O RGANIZATION,
IMPACTS, AND
PROSPECTS FOR
ADVANCEMENT
AND PROMOTION
OF BREEDING
AND RAISING OF
T RACKING
HORSES
IN ALABAMA
AGRICULTURAL ECONOMICS SERIES No. 42
DEPARTMENT OF AGRICULTURAL ECONOMICS AND RUA SOCIOLOGY
AL.ABAM AGRIUCLUrRUAJ. EXPERIMENT STATION
AUBURN UNIVERSITY AUBURN, ALABAMA
LOwELL T. FROBISH, DIRECTOR
APRIL 1992

ORGANIZATION, 
IMPACTS, AND
PROSPECTS FOR 
ADVANCEMENT
AND PROMOTION 
OF BREEDING
AND RAISING OF 
RACKING
HORSES IN ALABAMA*
APRIL 1992
ROBERT PENDERGRASSI
RESEARCH ASSOCIATE
JOSEPH J. MOLNAR
1
ALUMNI PROFESSOR
CINDY MCCALL
2
EXTENSION ANIMAL SCIENTIST
' DEPARTMENT OF AGRICULTURAL 
ECONOMIC AND RURAL SOCIOLOGY
AUBURN UNIVERSITY, AUBURN, 
ALABAMA 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
RACKING HORSE BREEDERS' ASSOCIATION 
OF AMERICA,
THE BIRMINGHAM RACING COMMISSION 
AND
THE ALABAMA HORSEMEN'S RACING 
ASSOCIATION
AGRICULTURAL ECONOMICS 
SERIES No. 42
DEPARTMENT OF AGRICULTURAL 
ECONOMICS AND RURAL SOCIOLOGY
ALABAMA AGRIUCLUTRUAL EXPERIMENT 
STATION
AUBURN UNIVERSITY
LOWELL T. FROBISH, DIRECTOR 
AUBURN, ALABAMA

ABSTRACT
Racking Horse breeding, training, 
showing, and related
activities make significant contributions 
to Alabama's economy.
This study provides an 
assessment of the socioeconomic 
impact of
the Racking Horse industry 
in Alabama. Estimates and 
overview of
the industry are based on telephone 
and personal interviews with
QRacking Horse breeders, 
trainers, and owners. We consulted
previous literature on equine 
impact studies and also obtained
information from knowledgeable 
Racking Horse veterinarians,
trainers, show participants, 
and others involved in 
the industry.
In 1989 the Racking Horse 
Breeders' Association of America
(RHBAA) had approximately 
12,000 Racking Horses registered 
in
Alabama. Approximately 6,000 
of these are used for showing 
and
the remainder are used for 
breeding stock and recreation. 
On the
average, Racking Horses used 
for showing require about 
$11,705
annually per horse for care, 
maintenance, and other horse 
related
expenses and other Racking Horses require 
about $3,270 annually.
Based on these figures, 
total expenditures by Racking 
Horse
owners for care and maintenance 
had about $89.9 million 
in direct
impacts to the State's economy.
In 1989 Alabama hosted 
35 RHBAA approved shows.
Additionally, more than 
90 local shows which included 
Racking
Horse classes were identified 
statewide. Tourism associated 
with
shows contributed an 
estimated $12.3 million 
to the State's
economy in 1989.
Based on the above 
estimates, the direct 
impact of the
Racking Horse industry 
on Alabama's economy 
is approximately
$92.1 million. The 
total impact on the 
economy, given an 
income
multiplier of 2.9, is 
over $267 million.
EXECUTIVE SUMMARY
BACKGROUND
Economic activity generated by Racking Horse breeding,
training, and shows is a significant component of Alabama's
economy. Shows, breeding, training, sales, recreation, 
and
similar activities are manifold sources of income, employment,
and leisure consumption in the State.
Several spheres of activity can be identified within
Alabama's Racking Horse industry. A number of farms breed, 
train,
and stable Racking Horses. Show and pleasure horses are bred 
and
maintained at stables located throughout the State. In 1989, 
35
horse shows in Alabama were approved by the Racking Horse
Breeders' Association of America (RHBAA). Each had an average 
of
179 participating horses. Two of these shows, the Spring
Celebration and the World Celebration which are held annually in
Decatur, had a large number of entries. The Spring 
Celebration
had 527 entries in 1989 while the World Celebration, which 
is
held in the fall, had 1695 entries.
PURPOSE
The Racking Horse Breeders' Association of America requested
an assessment of the socioeconomic impact of Alabama's Racking
Horse industry. We were asked to examine: (1) the 
organization
and structure of Alabama's Racking Horse industry; (2) the 
farm-
level implications of Racking Horse breeding, ownership, 
and
maintenance; (3) the tourism impacts of Alabama 
Racking Horse
shows; 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 30 persons involved in the Racking Horse 
industry. The
interview group was composed of owners, breeders, trainers,
veterinarians, and officials of Racking Horse related
organizations.
To analyze the impacts of the Racking Horse industry 
on the
State we first developed profiles of average annual expenditures
for showing Racking Horses and Racking Horses kept for other
purposes. These data were collected through interviews with
suppliers of various goods and services as well as horse owners,
trainers, and breeders. The aggregate impact of the Racking 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 November 1991 and January
1992 in accordance with generally accepted standards and
procedures used in previous equine 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 12,000 registered Racking Horses in Alabama in 1989,
approximately 6,000 are showing Racking Horses and the remaining
6,000 are used for various other activities including recreation
and breeding. RHBAA records indicate that Racking Horses are
concentrated in Cullman, Morgan, and Marshall counties.
Our estimates indicate that recreational Racking Horses
require about $3,270 annually per horse for care, maintenance,
and other horse related expenditures. The owners of the estimated
6,000 Racking Horses that are not shown, therefore, contributed
about $19.6 million to Alabama's economy through horse related
expenditures.
The average annual per-horse expense of keeping showing
Racking Horses in training is approximately $11,705. Thus, these
horses generated over $70 million in direct impacts to the
State's economy.
Another component of the Racking Horse industry's economic
impact is tourism resulting from travel to weekend 
horse shows.
We assumed that, on average, each of the 6,000 showing Racking
Horses in the State participated in 10 weekend, away-from-home
events in Alabama during 1989 and their owners spent an average
of $1,675 on travel and other related expenses. This $1,675
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, 
weekend
Racking Horse shows accounted for a tourism impact of about $10
million in 1989.
Decatur also hosts two large shows each year. These shows
are known as the Spring Celebration and the World Celebration.
Our estimates indicate that these two large shows had a total
tourism impact of approximately $2.3 million in 1989.
Based on the above estimates, the direct impact of the
Racking Horse industry on Alabama's economy in 1989 was more than
$92 million. The total impact on the economy, given an estimated
income multiplier of 2.9, was over $267 million.
OBSERVATIONS
1. Based on the study results, it seems that a statewide 
horse
advisory group, including representatives of all statewide 
and
regional horse associations, would be useful. 
Such a group would
operate to provide greater unity and coherence to Racking 
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 Group would be an enhanced partnership between horse
owners and the Legislature which would significantly 
benefit the
Racking Horse industry. For example, some salient issues for 
all
horse owners in the state 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 Group could also develop 
and
implement a common format among its component organizations 
for
recording attendance and participation at Racking Horse and other
equine events. These data would facilitate further studies of the
impact that equine events have on Alabama's economy and
agricultural sector.
4. Another task for the Horse Industry Advisory Group would be to
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. A fourth task for the Horse Industry Advisory Group would be
to 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 annual analysis of the condition of the horse
industry in Alabama. These reports could be used to guide the
development and beneficial impacts of the Racking Horse and other
horse industries.
6. Many respondents mentioned 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, privatisation, and other
management arrangements should be explored to ensure that
visiting Racking 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. Although Racking Horses do not race, a multiple-use approach
to the barns and other facilities at the Birmingham Race Course
could benefit Racking Horses and other breeds. Additional types
of horse activities could be considered for programming into the
annual calendar of the Birmingham Race Course. Between racing
seasons, the track could be made available for major horse shows,
as stalling is often a problem for two day or longer shows. Such
changes might increase the variety of activities available at the
track, 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.
8. A full-time horse extension specialist is needed to work with
the Racking Horse and other breed industries and associations.
Greater attention could then 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.
9. Focused collaboration by State and federal agencies 
and the
agricultural universities could provide better statistical
information about the number and kind of Racking Horses in 
the
State, the incidence of disease and other conditions, as 
well as
the variety of events and activities that might be more generally
publicized as a means for enhancing tourism in Alabama.
5
CONTENTS
ABSTRACT 1
EXECUTIVE SUMMARY 2
Chapter 1
Introduction
Background 9
Industry Actors 10
Objectives, Scope, and Methodology 14
Chapter 2
Number, Location, and Applications of Racking Horses
Racking Horse Numbers 15
Racking Horse Applications 17
Chapter 3
Economic Impact of the Racking Horse Industry
Meaning of the Estimates 21
Horse Care and Maintenance Expenses 23
Aggregate Outlays 25
Spectator and Participant Expenses 25
Employment Impacts 28
Breeding Expenses 28
Summary of Economic Impacts 29
Chapter 4
Policy Implications
Implications for Alabama 31
Agriculture
Observations 32
6
References
Appendix
I: Calculation of Multipliers 35
Acknowledgments 38
Figures
Figure 1. Relationships Between 11
Major Racking Horse Organizations
Figure 2. Example Racking Horse 18
Show Program
Tables
Table 1. AOHA Saddle Club 
12
Associations, Number of Shows,
and Estimated Membership, 1989
Table 2. Estimated Number of 
16
Horses by Breed, Alabama, 1989
Table 3. Estimated Number and 
17
Type of Racking Horses,
Alabama, 1989
Table 4. Estimated Per-Horse 
Care 22
and Maintenance Expenditures 
and
Total Outlays for Showing and
Recreational Uses of
Racking Horses, Alabama, 1989
34
Table 5. Spectator and Participant 26
Expenditures at the Spring and
World Celebrations, Decatur,
Alabama, 1989.
Table 6. Estimated Tourist 27
Expenditures Resulting From the
Spring and World Racking Horse
Celebrations, Decatur, Alabama,
1989.
Table 7. Summary of Economic 30
Impacts of Racking Horse Activity,
Alabama, 1989
Table 8. Livestock Column Vectors 37
from the Trenchi and Flick Input-
Output Model
Chapter 1 Introduction
Background
History of the Breed. All modern 
breeds of saddle horses,
including the Racking 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 1000 pounds. Draft 
breeds, in
contrast, are large animals which stand 16 to 
20 hands high and
usually weigh in excess of 1400 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.
The Racking Horse breed is an offshoot of the Tennessee
Walking Horse. The "rack" is similar to the running walk and,
prior to 1971, horses that had a natural rack were considered to
be Tennessee Walking Horses. In 1971, however, a group of Alabama
horsemen formed the Racking Horse Breeders' Association of
America to formulate show rules and to promote and regulate the
showing of horses with a natural rack. Later that year the United
States Department of Agriculture determined that the Racking
Horse is an individual breed with a unique natural gait. As a
result, the RHBAA was granted an official Registry and Stud Book.
Alabama's Racking Horse Industry. Racking Horse production,
training, and events make major contributions to Alabama's
economy. Showing, breeding, sales, recreation, and other
activities are manifold sources of income, employment, and
leisure consumption in the State. The various segments of the
Racking Horse industry are associated with diverse clusters of
associations, professions, and activities.
Little is known about the aggregate importance of the
Racking Horse industry in the State and the nature of the
barriers and constraints that presently affect its continued
growth and expansion. Statistical information is not generally
available and little research has been conducted.
9
Several different segments of Alabama's Racking Horse
industry can be identified, however. Show and recreational horses
are bred and maintained at stables located throughout the State.
Decatur hosts two large shows, one in the spring and one in the
fall, each year.
Demand for a number of agricultural commodities and horse
related services is directly influenced by Racking Horse
production and maintenance. Alabama farmers raise and sell oats,
corn, clover, alfalfa, grass hay, and other feed crops. Straw and
wood shavings used for bedding also are farm-based commodities
used by horsemen. Racking 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.
Racking Horse activities are spectator-orientated sports
that, perhaps more than many other breeds, encourage crowd
participation. The events generate tourism resulting in
significant economic impacts in areas hosting the activities.
Horse shows, many of which feature Racking divisions, are held
nearly every weekend somewhere in the State.
The prospects for the Racking Horse industry in Alabama
depend on several factors. Land costs and climate are favorable
for 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. Several
covered show arenas are located across Alabama.
Industry Actors
The major components of Alabama's Racking Horse industry are
identified in the following sections. Figure 1 is an illustration
of the hierarchical relationships between several of the major
national, state, substate, and county-level organizations and
events that involve Racking Horses in Alabama. Table 1 lists the
saddle clubs and regional horse associations in the State.
10
National
Racking Horse Breeders'
Association of America
(RHBAA)
State
Alabama Racking
Horse Association
County
Event I..
ij Oganizon Local Shows:
SponsorshipRakiHreCass
Figure 1. Relationships. Between 
Major Racking Horse organizations
11
z
F
Alabama
Open Horseman
Association
............ + n o
Racking Horse Breeders' Association of America. The Racking
Horse Breeders' Association of America (RHBAA) is the official
breed registry for the Racking Horse. The RHBAA was incorporated
and subsequently recognized by the United States Department of
Agriculture in 1971. In 1989 RHBAA membership totaled 600 with
over 66,000 horses registered in the U.S. In addition to
registration, the RHBAA promotes and regulates Racking Horse
breeding, showing, publicity, and sales.
Alabama Racking Horse Association. The Alabama Racking Horse
Association (ARHA) was formed for the purpose of organizing and
promoting the breed in the State. The ARHA has over 100 members
and sponsors many shows each year.
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.
The AOHA affiliate and other 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.
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 a number of horseman's organizations
scattered throughout Alabama that are not members of AOHA.
12
Table 1. AOHA Saddle Club Associations, 
Number of Shows, and
Estimated Membership, 1989
Association Clubs 
Shows Membership
North Alabama Saddle Club 13 
39 1,200
Tennessee Valley Association 416 
300
Tri-State Association 816 
450
East Alabama Horse Association 722 
650
North West Alabama Saddle Club 25 
30 500
Gulf Central Association 1 9 115
Central Alabama Saddle Club 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 1,500
Shoals Area Horseman's Association 8 
10 175
13
Objectives, Scope, and Methodology
The RHBAA requested an assessment of the socioeconomic 
impact
of the Racking Horse industry in Alabama. 
We were asked to
examine: (1) the organization and 
structure of the Racking Horse
industry in Alabama; (2) the farm-level 
implications of Racking
Horse breeding, ownership, and 
maintenance; (3) the impacts of
Racking 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 over 30 individuals involved in the Racking Horse 
industry.
We also attended Racking Horse events and interviewed 
trainers
and participants throughout the State.
To analyze the impacts of the Racking Horse 
industry on the
State, we first developed profiles of average annual 
expenditures
for show horses and Racking 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
Racking 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.
To estimate the aggregate impact of the Racking 
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 Racking 
Horse
activity.
We conducted our study between September 1991 
and January
1992 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.
14
Chapter 2 Number, Location, and Applications of Racking Horses
Racking Horse Numbers
As shown in Table 2, RHBAA records for 1989 indicate a total
of 12,000 Racking Horses registered in Alabama. The majority of
Racking Horses are utilized for show and recreational purposes.
Additional animals are utilized as breeding stock to produce
horses for these activities.
RHBAA records also indicate that there were approximately
6,000 showing Racking Horses in Alabama in 1989. Table 3 details
the estimated number and kind of Racking Horses in the State.
Racking Horses often serve more than one purpose so the
descriptive categories tend to overlap. Many horses used
primarily for recreation, for example, also may be utilized as
breeding stock.
Most Alabama Racking Horses are used for recreation and
showing (Table 3). Because of their calm disposition and smooth
gait, Racking Horses are considered good mounts for recreational
purposes such as trail riding and following dogs in field trials.
Commercial horse stables and training facilities are found
in nearly every Alabama county. Stables provide housing,
exercise, and care facilities for the many Racking Horses whose
owners do not have land or buildings for horses. Commercial
stables employ approximately one person for every 10 to 15
horses. Some farms specialize in Racking Horse breeding.
Alabama training facilities attract a significant number of
showing Racking Horses from outside the State. This is due to the
fact that the Racking Horse industry started in Alabama. Alabama
trainers have developed a reputation for producing winning
horses.
Estimates indicate that approximately 75 percent of Racking
Horses being trained by professional trainers in Alabama are from
other states. This represents a significant flow of money to
Alabama from outside the State. This influx results in increased
employment and economic activity.
15.
Table 2. Estimated Number of Horses by Breed, Alabama, 1989
Breed Number
Quarter Horse 34,543
Tennessee Walker 15,617
Racking Horses 12,000
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, RHBAA
1
Adjusted to include an estimated number of unregistered animals.
16
Racking 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
stock and training procedures since winning horses and trainers
command higher sale prices and fees. Additionally, shows provide
spectator entertainment.
Racking Horse showing is the major driving force behind
Alabama's Racking Horse industry. In 1989 there were 35 Racking
Horse shows in Alabama that were approved by the RHBAA. This
makes Alabama number one in the nation in total number of RHBAA
approved Racking Horse shows.
Racking Horses also compete in numerous local shows and
competitions open to all breeds of horses at various arenas
throughout the State. The larger show arenas are located in Arab,
Decatur, Muscle Shoals, Dothan, Montgomery, and Cullman. Numerous
smaller show facilities are located throughout the State.
Table 3. Estimated Number and Type of Racking Horses,
Alabama, 1989
Type Number
Show horses 6,000
Recreation, breeding, & other 6,000
Total Racking Horses 12,000
Source: RHBAA.
17
RACKING HORSE BREEDERS' ASSOCIATION OF AMERICA
MA1L)O AOORESS SOIlS2. OS T7A. DECATUR. ALABAMA 35603
AMR.ICA'S NATWL&L HORSE
What's the fastest growing breed of light horse in the country? What's the most versatile breed of horse
anywhere from the show ring to the work field? Ask anyone, they'll knowi And they should, lt's America's
Natural Horse, the Racking Horse.
Legendary for its beauty, stamina, and calm dsposition, the popularltyofthis noble animal grew strong on the
great southern plantations before the Civil War. It was learned that the horse couldbe ridden comfortably for
hours because of his smooth, natural gait.
The "Rack" is very similar to the Tennessee Walk, and is often referred to as a "single-foot" because only one
hoof strikes the ground at atime. The Racking Horse comes by this gait as naturally as walking or striking a
trot comes to other breeds.
The phenomenal growth of this breed can be directly attributed to its intelligence and versatility. Beginning
riders cherish the smooth, easy gait and the calm temperament of the Racking Horse. Veteran horsemen
admire hisbeautjy and ability to perform anywhere from the work field to the show ring. As a matter of fact,
Racking Horses may be found in movies such as Rustler's Rhapsody, being used by handicapped children at
Camp Outreach, carrying law enforcement officers in almost every major city and escorting hunting
expeditions in the Northern Rockies.
In early 1971, a group of knowledgeable Alabama horsemen, already involved inbreedngand raisngRacking
Horses, formed the Racking Horse Breeders' Association of America. In May of that year, the United States
Department of Agriculture deemed the Racking Horse to be an individual breed possessing a unique natural
gait, and granted a Registry and Stud Book to the RH.BAA.
Experienced horse people were selected and licensed in Alabama and neighboring states as Commissioners,
empowered by the RH.BA.A. to examine and qualir horses for registration. Commissioners are currently
registering Racking Horses in all parts of the United States and in several foreign countries.
On October 5,1975, ajoint proclamation of the House and Senate of the Alabama State Legislature named the
Racking Horse 'The Official State Horse of Alabama."
Equine investors have become keenly aware ofthis breed's rise, citing their prices tobe much more stable and
less risky than those found in other breeds. Former World Grand Champion Racking Horses were originally
purchased for four figure amounts and are now easily valued in the six figure range. All indications point to a
continued, non-stop steady rise in value.
Most of the modern day Racking Horse's publicity comes from his exciting show ring ability. He is exhibited
with a high head carriage, nose tuckedand he gracefully stepshigh wthhisfrontfeetwhiletucking hishnd
f quarters for an "elevated" appearance. Various publications have called him "The most exciting horse in the
*show ring today!" The Racking Horse is shown in his natural state, with no "set tails" or "action devices"
allowed. Many Racking Horse shows occur on any given weekend across the nation. They range from small
"Saddle club" events to major regional "Jubilees" and "Classics" and even "State Championships." The two
biggest shows are hosted annually in Decatur, Alabama, by the BRH.B.AA
The Racking Horse Spring Celebration is a multi-day event held each April and in size and excitment stands
second only to the Racking Horse World Celebration, which is held each September. At the World Celebration,
different classes and divisions of Racking Horses vie for cash, trophies, and awards amounting to many
thousands of dollars. Each night ofthe World Celebration witnesses the naming ofmany World Champions and
reaches a climax with the crowning of the World Grand Champion of the breed.
Tobecome a member of the Racking Horse Breeders'Assoclation ofAmerica is tobecome a part ofhstory. Who
qualifies for membership? Virtually anyone with an interest in the Racking Horse Breed.
For more information please oontaet
INACKRI NG NORON BBBDERB' ASSOCIATION orP.AMIRICA
Rt. a, soar 72-A
Decatur,AlabaIa 35605
206-353-72
18
r-
RHBAA approved shows are Racking Horse 
events in which the
show management has applied for and received 
approval from the
RHBAA to hold the show. RHBAA approved 
shows generally have more
entries, a higher caliber of horses and 
riders, higher entry
fees, and higher operating costs 
than local shows or shows that
are open to any breed.
RHBAA 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.
RHBAA regulations require that 
the management of a
sanctioned show to obtain 
the services of an approved judge.
There are several prerequisites 
a person must fulfill before
receiving a license to judge 
RHBAA approved shows. A candidate
for approval as a RHBAA judge 
must be at least 18 years old and
must have been a member of the 
RHBAA for at least one year. The
candidate must then serve as 
an apprentice under three licensed
judges in three sanctioned shows. 
At the end of each show the
licensed judges must inform 
the RHBAA of his or her
recommendation regarding the 
apprentice judge. A license 
is then
issued to the candidate if 
he or she successfully completes 
the
apprentice program. A judge's 
license must be renewed annually.
Racking Horse shows usually 
offer multiple categories 
of
competition. These categories 
include: trail pleasure, 
park
pleasure, show pleasure, 
style pleasure, flat shod, 
and open
show. The pleasure divisions 
are open to amateurs and 
juveniles
only. RHBAA members under 
18 years of age can compete 
in juvenile
classes. Adult RHBAA members 
who do not receive any 
compensation
for working with horses 
or riders are considered 
amateurs. RHBAA
shows may offer some or 
all of these categories 
to competitors.
Figure 2 is an example of 
a Racking Horse show program.
Racking Horses are shown 
with two different styles 
of shoes.
Flat shod classes, which 
include trail pleasure and 
park pleas-
ure, require that the shoe 
be attached directly to 
the horse's
hoof. Open shod classes, 
which include the remainder 
of the show
classes, allow the horse 
to be either flat shod or 
shod with pads
between the shoe and the hoof. RHBAA regulations 
stipulate that
the height of the pad 
may be no more than 50 percent 
of the
natural hoof length.
19
Trail Riding. Trail riding and similar group sports involve
Racking Horses as well as other breeds. The Racking Horse's calm
disposition and fast comfortable gaits make them a favorite mount
of weekend trail riders. Racking horses are also popular mounts
for following dogs during field trials. Inexperienced riders can
quickly learn to ride the smooth stride of the Racking horse
during the course of the field trials. Judges and dog handlers,
who must stay mounted for long periods also value the Racking
Horse's calm temperament, easy walk, and ground-covering stride.
20
Chapter 3 Economic Impact of the Racking Horse Industry
This study estimates several components of economic impact
for the Racking Horse industry in the State. First, we consider
the expenses associated with care and maintenance of Racking
Horses used for showing and recreation. Certain expenses
associated with equipment and transportation appropriate to each
application also are included.
Second, we discuss the impact of showing Racking Horses in
terms of breeding, maintenance, transportation, and training, as
well as the tourism impacts associated with visiting Racking
Horses, owners, and traveling spectators.
The third component describes employment impacts including
the estimated employment multiplier. The final section summarizes
the economic impacts of Alabama's Racking Horse industry.
Meaning of the Estimates
The data in Table 4 identify estimated average annual per-
horse expenses associated with Racking Horse ownership in 1989.
These data do not include horse purchases or sales. These figures
were developed through interviews with suppliers and purchasers
of the various items. Subsequent estimates were reviewed by
knowledgeable individuals familiar with Racking Horse ownership
and maintenance.
Although actual expenditures vary widely from one owner to
another, the expenditure estimates for each item in Table 4 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
Racking 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--is utilized in the tables. For the
aforementioned reasons, some outlay estimates may seem high from
the perspective of the ordinary Racking Horse owner.
21
Table 4. Estimated Per Horse Care and Maintenance Expenditures
and Total Outlays for Showing and Recreational Uses of
Racking Horses, Alabama, 1989
Average Annual Expenditure
Category Showing Recreational
($) C$)
Veterinary fees 250 
150
Feed & bedding 750 550
Insurance premiums 700 100
Farrier 400 200
Grooming & supplies 200 100
Travel & lodging 1,500 150
Advertisement 1,300 
0
Utilities 150 15
Property taxes 250 50
Depreciation 1,500 680
Maintenance & repairs 500 300
Boarding of equine 480 260
Breeding fees 0 50
Rental of property & equipment 50 
25
Tack 1,000 120
Professional fees 200 30
Registration & entry fees 175 
80
Training fees 1,500 50
Employed labor 700 300
Miscellaneous 100 60
Per horse expenses 11,705 3,270
Total outlays (millions.) 70.2 19.6
Total care and maintenance outlay (millions) 89.8
22
It should also be noted that not all Racking Horse owners
incur every expense listed. 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 4 should not be viewed as an operating
budget for Racking Horse ownership but as an estimate of 
mean
per-horse expenditures.
Horse Care and Maintenance Expenses
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 Racking 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 economic structure.
The significance of the secondary impacts of Racking Horse
activity also increases in these locales. Major Racking Horse
facilities that have frequent shows attracting out-of-state
participants represent the most concentrated form of impact.
Racking Horses regularly used for showing 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
Racking Horses used for breeding or recreation. These higher
expenditure levels are reflected in Table 4.
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.
23
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 weekend horse shows
held in Alabama, horse sales, and other horse activities. These
expenses are the cost of meals, fuel, and overnight lodging. This
expenditure category only includes weekend horse shows. Economic
impacts associated with the Spring Celebration and the World
Celebration held in Decatur each year are treated separately in a
later section.
Advertisement reflects outlays for advertising Racking Horse
stallions, breeding farms, and training facilities. 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 trail riding.
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. Breeding fees, which are typically paid by the
mare's owner, are the cost of having a mare bred to a selected
stallion. Breeding fees for showing horses are zero since mares
that are actively engaged in this activity are usually not bred.
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 to enroll or transfer ownership of horses in RHBAA;
entry fees reflect the cost of participating in shows. Training
fees are charges for horse training, in the case of showing
Racking Horses, and training for both the horse and rider in the
case of recreational Racking Horses.
24
The cost of employed labor includes wages paid to both full
and part-time employees involved in horse related work. These
employees 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.
Aggregate Outlays
Table 4 shows also shows the sum total of expenses incurred
for the use of Racking Horse for competition and recreation.
Showing Racking Horses. Racking 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
showing Racking Horse was defined as one that competes in 10 or
more shows per year, with the majority of these shows receiving
RHBAA recognition. The estimated average annual cost of keeping a
showing Racking Horse is $11,705. Thus, the estimated 6,000
Racking Horses that were actively shown in 1989 generated over
$70 million in direct impacts to the State's economy.
Recreational Racking Horses. Racking Horses used for
purposes other than showing require about $3,270 annually per
horse for care and maintenance (Table 4). The expenditure levels
for these animals reflect the lower intensity of care and
maintenance associated with horses that are not actively showing.
Thus, owners of the estimated 6,000 recreational Racking Horses
incurred about $19 million in expenses in 1989.
Spectator and Participant Expenses
Table 5 summarizes the aggregate expenditures associated
with two major Racking Horse events. The shows themselves as well
as the tourism they generate have sizable effects.
Shows. Another component of the Racking Horse industry's
economic impact is tourism resulting from travel to horse shows.
Racking Horse shows produce significant benefits to the
localities hosting these events. Traveling horses 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 6,000
actively showing Racking Horses in the State spent $1,675 on
25
travel and related expenses during weekend horse shows in the
State. This $1,675 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, weekend Racking Horse showing accounted for a tourism
impact of about $10 million in 1989. Entry fees and other highly
variable expenses associated with participation are included in
the overall costs. This $10 million impact is for weekend shows
only and is not part of the impact derived from the Spring and
World Celebrations held in Decatur each year.
Table 5. Spectator and Participant Expenditures at the Spring and
World Celebrations, Decatur, Alabama, 1989.
Expenditures World Celebration Spring Celebration
Parking fees 10,100 2,520
Concessions
1  
243,000 84,375
Admissions
2  
324,000 90,000
Printed programs 7,500 3,000
Entry fees 162,405 51,125
Stall fees 63,000 28,000
Recreational vehicle
parking 12,525 6,520
Per show total 814,950 273,120
Combined total 1,088,070
Source: RHBAA
1
Based on an estimated average $3.75 expenditure per person per
show.
2
Based on an average $5 admission fee per person per show.
26
The Decatur area in particular benefits from economic
activity generated by the two large Racking Horse shows held
there each year since 1971. The Spring Celebration is held each
May. The winners of each division in the Spring Celebration are
the State Champions for that year. The World Celebration is held
in September, and its winners are awarded the title of World
Grand Champion. The World Celebration attracts spectators and
participants from states as distant as Michigan and Arkansas.
RHBAA admission records indicate that the combined total
spectator attendance for the two shows in 1989 was 87,300. Our
estimates indicate that on-site expenditures incurred during the
two large shows, as shown in Table 5, totaled $1,088,070 in 1989.
In addition to the on-site expenditures listed inTable 5,
the Spring and World Celebrations generate a substantial amount
of tourism income to the Decatur area. This economic activity
results from spectators and participants who come to Decatur from
out of town or out of state and rent motel rooms and purchase
meals and other goods during the shows. Estimates of these ex-
penditures are summarized in Table 6.
Table 6. Estimated Tourist Expenditures Resulting From the Spring
and World Racking Horse Celebrations, Decatur, Alabama,
1989.
Expenditures World Celebration Spring Celebration
($) C$)
Motel Rooms 159,084 70,704
Meals 331,425 147,300
Retail Purchases 206,850 88,650
Fuel 133,245 57,105
Total 830,604 363,759
Total Expenditures
?  
1,194,363
Sources: Decatur Conventions and Visitors Bureau, RHBAA records.
27
Totals from the two previous tables indicate that in 1989
the Spring and World Celebrations had an approximate direct
impact of $2.3 million on the Decatur area. Given an income
multiplier of 2.9, which is discussed in a later section, the
total impact for 1989 is approximately $6.6 million.
Breeding Expenses.
Stallion fees and other expenditures associated with horse
reproduction are included here. Racking 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 Racking Horse breeding industry is a central source of
impacts on agriculture and land use in the State. Undertaking
Racking 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 4 shows the estimated per-horse expenditures for
breeding fees. Breeding stock is listed under the recreational
classification of Racking Horses since mares that are actively
showing are usually not bred. Based on this estimate, breeding
fees accounted for $300,000 in economic activity in 1989.
Employment Impacts
Paid employment associated with Racking Horse breeding,
raising, and care is related to the intensity of their use.
Showing animals require approximately one employee for 20 horses.
Animals maintained for recreational and breeding use employ, on
average, approximately one individual for every 100 horses. Thus,
Racking Horse care and maintenance is responsible for direct
employment of approximately 360 people in the State.
28
Total paid employment associated with Racking Horses
includes show staff, trainers, other care and maintenance
employees, and a variety of self-employed individuals that
provide services to horses. Some jobs also are created during
large events such as the World Show and Celebration. The overall
number ranged between an estimated 800 and 1,200 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 Racking Horse industry induces
total employment of between 1,300 and 2,000.
Summary of Economic Impacts
Based on the above estimates, which are summarized in Table
7, the direct impact of the Racking Horse industry on Alabama's
economy in 1989 was more than $92 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 (9). This means that every $1.00
transaction in the Racking 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 $267 million.
29
Table 7. Summary of Economic Impacts of Racking Horse 
Activity,
Alabama, 1989
Category
Amount(million $)
Show horse care and maintenance 
70.2
World and Spring Celebration impacts 
2.3
Recreational horse care and maintenance 
19.6
Direct impacts 
92.1
Multiplier effects (2.9) 
267.1
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.
Considering the available data 
and statistics, these
estimates do not seem to overestimate 
the economic impact of the
Racking Horse industry on Alabama's economy. 
On the contrary,
these estimates are probably quite conservative 
due to the
exercise of extraordinary caution and 
the fact that certain
exceptional expenses, such as equine surgery, 
are not included.
30
Chapter 4 Policy Implications
The direct effects of Racking Horses 
on Alabama's economy
exceeded $92 million in 1989. These 
impacts are substantial.
There are also other qualitative 
factors, with related economic
implications, linked to the future 
of Racking Horses and Racking
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 Racking Horse industry are substantial.
This study also shows the significant linkages Racking
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 Racking Horse industry.
More people are involved with Racking 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 10 percent of the latter category
can be attributed to the Racking Horse industry. It can be argued
that about one quarter of one percent of the Gross State Product
can be attributed to Racking Horses. Spending by Racking Horse
owners, breeders, and trainers clearly helps to bolster the
State's economy.
As most training and breeding facilities are located in
rural areas, many direct economic impacts and attendant
multiplier effects flow to communities needing economic
31
stabilization. The most concentrated set of 
impacts, however, are
in North Alabama since that is where 
the major show facilities,
the two largest Racking Horse shows, 
and the greatest
concentrations of Racking Horses 
are.
We conclude that the Racking Horse industry 
has a measurably
significant role in the State's 
economy. The loss or diminution
of the Racking 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. These ill effects would
be most apparent in rural areas where 
Racking Horse breeding,
training, and showing are an 
important component of the local
economy. The Decatur area could 
suffer the greatest economic
setback, a loss of economic activity totaling 
approximately $6.6
million annually, if the Racking 
Horse Celebrations were either
terminated or moved to another 
State.
Observations
1. Based on the study results, 
it seems that a statewide horse
advisory group, including representatives 
of all statewide and
regional horse associations, would 
be useful. Such a group would
operate to provide greater unity 
and coherence to Racking 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 Group would be an 
enhanced partnership between 
horse
owners and the Legislature which 
would significantly benefit 
the
Racking Horse industry. 
For example, some salient issues 
for all
horse owners in the state 
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 
Group could also develop and
implement a common format among its 
component organizations for
recording attendance and participation 
at Racking Horse and other
equine events. These data would 
facilitate further studies of the
impact that equine events have on 
Alabama's economy and
agricultural sector.
4. Another task for the Horse Industry 
Advisory Group would be to
develop a comprehensive set of regulations 
to ensure humane
treatment of animals involved in Alabama 
horse events. These
32
regulations would be designed to prevent future confrontations
with animal rights groups and thereby preserve the integrity of
Alabama's horse industry.
5. A fourth task for the Horse Industry Advisory Group would be
to 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 annual analysis of the condition of the horse
industry in Alabama. These reports could be used to guide the
development and beneficial impacts of the Racking Horse and other
horse industries.
6. Many respondents mentioned 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, privatisation, and other
management arrangements should be explored to ensure that
visiting Racking 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. Although Racking Horses do not race, a multiple-use approach
to the barns and other facilities at the Birmingham Race Course
could benefit Racking Horses and other breeds. Additional types
of horse activities could be considered for programming into the
annual calendar of the Birmingham Race Course. Between racing
seasons, the track could be made available for major horse shows,
as stalling is often a problem for two day or longer shows. Such
changes might increase the variety of activities available at the
track, 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.
8. A full-time horse extension specialist is needed to work with
the Racking Horse and other breed industries and associations.
Greater attention could then 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.
9. Focused collaboration by State and federal agencies and the
agricultural universities could provide better statistical
information about the number and kind of Racking Horses in the
State, the incidence of disease and other conditions, as well as
the variety of events and activities that might be more generally
publicized as a means for enhancing tourism in Alabama.
33
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) Racking Horse Breeders' Association of America. 1990. Rules
and Regulations of the Racking Horse Breeders' Association of
America.
(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. Dallas, Texas: Department of Economics,
Southern Methodist University.
(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. Lexington,
Kentucky. Thalheimer Research Associates.
(8) Thalheimer Research Associates. 1988. An Economic and
Financial Analysis of the Florida Quarter Horse and Quarter Horse
Racetrack Industry. Lexington, Kentucky. Thalheimer Research
Associates.
(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 Marketing of
Commodities by Industries. Washington, D.C.: U.S. Government
Printing Office.
34
APPENDIX I:
Calculation of 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 Racking Horse industry, this would
include the value of the initial transaction, business generated
by suppliers of goods and services to the Racking Horse industry,
purchase of consumer products by participants in the Racking
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 (9). 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 (9). 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 8.
The direct effects column in Table 8 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 one dollar change
in income in the livestock sector.
35
Type II income multipliers are calculated by dividing the
household row entry in the direct, indirect, and induced effects
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 (9), however, estimate the type II
employment multiplier for Alabama's livestock sector to be 1.74.
36
Table 8. Livestock Column Vectors from the Trenchi and Flick
Input-Output Model.
Direct Effects
Direct, Indirect,
and Induced Effects
Sector 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
Livestock
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 Flickc.
37
" I I " I
ACKNOWLEDGMENTS
We thank M. Morgan and B. Morgan for providing information
contained in the report. We also thank G. Seier for his unfailing
assistance in securing resources and otherwise facilitating the
conduct of this work.
38

Information contained herein is available to all
without regard to race, color, sex, or national origin.