Featured Article (January 2006)

How the Establishment of an Equine Feed Checkoff in Virginia Helps Horse Owners

By Glen Petty

When the horse racing industry here in the Commonwealth was pursuing a state-wide referendum to legalize wagering, we utilized a catchy slogan: "Vote Yes, Virginia is the Winner!" Such a slogan would be entirely appropriate when the Virginia horse industry pursues a referendum this spring to institute a "feed checkoff" assessment. Currently, three other states have equine feed check offs, Illinois, Maryland, and North Carolina, and a similar program will generate an estimated $200,000 to $300,000 a year to be utilized for promoting the long-term growth of Virginia's equine industry.

OK, right up front, "assessment" is obviously a nice word for "tax," and many of you reading this will be opposed to paying any further taxes. I don't blame you, but give me a few minutes to explain how this very small tax (approximately $3 per horse per year) can help grow the industry (already fifth biggest in the United States), increase the value of your horses and promote the preservation of green space. Pretty good return on your $3 tax.

Actually, I like to think of it as an investment. First of all, to recoup your $3 investment the value of your $300 horse has to increase 1% annually. Obviously, if your horse is worth $3,000 or $30,000 recouping this investment is even easier and faster. Secondly, most taxes get tossed into Virginia's General Fund and rarely does it come back to directly benefit the folks who put up the money. In this case, the feed check off money will go to the Virginia Horse Industry Board and they will utilize these funds to promote your horses, your horse business, your related horse-support businesses and your equine events.

As proposed for Virginia, the assessment would be $3 per ton, or 7.5 cents per bag, of commercial feed labeled for equine use. It is estimated that the average horse eats one ton of feed per year thus the $3 per horse per year estimated cost.

Both North Carolina and Maryland generate well over $200,000 each year from this program and a comparable amount would greatly enhance the effectiveness of the Virginia Horse Industry Board (VHIB). The VHIB was established in 1994 as the result of legislation and a statewide referendum. The VHIB is responsible for the promotion and economic development of the horse industry in Virginia and operates through the Virginia Department of Agriculture and Consumer Services (VDACS).

The VHIB consists of twelve members. They are: the Presidents of the Virginia Horse Council, the Virginia Thoroughbred Association, the Virginia Horse Shows Association, and the Virginia Quarter Horse Association (all four organization's boards have endorsed the feed check off assessment program), four at large members from the equine sector appointed by the Governor, a representative of the horse industry support services or professional community (feed manufacturing or sales, pharmaceutical sales, horseshoeing, marketing, veterinary services, etc.), an individual commercially involved in the horse industry (manager, trainer, etc.), the extension horse specialist from Virginia Tech and the Commissioner of Agriculture (serving as a nonvoting member).

Each year this organization institutes marketing and promotional programs of its own while awarding grant monies to other entities working in the areas of marketing, education and, of great importance to all us, equine research. Each year, the VHIB grants between $60,000 and $80,000 to industry participants. The feed check off assessment would greatly enhance our ability to fund worthwhile projects.

In addition, the additional dollars will go toward important projects the VHIB generates. Many of you may have seen the billboards placed around the state reminding our state government and our fellow citizens that Virginia enjoys a $1 billion (that's right, billion with a "b") equine industry. Similar messages can be seen in the Richmond airport.

As many of you know large media based branding campaigns are expensive as is figuring out a better way to ward off founder. Subsequently, the feed check off assessment program will create much needed self-help dollars that the VHIB can invest to help every aspect of our diverse industry.

In order to vote in the Feed Check Off referendum, one needs to fill out an affidavit stating you are a horse owner. You can get a copy of the affidavit from VDACS by calling 804-786-2373 or at www.vdacs.virginia.gov. Additional information is available at www.vhib.org, (804) 786-5842. The deadline for filing the affidavit is April 14, 2006. On April 28th, VDACS will mail ballots to those who have returned the affidavits and the final results of the referendum will be known in early June.

The Feed Check Off Assessment is good for Virginia's equine industry. Help us help you by supporting the referendum. Vote yes, Virginia really is the winner.

Glenn Petty is the Executive Director of the Virginia Thoroughbred Association and an at large member of the Virginia Horse Industry Board.