1
Horse Distribution by Operations
Marin County 2001
Total Horses: 3,381
Pasture Commercial
Horses
Horses
2%
13%
Backyard
Horses
55%
Boarding
Horses
30%
2
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About 1,512 private households control those 2,949 horses, mainl y
for purposes of horseback riding. (See Table 1). Of those household s, 604
keep their 1,883 horses most of the time on their own lands --they are the
backyard horses. The other 908 households most of the time board their
1,066 horses in commercial boarding operations, including some pastures.
Table 1
Resources of an Avera ge Private Househol d w ith Horses
Distributed by Groups
Marin County, 2001
Resources
Land, total, acres
Land for horses
Horses
Family income, $
Schooling (years)
Total households
With
With
backyard boarded
horses
horses
11.7
0.5
5.2
0.2
3.1
1.2
138,000 117,404
14.5
14.2
604
908
Average
4.2
1.8
2.2
128,712
14.3
1,512
Source: Marin Horse Survey, 2001
The average household with horses controls two horses and uses 2.8
acres of land for this purpose. It tends to have two income earners with
14.3 school years --between two and four years of college. Its average
famil y income is 128,712 dollars. There are, however, variations around
these averages --from households with one horse to households with 10
or more horses. (See Figure 2). The mode or t ypical case is one horse.
Table 2 provides the distribution of households with horses by their
famil y income. Although average famil y income is relativel y high in
Marin Count y, the majorit y of households with horses have famil y
incomes below $100,000 dollars. Indeed, one third of these households
have famil y incomes below $75,000 dollars.
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Table 2
Distribution of Households by Income
Marin County, 2001
Family Income
Up to 50,000
75,000
100,000
150,000
More than 150,000
Relative
CumulaFrequency
tive %
10%
10%
24%
34%
22%
55%
19%
75%
25%
100%
Source: Marin Horse Survey, 2001
In addition, a distinction between households with backyard horses
and those with boarded and in pasture horses reveals n ew patterns. (See
Table 1.) The average household with backyard horses controls 3 horses,
and the average household with boarded horses controls onl y one.
Households with backyard horses control more land, and have a higher
famil y income.
Figure 2
TOTAL HOUSEHOLDS WITH HORSES
Distribution by Horse Quantity - Marin County - 2001
60%
120%
100%
Mode
40%
80%
30%
60%
Mean
Frequency
Cumulative %
8
M
or
e
7
0%
6
0%
5
20%
4
10%
3
40%
2
20%
1
Households
50%
Horses per Household
Mean is the average of horses by household. Mode is the most typical household case.
4
Second axis represents cumulative frequency.
So no ma S tat e U n i ver s it y
Production Value 1 of the Marin Equestrian Sector
The yearl y value of the suppl y of goods and services for equestrian
activities in Marin Count y is 104.6 million dollars: 97.1 million produced
within Marin Count y, and 7.8 million imported from other counties. (See
figure 3.) The production value of the primary equestrian sector -activities of private households and commercial operations with horses -is 88.8 million, and that of businesses and trades that support or benefit
from the primary sector is 8.3 mil lion dollars.
Figure 3
Supply & Production Value by Activity
Marin Equestrian Economy -2001
104.65
Supply to Marin
7.82
Imported from other Counties
97.1
Marin Production Value
0.3
Exported to other Counties
Horse Store Supplies
3.5
Equestrian Associations
0.1
Equestrian Show s
0.9
Farriers
1.7
Veterinarians
1.8
Forward & Backward
Linkages
11.5
Stables, Trainers, Breeders
Primary Activities
1.9
Households w ith Horses in Pastures
31.2
Households w /Boarded Horses
44.2
Households w /Backyard Horses
0
20
40
60
80
100
120
Million Dollars
1
Fo r a d e f i ni tio n o f t he t er ms u s ed i n t hi s r ep o rt see Vo c ab ul ar y a nd De fi n it io ns i n
t he M et ho d o lo g y sec tio n . T he y p e rta i n to t h e d i s cip l i ne so c ia l a cco u nt i n g.
5
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The production value of the primary sector is composed of 44.2
million dollars produced by households with backyard horses, 33.1
million dollars produced by households with boarded horses and horses in
pastures, and 15.7 millio n dollars from commercial operations.
The total production within Marin Count y (97.1 million dollars,) is
composed of 62.4 million dollars added by production factors assigned
within the equestrian sector, and 34.7 million dollars of intermediate
goods. (See Figure 4.) The value added by the equestrian sector itself
corresponds to services supplied by family and hired labor, services of
used capital (depreciation and interest), and government services to the
sector. Intermediate goods are goods and service s acquired by the
equestrian households and businesses from other production sectors, such
as feed and food supplements, utilities, telephones and so on. This figure
also gives an idea of the relative importance of capital services and labor
services in equestrian activities --the value of capital services (annual
depreciation plus interest) is much larger, reflecting the cost of land,
horses, and other equipment.
Figure 4
Supply & Production Value by Sources
Marin Equestrian Economy -2001
104.6
Total Supply to Marin County
7.8
Imported from Other Counties
Sources
Marin Production Value
97.1
62.4
Marin Value Added
34.7
Capital Use Cost
Property Taxes
1.5
Trainers, Professionals
2.5
Hired Labor
3.7
Family Labor and Benefits
Value Added
20.0
34.7
Value of Intermediate Goods
Million Dollars
0.0
20.0
40.0
60.0
80.0
100.0
120.0
6
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The value of intermediate goods --those acquired from other sectors
other than the primary equestrian one-- provide a measure of the
contributions of equestrian activities to other businesses and trades in the
count y, in this case 34.7 million dollars (See figure 5 ).
Figure 5
Value of Intermediate Goods by Items
MarinEquestrian Economy 2001
34.73
Value of Intermediate Goods
Raw Materials and Merchandise
1.92
Advertising
0.09
Legal Services
0.01
Administration Expenses
0.41
Telephone
0.13
Utilities
0.12
Training
5.72
Boarding
Association Fees
8.13
0.24
Show Fees & Related Services
2.85
Clothing and Tack
1.99
Insurance
0.87
Repair and Maintenance
3.06
Farriers
Insemination and Breeding Fee
1.65
0.29
Veterinarian, Vaccines, and Medicines
Bedding
1.96
0.47
Pasture Rental
Feed supplies
0.00
1.82
3.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
Million Dollars (000,000)
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Links between the Farming and Equestrian Sectors
There exists an important link between the equestrian and farming
sectors of Marin Count y. To some extent both sectors depend on each
other. The equestrian activities have mainly backward linkages with
farming --for example, most of feed production of the farming sector is
demanded by the equestrian sector, and likewise the equestrian sector
depends on Marin pastures for boarding and feeding horses. Table 3
shows that Marin horses consume approximatel y $5 million worth of hay
and silage annuall y, which is more than twice the amount of hay and
silage grown in Marin. An unknown but presumabl y significant part of
this demand is satisfied by farmers from Marin Count y and the rest is
from producers outside Marin, but quite likel y sold through feed dealers
in Marin
Table 3
Marin County - Farming and Equestrian Sectors
Backward Linkages
Feeds
Pastures
Farming
Supply
Marin
$1,441,137
$4,547,000
Feeds
Pastures
100%
100%
Crops
Marin Equestrian Demand satisfied by
suppliers from:
Marin
Outside
Total
$1,769,227 $1,231,605 $3,000,832
$1,538,352
$286,133 $1,824,485
100%
34%
0%
66%
Data sources: Marin Farming Supply of Feeds in 1999 is the sum of Hay & Silage,
from Marin Livestocik & Agricultural Crop Report, Agricultural Commissioner, 2000
Demand for feeds by the Marin Equestrian Sector refers to year 2001,
based on our own sources.
The Multiplier -Effect of the Marin Equestrian Sector
To measure the full economic contribution of the equestrian sector
to the Marin economy it is necessary to bear in mi nd its impact on other
sectors of the economy which were not considered in the previous
anal ysis. The production of the Marin equestrian sector generates
demands for goods and services produced by other sectors, which generate
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demands for goods and service s, and so on. Multipliers measure these
interactions 2.
When considering the direct, indirect and induced effects of the
Marin equestrian sector, its annual contribution to the total count y
econom y is 155 million dollars. (See Figure 6.) For the complete
specification of the multipliers' estimations see the Regional Accounting
Appendix.
Figure 6
Multiplier Eff ect of the Marin Equestrian Sector - 2001
Equestrian Total
Impact
155
Equestrian
Induced Impact
51
Equestrian
Indirect Impact
7
Equestrian Direct
Impact
97
0
50
100
150
200
Million Dollars
2
Dir ect e f fe ct s ar e c h a n g es wi t hi n t he eq ue str ia n sec to r. I nd ire ct e ffe ct s a re c ha n g es
i n i n ter - i nd us tr y p ur c ha se s a s t he y r esp o nd to t h e ne w d e ma nd s o f t he d i rect l y
affec ted i nd us tr ie s. I nd u ced e f f ec ts are c ha n ge s i n sp e nd i n g fro m ho u s e h o ld s a s
i nco me /p o p ul at io n i n cr e ase o r d e crea se d ue to c ha n g es i n p ro d u ct io n.
9
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Capital Stock Accumulated in the Marin Equestrian Sector
The above production values refer to year l y flows. They are
produced with a capital stock valued at 356.3 million dollars (See Figure
7). This is the capital stock accumulated in the primary equestrian sector,
which is integrated with land, horses, sheds, barns, fencing, arena, and
other equipment. Notice the large importance of real state investment in
horse activities, namel y land and sheds and barns.
In the estimation of the value added by equestrian activities (See
Figure 3), the user cost of capital in the year 2001 is the annual
depreciation plus the annual interest of this capital stock
Figure 7
Value of Equestrian Capital Stock
Marin County Total - 2001
Total
356.29
Other
3.27
Endurance Riding Equipment
2.32
Horse Tack (saddle, etc.)
Trailers
19.21
7.08
Trucks
Feeders, Water Tanks, Buckets
Arenas
19.89
1.13
6.16
Sheds and Barns
Fencing
37.56
7.26
Land
Horses
0.00
229.87
22.53
50.00 100.0 150.0 200.0 250.0 300.0 350.0 400.0
0
0
0
0
0
0
0
Million Dollars
10
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CONCLUSIONS
The relative importance of equestrian activities in Marin Count y is
large, even after the decline in the number of horses during the last ten
years. Without counting those bus inesses and trades that support
equestrian activities, more than fifteen hundred households have made, by
their own choice and preferences, major investments in this activit y (that
now amount to a capital of 356 million dollars). Equestrian activities in
turn are closel y interlinked with farming activities via field crop
production (hay and silage) and pastures. The capital stock of equestrian
activities combined with that of farming is the backbone of agriculture in
Marin Count y, and therefore a pillar for sustaining Marin's rural heritage.
In addition, different government levels have invested in parks, and
through laws and ordinances, open land has been set aside in Marin
Count y. Together with private agricultural activities, governance and
public choices have contributed to the existence of open spaces and the
green character of the Count y. The challenge for Marin County residents,
and California residents as well, is how to maintain a balance between
those two ways to sustain the green character of Mari n Count y --one
bureaucratic driven, and another inspirational -communit y driven.
If government at various levels is going to take into consideration
communit y, people's dreams, and freedom of choice, it will need to
expand access to open spaces for horseb ack riding and shows, and to
reward its positive externalities 3.
3
Ex ter n al it ie s ar e e f f ec t s o f o ur ac ti v it ie s o n t hi rd p art ie s wh o d id no t i n te nd to
p arti cip ate . N e gat i ve e x ter na li ti es p ro d uce ad d i t io nal co st s to t h ird p ar ti es wh o ar e
no t co mp e ns ated fo r t h e m, s u c h a s a ir p o ll u tio n o f car s. P o si ti ve e xt er na li tie s p ro d u ce
b en e fi t s to t hir d p ar tie s wh o d o no t p a y fo r t he m . So me o f t h e p o si ti v e e x ter na li ti es o f
t he ho r se se cto r ar e t he ex i ste n ce o f o p e n, gr ee n sp a ce s a nd t he mai n te n an ce o f a n
agr ic u lt ur al h er i ta ge t ha t b e ne f it re sid e nt s a nd v is ito r s, e xt e nd i n g i nto f u t ure
ge n era tio n s.
11
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METHODOLOGY
Data Sources
The information for this report is based on primary information
generated by means of two surveys and one census.
Survey at the household level -- The Marin Horse Council mailed about
1508 questionnaires and the response rate was near 20%. The information
was used for estimating the economic and social value of equestrian
activities.
Commercial survey-- Questionnaires were sent to commercial operation s
that serve households with horses, including veterinarians, stables and
other boarding operations, trainers, breeders, farriers, among others. The
information was used to estimate the capital cost and revenue structures
of horse related businesses and tr ades.
Horse Census -- The horse population of Marin Count y was estimated by
means of a census conducted with the assistance of members of the Marin
Horse Council.
Estimation Methods
The basic methodology is regional accounting. The input -output
matrix and the capital inventory for the equestrian econom y (see
appendix) were estimated by aggregating the accounts of household
operators (backyard horses, boarded horses, and pasture horses) and the
accounts of commercial operators. These accounts were derived through
agricultural budgeting procedures, both for capital stocks and for cost and
revenue flows.
Vocabulary and Definitions
The technical language used in this report corresponds to the social
accounting discipline. The use of words in social accountin g can be
different than in other disciplines or professions.
Supply: It refers to aggregate suppl y and it represents the value of goods
and services made available in the count y by a sector or sub -sector. The
aggregate suppl y is made of the production val ue generated within the
count y plus the value of goods and services imported from other counties.
Production Value: Is the value produced by an activit y within the count y
and it is integrated with the valued added by a producing sector within the
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count y, plus the value of goods and services that this sector has bought
from other sectors. Production value in some instances is equivalent to the
sale value of a firm or production sector. There are sectors, however, who
do not sell their outputs in a market, s ay government agencies or
households with backyard horses.
Value Added: The production value (or sale value) of a sub -sector, say
veterinarians, includes the costs of goods and services purchased from
other sectors (for example medicines), plus the value of the services
actuall y added by veterinarian hospitals. Their value added includes the
cost of using in one year their capital (depreciation plus interest), the
value of veterinarian labor, the value of their employees' labor, among
others.
Value of Int ermediate Goods: Intermediate Goods are those purchased by
a sector from another sector to perform their production. For example
stables and trainers buy medicines and health care from veterinarians,
services from farriers, clothing and tack from horse sto res, phone services
from the telephone company, water from utilities, legal services from
lawyers and so on.
Aggregate Supply and Aggregate Demand Definitions:
Aggregate Suppl y = Count y Production Value + Imports from other
counties
Aggregate Demand = C ount y Consumption Expenditures + Exports to
other counties
Count y Production Value = Count y Consumption Expenditures + Net
Exports
Net Exports = Export value to other counties - Import value from other
counties.
Count y Production Value = Value Added + In termediate Goods
Value Added = Wages + User Cost of Capital
User Cost of Capital = Depreciation + Interest
13
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REGIONAL ACCOUNTING APPENDIX
Marin County, 2001
14
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Matrix of Production and Added Values - Marin County - 2001
Items
Feed supplies
Pasture Rental
Bedding
Veterinarian, Vaccines, and Medicines
Insemination and Breeding Fee
Farriers
Repair and Maintenance
Insurance
Clothing and Tack
Show Fees & Related Services
Association Fees
Boarding
Training
Utilities
Telephone
Administration Expenses
Legal Services
Advertising
Raw Materials and Merchandise
Value of Intermediate Goods
Family Labor and Benefits
Hired Labor
Trainers, Professionals
Property Taxes
Capital Use Cost
Value Added
Value of Production
Imported from Other Counties
Total Supply to Marin County
Households Households Households
w/Backyard w/Boarded with Horses
Horses
Horses
in Pastures
1,548,621
387,861
152,966
866,622
229,459
772,071
909,789
426,074
861,883
1,232,160
98,013
2,689,698
2,124,518
690,296
1,263,642
96,149
877,556
27,660
700,627
1,586,078
117,519
1,052,117
879,160
115,627
5,201,120
3,388,738
12,299,736 15,996,288
8,575,556 8,927,636
0
0
0
0
1,175,301
88,210
22,130,842 6,192,381
31,881,699 15,208,228
44,181,435 31,204,516
44,181,435 31,204,516
11,607
172,982
20,618
68,893
0
68,275
96,960
13,576
57,661
77,318
8,955
236,233
205,132
Stables,
Trainers
750,309
0
202,844
148,053
31,500
110,194
448,347
293,976
16,489
358,783
11,813
0
0
74,073
34,958
244,246
1,038,209 2,725,584
482,851 1,120,000
0 2,406,379
0
534,608
5,392
193,071
378,551 4,543,124
866,795 8,797,181
1,905,004 11,522,765
4,147,159
1,905,004 15,669,924
Veterinarians
21,000
20,533
3,850
8,167
49,000
3,500
8,750
245,000
359,800
80,500
840,000
515,032
1,435,532
1,795,332
165,793
1,961,125
15
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Matrix the Production and Added Values - Marin County - 2001 (cont.)
Farriers
Equestrian
Shows
Equestrian
Associations
Horse Store Exported to
Supplies &
Other
Feeds
Counties
300,000
9,396
46,982
412,792
412,792
2,859
1,430
81,484
34,886
34,886
34,886
18,793
206,723
281,895
7,148
92,920
469,824
42,886
69,771
1,046,570
1,220,998
941,913
697,713
187,930
657,754
939,649
1,907,771
2,847,420
7,148
50,034
142,954
95,303
238,257
627,942
2,267,567
3,488,565
1,500,416
4,988,982
300,000
1,155,817
82,558
1,238,375
1,651,167
1,651,167
0
300,000
Total of
Equestrian
Sector
3,000,832
1,824,485
472,578
1,961,125
288,620
1,651,167
3,062,173
871,679
1,988,149
2,847,420
238,257
8,127,052
5,718,388
119,984
129,670
411,098
8,750
88,564
1,918,232
34,728,223
20,047,955
3,697,302
2,530,425
1,461,975
34,665,508
62,403,165
97,131,387
7,816,442
104,647,830
Items
Feed supplies
Pasture Rental
Bedding
Veterinarian, Vaccines, and Medicines
Insemination and Breeding Fee
Farriers
Repair and Maintenance
Insurance
Clothing and Tack
Show Fees & Related Services
Association Fees
Boarding
Training
Utilities
Telephone
Administration Expenses
Legal Services
Advertising
Raw Materials and Merchandise
Value of Intermediate Goods
Family Labor and Benefits
Hired Labor
Trainers, Professionals
Property Taxes
Capital Cost
Value Added
Value of Production
Imported from Other Counties
Total Supply to Marin County
16
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Value of the Capital Stock in the Primary Equestrian Sector - Millions
Marin County - 2001
Item
Horses
Land
Fencing
Sheds and Barns
Arenas
Feeders, Water Tanks, Buckets
Trucks
Trailers
Horse Tack (saddle, etc.)
Riding Equipment and Clothing
Other
Total
Horses in Marin County
Land for Horses in Marin C. (acres)
Capital per horse (excluding horses) $
Land per horse (acres/horse)
Households with:
Backyard
Boarded Horses
Horses
11.08
6.36
156.71
11.76
4.64
0.30
16.88
0.10
3.30
0.00
0.52
0.03
11.22
7.75
3.60
2.17
2.59
15.22
0.60
0.76
2.13
0.20
213.27
44.64
1,883
1,007
9,813
226
107,400
38,020
5.2
0.2
Horses in
Pastures
0.48
0.72
0.12
0.00
0.00
0.01
0.81
0.20
0.84
0.03
0.01
3.21
59
13
46,203
0.2
Commercial
Stables,
Trainers
4.62
60.68
2.21
20.58
2.86
0.57
0.12
1.11
0.56
0.94
0.94
95.17
432
19,857
209,629
46.0
Total
22.53
229.87
7.26
37.56
6.16
1.13
19.89
7.08
19.21
2.32
3.27
356.29
3,381
29,910
98,730
8.8
17
So no ma S tat e U n i ver s it y
Multiplier Effects of the Equestrian Sector
Marin County - 2001 - Dollars
Sector
Output Value
Type I: Indirect
Type II: Indirect & Induced
Value Added
Type I: Indirect
Type II: Indirect & Induced
Multiplier
Coefficient
Equestrian
Direct Impact
Equestrian
Indirect Impact
Equestrian
Induced Impact
Equestrian Total
Impact
1.07
1.60
97,131,387
97,131,387
6,799,197
6,799,197
51,479,635
103,930,584
155,410,220
1.05
1.41
62,403,165
62,403,165
3,120,158
3,120,158
22,465,139
65,523,323
87,988,462
Sources: Data on the equestrian sector from Marin Survey, 2001. Data on multipliers from Input-Output model for Sonoma County,
by Carlos A. Benito
18