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The Economic Impact of the Horse Industry in Virginia
A study prepared for the Virginia Horse Industry Board

As part of its strategic plan, the VA Horse Industry Board is dedicated to continually providing economic data on the well being of the industry. To this end, and over the past year, the Horse Board commissioned an updated economic impact study to be conducted by Dr. Terance Rephann, Regional Economist with the Weldon Cooper Center for Public Service, at the University of Virginia.

 

· · · · · · · · · · · · · · · · ·
The results of this study,
funded by the VHIB,
have been published
by Dr. Rephann.
The full study is 71 pages
and can be
downloaded here.

· · · · · · · · · · · · · · · · ·

 
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Some major statistics from the survey are listed below, as well as selected data tables that reflect some of the key findings from the survey. A summary brochure is being prepared and will be available in the coming weeks from the VA Horse Industry Board office. You can request it by calling the office at 804/786-5842, or emailing andrea.heid@vdacs.virginia.gov.

Key findings of the recently released (March 2011) study conducted by Dr. Terance Rephann of the University of Weldon Cooper Center include:

  • The Virginia horse industry has an economic impact of $1.2 billion.

  • The industry generated more than 16,000 jobs in 2010 in Virginia with the greatest effects in the agriculture and ag services sectors, and a lesser effect in the areas of trade and construction.

  • The largest areas of economic impact continue to be in Northern Virginia. More than 1,600 jobs in Fauquier and Loudoun are horse related. However, the largest employment impact in the state is in Rockbridge Country—the location of the Virginia Horse Center in Lexington. More than 1,330 jobs are industry related in Lexington and Buena Vista.

  • The horse industry in Virginia generates $65.3 million in state and local taxes. More than 50% of that figure represents state taxes.

  • Horse owners spend $873 million annually on horse-related expenses—including feed and bedding(the largest area of expense), boarding, training, tack, capital improvements, and labor. These expenses average out to $4,060 per horse.

  • Nearly 1,200 horse shows and events were held in Virginia in 2010 - generating $25 million in revenue. Some 939,000 people attended Virginia horse shows and competitions last year. Out of state participants spent an average of $3,100 per event per “travel party.”

  • Horses are the 9th largest agricultural commodity in Virginia according to cash receipts and Virginia ranks 12th in the nation for numbers of horses. According to the Census of Ag Statistics, while the number of farms in Virginia decreased between 1997-2007, the number of farms with horses actually increased(from 10,972 to 13,520) during that same period—offsetting a more significant decline in farms.

Previously determined in the 2006 USDA-NASS* Virginia Equine Survey, partially funded by the Virginia Horse Industry Board, two figures remain basically unchanged. There are an estimated 215,000 equines in Virginia and some 41,000 equine operations. To download these results, go to www.nass.usda,gov/va. Under Virginia Publications, click on Equine Report and you can view the results of both the 2006 and the 2001 reports.

*U.S. Department of Agriculture-National Ag Statistics Service

Virginia Horse Operations Expenditures, 2010

Expenditures
Total Expenditure
Average prer Opeation
Average per Horse
Purchases and upkeep      

Feed and bedding

$116,019,108
$2,830
$540

Equipment purchases

$97,925,384
$2,388
$455

Horse purchases

$72,831,744
$1,776
$339

Veterinarian/health

$69,519,456
$1,696
$323

Boarding

$45,424,532
$1,108
$211

Training fees

$44,546,252
$1,086
$207

Farrier services

$40,906,896
$998
$190

Taxes

$39,149,716
$955
$182

Maintenance repair expenses

$41,272,960
$1,007
$192

Breeding fees

$26,490,690
$646
$123

Insurance premiums

$18,406,824
$449
$86

Tack

$16,174,441
$394
$75

Utilities

$12,784,672
$312
$59

Rent and lease expenditures

$13,077,504
$319
$61

Grooming supplies

$11,280,790
$275
$52
Horse related activities

Travel and lodging

$23,167,997
$565
$108

Advertising expenses

$4,699,315
$115
$22

Professional fees

$4,536,664
$111
$21

Miscellaneous expenses

$7,408,176
$181
$34
Labor and capital improvements

Capital improvements

$87,149,952
$2,126
$405

Paid labor

$71,889,656
$1,753
$334

Other contracted labor expenses

$8,330,441
$203
$39

Total

$872,993,169
$21,293
$4,060

Source: National Agricultural Statistics Service (2008) and defl ators from IMPLAN

Impact of Horse Industry on State and Local Taxes, 2010

Tax Source
Impact
State taxes 

Sales and use tax, 4% rate

$9,156,020

Individual income tax

$18,538,938

Pari-mutuel wagering revenue

$1,866,956

Other state taxes (corporate income, motor fuels, etc.)

$7,903,888
Total
$37,465,802

Local taxes

Local option sales and use tax, 1% rate

$2,289,005

Meals tax

$2,233,027

Lodgings tax

$1,495,075

Pari-mutuel wagering revenue

$911,104

Other local taxes (property, business license, etc.)

$20,898,416

Total

$27,826,627
Total state and local taxes
$65,292,429

Sources: Center for Economic and Policy Studies, Weldon Cooper Center for Public Service and the Virginia Racing Commission

Economic and Fiscal Impacts of Virginia Horse Industry by Locality
(and Tax Revenue Generated)

Locality
Employment
Value-Added
Total Sales
Tax Revenue
Accomack
34
$817,911
$1,502,206
$25,046
Albemarle and Charlottesville City
538
$18,760,123
$31,810,840
$842,330
Alexandria
0
$0
$0
$0
Alleghany and Covington City
27
$778,347
$1,329,334
$32,809
Amelia
74
$1,652,745
$3,082,717
$55,896
Amherst
85
$2,181,002
$3,814,781
$86,620
Appomattox
43
$818,019
$1,571,807
$30,547
Arlington
0
$0
$0
$0
Augusta and cities of Staunton and Waynesboro
293
$8,968,285
$15,749,054
$303,879
Bath
17
$490,662
$833,577
$18,801
Bedford and Bedford City
398
$8,903,747
$16,501,721
$388,398
Bland
24
$627,222
$1,058,419
$17,041
Botetourt
115
$3,671,648
$6,210,707
$133,429
Brunswick
72
$2,052,792
$4,634,522
$93,029
Buchanan
9
$226,758
$384,441
$10,346
Buckingham
60
$1,305,672
$2,426,744
$55,859
Campbell and Lynchburg City
129
$3,862,234
$6,759,149
$107,138
Caroline
53
$1,269,574
$2,252,493
$69,354
Carroll and Galax City
110
$2,917,963
$5,198,827
$101,359
Charles City
16
$397,052
$655,463
$19,433
Charlotte
45
$1,059,896
$1,981,262
$35,040
Chesapeake
271
$10,384,889
$19,828,197
$761,173
Chesterfield
133
$5,010,665
$8,639,431
$235,805
Clarke
336
$12,239,654
$20,451,415
$608,963
Craig
23
$487,903
$921,799
$19,429
Culpeper
716
$20,815,563
$38,201,164
$1,108,299
Cumberland
24
$674,074
$1,144,873
$29,122
Dickenson
8
$214,917
$349,368
$13,274
Dinwiddie and cities of Colonial Heights and Petersburg
99
$3,040,618
$5,263,866
$113,916
Essex
18
$530,367
$920,322
$23,490
Fairfax and cities of Fairfax and Falls Church
469
$15,131,534
$26,329,507
$639,952
Fauquier
883
$31,727,017
$53,676,492
$2,113,116
Floyd
82
$1,930,414
$3,712,840
$89,317
Fluvanna
123
$2,900,832
$5,028,750
$199,397
Franklin
78
$2,766,679
$4,665,405
$145,635
Frederick and Winchester City
166
$4,879,448
$8,499,769
$170,381
Giles
52
$1,334,663
$2,390,490
$40,198
Gloucester
52
$1,478,779
$2,618,640
$79,606
Goochland
176
$5,546,389
$9,408,643
$136,065
Grayson
90
$1,932,530
$3,507,851
$83,094
Greene
40
$1,034,962
$1,856,229
$73,473
Greensville and Emporia City
21
$494,023
$919,381
$12,596
Halifax
73
$2,005,006
$3,544,862
$63,013
Hampton
71
$2,861,311
$6,759,426
$226,709
Hanover
284
$10,190,591
$16,507,758
$499,306
Henrico
272
$11,331,069
$21,571,176
$468,647
Henry and Martinsville City
134
$4,196,213
$9,282,779
$148,282
Highland
21
$398,343
$733,501
$14,877
Isle of Wight
122
$3,651,587
$6,579,048
$208,852
James City and Williamsburg City
78
$2,159,517
$3,780,792
$103,044
King and Queen
47
$1,250,362
$2,275,105
$44,124
King George
41
$1,088,537
$1,974,875
$20,767
King William
36
$1,415,642
$2,324,279
$85,353
Lancaster
20
$604,653
$1,059,483
$24,495
Lee
119
$2,494,776
$4,805,263
$66,616
Loudoun
1,079
$44,154,154
$70,425,051
$2,890,422
Louisa
120
$4,054,413
$6,767,457
$126,219
Lunenburg
30
$747,648
$1,379,426
$19,471
Madison
118
$3,473,030
$6,048,513
$179,637
Mathews
10
$243,861
$462,945
$13,288
Mecklenburg
79
$2,155,361
$3,868,232
$67,097
Middlesex
52
$1,111,543
$2,070,962
$55,769
Montgomery and Radford City
176
$5,644,695
$9,632,158
$168,642
Nelson
59
$1,407,876
$2,564,696
$100,259
New Kent
789
$12,516,968
$28,185,674
$1,523,460
Newport News
4
$106,265
$196,266
$7,802
Norfolk
0
$0
$0
$0
Northampton
16
$349,208
$669,118
$16,870
Northumberland
17
$405,177
$713,501
$30,819
Nottoway
44
$1,148,853
$1,996,753
$24,574
Orange
268
$10,104,815
$16,518,479
$511,381
Page
112
$3,131,298
$5,646,799
$173,073
Patrick
71
$1,487,690
$2,952,954
$46,085
Pittsylvania and Danville City
157
$4,482,258
$7,941,972
$126,027
Portsmouth
0
$0
$0
$0
Powhatan
131
$3,535,446
$6,234,218
$239,512
Prince Edward
55
$1,754,669
$2,959,336
$52,826
Prince George and Hopewell City
71
$2,258,655
$3,840,836
$55,911
Prince William and cities of Manassas and Manassas Park
326
$11,951,779
$20,495,436
$874,803
Pulaski
81
$2,085,216
$3,779,403
$82,522
Rappahannock
77
$2,009,578
$3,591,170
$140,467
Richmond
7
$165,757
$285,319
$4,210
Richmond City
86
$4,809,012
$10,074,460
$240,662
Roanoke City
0
$0
$0
$0
Roanoke and Salem City
214
$6,751,268
$13,494,112
$336,651
Rockbridge and cities of Buena Vista and Lexington
1,331
$33,562,214
$61,461,773
$2,321,764
Rockingham and Harrisonburg City
227
$7,063,090
$12,383,572
$212,930
Russell
126
$3,143,611
$5,697,273
$95,830
Scott
223
$5,570,792
$11,580,569
$193,472
Shenandoah
139
$3,784,927
$6,830,609
$150,335
Smyth
125
$2,995,373
$5,497,319
$72,200
Southampton and Franklin City
42
$1,164,519
$2,127,793
$61,362
Spotsylvania and Fredericksburg City
269
$7,995,271
$14,649,210
$465,615
Stafford
46
$1,590,239
$2,642,361
$87,340
Suffolk
128
$4,093,292
$7,165,322
$317,715
Surry
7
$216,719
$352,846
$3,228
Sussex
43
$985,263
$1,800,069
$33,540
Tazewell
146
$4,221,922
$7,276,023
$109,456
Virginia Beach
242
$6,521,318
$12,078,179
$380,933
Warren
81
$2,483,244
$4,299,750
$114,495
Washington and Bristol City
332
$9,227,883
$16,252,099
$236,737
Westmoreland
8
$175,501
$312,542
$12,276
Wise and Norton City
25
$937,941
$1,556,506
$23,965
Wythe
117
$3,131,091
$5,480,909
$99,936
York and Poquoson City
77
$2,582,523
$4,419,750
$132,936
Total
15,299
$462,458,405
$823,950,563
$24,331,263

 

 
 

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