In response to the Star-Banner’s article, “Florida horse industry thoroughly hurt by weak economy,” published Sept. 6, I offered the following response, which appeared in the Star-Banner on Sunday:
Despite the economic times facing all of us, the board of directors of the Florida Thoroughbred Breeders’ and Owners’ Association continues to collaborate with legislators, industry leaders and its membership to create opportunities and get results.
Due to the fast-paced nature of the thoroughbred industry, I believe it is important to emphasize to your readers that the article and the headline reflect history (breeding and sale statistics from 2007-09) and fail to recognize the current (2010) state of the thoroughbred industry in Florida.
First, however, I want to be clear that our industry is still facing the same issues as many other Ocalans. Florida thoroughbred breeders farm more than 70,000 acres in Marion County. Our No. 1 issue is real estate values, along with a flow of available credit. Until real estate values are stabilized, many breeders can’t make long-term plans regarding breeding their mares. Without a foal crop each year, they have no paycheck, and our stallion owners have no income. That’s unemployment in the thoroughbred industry.
The FTBOA’s efforts are working. The thoroughbred market in Florida has outpaced the nation’s growth rate and outperformed, on a percentage basis, competing markets in other states.
The Ocala Breeders’ Sales Co. began the positive trend in March with a 17 percent increase in average from the year before, along with an even more significant 23 percent rise in median price. The open 2-year-old sale in April gained strength as well, with that sale grossing almost a million dollars more than the previous year’s offering as well as a 13 percent increase in average and a 33 percent rise in median price. The June sale also experienced increases in gross sales, average and median.
The market’s momentum carried over into last month’s yearling sale. The selected yearlings grossed $1.2 million more than last year, and economic indicators were up across the board in all categories.
At the racetrack, earning opportunities for Florida-breds have been on the rise in 2010. In fact, the juvenile program at Calder is among the strongest in the country. Calder had a 10 percent purse increase this year (that’s also a 10 percent increase in breeders’ awards). Earlier this year, the FTBOA, in conjunction with horsemen and Gulfstream Park, increased Florida owners’ awards for Florida-breds to the tune of $1.4 million at that Hallandale Beach track.
These are the numbers we see today. They indicate that the industry is heading in the right direction.
As a testimonial to the progress being made, CloverLeaf Farm, a substantial operation, announced just last week that it is reopening its Florida farm. CloverLeaf had closed its doors in 2007, but due to the direction of the industry here and the success the outfit has enjoyed with its Florida-bred and -trained runners, the Florida property is again part of CloverLeaf’s plans.
In 2010, the FTBOA’s legislative agenda (economic stimulus plan), which traces its roots back to 2008, passed the state legislature. By implementing key components of the plan – including a lower tax on slots, flexibility in the breeders’ awards program and possibly live racing in Marion County – the thoroughbred industry in Florida will be poised for recovery as the economy bounces back. These changes will provide the thoroughbred industry in Florida with as good a framework as any state-bred program in the country.
The board of directors of the FTBOA is dedicated to identifying avenues to improve the thoroughbred business and meet the challenges of our rapidly changing industry to offer a business climate conducive to breeding and owning racehorses.
The membership represented by our organization ranges from small farms and breeders and owners with one or two horses to some of the leading thoroughbred operations in the world. Providing all of them with a competitive advantage by basing their operations in Florida is paramount to our success.
While breeding and sales statistics were down significantly from 2007-09, as the article accurately states (and foal crop numbers are in decline), the signs we are seeing outside of the breeding shed today tell a different story about where we are heading as an industry.
With recent legislative victories paving the way for change, a strong juvenile sale season at the Ocala Breeders’ Sales Co. and increased earning opportunities this year for Florida-breds at Gulfstream Park and Calder Casino and Race Course, the future, despite the downturn in recent years, looks promising for Florida’s thoroughbred industry.
With this additional information, your readers should have a clearer understanding of the numerous economic drivers in our business and the progress being made on behalf of industry participants. A well-balanced article in the Star-Banner would go a long way in shaping perception of the thoroughbred industry in the community. An article reporting years-old statistics can do much to erode perception of an industry so vital to Ocala/Marion County.
Sincerely,
Richard Hancock
Executive Vice President, FTBOA
