KY Horse Farms Production Level Results in Declining Horse Values

The most recent January Keeneland sales in Lexington KY are showing one thing:  the KY horse farms production level are resulting in declining horse values.  The numbers from the sale overall shake out as follows:

# Sold:  153

# not sold:  55

Gross Sales:   $1 million

Average Price:  $6652

Median Price:  $3500

Unselective breeding, and overbreeding are starting to take its toll on horse values.  Persons aren’t wanting to purchase any old nag just because it happens to be from Kentucky.  They are being selective - and the horse breeders in KY need to start paying attention to the market demand, or they may end up being stuck with too many horses of their own.

The Taylor Made Sales Agency January Sale, was the top sale for the 8th consecutive year for January.  128 horses sold for $6221400.  The top purchaser this year for that sale was Southern Equine Stables.  They acquired 10 horses for a total of $3862000.  [One of their acquisitions was Irish Cherry.]

Regardless, overall - the sales in January tell the story:  24% of the horses remain unsold after the sale.  This is up significantly from the sale at the same time last year - a 5.3% increase overall.

The problem is people have unrealistic expectations.  They read about how XYZ horse sells for $2.7 million, and they think its like playing the lottery - all they have to do is grab the local field nag, get her knocked up and they could potentially get a winner.  And thats just not the case in the real world for a great many persons.

QUALITY should be on the front of every horse breeder in KY mind.  Especially with hay prices where they are currently, and the ban on horse slaughter.  You don’t want to have to end up taking care of a bunch of no talent, ill bred horses that no one, including yourself, want.

The only thing currently keeping things afloat is the international market.  With the dollar being relatively weak to many other currencies, a lot of buyers can afford to look at the offerings of KY horse farms and consider what prospects may stand out for purchase.

Many of the large commercial facilities are encouraging everyone - small and large - to take a strong look at their quality of their horses, and evaluate are they a suitable and quality candidate for breeding.  If you have to think about it - your horse is probably not one that should be bred until after the market becomes a little stronger in the next few years.  And if you didn’t have to think about it - and are confident that your horses are of sufficient quality, get some 2nd and 3rd opinions OUTSIDE your sphere of influence.  Asking your buddy over a couple beers if you he thinks your horse is a breed quality - is NOT the same as getting a qualified and unbiased opinion from someone that actually knows which end of the horse you feed the hay to.