Just the Facts - Part One

A Real Look At Horse Ownership

Megan Dykeman - Managing Partner Freedom Fields Farm

This is a 3-part article that will look at all of the financial aspects of owning a horse. The first part will outline the types of expenses to expect, part 2 will discuss them in more detail and the final part will offer some ideas as to how to you can cut some of the costs that go along with horse ownership.

As a barn owner I cannot even begin to tell you how many times I have seen horse owners who cannot afford the expenses that go along with owning a horse, or the number of people who want to become first time owners that cannot handle the expenses that go along with it. All too often there is a misconception that the capital investment of purchasing the horse is the most expensive part. This leads people to calculate their monthly horse budget on the board costs alone and I have heard countless times " I can afford the horse if I can find a place that is under X amount a month."

Whether you are deciding to purchase a horse for the first time, or expanding your herd. ALL aspects of the cost of ownership must be taken into account. This article will lay out what the REAL costs of owning a horse are

Purchasing and owning a horse must be broken down into one of the following four categories: capital investment, start up expenses, fixed expenses and variable expenses.

The first expense that goes along with horse ownership is the capital expense. This is the real cost of buying a horse. I usually cringe when I hear someone say 'I got a great deal the horse was free" . Seldom are you really that lucky, as USUALLY this means that there is a problem. Horses are NEVER "free". As a general rule you get what you pay for. This does not mean that your horse needs to cost a million dollars but you have to really look at what you are getting and you need to look at your experience, time, knowledge etc. We will explore this part of horse ownership in the following article.

The start up costs are the next expense that you need to look at. What equipment and accessories do you need to buy for this horse. If you are on full board you will have fewer start up costs but you will need tack, if you are going to be riding the horse, brushes, blankets, riding apparel for your self, a halter and lead to start. If you are going to do self board you will need all of the above, plus you will most likely need to get almost everything that a full board barn provides; buckets, feeding tubs, stable cleaning supplies (like pitch forks and brooms) and, perhaps, even rubber mats. It would be a safe bet to budget at least $700.00 for this part and that is being very conservative. A bottom of the line second hand saddle will run you at least $300.00 most of the time, and that is a saddle that may need restuffing. For long term use, it would be cheaper to get a new synthetic saddle which will cost approximately $600.00 and last you a very long time.

Fixed expenses are the ones that are the same every month or every time. These expenses are; board, worming, shots, farrier costs etc. These expenses are the ones that people usually base their budget on. This is a mistake but nevertheless these are expenses that you obviously have to take in to account. When looking at purchasing a horse you need to seriously evaluate whether or not you can afford these costs EVERY month, even if your car breaks down or if it is Christmas or if you want to take a vacation. These expenses have to be paid on time, as your horse should not suffer if you are short of money. In reality, on full board in the lower mainland, you are going to pay at least $300.00 a month, and a trim (if your horse does not require shoes) is going to cost you at least $20.00 every 6 weeks. Worming is approx $15.00 every 6 weeks, shots 4 X yearly are on average $40.00 a shot plus the vet call, which can be split if your barn organizes vet calls but is still going to be about $20.00. That is the bare minimum and, for all costs, works out to $4155.00 per annum or approximately $346.25 a month.

The last category is variable expenses. These are the unexpected costs that go into horse ownership and the extra costs. Examples of the unexpected costs are emergency vet calls, (illness, injuries etc.) and also times when tack breaks and needs to be replaced. Extra costs are things like new tack, show fees, trailering fees, new equipment purchases, shoes for your horse etc. These are expenses that are all to often overlooked. A budget for these types of expenses is in some ways more important. It is a safe bet that over the year, on average, you are going to have at least an extra $200.00-$400.00 in variable expenses for you and your horse. Once again, this is a very conservative amount to budget. One emergency vet call alone can run you at least $400.00. Also if you are on self board you need to take into account hay as a variable expense, you most likely will not be buying it wholesale and storing it, so you will have to deal with the prices being lower early on and much higher in the winter, usually double. So half the year your feeding budget will essentially be twice as much.

The reality of horse ownership is that it is very expensive. Even if you are in the horse industry as a large commercial operation to make a profit, it is marginal so it is important to factor in all of the expenses that go along with such a huge investment that is also a massive responsibility. With this responsibility comes a rewarding and loving relationship though, that lasts a lifetime!

Megan Dykeman- 2004 (c)

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