Economic impact of the horse industry (2024)

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Quick facts

  • The total economic impact of the horse industry in the United States is $122 billion, creating 1.7 million jobs.
  • About 31 percent of United States households contain a horse enthusiast.
  • Minnesota ranks 18th for the state with the greatest horse population.
  • The horse industry contributes $1 billion and over 15,000 jobs to the Minnesota economy.

In 2017, the American Horse Council evaluated the economic impact of the horse industry in the United States. They further looked at the economic impact in individual states including Minnesota, which was made possible through support from the Minnesota Horse Council. This article summarizes the findings of the American Horse Council's economic report.

Horse populations

The United Statesis home to over 7.2 million horses. Of those horses, about 145,727 reside in Minnesota, which ranks 18th in the nation for the largest horse population. The leading states for horse populations include:

  • Texas: 767,100 horses
  • California: 534,500 horses
  • Florida: 387,300 horses

Populations by breed

The two most popular breeds in the U.S., as well as Minnesota, are the Quarter Horse and Thoroughbred. Household surveys of about 7.1 million horses in the United States indicated about 2.1 million were Quarter Horses and 1.1 million were Thoroughbreds. Similarly, household surveys of 143,000 horses in Minnesota indicated 41,000 were Quarter Horses and 20,000 were Thoroughbreds.

Householdsurveysdidn'tincludehorseswithinorganizationsorAmishcommunities.

Numbers of horses in Minnesota

The United States Department of Agriculture (USDA) National Agriculture Statistics Service (NASS) recently released their interactive 2017 Census of Agriculture data tool that includes county-based horse numbers. Based on their data, Minnesota ranks twenty-seventh in the U.S. for horse population, is home to 8,000 horse farms, 46,879 horses and that a majority (96%) of farms have one to twenty-four horses on site. The top ten Minnesota counties for horse population include:

  1. Washington (2,466 horses)
  2. Todd (1,879 horses)
  3. Fillmore (1,691 horses)
  4. Otter Tail (1,564 horses)
  5. Stearns (1,490 horses)
  6. Olmsted (1,476 horses)
  7. Isanti (1,271 horses)
  8. Wright (1,252 horses)
  9. Hennepin (1,239 horses)
  10. Scott (1,198 horses)

A 2017 American Horse Council (AHC) study found that 145,727 horses reside in Minnesota, ranking it eighteenth in the U.S. for the most populated horse state. Based on this, many ask why there is such a discrepancy between the USDA and AHC numbers. The answer lies in how the data was collected and the organization goals.

The USDA data is collected from “farms” and the USDA defines a farm as “Any place that produces and sells at least $1,000 of an agricultural product (e.g. meat, milk, eggs, wool, honey, breeding or stud fees, etc.) in a given year."This definition excludes recreational horses and many horses kept at boarding, training and riding facilities. Therefore, the USDA NASS likely underestimates the number of horses in a state or county, but the numbers are indicative of population trends.

On the other hand, the AHC numbers include all horses, regardless of use or farm/housing definition, as they serve all segments of the horse industry. However, both numbers can be useful to individuals when exploring business, hobby or personal ventures.

Individual involvement

While 30.5 percent of U.S. households have a horse enthusiast, only 1.3 percent own a horse. The other 29 percent includes individuals that either participate in horse activities or are spectators athorse events.

In Minnesota, about 680,000 households have horse enthusiasts, where about 29,000 own a horse. Many Minnesota horse owners take lessons (17 percent), manage barns (17 percent) and train horses (15 percent). Up to 14,000 Minnesota residents volunteer their time towards horse-related activities.

Economic impacts

United States

The U.S. horse industry directly contributes $50 billion to the economy and provides about 988,000 jobs. Direct contribution refers to economic activity occurring within the horse industry itself, such as horse care or recreation. However, these direct economic activities also prompt additional economic activity outside the horse industry. As a result, the total economic impact of the horse industry in the U.S. is $122 billion and 1.7 million jobs.

Minnesota

The horse industry also contributes largely to Minnesota’s economy.

  • The direct economic impact of the horse industry in Minnesota is $541 million with a creation of 15,113 jobs.
  • The total economic impact of the horse industry in Minnesota is $1 billion with a creation of 21,039 jobs.

Economic impact by breed

Quarter Horses and Thoroughbreds are the two most popular breeds in Minnesota. As a result, these breeds drive the most horse-related economic activity in Minnesota.

Quarter Horses and Thoroughbreds contribute 7,964 jobs and a total value added of $397 million to the economy. Value added refers to the industry’s impact on the Gross Domestic Product (GDP).

Quarter Horses and Thoroughbreds bring a total value of $693 million to the Minnesota economy, which includes the value added and the cost of goods used to produce a final product (intermediate expenditure).

Economic impact by sector

Horses are most commonly used for recreational activities such as lessons and trail riding. Over 10 percent of Minnesota households participate in trail riding and 8.4 percent participate in riding lessons. These activities drive spending on horse care, activity fees and equipment. As a result, recreation in Minnesota contributes 7,181 jobs and a $341 million value added to the economy.

In addition to recreational activities, many participate in competitive horse events in Minnesota. Competition requires a variety of goods and services including training, specialized equipment and feed, travel arrangements, facilities etc. Furthermore, varying disciplines, age groups and competition levels increase the participation in competitive events and leads to differences in spending. Horse competition in Minnesota contributes 7,666 jobs and a $366 million value added to the economy.

The third major sector in the horse industry is racing. Minnesota is home to two racetracks that host about 122 live race days. The racing sector drives an array of economic activity including spending on training, breeding, jockey fees, facilities, broadcasting services and wagering. Racing in Minnesota contributes 2,044 jobs and a $123 million value added to the economy.

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Economic impact of horse industry by programs

Total # in U.S. # in MN MN Employment Impact (jobs) Total MN economic impact ($)
Therapeutic Programs 877 31 168 7.2 million
Rescues and Sanctuaries 602 11 25 1.1 million
Not-for-profit organizations 308 4 68 6.1 million
Colleges 179 5 39 2.1 million

For more information

The full reports for the horse industry’s economic impact in the U.S. and Minnesota may be purchased from the American Horse Council.

Authors: Hannah Lochner, Extension livestock communications specialist, Krishona Martinson, equine Extension specialist, and Abby Schuft, Extension educator

Reviewed in 2024

Page survey

Economic impact of the horse industry (2024)

FAQs

What impact does the horse industry have on the economy? ›

Texas Agriculture Daily

The survey offers a comprehensive overview of horse industry impacts, involvement, trends and economic contributions. Results indicated the equine industry contributed $177 billion to the U.S. economy in 2023, up from $122 billion in 2017.

How does horseracing affect the economy? ›

Horseracing contributes significantly to the UK economy. It draws the 2nd highest number of spectators of any sport in the UK, employs over 20,000 people and provides GBP 4.1 billion to the UK economy.

What is the economic impact study of the US horse industry 2017? ›

The total value of economic impact of the nation's horses equals $122 billion and 1,744,747 jobs. Di- rect effects total $50 billion and 988,394 jobs. In- direct and induced effects create the additional contribution.

What is the national economic impact of the US horse population? ›

Key highlights of the survey include: Diverse Economic Sectors Impacted: $177 billion. That's the total value added in 2023 from the equine industry, up from $122 billion in 2017. The equine industry's ripple effect extends beyond the traditional sectors, influencing a broad spectrum of industries.

What are the economic uses of horses? ›

Use markets for horses include a wide range of market segments – working horses in ranching; horses for youth and adult amateur sport; high performance horses used for international sport and racing; and horses used for pleasure riding or leisure / recreational activities.

What was the impact of the horse? ›

Impact of the Horse (1680–1875)

Horses revolutionized Native life and became an integral part of tribal cultures, honored in objects, stories, songs, and ceremonies. Horses changed methods of hunting and warfare, modes of travel, lifestyles, and standards of wealth and prestige.

What is the economic value of the equine industry? ›

Highlights: Equine Industry Statistics

The global equine industry is valued at approximately $300 billion. The United States is home to over 7.2 million horses. Approximately 4.6 million Americans are directly involved in the equine industry. The equine industry contributes about $50 billion annually to the US economy.

How did horses impact society? ›

Horses provided the first means of fast travel. This sped up migration, trade, and communication between cultures. They helped languages and cultures spread around the world. They helped people do work, from plowing fields to hauling goods.

What is the direct economic impact of the equine industry in 2018? ›

This marks a significant increase from the American Horse Council's previous report in 2018, which found a total value of $8.3 billion to the state economy and a direct contribution of $4.5 billion to state GDP.

What is the economic impact of the equine industry that consumers spend on recreation? ›

The study, which encompasses all breeds of horses, says there are about 9.2 million horses in the U.S. The recreational segment accounts for $32 billion of the total economic impact, followed by the horse show segment at $28.8 billion and the racing segment at $26.1 billion.

How much does horse racing contribute to the economy each year? ›

The horse industry in the United States contributes $39 billion in direct economic impact to the U.S. economy and supports 1.4 million jobs on a full-time basis, according to the same AHC study.

How did horses impact trade? ›

The horse brought many changes to the Nez Perces. The people could now travel farther and for longer periods of time, transporting more supplies, trade goods, and provisions, as well as longer tipi poles for larger and roomier portable lodges.

How much money does the horse industry pay in taxes to all levels of government? ›

The horse industry pays $1.9 billion in taxes to all levels of government. Approximately 34% of horse owners have a household income of less than $50,000 and 28% have an annual income of over $100,000.

How do horses benefit society? ›

The fates of horses and humans have been woven together for millennia. Horses have transported us and helped us cultivate food; they've been with us in battle, and they've carried us in sport. We, in turn, have largely evolved to reciprocate, providing horses with care and companionship.

What is the total impact of the horse industry on the US gross domestic product? ›

The AHCF estimates that the horse industry contributes $122 billion to the U.S. economy every year. This includes $50 billion in goods and services and $38 billion in direct wages, salaries, and benefits that directly affect other economic sectors for the combined $122 billion estimated total.

How have horses impacted society? ›

To my mind, horses have made a bigger impact on human society than any other animal. Horses provided the first means of fast travel. This sped up migration, trade, and communication between cultures. They helped languages and cultures spread around the world.

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