O RGAN IZATI ON,r
IMPACTS, AND
PROSPECTS FOR
ADVANCEMENT
___A N AD PRO
__ -~ OF BREEn
-AND RAIS
__ -~ QUARTER
HORSES
__ _ IN ALABi
_ - _
MOTION
DING
SING OF
AMA
AGRICULTURAL ECONOMICS SERIES No. 41
DEPARTMENT OF AGRICULTURAL ECONOMICS AND RURAL 
SOCIOLOGY
ALABAMA AGRIUCLUTRUAI. EXPERIMENT STAION
AUBURN UNIVERSITY AUBURN, ALABAMA
IowEL. T. FROBISH, DIRECTOR
DECEMBER 1991

ORGANIZATION, IMPACTS, AND
PROSPECTS FOR ADVANCEMENT
AND PROMOTION OF BREEDING
AND RAISING OF QUARTER
HORSES IN ALABAMA*
DECEMBER 1991
ROBERT PENDERGRASS
1
RESEARCH ASSOCIATE
JOSEPH J. MONER -"
ALUMNI PROFESSOR
CINDY MCCALL
2
EXTENSION /ANIMAL SCIENTIST
GREG Wtwas
2
HORSE UNnT SUPERVISOR
1 DEPARTMENT OF AGRICULTURAL ECONOMIC AND RURAL SoaotOGY
AUBURN UNIVERSITY, AUBURN, Ai.&w&&, 36849-5406
PHONE: 205.844.5615/FAX 205.844.4814
2 DEPARTMENT OF ANIMAL AND 
DAIRY SCIENCE
PHONE: 205*844" 1556
*REPORT SUBMITTED IN FULFILLMENT OF RESEARCH AGREEMENTS WITH
THE AMERICAN QUARTER HORSE ASSOCLATION
THE BIRMINGHAM RACING COMI&ASSION AND
THE ALABAMA& HORSEMEN'S RACING ASSOCIATION
AGRICULTURAL ECONOMICS SERIES No. 41
DEPARTMENT OF AGRICULTURAL ECONOMICS AND RURAL SOCIOLOGY
ALABAMA& AGRIUCLUTRUAL EXPERIMENT STATION
AUBURN UNIVERSITY
LowELL T. FROBISH, DIRECTOR AUBURN, ALABAMA

ABSTRACT
Quarter Horse production, training, and related activities
make major contributions to Alabama's economy. This study
provides an assessment of the socioeconomic impact of the Quarter
Horse industry in Alabama. Our estimates and overview of the
industry are based on telephone and personal interviews with
Quarter Horse breeders, trainers, and owners. We consulted
previous literature on the subject and also obtained information
from knowledgeable Quarter Horse veterinarians, trainers, show
participants, and others involved in the industry.
In 1989 the American Quarter Horse Association (AQHA) had
34,543 Quarter Horses registered in Alabama. Approximately 4,500
of these are used for showing; 300 are used for racing; and the
remainder are used for farm and ranch uses, rodeos, breeding
stock, and recreation. Our estimates indicate that, on the
average, show horses require about $11,005 annually per horse for
care, maintenance, and other horse-related expenses; racing
Quarter Horses require about $15,390 annually; and other Quarter
Horses require about $3,140 annually. Based on these figures,
total expenditures by Quarter Horse owners for horse care and
maintenance had about $147.5 million in direct impacts to the
State's economy.
In 1989 Alabama hosted 86 AQHA approved shows. Additionally,
more than 220 local shows were identified statewide. Tourism
associated with rodeos contributed an estimated $4.2 million to
the State's economy in 1989.
Based on the above estimates, the direct impact of the
Quarter Horse industry on Alabama's economy in 1989 was
approximately $151.7 million. The total impact on the economy,
given an income multiplier of 2.9, was over $439 million.
EXECUTIVE SUMMARY
BACKGROUND
Economic activity generated by Quarter Horse production,
training, and events makes a significant contribution to
Alabama's economy. Shows, breeding, sales, racing, recreation,
and other group endeavors are manifold sources of 
income,
employment, and leisure consumption in the State.
Several spheres of activity can be identified within the
Alabama Quarter Horse industry. A number of farms breed, train,
and stable Quarter Horses. Show and pleasure horses are bred and
maintained at stables located throughout the State. In 1989, 86
horse shows in Alabama were approved by the AQHA.
Quarter Horse racing took place at the Birmingham Race
Course from June 30, 1990, until the following Labor Day. There
were two races per day, five days per week with an average 
of
eight horses per race. During this period there were
approximately 300 Quarter Horses stabled at the Birmingham Race
Course. Most of these horses were from Texas and Oklahoma, with
the balance coming from throughout the Southern United States.
Racing Commission records indicate that, on the average, there
were 75 Alabama Quarter Horses stabled at the track.
The Birmingham Race Course is one area of potential
development for the Quarter Horse industry in the State.
A racetrack with good annual Quarter Horse meets would have a
positive influence on Alabama's Quarter Horse industry 
by
increasing the demand for well trained and well bred 
horses for
racing. Without regular racing, Quarter Horses will remain 
a
notable breed in the State, but the vigor and dynamism 
which
could be infused into the industry would be lost.
PURPOSE
The American Quarter Horse Association requested an
assessment of the socioeconomic impact of the Quarter Horse
industry in Alabama. We were asked to examine: (1) the
organization and structure of the Quarter Horse industry 
in
Alabama; (2) the farm-level implications of Quarter Horse
breeding, ownership, and maintenance; (3) the impacts of Quarter
Horse racing on Alabama's economy; and (4) the overall
implications and prospects of the industry for Alabama
agriculture and the State's economy.
METHODOLOGY
Our review consisted of telephone and personal 
interviews
with over 60 persons involved in the Quarter Horse industry.
Owners, breeders, trainers, veterinarians, and officials of
Quarter Horse related organizations were interviewed. Staff at
the Birmingham Racing Commission provided data relating to
Quarter Horse racing at the Birmingham Race Course. Areas of
concentration of Alabama's Quarter Horse population were
determined through a survey of Alabama Cooperative Extension
Service County Agent-Coordinators.
To analyze the impacts of the Quarter Horse industry on the
State, we first developed profiles of average annual expenditures
for show horses, racing Quarter Horses, and Quarter Horses kept
for other purposes. These data were collected through interviews
with suppliers of various goods and services, as well as with
horse owners, trainers, and breeders. The aggregate impact of the
horse industry on the State's economy was estimated using income
and employment multipliers derived from an input-output model of
Alabama's livestock industry.
We conducted our review between February 1991 and October
1991 in accordance with generally accepted standards and
procedures used in previous impact studies conducted in other
states. All estimates provided in this report should be regarded
as such since they reflect certain assumptions about levels of
horse-related expenditures that are not otherwise available.
PRINCIPAL FINDINGS
Of the 34,543 registered Quarter Horses in Alabama in 1989,
approximately 4,500 are show horses, 300 are used for racing, and
the remaining 29,743 are used for various other activities
including recreation and breeding. The survey of County Agent-
Coordinators indicates that Quarter Horses are concentrated in
Cullman, Washington, Mobile, Blount, Jackson, and Lauderdale
counties.
Our estimates indicate that recreational Quarter Horses
require about $3,140 annually per horse for care, maintenance,
and other horse-related expenditures. The owners of the estimated
29,743 Quarter Horses that are neither raced nor shown,
therefore, contributed about $93.4 million to Alabama's economy
through horse-related expenditures.
The annual per-horse expense of keeping a show horse in
training is approximately $11,005. Thus, owners of these horses
generated over $49.5 million in direct impacts to the State's
economy through care, maintenance, and training expenditures.
3
Our estimates indicate that racing Quarter Horses require
approximately $15,390 per horse per year for care and
maintenance. The 300 racing Alabama Quarter Horses, therefore,
generated approximately $4.6 million in primary economic activity
in 1989.
An additional impact of the Quarter Horse industry is
tourism resulting from rodeo attendance. We estimated that there
were 381,476 spectators at Alabama rodeos in 1989, who spent an
average $11 per person on rodeo-related expenses. This results in
approximately $4.2 million in economic activity.
Another component of the Quarter Horse industry's economic
impact is tourism resulting from travel to horse shows. We
assumed that, on average, each of the 4,500 show horses in the
State participated in 18 away-from-home events in Alabama during
1989 and their owners spent an average of $1,475 on travel and
other related expenses. This $1,475 expenditure is composed of
the costs of fuel, food, and lodging for the persons traveling
with the horse, and stall fees and registration fees for the
horse. Based on this estimate, show horses accounted for a
tourism impact of about $6.6 million in 1989.
Based on the above estimates, the direct impact of the
Quarter Horse industry on Alabama's economy in 1989 was more than
$151.7 million. The total impact on the economy, given an
estimated income multiplier of 2.9, was over $439 million.
4
CONTENTS
ABSTRACT 1
EXECUTIVE SUMMARY 2
Chapter 1
Introduction
Background 9
Industry Actors 11
Objectives, Scope, and Methodology 13
Chapter 2
Number, Location, and Applications of Quarter Horses
Quarter Horse Numbers 17
Quarter Horse Applications 17
Chapter 3
Economic Impact of the Quarter Horse Industry
Meaning of the Estimates 29
Horse Care and Maintenance 31
Impact of Quarter Horse Activities 
33
Employment Impacts 
36
Summary of Economic Impacts 36
Chapter 4
Policy Implications
Implications for Alabama
Agriculture 39
Recommendations 
40
L
Acknowledgments
References 43
Appendix
I: Calculation of Type II Income
Multipliers 44
Figures
Figure 1. Relationships Among
Major Quarter Horse Organizations 12
Figure 2. Estimated Quarter Horses
in Alabama Counties, 1989 19
Figure 3. Example Quarter Horse
Show Program 22
Tables
Table 1. AOHA Saddle Club
Associations, Number of Shows,
and Estimated Membership, 1989 13
Table 2. Estimated Number of
Horses by Breed, Alabama, 1989 18
Table 3. Estimated Number and
Type of Quarter Horses,
Alabama, 1989 20
Table 4. Locations, Duration, and
Number of Contestants, Alabama
Rodeos Recognized by the IPRA,
1989 24
Table 5. Locations, Duration, and
Gross Ticket Sales, Alabama
Rodeos Recognized by the PRCA,
1989 25
42
Table 6. Locations and Total
Prize Monies, Alabama Rodeos
Approved by the ACA, 1990 26
Table 7. Locations and Estimated
Attendance of Rodeos by County,
Alabama, 1989 27
Table 8. Estimated Per-Horse Care
and Maintenance Expenditures for
Showing, Racing, and Recreational
Quarter Horses, Alabama, 1989 30
Table 9. Income and Impacts of the
Birmingham Race Course, 1990 35
Table 10. Summary of Economic
Impacts of Quarter Horse Activity,
Alabama, 1989 37
Table 11. Livestock Column Vectors
from the Trenchi and Flick Input-
Output Model 45
8
chapter 1 Introduction
Background
History of the Breed. All modern breeds of saddle horses,
including the American Quarter Horse, are descendants of Oriental
horses, such as the Arabians (from the Middle East), Barbs (from
the Barbary states of North Africa), and Turks (from Turkey).
These breeds are referred to as "hot bloods" to distinguish them
from draft breeds, such as Percherons and Belgians, which are
referred to as "cold bloods." The Oriental breeds are generally
small horses averaging 13 to 16 hands high (one hand equals four
inches) and weighing around 1,000 pounds. Draft breeds, in
contrast, are large animals which stand 16 to 20 hands high and
usually weigh in excess of 1,400 pounds.
Hot bloods were initially brought into Europe when the Moors
invaded Spain in the eighth century. Returning Crusaders also
brought Oriental horses into Europe during the eleventh through
the fourteenth centuries. Hot bloods were subsequently brought to
America by the'early explorers and missionaries. Cortez is
credited with bringing the first horses to the New World with his
arrival at Veracruz, Mexico, in 1519.
By the middle of the 1600's the Spaniards had established
over 70 missions, eight towns, and two large cattle and horse
ranches in the New World. These settlements and ranches were the
source of the Southeastern Indians' first horses. Two
Southeastern tribes, the Cherokee and the Chickasaw, soon
developed a reputation among the English colonies as noteworthy
horse breeders.
During this period the English colonists began to develop a
fondness for short horse races which usually covered a quarter of
a mile or less and which, consequently, became known as "quarter
races." Compared to races over several miles at the English horse
tracks, races over these distances were more practical for the
colonists. Given the popularity of short races, colonial breeders
began to select horses that showed superior sprinting ability.
Most of the better sprinters came from Cherokee or Chickasaw
mares bred to English racing stallions. These horses, which were
ancestors of the modern Quarter Horse, became known as "quarter
running horses." Although Quarter Horses have been selectively
bred for centuries, registry of the American Quarter Horse was
established in 1940 by identifying the parental lines. Years of
selective breeding have resulted in the breed recognized today as
the American Quarter Horse.
Alabama's Quarter Horse Industry. Quarter Horse production,
training, and events make major contributions to Alabama's
economy. Showing, breeding, sales, racing, recreation, 
and other
activities are manifold sources of income, employment, and
leisure consumption in the State. The various segments of the
Quarter Horse industry are associated with diverse clusters 
of
associations, professions, and activities.
Little is known about the aggregate importance of the
Quarter Horse industry in the State and the nature of the
barriers and constraints that presently effect its continued
growth and expansion. Statistical information is not generally
available and little significant research has been conducted
because horses are not considered a food or fiber commodity.
Several different segments of the Alabama Quarter Horse
industry, however, can be identified. Although only a relatively
small number of races featured Quarter Horses, racing took place
at the Birmingham Race Course during 1990. Show and recreational
horses are bred and maintained at stables located throughout the
State. Quarter Horses are also used in polo competitions held by
clubs located in Baldwin, Madison, and Shelby counties.
Demand for a number of agricultural commodities and
horse-related services is directly influenced by Quarter Horse
production and maintenance. Alabama farmers raise and sell oats,
corn, clover, alfalfa, grass hay, and other feed crops. Bedding
straw and wood shavings also are agricultural commodities used by
horsemen. Quarter Horse owners demand a significant amount of
veterinary services and health care products to assure their
animals' health and well-being. Horse shows and competitions
create demand for clothing, tack, and other accouterments.
Many Quarter Horse activities are spectator sports which
generate tourism and significant economic impacts in areas
hosting the activities. Horse shows are held nearly every weekend
somewhere in the State. Pursuits such as polo require relatively
high levels of expenditure and tend to draw participants and
spectators from upper-income segments of the population. Other
activities, such as showing and racing, have a broader public
following.
The prospects for the Quarter Horse industry in Alabama
depend on several factors. Land costs and climate are favorable
to animal production. Long growing seasons coupled with plenty of
rainfall allow production of ample forage. The climate is also
favorable to recreational riding and showing without the need for
enclosed arenas or special equipment during most of the year.
Alabama agricultural universities and veterinary schools provide
educational services and institutional support for horse breeding
and maintenance. Two privately owned state-of-the-art equine
surgical facilities are located in the Birmingham area. A modern
10
racetrack also is available in the State's largest city. Several
covered show arenas are located across Alabama. As will be
detailed later, a large number of shows, rodeos, and other
Quarter Horse related activities take place throughout the State.
Industry Actors
The major components of Alabama's Quarter Horse industry are
identified in the following sections. Figure 1 illustrates the
hierarchical relationships among several of the major national,
state, substate, and county-level organizations and events that
involve Quarter Horses in Alabama.
American Quarter Horse Association. The American Quarter
Horse Association (AQHA) is the official breed registry for the
Quarter Horse. The AQHA was formed in 1940 in Fort Worth, Texas.
At the end of its first year, the AQHA had 40 members and 556
registered horses. In 1989, AQHA membership totaled 265,448, with
over 2.5 million horses registered in the United States. and over
170,000 horses registered in foreign countries. These totals make
the AQHA the largest breed registry in the world. In addition to
registration, the AQHA promotes and regulates Quarter Horse
breeding, showing, publicity, sales, and racing.
Alabama Quarter Horse Association. The Alabama Quarter Horse
Association (ALQHA) is a statewide organization formed in 1957
for the purpose of promoting Quarter Horses in Alabama. Its first
meeting was held in Marion, Alabama, with 25 members attending.
ALQHA is the only Quarter Horse organization in Alabama
recognized by the AQHA.
The ALQHA currently has 250 regular members, 75 amateur
members, and 35 junior members. A member is classified as an
amateur if he or she has never received compensation for showing,
judging, or training a horse. The junior classification is
reserved for those 18 years old and younger.
ALQHA sponsors two shows: the Alabama futurity in September,
and an open show in June. The Alabama futurity typically attracts
about 400 horses.
Alabama Open Horseman Association. The Alabama Open Horseman
Association (AOHA) is a nonprofit organization formed in 1988 for
the purpose of identifying State champions for various horse show
events. The AOHA is composed of 13 substate regional saddle club
associations. These multi-county associations, which are listed
in table 1, are composed of local horseman's clubs.
11
National
TAQIA Rodeo 
Associations SilAsscain
[~J PRCA-IPRA-ACA
State
I
I
I
I
Sub-state
Birmingham
Racing
Commission
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County
Multiple Local
Saddle Clubs
Event
..... .. Organization
Sponsorship
-- Sanctioned events
Figure 1. Quarter Horse Associations and Relationships in Alabama.
Table 1. AOHA Saddle Club Associations, Number of Shows, and
Estimated Membership, 1989
Number of
Association clubs Shows Membership
North Alabama Saddle Club
Association 13 39 1200
Tennessee Valley !Association 4 16 300
Tri-State Association 8 16 450
East Alabama Horse Association 7 22 650
North West Alabama Saddle Club
Association 25 30 500
Gulf Central Association 1 9 115
Central Alabama Saddle Club
Association 6 22 235
West Alabama Horseman's
Association 8 20 130
South Central Horseman
Association 8 11 250
State Line Horse Association 4 12 315
North Central Horse Association 7 28 1500
Shoals Area Horseman's
Association 8 
10 175
Local horseman's clubs sponsor shows for substate 
regional
association members. Members can accumulate points at local shows
that allow them to compete at the State Championship Horse Show
sponsored by the AOHA. The Alabama legislature has passed a
resolution stating that the results of the State Championship
Horse Show determine State Champion horses.
13
Saddle Club Associations. Saddle club associations are an
important component of Alabama's horse industry. Associations and
their member saddle clubs sponsor many horse shows and other
horse-related events each year. Table 1 lists Alabama saddle club
associations that are members of the AOHA, their membership, and
the total number of shows sponsored by each association and its
constituent saddle clubs. Table 1 should not be viewed as a
complete list of Alabama saddle clubs. There are many horseman's
organizations scattered throughout Alabama that are not members
of AOHA.
Rodeo and Other Event Associations. Many Alabama rodeos are
local events that are not recognized by any rodeo organization.
There are three national organizations, however, which grant
approval for Alabama rodeos. These are: the Professional Rodeo
Cowboy's 4ssociation (PRCA), the International Professional Rodeo
Association (IPRA), and the American Cowboy Association (ACA).
Many other competitions which primarily exhibit traditional
ranching skills take place throughout Alabama. Many of these
events are recognized by national, State, or regional
associations, such as the National Cutting Horse Association.
Birmingham Race Course. The Birmingham Race Course is
located 10 miles east of Birmingham. Constructed in 1985, the $80
million facility consists of a seven-level grandstand and
clubhouse which accommodate 20,000 spectators. The track is a
one-mile dirt oval. Stables for 1,200 horses are available, along
with dormitories and cafeteria facilities for those employed to
work with the horses.
The original style and orientation of the facility did not
match the local market for horse racing. Initially targeted to
primarily upper-class clientele, arrangements were not
particularly friendly to working and middle-class people (as
reflected in its former name - Birmingham Turf Club). High
admission and parking fees discouraged many patrons with modest
incomes from attending or returning. As a result, poor attendance
and the resulting small betting pool undermined the viability of
the operation. The last day of live racing was Labor Day, 1990.
The Birmingham Race Course is a potential asset for the
Quarter Horse industry in the State, even though Quarter Horse
showing and training are currently the industry's major focal
points. A racetrack with a good annual meet could result in
expanded Quarter Horse breeding. Recent developments in the
management of the Birmingham Race Course, however, do not provide
the extended horizon of predictable activity that would be needed
to ensure the steady expansion of Quarter Horse racing.,
The race course's present management plans to combine dog
and horse racing. Current law, however, requires a referendum to
14
approve dog racing in Birmingham. Voters did not approve dog
racing at the Birmingham Race Course in a referendum held 
in
August, 1991. It is legally possible that another referendum
could be held in 1992. The probability of this is uncertain.
Meanwhile, simulcast horse racing and telecasting of other
sporting events continue at the track.
Delaware North Companies, Inc. Delaware North is a
diversified holding company with subsidiaries engaged in a wide
range of activities, many connected to sports and horse racing.
The Buffalo, New York, organization manages concessions for
various sports, airports, and other facilities across the
country. It currently operates a series of dog tracks in various
locales. Delaware North managed the Birmingham Race Course during
the 1989 and 1990 live racing seasons. Delaware North
subsequently withdrew from the race course at the end of 1990.
Milton McGregor. Milton McGregor presently operates a dog
track in Macon county and has assumed management of the
Birmingham Race Course with the intention introducing dog racing.
The present plan calls for a combination of dog and horse racing
for the first two years of the track's operation. Subsequent
horse racing would be at Mr. McGregor's discretion. At this
point, Mr. McGregor has not submitted a plan for live horse
racing. Sale of the Birmingham Race Course to his company is
pending at this writing.
Objectives, Scope, and Methodology
The AQHA requested an assessment of the socioeconomic impact
of the Quarter Horse industry in Alabama. We were asked to
examine: (1) the organization and structure of the Quarter Horse
industry in Alabama; (2) the farm-level implications of Quarter
Horse breeding, ownership, and maintenance; (3) the impacts of
Quarter Horses on Alabama's economy; and (4) the overall
implications and prospects of the industry for Alabama
agriculture and the State's economy.
This review consisted of telephone and personal interviews
with more than 60 Quarter Horse breeders, trainers, and owners.
Birmingham Racing Commission staff provided information on
Quarter Horse races at the Birmingham Race Course. We also
attended Quarter Horse events and interviewed trainers and
participants throughout the State.
County-level estimates of Quarter Horse populations from
Alabama Cooperative Extension Service County Agent-Coordinators
were used to determine the areas where Quarter Horses are
concentrated. We supplemented and modified this information
through reviews by knowledgeable veterinarians, breeders, and
others involved in the industry.
15
To analyze the impacts of the Quarter Horse industry on the
State, we first developed profiles of average annual expenditures
for show horses, race horses, and Quarter Horses kept for other
purposes. Interviews with suppliers of various goods and
services, as well as horse owners and breeders, were used to
develop these estimates.
We identified a series of events and activities that involve
Quarter Horses in Alabama and estimated the extent of 
tourism and
spectator activity associated with these events. We also
contacted national and state horse-related organizations as 
well
as knowledgeable individuals involved in showing, rodeo, 
polo,
and other Quarter Horse activities.
To estimate the aggregate impact of the Quarter 
Horse
industry in the State,. we used income and employment 
multipliers
derived from an input-output model of Alabama's economy developed
by Trenchi and Flick (9). This multiplier reflects the total
effect on aggregate household income and aggregate 
employment
resulting from expenditures associated with Quarter 
Horse
activity.
We conducted our study between February 
1990 and October
1991 in accordance with generally accepted 
standards and
procedures used in previous impact studies conducted 
in other
states. All estimates provided in this report should be 
regarded
as such since they reflect certain assumptions 
about levels of
horse-related expenditures that are not otherwise available.
16
Chapter 2 Number, Location, and Applications of Quarter Horses
Quarter Horse Numbers
As shown in table 2, Quarter Horses are the most numerous
breed in Alabama. AQHA records for 1989 indicate a total of
34,543 Quarter Horses registered in Alabama. The 
majority of
these are utilized for show and recreational purposes. Additional
animals are utilized as breeding stock to produce 
horses for
these activities.
This study estimated that there were approximately 4,500
show horses in Alabama in 1989. Table 3 details the 
estimated
number and kind of Quarter Horses in the State. 
Quarter Horses
often serve more than one purpose so the major 
descriptive
categories tend to overlap. Many horses used primarily 
for
recreation, for example, also may be utilized 
as breeding stock.
Most Alabama Quarter Horses are used for 
recreation and
purposes other than racing or showing (table 
3). These other uses
of Quarter Horses include polo, fox hunting, 
rodeo, and
traditional skills events.
A small number of Alabama Quarter Horses 
are used as race
horses. This study estimated the presence of 
approximately 300
racing Quarter Horses in Alabama (table 3). 
Racing Quarter Horses
are defined as those that are owned by Alabama 
residents and are
raced on tracks outside Alabama, since there 
are no recognized
tracks in Alabama, or are in training for racing.
Figure 2 shows the relative distribution 
of Quarter Horses
across Alabama counties. Cullman, Washington, 
Randolph, Blount,
Jackson, Mobile, and Lauderdale counties 
all have large Quarter
Horse populations.
Commercial horse stables and training 
facilities are found
in nearly every Alabama county. Stables provide 
housing,
exercise, and care facilities for the 
many Quarter Horses whose
owners do not have land or buildings 
for horses. Commercial
stables employ approximately one person 
for every 10 to 15
horses. Certain farms specialize in Quarter 
Horse breeding and
others maintain significant numbers of Quarter 
Horses for
crossbreeding purposes.
Quarter Horse Applications
Shows. Horse shows are events in which 
a horse's performance
in various activities is compared to the performances 
of other
horses of similar breeding and training. Shows provide 
an
opportunity for horse owners, trainers, breeders, and 
riders to
exhibit their animals. Shows stimulate improvements in 
breeding
17
Table 2. Estimated Number of Horses by Breed, Alabama, 
1989
Breed Number
Quarter Horse 34,543
Tennessee Walker 15,617
Appaloosa 
9,289
Thoroughbred 
3,3001
Arabian 2,271
Half-Arabian 1,097
Paint 1,014
Saddlebred 732
Pony of the Americas 
572
Morgan 
303
Paso Fino 220
Pinto 108
Other Breeds 
2,644
Sources: National Equine Marketing Association, 
AQHA
1
Adjusted to include an estimated number of 
unregistered animals.
stock and training procedures since winning horses 
and trainers
command higher sale prices and fees. Additionally, 
shows provide
spectator entertainment.
Quarter Horse showing is the major driving force 
behind
Alabama's Quarter Horse industry. In 1989 there were 
86 Quarter
Horse shows in Alabama that were approved by the AQHA. 
This makes
Alabama third in the nation in total number of AQHA-approved
Quarter Horse shows. Due to the large number of animals, 
as well
as the extreme variety and frequency of events, Quarter 
Horses
involve a larger number of Alabamians than any other 
breed.
18
-4j
L
ji
o-699LII
700 -2,00
Over 2,000
Figure 2. Estimated Quarter horses in 
Alabama counties, 1989.
Table 3. Estimated Number and Type of Quarter 
Horses,
Alabama, 1989
Type 
Number
Show horses 
4,500
Racing horses 
300
Recreation, breeding, & other 
29,743
Total Quarter Horses 
34,543
Sources: Activity Participants, Association 
Records, Farm
Operators, National Equine Marketing Association
AQHA-approved shows are Quarter Horse 
events in which the
show management has applied for and 
received approval from the
AQHA to hold the event. AQHA-approved 
shows generally have more
entries, a higher caliber of horses and 
riders, higher entry
fees, and higher operating costs 
than local shows or open shows
(shows that are open to any breed).
AQHA-approved shows are usually two 
or three day
competitions involving approximately 
100 horses per show. Some of
these shows are classified as "futurities" 
which involve more
young horses and higher prize monies 
than regular shows. Futurity
shows may have up to 500 entries 
competing each day. Not all show
entries and owners are from Alabama, 
and, as a result, these
shows generate a substantial amount 
of out-of-state tourism
income to the communities hosting 
the events.
AQHA regulations require 
the show management to obtain 
the
services of an approved judge. 
An AQHA-approved judge may 
not
contract to judge a show that 
is within the state where he 
or she
is a resident or within 150 miles of 
his or her residence.
Minimum pay for an approved judge 
is expenses plus $200 per day
for a day of nine hours or less. 
Additionally, the judge must be
paid $50 per hour for any time exceeding nine hours 
in a single
day.
Results of approved shows are entered in AQHA records and
competition points are awarded to horses which place 
sufficiently
high in these shows. Horses accumulating enough show 
points
throughout the year qualify to compete in the World 
Championship
Quarter Horse show. They also are eligible to compete 
for various
20
other awards and titles from the AQHA. Thus, Quarter Horse owners
who wish to participate in top state, regional, national, and
world events must accumulate points through participation in
AQHA-approved shows.
Quarter Horse shows usually offer different categories of
competition based on the horseman's age and experience. Any AQHA
member may participate in an "open" class regardless of their age
or horse experience. AQHA members under 18 years of age can
compete in "youth" classes. Adult AQHA members who do not receive
any compensation for working with horses or riders can compete in
"amateur" events. AQHA shows may offer some or all of these
categories to competitors. Figure 3 is an example of a Quarter
Horse show program.
In addition to categories based on the horseman's age and
experience, there are many other classes based on the horse's
abilities and age. In halter classes, horses are judged on their
conformation, movement, and how closely the horse resembles the
breed standard. Performance classes judge the horse's ability to
perform in different activities. Some examples of performance
events are western pleasure; hunting and jumping events; roping,
cutting, and other events involving moving and handling cattle;
and western riding and reining events which evaluate the horse's
athletic ability and responsiveness to the rider. Barrel racing,
pole bending, and other timed events measure the horse's speed
and agility. Driving events demonstrate the horse's ability to
pull a cart at various gaits.
Horses which are successful in AQHA competition can
accumulate points which count toward state and national titles.
Over the past few years, Alabama has produced several National
High Point Champion Quarter Horses. In the youth category these
include: the All-Around Champion in 1983, the Showmanship at
Halter Champion in 1983, the Western Pleasure Champion in 1983,
the Western Riding Champion in 1986, the Cutting Champion in
1970, the Pole Bending Champion in 1985, and the Western
Horsemanship Champion in 1983. In the amateur category, Alabama
has produced National High Point Champions in the following years
and categories: 1984 Western Pleasure, 1982 Reining, 1985
Western Riding, 1979 Trail, and 1987 Halter Mare. Alabama also
produced three National High Point Honor Roll Quarter Horses in
1990.
Quarter Horses also compete in numerous local shows and
competitions open to all breeds of horses at various arenas
throughout Alabama. The larger show arenas are located in Arab,
Decatur, Muscle Shoals, Dothan, Montgomery, and Cullman. Numerous
smaller show facilities are locatedthroughout the State.
21
V ALL SHOWS HELD AT
W.O. CRAWFORD ARENA, MONTGOMERY, 
ALABAMA
SEPTEMBER 6 JUDGE
ROY DONN
Junior Weanling Colts ***
Senior Weanling Colts ***
1991 Stallions
Yearling Futurity Colts
1990 Stallions
1989 Stallions
1988 Stallions
Aged Stallions
Grand & Reserve Stallions
Non-Pro Weanling Stallion Futurity **
Junior Amateur Stallions
Senior Amateur Stallions
Grand & Reserve Amateur Stallions
Junior Weanling Fillies ***
Senior Weanling Fillies ***
1991 Mares
Yearling Filly Futurity **
1990 Mares
1989 Mares
1988 Mares
Aged Mares
Grand & Reserve Mares
Non-Pro Weanling Filly Futurity *
Junior Amateur Mares
Senior Amateur Mares
Grand & Reserve Amateur Mares
Yearling Gelding Futurity ***
1990 Geldings
1989 Geldings
1988 Geldings
Aged Geldings
Grand & Reserve Geldings
Junior Amateur Geldings
Senior Amateur Geldings
Grand & Reserve Amateur Geldings
Novice Amateur Showmanship
Amateur Showmanship
Youth Mares
Youth Geldings
Novice Youth Showmanship
Showmanship 13 & Under
Showmanship 14-18
All Age Pleasure Driving
Amateur Pleasure Driving
BREAK
All Age Hunter Under Saddle
Amateur Hunter Under Saddle
Youth Hunter Under Saddle
Amateur Hunt Seat Equitation
Youth Hunt Seat Equitation
All Age Hunter Hack
Amateur Hunter Hack
Youth Hunter Hack
BREAK
2 Yr. Old Snaffle Bit Futurity
SEPTEMBER 7 JUDGE
BILL FRENCH
SEPTEMBER 8 JUDGE
CECIL HURLEY
Novice Amateur Western Pleasure
Novice Youth Western Pleasure
3 Yr. Old Snaffle Bit Futurity
Amateur Western Pleasure
Western Pleasure 13 & Under
2 Yr. Old Walk Trot Snaffle Bit
Western Pleasure 14-18
2 Yr. Old AQHA Snaffle Bit
Novice Youth Horsemanship
Youth Horsemanship 13 & Under
Youth Horsemanship 14-18
2 & 3 Yr. Old Non-Pro Snaffle Bit
Junior Western Pleasure
Novice Amateur Horsemanship
Amateur Horsemanship
2 Yr. Old Alabama Owned Snaffle Bit
Senior Western Pleasure
3 & 4 Yr. Old Alabama Owned Snaffle Bit
Amateur Trail
Youth Trail
All Age Trail
Amateur Western Riding
Youth Western Riding
All Age Westen Riding
Amateur Reining
Youth Reining
All Age Reining
Amateur Barrel Race
Junior Barrel Race
Youth Barrel Race
Senior Barrel Race
Amateur Pole Bending
Youth Pole Bending
All Age Pole Bending
Youth Stake Race
*** These Classes are Held Saturday ONLY
Judges are: Roy Dunn & Cecil Hurley
ENTRY FEES:
Halter & Performance: $10.00 + $1.00 Office Charge per class
Amateur: $8.00 or $40.00 all day + $1.00 Office Charge per
class
Amateur Novice: $5.00 + $1.00 Office Charge per class
Youth: $6.00 or $30.00 all day + $1.00 Office Charge per class
Youth Novice: $4.00 + $1.00 Office Charge per class
STARTING TIME:
8:00 A.M.
Figure 3. Example of Quarter Horse Show program.
- - - - - - - - - -- - - - - - - - - - - - - - - - -
Quarter Horses are also used for dressage, jumping, and
other exacting forms of horsemanship. These events often attract
riders from outside the State. Many involve substantial
registration fees and prizes. Numerous small schooling shows and
competitions occur around the State.
Rodeos. Rodeos typically consist of a series of events in
which contestants compete for prizes and/or points. The 
prizes
may be either cash or trophies such as saddles 
and belt buckles.
Rodeo events are divided into two categories: roughstock 
events
and timed events. Roughstock events include bareback riding,
saddle bronco riding, and bull riding. Timed events 
include calf
roping, team roping, steer wrestling, steer roping, 
and barrel
racing. Contestants in the timed events must provide 
their own
horses. Quarter Horses are typically chosen since 
they possess
the size, quickness, and intelligence that make them 
particularly
well suited for these applications.
Participants in rodeos that are sanctioned by 
the national
rodeo organizations compete for the chance to 
enter the final
rodeos of the respective associations. Eligibility 
for entry in
the championship rodeos is based on the amount of 
prize money
earned during the rodeo season. The cowboys with the 
most
winnings earned from approved rodeos areeligible 
to enter the
finals rodeos of their respective associations and compete 
for
championship titles and large cash prizes.
Rodeos are classified as a Quarter Horse event 
for the
purposes of this study because the majority of rodeo 
participants
use Quarter Horses in the timed events. Table 4 lists 
Alabama
rodeos which were recognized by the IPRA in 1989. 
It should be
noted that Cullman was the site of a significant 
regional event,
the IPRA 1989 Southeastern Finals Rodeo, that drew over 190
contestants.
Alabama also hosted three PRCA-approved rodeos 
in 1989.
Table 5 lists these events, their duration, 
and their gross
ticket sales.
Twenty-three Alabama rodeos were sanctioned by 
the ACA in
1990. The locations and total prize monies of 
these rodeos are
listed in table 6.
Many smaller, local rodeos take place across 
the State
during the spring and summer months. These rodeos, which are
usually not included in the IPRA, ACA, or PRCA rodeo circuits,
are sponsored by either local saddle clubs or other local service
organizations, such as the Jaycees or the county sheriff's posse.
Local rodeos, which usually attract participants from surrounding
areas, are typically held during a Friday and Saturday evening in
open arenas and draw 30 to 60 contestants.
23
Table 4. Locations, Duration, and Number 
of Contestants, Alabama
Rodeos Recognized by the IPRA, 1989
Location Duration Number of
(days) contestants
Oneonta 2 214
Huntsville 3 159
Dothan 2 168
Russellville 2 116
Cullman 2 
193
Athens 2 210
Hartselle 2 118
Cullman
1  
3 74
Total 1,252
Source: International Professional Rodeo Association
1
Southeastern Finals Rodeo.
Rodeos often are significant annual events for small
communities, often providing a focus for community life, a fund
raising opportunity for civic groups, and a boost for local
merchants. A survey of county agents indicated that 35 of
Alabama's 67 counties have rodeos each year. Table 7 shows the
locations and estimated attendance of these rodeos.
Traditional Skills Events. Quarter horses are utilized
extensively in events designed to exhibit traditional ranching
skills. Examples include: calf roping and team roping contests;
speed and agility contests, such as barrel racing and pole
bending; cutting contests in which a single cow is separated and
held away from a group of cattle; team penning contests where 
a
group of cattle is driven away from a larger herd and penned; and
reining contests which demonstrate the horse's handling ability
and maneuverability.
24
Table 5. Locations, Duration, and Gross Ticket Sales, Alabama
Rodeos Approved by the PRCA, 1989
Duration Gross ticket
Location (days) 
sales($)
Birmingham 3 46,252
Mobile 2 *
Montgomery 4 118,000
*Data not available.
Many of these competitions overlap events in horse shows and
rodeos. Many Quarter Horses competing in these activities also
participate in shows and rodeos and their owners usually pay
membership dues to more than one association. Participants in
these events compete for cash prizes and recognition at the
local, State, and national levels.
Traditional skills events are held periodically at various
locations throughout the State. Many of these events are approved
by organizations at the national, state, or substate level. Most
skill event associations, such as the roping, barrel racing, and
team penning associations, are at the substate level. Other skill
event associations, such as the reining and cutting associations,
have both a state-level and national-level organization.
Trail Riding. Quarter Horses are also used for recreational
and competitive trail riding. Recreational rides range from small
informal groups of friends enjoying their horses and the scenery
to large, organized rides sponsored by saddle clubs. In formal
competitive trail ride events, horse and rider travel a fixed
distance within a fixed time period and are judged on soundness,
physical condition, and the horse's manners. Endurance rides are
primarily races which must be completed within a predetermined
time limit. Awards are made to all horses which finish the ride,
the first horse to finish the ride, and the horse that finishes
in the best condition. Although Quarter horses are used in all
these trail riding events, they excel at recreational riding
activities due to their easy gaits and quiet disposition.
25
Table 6. Locations and Total Prize Monies, 
Alabama Rodeos
Approved by the ACA, 1990
Location 
Total prizes($)
Columbiana 
11,765
Monroeville 
5,540
Cullman 
8,685
New Hope 
8,650
Chatom 
3,160
Jasper 
11,015
Tuscumbia 
6,270
Luverne 
8,415
Clanton 
7,425
Butler 
3,755
Foley 
6,830
Hartselle 
5,360
Clayton 
9,045
Reeltown 
4,345
Stockton 
7,445
Selma 
5,325
Gadsden 
5,485
Atmore 
4,625
Rainsville 
6,275
Mobile 
6,415
Ariton 
4,100
Robertsdale 
4,310
Total 
144,240
26
Table 7. Locations and Estimated Attendance of Rodeos by County,
Alabama, 1989.
County Number of Estimated
rodeos attendance
Baldwin
Barbour
Blount
Calhoun
Chambers
Chilton
Choctaw
Clay
Coffee
Covington
Crenshaw
Cullman
Dale
Dallas
DeKalb
Escambia
Etowah
Fayette
Franklin
Geneva
Jefferson
Lamar
Limestone
Madison
Mobile
Monroe
Montgomery
Morgan
Perry
Randolph
Shelby
Tuscaloosa
Walker
Washington
Wilcox
1
2
1
2
1
1
600
800
7,500
25,000
700
700
250
1,200
500
10,000
1,500
4,000
600
700
4,000
500
1,500
2,000
7,000
600
57,5261
1,000
6,000
45,000
7,500
900
173,000
3,000
2,400
1,600
3,500
7,000
900
1,000
1,500
381,476
1
8
1
1
1
2
1
1
1
1
2
2
1
3
1
3
2
1
2
1
1
2
Total 56
Actual paid attendance.
27
Racing. Quarter Horse racing took place in Alabama at the
Birmingham Race Course from June 30, 1990, through Labor Day of
1990. During this period there were two Quarter Horse races 
per
day, five days per week, with an average of eight horses starting
each race. Even though Quarter Horse races were not as 
numerous
as Thoroughbred races at the Birmingham track, Quarter Horse
races had a significant positive impact by expanding the racing
program and attracting more horses, spectators, and bettors 
to
the track.
Polo. Polo players use Quarter Horses and part Quarter
Horses because of their sprinting speed and agility. Polo fields
are found in Shelby, Madison, and Baldwin counties. Baldwin
County polo has developed rapidly in recent years. A new field
there features weekly competitions in the summer, regular visits
by international competitors, and a strong local spectator
following for the sport. Clubs in Madison and Shelby 
counties
meet on a regular basis. Polo represents a small, but
significant, application of Quarter Horses in the State.
Hunting. Fox hunts and similar group sports involve Quarter
Horses in several areas of Alabama. Private associations 
based in
Huntsville, Columbus, Georgia, and south Alabama organize
circuits of hunts in the fall season on various private 
farms
around the State. Some hunt clubs provide horses to visiting
riders. They also support recreational and other uses of 
Quarter
Horses outside the fall hunt seasons.
Hunting usually is not a spectator activity and is 
generally
engaged in as a sport and social event for the individuals
involved. Hunts represent a use of Quarter Horses and reason 
for
keeping them, but do not in themselves have an extensive economic
impact in the State. The impacts are portrayed here in terms of
associated travel, tourism, and the expense of horse ownership.
28
Chapter 3 Economic Impact of the Quarter Horse Industry
This chapter estimates several components of the economic
impact of the Quarter Horse industry in the State. First, we
consider the expenses associated with care and maintenance of
Quarter Horses used for showing, racing, and recreation. We also
include certain expenses associated with equipment and
transportation appropriate to each application.
Second, we discuss the impact of showing and racing Quarter
Horses in terms of breeding, maintenance, transportation, and
training, as well as the tourism impacts associated with visiting
Quarter Horses, owners, and traveling spectators. The third
section describes employment impacts including the estimated
employment multiplier. The final section summarizes the economic
impacts of Alabama's Quarter Horse industry.
Meaning of the Estimates
The data in table 8 identify estimated average annual per-
horse expenses associated with Quarter Horse ownership in 1989.
These data do not include horse purchases or sales, nor do they
include capital expenditures. These figures were developed
through interviews with suppliers and purchasers of the various
goods and services. Subsequent estimates were reviewed by
knowledgeable individuals familiar with Quarter Horse ownership
and maintenance.
Although actual expenditures vary widely from one owner to
another, the expenditure estimates for each item in table 8 are
assumed to resemble a normal distribution around a central
tendency or average. For many items, however, the actual pattern
of outlays is highly skewed, i.e., a small number of owners of
prize animals spend much greater amounts than the ordinary
Quarter Horse owner. In this case, the modal (most frequent)
expenditure may be quite different from the median (middle) or
the average (arithmetic mean) level of expense. Given that the
objective of the study is to estimate aggregate impacts, the
latter estimate--the mean or average--is utilized in the tables.
For the aforementioned reasons, some outlay estimates may seem
high from the perspective of the ordinary Quarter Horse owner.
Others may seem low from the experience of the owner of
intensively managed, high value animals.
29
Table 8. Estimated Per-Horse Care and Maintenance Expenditures
for Showing, Racing, and Recreational Quarter Horses,
Alabama, 1989
Estimated average annual total
Expenditure Category Showing Racing Recreational
$ $ $
Veterinary fees 300 400 150
Feed & bedding 800 700 550
Insurance premiums 700 600 100
Farrier 450 500 200
Grooming & supplies 200 175 100
Travel & lodging 1,200 1,200 150
Advertisement 1,000 1,000 0
Utilities 150 150 15
Property taxes 50 50 50
Depreciation 1,500 1,500 680
Maintenance & repairs 500 500 300
Boarding of equine 480 280 200
Breeding fees 30 0 50
Rental of property & equipment 50 50 25
Tack 1000 850 120
Professional fees 100 300 30
Registration fees 195 10 10
Training fees 1,500 4,000 50
Employed labor 700 3,025 ,300
Miscellaneous 100 100 60
Per horse total 11,005 15,390 3,140
Total impact (millions) 49.5 4.6 93.4
Total care and maintenance (millions) 147.5
30
It should also be noted that not all Quarter Horse owners
incur every expense listed in table 8. For example, a person who
owns a horse but keeps it at a boarding facility would incur
boarding expenses but would have no horse-related property taxes.
In other words, Table 8 should not be viewed as an operating
budget for Quarter Horse ownership but as an estimate 
of mean
per-horse expenditures.
Horse Care and Maintenance
Horse care and maintenance are central mechanisms 
by which
the economic impacts of horse ownership are 
transmitted
throughout the State. Owners purchase feed, 
materials, and
services for horses on a regular basis. Their 
purchases represent
demand for farm products, horse-related supplies, 
and the
assistance of a variety of technicians and 
professionals.
Since Quarter Horse ownership is widespread 
throughout the
State, the economic impacts are also diffuse. 
Where horse
ownership and activity are concentrated, the economic impacts
represent a more salient part of the 
local income structure. The
significance of the secondary impacts of Quarter 
Horse activity
also increases in these locales. Major 
Quarter Horse facilities
that have frequent shows attracting out-of-state 
participants
represent the most concentrated form of impact.
Quarter Horses regularly used for showing 
or racing are
generally high-value animals and, as such, 
afford much greater
levels of expenditures for health, nutrition, 
and other care.
Such horses are usually better housed and more frequently
transported than Quarter Horses used for breeding 
or recreation.
These higher expenditure levels are reflected 
in table 8.
The first expenditure category, veterinary 
fees, includes
routine veterinary services such as vaccinations, 
deworming, and
equine dental care. It does not, however, include 
the cost of
surgery or other major medical expenses not 
incurred on a regular
basis. Feed and bedding expenses include the 
cost of hay, grain,
feed additives, vitamin and mineral supplements, 
pasture
maintenance, and straw and shavings used for bedding.
Insurance costs include premiums for horse 
liability,
mortality, loss of use, surgery, and vehicle 
insurance. The
farrier category includes the cost of shoeing and hoof trimming.
Grooming and supplies reflect expenditures for items such 
as
brushes, currycombs, and coat conditioners. Travel and lodging
are the expenses of traveling to and from horse shows, horse
sales, and other horse activities, such as races, recreational
rides, or polo meets. These expenses are the cost of meals, 
fuel,
and overnight lodging. Advertisement is composed of expenditures
31
for advertising Quarter 
Horse stallions and breeding 
farms.
Utility expenditures include 
the cost of electricity, 
water,
heating of buildings, and 
horse-related telephone 
bills. Property
taxes are the local and/or 
state tax liabilities for 
land and
buildings used in horse 
breeding, ownership, and 
other horse
activities, such as hunting.
The next expenditure 
category, depreciation, 
is composed of
the annualized capital 
expenses associated with 
horse-related
buildings, machinery, 
and vehicles. These estimates 
were derived
assuming a useful life 
of 30 years for buildings 
and 10 years for
machinery and vehicles. 
Maintenance and repairs 
represent the sum
of expenses incurred in 
the upkeep of buildings, 
facilities, and
vehicles.
The boarding of equine 
category includes payments 
to
boarding farms and, 
in the case of race horses, 
facilities for
rest and recuperation. 
Boarding fees for show 
horses also include
an estimated $100 annual 
expenditure for stall 
fees at horse
shows.
Breeding fees, which 
are typically paid by 
the mare's owner,
are the cost of having 
a mare bred to a selected 
stallion. These
fees range from $200 
to $1500 or more depending 
on the quality of
the stallion. Breeding 
fees for race horses 
are zero in table 8
since mares that are actively 
engaged in this activity 
are
usually not bred. Likewise, 
breeding fees for show 
horses are low
on a per horse basis 
since few mares that 
are actively showing
are bred. Most brood mares 
are not actively showing 
and,
therefore, fall into the 
recreational category.
Rental of property and 
equipment is an estimate 
of the cost
of renting pastures, 
facilities, machinery, 
and vehicles.
Tack expenditures include 
the cost and maintenance 
of saddles,
bridles, and related 
accouterments. This 
category also includes
horsemen's wearing apparel.
The next expenditure 
category, professional 
fees, is
composed of dues for 
membership in professional 
organizations and
subscriptions to horse-related 
publications. Registration 
fees
are charges for participating 
in shows, fees to register 
for
racing, and fees to 
register and transfer 
ownership of Quarter
Horses in AQHA records. 
For show horses this 
category includes an
estimated $175 annual 
expenditure for registration 
in shows. The
estimate for this category is 
low for racing animals since 
there
was no sanctioned Quarter Horse 
racing in Alabama in 1989.
Training fees are charges for 
horse training in the case 
of
showing and racing Quarter Horses, 
and training for both the
horse and rider in the case 
of recreational Quarter Horses.
The next category, employed 
labor, includes wages paid to 
both
full and part-time employees 
involved in horse-related 
work.
32
These employees would include stallion managers, grooms, exercise
riders, clerical workers, and those who clean stalls and provide
routine horse care. The miscellaneous category is composed of
expenditures for horse transport services, dead stock services,
and manure removal.
Showing Quarter Horses. Quarter Horse showing is a very
important component of the horse industry and has a significant
impact on Alabama's economy. For the purpose of this study, a
show horse was defined as one that competes in 40 or more shows
per year, with the majority of these shows receiving AQHA
recognition. The estimated average annual cost of keeping a
show horse is $11,005. Thus, the estimated 4,500 Quarter Horses
that were actively shown in 1989 generated over $49 million in
direct impacts to the State's economy.
Racing Quarter Horses. Quarter Horses used for racing
require about $15,390 per horse for care, maintenance, and other
horse-related expenses (table 8). The higher level of
expenditures on these animals, as compared to recreational
horses, reflects the more intense level of care and maintenance
required to keep a horse in racing condition. Based on this
estimate, racing Quarter Horses generated over $4 million in
economic activity in 1989.
Recreational Quarter Horses. Quarter Horses used for
purposes other than showing or racing require about $3,140
annually per horse for care and maintenance (table 8). The
expenditure levels for these animals reflect the lower intensity
of care and maintenance associated with horses that are not
actively showing or racing. Thus, owners of the estimated 29,743
recreational Quarter Horses incurred about $93 million in
expenses in 1989.
Impact of Quarter Horse Activities
Shows. Another component of the Quarter Horse industry's
economic impact is tourism resulting from travel to horse shows.
Quarter Horse shows produce significant benefits to the
localities hosting these events. Horses from outside the local
area require additional housing expenses, as do their
accompanying owners. Some spectators travel long distances to
view the activities.
We estimated that, on average, owners of each of the 4,500
active show horses in the State spent $1,475 on travel and
related expenses during horse shows in 1989. This $1,475 is
composed of a $1200 expenditure for fuel, food, and lodging for
the persons traveling with the horse, $100 for stall fees, and
$175 for registration fees for the horse. Based on this estimate,
33
show horses accounted for a tourism impact of about $6.6 million
in 1989.
Rodeos. Rodeos also have a significant impact on Alabama's
economy. This impact is concentrated in the communities which
host the rodeos. As shown in table 7, Alabama hosted 56 rodeos in
1989. These include rodeos recognized by national associations as
well as local rodeos.
Most of a rodeo's economic impact on the local economy is
derived from the spectators since there are typically many more
spectators than contestants. Rodeo spectators generate economic
activity through admission fees, concessions, and souvenirs. We
estimate that each spectator spends an average $11 at a rodeo.
The estimated 381,476 spectators at Alabama rodeos in 1989,
therefore, generated approximately $4.2 million of economic
activity.
Racing. Quarter Horse racing took place at the Birmingham
Race Course from June 30, 1990, until the following Labor Day.
There were two Quarter Horse races each day during 56 racing days
with an average of eight horses per race. During this period,
there were, on average, 300 Quarter Horses stabled at the
Birmingham Race Course. Most of these horses were from Texas and
Oklahoma, with the balance coming from throughout the Southern
United States. Racing Commission records indicate that on average
there were 75 Alabama Quarter Horses stabled at the track.
The 225 out-of-state horses that were stabled at the track
during the 1990 racing season (94 calendar days) represent a
significant economic impact to the Birmingham area. This impact
stems from food and lodging for personnel accompanying the
horses, as well as services and supplies purchased for the horses
in Alabama. We estimate that each of the out-of-state horses
stabled in Birmingham induced an average $90 of economic activity
per day. The direct tourism impact of out-of-state racing Quarter
Horses in Birmingham in 1990, therefore, was over $1.9 million.
In addition to the impact of the out-of-state horses,
Quarter Horse racing contributed to the overall effect the
Birmingham Race Course had on Alabama's economy. This impact is
summarized in table 9.
Although this study focused on the Quarter Horse industry in
1989, the 1990 racing season at the Birmingham Race Course was
included to illustrate the potential impact of Quarter Horse
racing on Alabama's economy. Even though there were relatively
few Quarter Horse races in Birmingham in 1990, the total impact
was substantial.
34
Table 9. Income and Impacts of the Birmingham Race Course, 1990.
Category Amount ($)
Parimutuel handle (wagers) 2,381,341
Impacts
Winnings to bettors 2,150,395
Revenue to government
Misc. revenue to Racing Commission 1,650
City & county payroll tax 5,000
City admissions tax 12,227
Other revenue to local government 47,626
Total revenue to government 66,503
Tourism impact from out-of-state horses 1,903,500
Total Race Course impacts 4,120,398
Source: Birmingham Racing Commission
Breeding. Stallion fees and other expenditures associated
with horse reproduction are included here. Quarter Horses can
generate substantial returns for their owners through fees
associated with the services of superior stallions and mares.
Larger stables often have specialized employees who coordinate
breeding activities.
The Quarter Horse breeding industry is a central source of
impacts on agriculture and land use in the State. Undertaking
Quarter Horse breeding as a farm enterprise implies a longer
investment horizon and commitment to the activity than simple
horse ownership. Breeders often invest in farmland, equipment,
and facilities in a manner that would not be economically
justified by food animal or crop production. The presence of many
high-value animals in a county supports the development and
elaboration of a network of horse care and maintenance services.
The resulting array of occupational niches provides full and
part-time employment to a large number of people.
Table 8 shows the estimated per-horse expenditures for
breeding fees. Breeding stock is listed under the recreational
classification of Quarter Horses since mares that are actively
35
showing or racing are usually not bred. Based on this estimate,
breeding fees accounted for more than $1.4 million in economic
activity in 1989.
Employment Impacts
Paid employment associated with Quarter Horse breeding,
raising, and care is related to the intensity of the animals'
use. Showing animals require approximately one employee for 20
horses. Racehorses require approximately one employee per 12
horses. Animals maintained for recreational and breeding use
employ, on average, approximately one individual for every 100
horses. Thus, Quarter Horse care and maintenance is responsible
for direct employment of approximately 550 people in the State.
Total paid employment associated with Quarter Horses
includes show staff, trainers, other care and maintenance
employees, and a variety of self-employed individuals who provide
services to horses. This number ranged between an estimated
1,000 and 1,800 full-time equivalent jobs in 1989.
Employment in the horse industry can be shown to generate
additional employment in other industries. This concept is
described by an employment multiplier. Trenchi and Flick (9)
estimate the employment multiplier for Alabama's livestock
industry to be 1.74. This means that for every job created in the
livestock sector, there are a total of 1.74 jobs created
throughout the economy. Based on the above estimates and given an
employment multiplier of 1.74, the Quarter Horse industry induces
total employment of between 2,697 and 4,089.
Summary of Economic Impacts
Based on the above estimates, which are summarized in table
10, the direct impact of the Quarter Horse industry on Alabama's
economy in 1989 was more than $151 million. This reflects the
immediate injection of money into the economy through the
purchase of goods and services by horsemen, spectators, and
visitors to the State.
These income flows also can be shown to generate additional
economic activity described by the concept of the income
multiplier effect. The estimated income multiplier for Alabama's
livestock industry is 2.9. This means that every $1.00
transaction in the Quarter Horse industry results in $2.90 of
total economic activity. The procedure for calculating this
multiplier is shown in Appendix I. The total impact on the
economy, given an estimated income multiplier of 2.9, is
approximately $439.9 million.
36
One Texas study (5) utilized a factor 
of 2.0 to express the
additional indirect impact on the State's 
economy generated by
primary activity in horses. A Florida study 
(8) used what they
called a conservative coefficient 
of 2.3. Other studies have
employed multipliers as high as 3.1. 
Thus, the multiplier effect
estimated here is consistent with 
coefficients utilized by
similar analyses.
Table 10. Summary of Economic Impacts 
of Quarter Horse Activity,
Alabama, 1989
Category 
Amount (million $)
Show impacts 
49.5
Racing impacts 
4.6
Recreational impacts 
93.4
Tourism associated with 
rodeos 
4.2
Direct impacts 
151.7
Total impact given a multiplier 
of 2.9 439.9
37
38
Chapter 4 Policy Implications
Quarter Horses may be the breed closest to the heart and
everyday life of the average Alabamian. More of the State's
residents own this type of horse and participate in associated
activities than any other. The breed also has a very dense
structure of associations, shows, and competitive events that
enhances its impact on the economy and quality of life in the
State.
The direct effects of Quarter Horses on Alabama's economy
exceeded $151 million in 1989. These impacts are substantial.
There are also other qualitative factors, with related economic
implications, linked to the future of Quarter Horses and Quarter
Horse showing in the State.
Horses and showing make a significant contribution to the
quality of life by adding to the diversity of recreational
activities available throughout the State. Horse shows are a
source of excitement and diversion that augments the
attractiveness" of the State 
as a place to live and work. 
Horse
farms use Alabama land for pastures, barns, and facilities that
tend to improve the scenic, pastoral, and experiential effects
the State has on residents and visitors. The land-use impacts of
a large and viable Quarter Horse industry are substantial.
This study also shows the significant linkages Quarter
Horses have to the agricultural sector and the larger economy. A
significant proportion of the State's households have some
personal or familial connection to the Quarter Horse industry.
More people are involved with Quarter Horses than is commonly
recognized by the institutions that serve agriculture and the
recreating public.
Implications for Alabama Agriculture
According to a national study done by the accounting firm of
Peat, Marwick, and Mitchell (4) for the American Horse Council,
about 16 percent of agricultural and agribusiness gross economic
product is due to the horse industry. This translates into jobs
and demand for a variety of items from agribusiness suppliers.
The Alabama agricultural sector currently generates about 20
percent of the State's total gross product, about 15 percent of
which is horse-related. About 25 percent of the latter category
can be attributed to the Quarter Horse industry. It can be argued
that about 0.75 percent of the Gross State Product can be
attributed to Quarter Horses. Spending by Quarter Horse owners,
breeders, and trainers clearly helps to bolster the State's
economy.
39
As most training and breeding facilities are located in
rural areas, many direct economic impacts and attendant
multiplier effects flow to communities needing economic
stabilization. The most concentrated set of impacts, however, is
in north Alabama since that is where the major show facilities
and greatest concentrations of Quarter Horses are.
We conclude that the Quarter Horse industry has a measurably
significant role in the State's economy. The loss or diminution
of the Quarter Horse industry would represent significant
opportunity costs in terms of lost employment, income, and tax
revenue that would otherwise have been generated by breeding,
showing, and horse ownership in general. A reversal of the
development of the industry also would represent waste of
substantial taxpayer and private funds. Major expenditures were
made for construction of the Birmingham racetrack and some local
show facilities, as well as related public improvements such as
roads and utilities.
Many individuals made investments in farm and business
improvements in expectation of a viable breeding and racing
industry. It is incumbent on lawmakers, financiers, and industry
leaders to take the institutional steps necessary to realize the
potential benefits of a thriving Quarter Horse industry in
Alabama.
Recommendations
1. An Alabama Horse Advisory Council should be established
to include representatives of all statewide and regional horse
associations. Such a group should provide greater unity and
coherence to Quarter Horse and other equine interests in Alabama.
It would act as a mechanism for joint action to secure collective
benefits for horse owners and activity participants.
2. One important outcome of the workings of the Horse
Industry Advisory Council would be an enhanced partnership
between horse owners and the Legislature that would be of
significant benefit to the Quarter Horse industry. Significant
issues to be addressed should include the implementation of the
Federal Horse Protection Act, liability for horse owners, and the
clarification of Equine Infectious Anemia testing requirements
for horse buyers, sellers, and exhibitors.
3. The Horse Industry Advisory Council should develop and
implement a common format among its component organizations for
recording attendanceand participation at equine events. These
data would facilitate further studies of the impact that equine
events have on Alabama's economy and agricultural sector.
40
4. The Horse Industry Advisory Council should develop a
comprehensive set of regulations to ensure humane treatment of
animals involved in Alabama horse events. These regulations would
be designed to prevent future confrontations with animal rights
groups and thereby preserve the integrity of Alabama's horse
industry.
5. The Horse Industry Advisory Council should also publish
an annual report detailing the status of Alabama's horse
industry. This report would include a census of Alabama's horse
population, enumeration of horse-related events and facilities,
and an analysis of the horse industry's impact on Alabama's
economy. These reports could be used to emphasize the importance
and economic impacts of the Quarter Horse and other horse
industries.
6. There is a need for a high-quality State show facility in
Alabama. Present management arrangements at the Garrett Coliseum
facility do not reflect well on State management. Leasing,
contracting, privatization, and other management arrangements
should be explored to ensure that visiting Quarter Horse owners
encounter a well-groomed facility that is painted, repaired, and
safe for owners and their horses. Increased attention must be
paid to stall conditions, manure removal, and overall security on
the State grounds.
7. The Birmingham Racing Commission, track management, and
horsemen should develop better relationships with public agencies
to obtain counsel and perspective on issues affecting the
development of the industry. A more programmatic approach should
be taken to marketing, managing, and developing racing and the
Quarter Horse industry as an asset to agriculture, tourism, the
State's economy, and the overall quality of life in Alabama.
8. Additional types of horse activities should be considered
for programming into the annual calendar of the Birmingham Race
Course. Between racing seasons, the track should be made
available for major horse shows, as stalling is often a problem
for two-day or longer shows. Additional Quarter Horse races, the
introduction of other types of horse racing, and other
innovations might contribute variety, broaden the attendance
base, and contribute additional use-days for the facility.
Changes along these lines would greatly expand the impact of the
track on agriculture and the State's economy.
9. A full-time horse extension specialist should be
appointed to work with the Quarter Horse and other breed
industries and associations. Greater attention should be paid to
organizational issues within the horse industry and ways that the
horse industry can be used to facilitate economic development in
the State.
41
10. State and federal agencies and the agricultural
universities should collaborate to provide better statistical
information about the number and kind of Quarter Horses in the
State, the incidence of disease and other conditions, and the
variety of events and activities that might be more generally
publicized as a means for enhancing tourism in Alabama.
ACKNOWLDGEMENTS
We thank L. Eliason for providing data on Quarter Horse
racing at the Birmingham Race Course and K. Perez for her
assistance with the report. We also thank G. Seier for his
assistance in securing resources and otherwise facilitating the
conduct of this work.
42
REFERENCES
(1) Barr, Duffy (ed.). 
1989. Alabama Agricultural 
Statistics:
1989 Preliminary. Montgomery: 
USDA-National Agricultural
Statistics Service and 
Alabama Department of Agriculture 
and
Industries.
(2) Curtis, Wayne C. and 
John E. Waldrop, Jr. 
1971. Construction
of an Input-Output 
Model for a Sub-State Region 
Through the Use
of National Coefficients 
and Secondary Data Sources. 
Agricultural
and Forestry Experiment Station 
Bulletin Number 61, Mississippi
State University.
(3) Hedgpeth, Don. 1990. 
They Rode Good Horses: 
The First Fifty
Years of the American 
Quarter Horse Association. 
The American
Quarter Horse Association. 
Trafton & Autry Printers, 
Inc.
Amarillo, Texas.
(4) Peat, Marwick, and Mitchell 
& Co. 1987. The Economic 
Impact
of the U.S. Horse 
Industry. Report prepared 
for the American
Horse Council. January, 1987.
(5) Slottje, D.J. and 
K. Hayes 1989. An Analysis 
of the Economic
Impact of Horse Showing 
on the State of Texas. Report 
prepared
for the American Quarter 
Horse Showing Council, 
American Quarter
Horse Association. 
Department of Economics, 
Southern Methodist
University, Dallas, Texas.
(6) Stallings, James 
L. and Warren A. Flick. 
1985. Impact of
Agricultural Exports 
on Alabama's Economy. 
Alabama Agricultural
Experiment Station Circular 
Number 275, Auburn University.
(7) Thalheimer Research 
Associates. 1988. The 
Economic Impact of
the Quarter Horse and 
Quarter Horse Racetrack 
Industry and the
Race Horse Breeding 
Industry on the State 
of Florida. Thalheimer
Research Associates. 
Lexington, Kentucky
(8) Thalheimer Research 
Associates. 1988. An 
Economic and
Financial Analysis 
of the Florida Quarter 
Horse and Quarter 
Horse
Racetrack Industry. Thalheimer 
Research Associates. Lexington,
Kentucky
(9) Trenchi, Peter, III 
and Warren A. Flick. 
1982. An Input-
Output Model of Alabama's 
Economy: Understanding 
Forestry's Role.
Alabama Agricultural Experiment 
Station Bulletin Number 
534,
Auburn University.
(10) U.S. Department of Commerce. 
1984. The Detailed Input-Output
Structure of the U.S. 
Economy: Volume I, The 
Use and Make of
Commodities by Industries. 
U.S. Government Printing 
Office,
Washington, D.C.
43
APPENDIX I
Calculation of Type II Multipliers
Two multipliers, an income multiplier and an employment
multiplier, were used in this study. An income multiplier is a
number by which an initial transaction is multiplied to estimate
the total amount of business generated as a result of the
transaction (5). For the Quarter Horse industry, this would
include the value of the initial transaction, business generated
by suppliers of goods and services to the Quarter Horse industry,
purchase of consumer products by participants in the Quarter
Horse industry, and business generated by suppliers of consumer
products.
An employment multiplier shows the change in household
employment throughout the economy that results from an 
employment
change in any one industry (8). In other words, the addition 
of
an employee in one industry will create demand for new employees
throughout the economy due to the resultant change in final
demand.
There are two types of multipliers. Type I multipliers are
calculated based on the assumption that households 
are not
affected by transactions in other sectors of the economy. Type II
multipliers, on the other hand, treat households as a part of 
the
industrial system (2). In a type II model, therefore, 
household
incomes and employment increase as production in other sectors 
of
the economy increases. The type II multipliers were used 
for the
purposes of this study due to the unrealistic assumption
underlying the type I multipliers.
The type II multipliers used in this study were estimated
using an input-output model of Alabama's economy developed by
Trenchi and Flick (8). This model is composed of 
matrices showing
the economic effects of transactions and employment 
between all
major sectors of the economy. The segments of the 
model that are
relevant to the income multiplier used in this study are 
shown in
table 11.
The direct effects column in table 11 shows the proportion
of the livestock industry's total purchases that were obtained
from the industry in the corresponding row. For example, 
the
livestock industry purchased approximately 8 percent 
of its total
purchases from other agricultural industries. The direct,
indirect, and induced effects column shows the total changes 
in
income in a particular sector resulting from a $1.00 change in
income in the livestock sector.
Type II income multipliers are calculated by dividing the
household row entry in the direct, indirect, and induced effects
44
column by the household row entry in the direct effects column
(2). In this case:
0.67865/0.23127 = 2.9344
The relevant income multiplier for this study, therefore, is 2.9.
Calculation of the employment multiplier is a bit more
complicated than the income multiplier and is beyond the scope of
this study. Trenchi and Flick (8), however, estimate the type II
employment multiplier for Alabama's livestock sector to be 1.74.
Table 11. Livestock Column Vectors from the Trenchi and Flick
Input-Output Model.
Direct, indirect,
Direct effects and induced
Sector on effects on
livestock livestock
Livestock
Other agriculture
Mining
Construction
Food & Kindred
Textiles
Apparel
Logging
Sawmills
Millwork & plywood
Other wood products
Furniture
Paper
Chemical
Rubber & plastics
Primary metals
Fabricated metals
Machinery
Transportation
Equipment
Manufacturing
Wholesale & retail
Services
Financial
Transportation
Communications &
Utilities
Households
0.14836
0.08334
0.00011
0.00636
0.00173
0.00022
0.0
0.00065
0.0
0.0
0.00011
0.0
0.00032
0.00970
0.00065
0.0
0.00216
0.00032
0.00011
0.00194
0.03170
0.02480
0.01822
0.01919
0.00464
0.23127
1.18830
0.10501
0.00925
0.02730
0.03171
0.00124
0.00283
0.00200
0.00125
0.00083
0.00284
0.00082
0.00399
0.05012
0.00366
0.00324
0.00849
0.00792
0.00490
0.02267
0.18569
0.15322
0.17963
0.06140
0.06629
0.67865
Source: Trenchi and Flick (9).
45


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