Horse business thrown off by faltering economy

By Betsy Parker

Virginia's hunt country not immune to fiscal crisis gripping U.S.

By Betsy Parker

Special to the Times-Democrat

With competition for the leisure dollar running neck and neck with the stumbling global economy, one of them has to give.

And Virginia's horse country feels the pinch, with the once-vibrant, $1 billion industry losing jobs and business in all sectors in 2008.

“This economy has hit the horse industry extremely hard, at least in my situation” said Cinnamon Ridge Farm owner Kathi Fillmore, whose show series and lesson program were affected this summer and fall.

“First, we are an industry that relies heavily on expendable income. With the plummeting stock market and rising unemployment, coupled with future predictions of worsening conditions, it is sending a fear that leads those with money to tighten their hatches for the predicted 'worse to come.'

“I have seen my lesson program, between the cold weather and economic influences, screech to a halt,” Fillmore added. “Sales are few and far between, although I managed to sell a very nice pony a few months ago. I would say the price of horses has been hit as hard as real estate. Facing very limited income, judging and lessons, I have listed my farm for sale. How's that for a double whammy?”

Fillmore said her show entries dropped by half this season; she answered by combining some shows and canceling others.

“I predict next year to be even worse unless a economic miracle comes galloping in with our new president astride,” Fillmore said with a laugh. “I am now looking for full-time employment after dedicating my life to equines and even with experience and a degree in accounting, I have sent out over 150 resumes and still no job offer.”

Based in Warrenton, the award-winning state-wide Virginia Horse Journal sees the industry downturn from a variety of angles. None's been so hard hit as advertising, explained publisher Dean Jacobson.

“I have seen two reactions from my Virginia equine business advertisers,” explained Jacobson. “Those who are afraid of the economy and take smaller ads or cancel their advertising, and those who see opportunity and increase their advertising to take advantage of competitors who have pulled their ads. If a competitor stops advertising, their market share is up for grabs.

“When market share decreases, a business has to fight harder to get the remaining business. In this economy, a business has to be bold to keep business and to get new business. This is not time to lay low and hope things turn around. Now is the time for action.”

Jacobson said that the Journal's national advertisers are advertising more, with larger ads, especially feed companies. “They are not going to give up their market share,” he said.

Another Warrenton business, Clay's Horse Taxi, a small independently owned, husband and wife company specializing in custom hauling of horses for individual clients, also felt the pinch.

“Most of our business is within 200 miles of our home in Warrenton,” said owner Clay Smith. “We have been in business for four years. In the past, travel jobs would come in at least once a week. Starting this fall, requests have fallen to one or two a month. I think we are feeling the recession just like every business is. I am not sure when things will turn around.”

Like advertising and shipping, horse show and custom photography turn into luxury items that many do without in a recession.

“Photo sales from horse shows are down about 33 percent for me,” said Warrenton photographer Jordan Koepke, who shoots local horse shows and private events.

“I was the official at Warrenton, and on pony breeding Upperville, and the sales are down. I see much fewer orders in general. And this year, many orders are just for a single image. I think since the market for horses for sale has decreased, people with horses are not easily able to sell for profit, so they are not buying nice marketing-type photos either. "

Even the usually vibrant Virginia breeding industry is being affected.

Stallion manager Maryalice Larkin Matheson said she sees a definite drop but hopes that her specialties, Cleveland Bay horses and foxhunters, might be slower to react to the market.

“As far as the stallion bookings, I'm not sure yet,” said the Marshall pro. “With this rare breed, it is not a huge thing anyway, but I will see soon as our advertising campaign will be starting next month. The foxhunting so far has not been terribly affected. My yard is quite full. I think sales have been affected slightly in that the novices entering the sport have a hard time swallowing the prices of a made horse — which I think in all actuality had become a bit outrageous — but, again, it takes so long to make a reliable horse.”

The owners of Warrenton's two tack shops note a distinct slowdown in foot traffic, though Kim Pinello, owner of Galloping Grape, says that a new business model has helped keep her shop filled with inventory and customers.

Pinello said the summer was especially difficult, but, then, “just when you think it can't possibly get any worse, sales simply stopped Nov. 1,” she said. “Our Christmas sales never got off the ground until last week, when things finally started to pick up.

“Luckily for us, we started changing our business model at the beginning of this year from stocking the store with new items to stocking 80 percent consignments.

“Even though this economy has taken its toll on our business, it has just pushed us even more to be more creative, and we've learned how to financially manage with less money,” she added. “We just have to be more creative in our thinking and find ways to reward our loyal customers and bring new ones in the door.”

One of the healthiest sectors of the horse world locally for years, even the polo circuit has taken a hit.

“Way before the financial crisis, the slowdown in the real estate market already impacted the horse sector,” professional player and former “trends” reporter J.J. Ebro of Middleburg said. “Transplants buying into country life were the ones taking polo lessons, buying tack, buying starter horses and buying feed and hay. The most rapid increase in polo club memberships could be correlated to the real estate boom.

“Its fall, as well as the gas crisis, meant [new players] were not coming out from D.C. as much.”