Women Owned Horse Farms:
A Formula for Success
Sandy Hamm, Research Associate
University of Arkansas, Division of Agriculture
Owner/Manager, Sandy Hamm Horses
Economic Impact
$102 Billion Industry
$32 Billion Recreation
9.2 Million Horses
1.4 Million Jobs
Source: American Horse Council, June 2005
Why Horse Farming?
Agritourism - Horse Recreation
industry generates $32 billion annually
 Small Farm Advantage – acreage
requirements are minimal
 Urban Sprawl – Agritourism prospers
with city growth

Horse Farming Growth
Agritourism Impact
Agritourism – Horse Recreation
Why Women Owned?
Women run farms increased 58%
from1978 to 1997 (2002 census of Agriculture)
 Historically women have operated small
acreage livestock farms (ERS/USDA)
 The overall increase in equine
competition sports encourages women
owned farms

Women are Operating a Larger
Share of U. S. Farms
U.S. Farms with Women as Primary
Operators
Horse Farming
What You Need to Know
Initial Investment
Farmland
 Quicken Books
 Website www.sandyhammhorses.com
 Equipment

Financing

Business Plan
◦ ‘A Must Have’ to secure financing
◦ Strategic planning for horse business
◦ Business goals

Lending entity
Getting Started – Financing (Blue Ribbon Business)
Borrowing Phase
Risk Level
Funding Source
Start-up Stage
Extremely High
Four F’s
Angel Investors
Early Stage
Extremely High to Very
High
Four F’s
Angel Investors
Venture Capitalists
Expansion Stage
Moderate to High
Venture Capitalists
Go Public
Banks
Later Stage
Moderate to Low
Banks
Venture Capitalists
Stock Sales
Bond Sales
Farm Income – Deciding How to
Specialize
66.%
0.7
0.6
57.%
0.5
0.4
2005
33.%
0.3
2006
22.%
2007
0.2
9.%
0.1
0
12.%
56.%
27.%
15.%
Boarding
Sales
Lessons
Boarding
Boarding
◦ Flourishes with urbanization
◦ Small farm advantage
◦ Who is your target customer?
 Performance horse owner
 Large initial investment
 Stabling and limited turn-out, labor intense
 Trail and pleasure horse owner
 Content with paddocks and turn-out sheds
 Happy to ride in meadows and on trails
Boarding – What is Important
◦ Contracts
 Used to secure agreements
◦ Nutrition
 Know how to feed the different types of horses
◦ Specialize in grouping horses
 3-4 in a pasture
 All eat similar ration
 Personalities
◦ On sight caretaker
Boarding – Average Monthly Costs
Target
Performance
Pleasure
Stall (shavings $5/day)
$190/month
$0
Pasture
$6.50/month
$6.50/month
Grain (6-10 lbs/day)
$39.60-$66.00/month
$.88/$1.32/month
Hay (22lbs/day)
$97.50/month
$66-$86/month for 7
months
Labor ($11/hour)
8 hours per day/total
horses
2 hours per day/total
horses
Other (insurance, fuel)
$31/day/total horses
$31/day/total horses
Boarding - Rates
Target
Performance
Pleasure
Total Monthly Costs
$452.60-$479.00
$115.38-$135.82
Total Boarding Fee
$550.00-$600.00
$250.00-$300.00
Profit
$97.40-$121.00
$134.62-$164.18
Feed Rations – Performance Horse
Ration
#1
#2
#3
Pellets
Alfalfa
Grass Hay
Total
8lb@.22/lb
2lb@.24/lb
22lb@.09/lb
$4.22/day
Sweet Feed Alfalfa
Grass Hay
Total
8lb@.18/lb
4lb@.10/lb
16lb@.03/lb
$2.32/day
Rice Bran
Alfalfa
Grass Hay
Total
2lb@.68/lb
4lb@.10/lb
16lb@.03/lb
$2.24/day
Hay Calculator
UA Horse Hay Feeding Calculator
Horse Name
Trump
Truman
Shody
Neptune
Heat
Penny*
Number of months you plan to feed hay
The combined weight of your horses
The amount of monthly hay in pounds
The amount of yearly hay in pounds
The amount of monthly Square bales (avg. wt. 50lbs)
The amount of monthly Round bales (avg.wt. 1000 lbs.)
The amount of yearly Square bales
The amount of yearly Round bales
*If you need room for more horses, insert rows below
Horse's Weight (lbs)
1200
1200
1000
1000
1100
1000
7
6500
4030
28210
67.16666667
4.03
470.1666667
28.21
Sales – Renewable Horses
Sales & Marketing – Renewable
Horses
Specialty Niche Market - Giving
retired thoroughbred race horses a
second career
 Reaching Your Target Customer

 Riding Lessons, Trail Rides
 Club participation
 Working Students
Sales & Marketing – Renewable
Horses

Advertising
◦
◦
◦
◦
◦
Word of mouth
Website
U-tube (video)
Horse rental
Horse shows
Breeding vs. Buying to Sell
Avg.Yearly Expenses
Breeding to Sell
Operation
Buying to Sell
Operation
Purchase Price
3000
1500
Grain (2-8 lbs. per day)
672
546
Hay (20-30 lbs. per day)
1170
1170
Veterinary (annual)
150
150
Blacksmith
150
563
Breeding Expenses
2320
0
Foal
424
0
Sale
500
0
Breeding vs. Buying to Sell
Avg.Yearly Expenses
Breeding to Sell
Operation
Buying to Sell
Operation
Total Invested 1st Year
$8,386
$3,929
Total Costs each
additional year
$5,386
$2,429
Break-even
Year two
$13,772
$6,358
Riding Lessons
Riding Lessons
Useful Marketing Tool
Lessons
Buy
Board
Riding Lessons
◦ Low-cost supplement to farm income
 One lesson horse & schooling tack required
 Your time
 1985 - $25/one hour
 2008 - $35/half hour
◦ Tax deductions can apply
 Equipment, feed, hay
◦ Certifications available
 Teaching and Training
Summary
◦ “Business success is based on 2 main criteria:
Fair Prices and Good Service” (Horse
Economics)
Summary
◦ Track daily costs
◦ Monitor grain and hay prices closely
 Adjust feeding rations when needed
◦ If selling horses, watch break-even point
 Be ready to drop price and sell
◦ Stay on top of current farming practices and
trends by attending classes and reading
◦ Consult a tax accountant for savings tips
References & Suggested Readings
1. O’Brien, Catherine E., “Horse Economics”
2. Olsen, Lisa Derby, “Blue Ribbon Business”
3. ERS/USDA “Amber Waves” , issues Sept. 2006
& Dec. 2007
Women + Horses = Success!