PRICE EXPECTATIONS AND SUPPLY RESPONSE IN THE THOROUGHBRED YEARLING MARKET

Limited information is available concerning price determination in the thoroughbred yearling market. A recursive model incorporating price expectations and biological constraints is used to estimate supply and demand functions for thoroughbred horses. Empirical results characterize a market with inelastic supply and elastic demand that converges to equilibrium under static conditions. Purses were identified as the most influential variable impacting price. Comparative statics illustrate the effectiveness of purses as a policy instrument for the thoroughbred industry. Federal tax policy also was found to have a significant impact on the decisions to breed or invest in thoroughbred yearlings.Elasticity, Parimutual horse racing, Price determination, Price flexibility, Purses, Thoroughbred, Yearling, Demand and Price Analysis, Livestock Production/Industries,

MAXIMUM-LIKELIHOOD ESTIMATES OF RACEHORSE EARNINGS AND PROFITABILITY

Thoroughbred racehorses are commonly characterized as unprofitable investments. Previous studies, grouping all racehorses together, estimate that over 80% of all racehorses in training fail to earn enough to recover the variable costs of training. However, these studies are not truly representative, because they fail to account for a number of factors affecting profitability. This study estimates expected purse earnings and profitability of claiming horses in Kentucky. Maximum-likelihood estimates of probability distribution parameters show that expected purse earnings follow an exponential distribution with a mean of $25,267. Profitability is best described by a Gamma distribution with a mean of$4,824. Of the 305 claims analyzed for profitability, 61% were profitable. The results indicate substantial financial risk associated with claiming race horses, but conclude that there are positive economic returns on average.claiming horses, financial risk, maximum likelihood, probability, profitability, thoroughbred, Agribusiness,

AN ECONOMIC ANALYSIS OF THE EFFECTIVENESS OF THOROUGHBRED BREEDER/OWNER INCENTIVE POLICIES

Thoroughbred incentive programs are subsidy policies funded from state parimutuel tax revenue designed to promote regional race horse breeding and ownership. At issue is an ongoing debate concerning the effectiveness of alternative policies. Empirical results indicate that incentive programs have a positive economic effect, but gains to Thoroughbred breeders can be obtained by reallocating tax revenue to non-restricted purses. A policy allocating tax revenue ton non-restricted purses shifts yearling demand and increases prices, while breeder subsidies shift only the supply function and therefore lower prices. Consequently, breeder revenues increase in response to a policy that favors non-restricted purses over subsidies.incentive programs, parimutual horse racing, subsidy, tax, Thoroughbred, Agricultural and Food Policy,

AN ANALYSIS OF THE ECONOMIC EFFICIENCY OF THOROUGHBRED BREEDER/OWNER INCENTIVE POLICIES

Thoroughbred incentive programs are subsidy policies designed to promote regional race horse breeding and ownership. At issue, is an ongoing debate concerning the effectiveness of alternative policies. Empirical results indicate the programs have a positive economic affect, but gains in efficiency can be obtained by reallocating funds to open purses.Livestock Production/Industries,

Kentucky Parimutuel Revenue Policy Simulator

Since Kentucky introduced inter-track wagering in 1988, and inter-state wagering in 1994, there has been an ongoing substitution of declining live handle with increasing simulcasting handle. Also, since 1995 there has been a marked increase in competition from alternative gaming. At issue is the net effect on parimutuel stakeholder revenue relative to changes in the distribution of parimutuel handle and increased competition. This paper presents a parimutuel revenue budget that can be used to evaluate the marginal revenue of changes in policies, or of actions taken in response to increased competition from alternative gaming

Extension Education Drives Economic Stimulus Through Trade Adjustment Assistance for Farmers

Trade Adjustment Assistance for Farmers (TAAF) is a national multifaceted USDA program that provided technical and financial assistance to farmers and fishermen adversely affected by import competition. This article describes how Extension was successfully mobilized to deliver the TAAF program to 10,983 producers across the nation using innovative education technologies to achieve program objectives and improve the economic well-being of participating farmers and fisherman. The innovative technologies included online curricula and business planning, the use of personal business planning consultants, and linking Extension education outcomes to financial assistance payments that producers used primarily to invest in their business

Developing Herd Health Education for and Assessing Risky Practices of Cow-Calf Producers

Bovine respiratory disease (BRD) is an often unrecognized problem in cow-calf herds. We describe a program we used to help producers identify and avoid practices that could increase their herds\u27 risk for BRD. The greatest knowledge gains occurred for the topics of costs associated with BRD, BRD risks at the feedlot, and biosecurity measures. Through producer self-assessments, we found that the number of risky practices conducted by producers ranged from none to 22 per operation, averaging 10 per operation. Extension professionals should consider combining producer self-assessment with education on management as an effective strategy for informing producers of risks in their operations

The Unintended Consequences of a Ban on the Humane Slaughter (Processing) of Horses in the United States

Federal legislation has been proposed to amend the Horse Protection Act to prohibit the shipping, transporting, moving, delivering, receiving, possessing, purchasing, selling, or donation of horses and other equines to be humanely slaughtered (processed) for human consumption, and for other purposes. The intent of the legislation is to enact a ban in the United States on processing horses for human consumption. The legislation does not provide fiscal support that would likely be needed to respond to an ever increasing number of unwanted, neglected, and abused horses. Often times horse neglect and abuse cases originate from a lack of economic resources needed to adequately maintain a horse’s health. While everyone fully supports and is committed to the humane treatment of all horses, there are unintended consequences of banning horse processing. The purpose of this paper is to identify and review the unintended consequences of a ban in the United States on the processing of horses for human consumption: 1. The potential for a large number of abandoned or unwanted horses is substantial. 2. Public animal rescue facilities are currently saturated with unwanted horses. No funding has been allocated to manage a large increase in horses that will likely become the responsibility of these facilities. 3. Cost of maintaining unwanted horses accumulates over time: A conservative estimate of the total cost of caring for unwanted horses, based upon 2005 statistics, is $220 million; Cumulative annual maintenance costs of otherwise processed horses, since the year 2000, would have exceeded more than$513 million in 2005. 4. The export value of horse meat for human consumption was approximately $26 million. A ban on processing would eliminate these annual revenues. 5. The option of rendering equine carcasses is decreasing. Private-land burial and disposal in landfills have a negative impact on the environment. 6. The Bureau of Land Management’s Wild Horse and Burro Adoption Program may be negatively impacted by a ban on horse processing. BLM horses and an increasing number of unwanted horses will be competing for adoption homes. Horse processing facilities offer a humane end-of-life option for approximately 1% of the United States horse population. Tens of thousands of horses could be neglected or abandoned if a processing ban were imposed. The direct economic impact and future unintended–and currently unaccounted for–economic impact of banning horse processing for human consumption are substantial. Proponents have not addressed the inevitable costs of such a ban. Horse owners will realize a direct impact from lower horse sale prices. Local and state governments will be adversely impacted by increased costs of regulation and care of unwanted or neglected horses

Inland Pacific Northwest pasture calendar

The Inland Pacific Northwest (PNW) region, historically referred to as the 'Inland Empire', extends from the Cascade Mountains in the west to former Glacial Lake Missoula in the Rockies in the east and from the Canadian border in the north past the Snake River Canyon in the south. The greatest agricultural enterprises are hay (from various forage species), irrigated and non-irrigated grassland pastures, rangelands, and livestock production. It is also home to numerous wildlife species and flyways for migrating birds. The Inland PNW Pasture Calendar is designed to be a comprehensive guide for improved grassland management in support of forage-livestock systems. Applying the principles described will lead to improved regional economic, ecological, and social sustainability. This publication describes the opportunities and challenges of sustainably raising harvested and grazed forages and developing forage-livestock systems in this incredibly diverse environment. Appendix Chapters provide key information on grass / legume / forb species, how pasture species grow and regrow, soil nutrient management and organic matter, grazing philosophies and systems, matching grazing needs for pasture production, and forage-related animal health issues. Learning these key principles and following best management practices described will lead to improved sustainability of forage-livestock systems

MACROECONOMIC CONDITIONS AND AGRIBUSINESS PROFITABILITY: AN ANALYSIS USING POOLED DATA

Theoretical and empirical insights into the linkages between firm profitability and macroeconomic conditions are developed for nineteen agribusinesses. The hypothesis investigated in this analysis is that firm financial performance is a function of firm specific factors and macroeconomic conditions common to all firms. Seemingly unrelated regression with an unequal number of observations is used to estimate macroeconomic linkages. Empirical results indicate that macroeconomic conditions have differing affects on firm profitability dependent on a firm's financial structure and the market segment in which it operates. Capital intensive industries and highly leveraged firms have higher business risk and are more susceptible to macroeconomic conditions