Fact Sheet 96-41
Economics of Horse
Ownership in Nevada
Ramiro E. Lobo, Extension Instructor for Native American Agriculture
Al Cirelli, Jr., State Extension Horse Specialist
Horse ownership is a popular and growing activity for many
Americans across the United States and for many Nevadans in
particular. The number of horses has increased by seven percent
annually for the past several years. Most of the increase has been
associated with the number of pleasure horses which are
concentrated near urban areas. This is also the case in Nevada
where a large number of horses are found near major cities (i.e.
Reno, Las Vegas, Elko). These pleasure horses are used for
shows, racing, competition, pleasure riding and/or breeding
purposes. Working horses are commonly used in cattle ranching
and related activities including rodeo, but their number represent
less than one tenth of the total.
It is widely believed by most people that the major expenditure associated with horse
ownership is the purchase price of the horse. Unfortunately, that is not the case. The
costs of keeping and maintaining a horse for one year will generally exceed the purchase
price. Horse related expenses vary tremendously among horse owners depending on the
use of the horse, management practices and the level and quality of care provided.
Despite the wide variation in expenditures, this paper provides representative costs
associated with ownership of pleasure and working horses in Nevada.
Table I presents annual maintenance cost data for an 1,100 pound pleasure horse used
for recreational activities. Table 2 presents the same information for a similarly sized
working horse. Information was obtained through a state-wide survey involving feed
stores, farriers, veterinarians and other suppliers to the horse industry. In addition, a
short survey of horse owners in some of Nevada's rural communities was also used to
collect information.
Guideline values represent an average amount paid throughout the state for equipment
and facility expenses as well as costs paid for goods and services. Feed cost
calculations are based on a daily feed consumption of 2% of body weight and a ration
containing 90 % alfalfa hay and 10 % concentrate or grains. A trailer towing vehicle is not
included in the budget because it is assumed that the family auto or pick-up will also be
used for this purpose.
Variable costs are those which change depending upon the volume and cost of goods,
services, supplies and other related expenses. Variable costs may also be influenced by
the size and the number of horses owned. Fixed costs are not affected by the factors
mentioned above. They must be incurred whether you own one, two or three horses and
are generally set at a pre-determined level for a specified period of time. Examples
include expenses such as depreciation, insurance costs and interest expenses.
It is important to consider that costs may vary depending upon the region, time of year,
availability of goods and services, and owner preference and specifications for a
particular item. The values provided are to be used as a guide, a space is provided to
make the necessary adjustments and determine the costs associated with each
particular situation. Examples include the expenses associated with the cost of bay and
farrier care. Pleasure horses will generally be fed good quality, straight alfalfa hay
purchased at the feed store while working horses will be fed lower quality, alfalfa-grass
mix hay produced or purchased at the ranch, therefore the difference in prices. In
addition, farrier care expenses vary depending on the number of shoeings per year.
Although it is common to shoe both types of horses approximately six times a year, the
reality is the number ranges form 3 to 8 shoeings per year. The lower numbers
corresponding to working horses in rural areas and the highest number for pleasure
horses around urban areas.
Table 1: Annual Maintenance Cost Estimates for a Pleasure Horse
A. Variable Costs
Feed Costs
Alfalfa Hay (20 Lb./Day Or 3.65 Ton *$125.00/Ton)
Sweet Feed (2 Lb./Day @$0.28/Lb)
Minerals (3 Oz./Day Or 68 Lb. @$1.36/Lb)
Vitamins (3 Oz/Day Or 68 Lb. @$1.36/Lb)
Salt Block (3 Blocks @$3.94)
Health Care
Est.Value
Veterinary Care (Vaccination, Deworming, Etc.)
Farrier Care (6 Shoeings/Year @$60.00)
Supplies (General, Tack, Grooming Items, Etc.)
Repairs & Maintenance (Facilities And Equipment)
$250.00
$360.00
$200.00
$200.00
Other Repairs
$456.25
$204.40
$92.48
$92.48
$11.82
$
Total Variable Costs
B. Fixed Costs
Depreciation (Building, Trailer, Fences, Etc)
Insurance (Horses, Horse Trailer, Other)
$1,867.43
Total Fixed Costs
C. Total Costs (Variable And Fixed)
D. Average Monthly Expenditures
$600.00
$2,467.43
$205.62
$400.00
$200.00
Your Value
Table 2: Annual Maintenance Cost Estimates For A Working Horse
A. Variable Costs
Feed Costs
Est.Value
Alfalfa Hay (20 Lb./Day Or 3.65 Ton *$125.00/Ton)
Sweet Feed (2 Lb./Day @$0.28/Lb)
Minerals (3 Oz./Day Or 68 Lb. @$1.36/Lb)
Vitamins (3 Oz/Day Or 68 Lb. @$1.36/Lb)
Salt Block (3 Blocks @$3.94)
Health Care
Veterinary Care (Vaccination, Deworming, Etc.)
Farrier Care (6 Shoeings/Year @$60.00)
$292.00
$102.20
$92.48
$92.48
$11.82
Supplies (General, Tack, Grooming Items, Etc.)
Repairs & Maintenance (Facilities And Equipment)
$200.00
$200.00
$250.00
$360.00
Other Repairs
$
Total Variable Costs
$1,600.98
B. Fixed Costs
Depreciation (Building, Trailer, Fences, Etc)
Insurance (Horses, Horse Trailer, Other)
Total Fixed Costs
C. Total Costs (Variable And Fixed)
D. Average Monthly Expenditures
Your Value
$400.00
$200.00
$600.00
$2,200.98
$183.42
References:
Cirelli, Jr., Al. 1990. Pleasure Horse Ownership Costs. University of Nevada, Reno
Cooperative Extension Fact Sheet #90-50.
Johnson, E.L., John Holt, and R. S. Sand. 1993. Cost and Responsibilities of Horse
Ownership. Horse Industry Handbook Fact Sheet. American Youth Horse Council,
Lexington, KY.
Russell, Mark A. and J. Tim Potter. 1993. Should I Buy a Horse? Horse Industry
Handbook Fact Sheet. American Youth Horse Council, Lexington, KY.
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