Ask someone from across the country what Kentucky is known for, and nine times out of 10, the answer is always the same: horses. People who have visited the Bluegrass State might also name other things associated with that distinctive animal: The Kentucky Derby, beautiful farmland, rolling hills.
But with that industry now in a constant state of flux and frenzy to try and stay competitive with surrounding states, questions have been lingering in the back of the minds of horsemen and fans alike: Are we in trouble? Will the Kentucky horse industry remain on top in spite of the ever-changing economy and the dwindling popularity of the sport?
Though cautious and concerned, three industry members remain hopeful about the future of Kentucky’s signature asset.
While Sen. Damon Thayer (R-Georgetown) admitted that racing is hurting in some areas, he still viewed the glass as half full when looking at the overall picture of the Kentucky horse industry.
Thayer, an industry veteran and former Breeders’ Cup executive and consultant, had a major role in the passage of a 2005 bill that created the Kentucky Breeders Incentive Fund, which gives monetary awards to breeders based on their accomplishments.
“You can obviously divide the horse industry into two categories: racing and breeding,” said Thayer. “The breeding side is still very healthy. Kentucky is the place to be if you have a big stallion. If a stallion makes it big in another region, they usually always come back to Kentucky because this is still the best place to raise and sell a good horse.”
“As I travel throughout the world, I realize the brand recognition our state has is worth a lot,” added Mike Akers, owner of Dapple Stud, a thoroughbred farm near Paris, Ky.
Thayer said the Breeders’ Incentive Program had so far exceeded expectations. The program became effective in 2006 and awarded more than $12 million to Kentucky breeders in 2007. Because if offers awards to all race breeds, Thayer said Kentucky’s breeders’ incentives had already attracted 500 new Quarter Horse stallions to Kentucky.
Thayer said he is also working on legislation that would give approval for more horse trails across the state.
“Right now, there’s a lack of access to private and public trail riding,” he said. “We’ve made tremendous progress in the last several years in all breeds.”
Thayer named some other recent positive aspects of the industry: taking significant steps with modernizing medication rules and making them uniform with national standards; winning the bid to host the World Equestrian Games; and having uniformity within all breeds on key issues like the 6 percent sales tax that is administered on horse supplies.
“We are hopeful we can pass a bill to change that someday,” Thayer said.
Akers offered some additional insight on the state of the industry.
“As in anything, there’s always room for improvement,” he said. “I think the business here is solid, though not spectacular. We need to treat (our industry) with respect and be grateful for what we have. But I don’t think it’s going anywhere anytime soon.”
It’s the racing side of the industry that is currently struggling at the moderate to lower end, Thayer explained, since trainers can ship their horses to run against weaker competition in other states for better purses.
“At some point, we need to address the purse issue,” he said. “On the Standardbred side, racing is struggling, but the breeders’ incentives are also helping their industry.
“I’m not sure what the answer is. It doesn’t appear the gaming bill will pass,” he added of the Kentucky constitutional amendment calling for expanded gaming.
Gov. Steve Beshear unveiled the legislation earlier this year, though it was significantly revised before passing out of a House committee. Beshear said the casino facilities could provide more than $600 million in tax revenue once they are up and running.
Thayer said in the past, he has suggested Kentucky getting Instant Racing machines in lieu of casinos. The machines, which have received strong support at Oaklawn Park in Arkansas, resemble video lottery terminals but employ previously-run horse races to determine the outcome of games.
“If the state budget fund wasn’t in such a bad state, I would also suggest giving more money to the Kentucky Thorough-bred Development Fund,” Thayer added. “That would increase purses, which would give more incentives for breeding and racing in Kentucky. But with a tight budget and the need to give money to education and healthcare, it would be tough to make that push.
“Our number one challenge is to increase purses, and I look forward to working with racetrack officials to tackle those problems,” Thayer said.
Craig Bandoroff of Denali Stud testified in support of the casino legislation at a February 26 committee hearing, as well as a bill that would eliminate the sales tax on horse supplies.
Bandoroff characterized himself not as a “rich horse person from Central Kentucky,” but as a “first generation horseman” who had succeeded through “hard work, good luck and the grace of God.”
Bandoroff, who boards more than 250 horses at his Paris-based Thoroughbred farm, pointed out statistics of the economical impact the horse industry in Kentucky.
“Please understand the direct correlation between the health of the breeding industry, and the health of the racing industry, measured by purses,” he said.‚Ć”Strong purses create strong racing, which creates a strong breeding industry. We have serious competition from other states, and the health of our industry is in jeopardy.”