Varying interests,
Similar Needs
By Adam Trenk, Esq.
I
n today’s society horses are no longer a staple of everyday life for the vast majority of
Americans, however for those reading this publication it stands to reason that these
animals are your business or the focal point of your discretionary spending as a hobby.
Even though horses are no longer “needed” in commerce the way they were for centuries
until the industrial revolution reshaped the way we live and work, the business of horses has
evolved into a vibrant but highly fragmented industry.
There are hunters/jumpers, eventers, dressage riders, reining, working cow horse, halter,
trail riders, mounted shooters, ropers, cutters, rodeo cowboys and cowgirls, endurance
competitors, breeders, etc., just to name a few of the different sub-markets within the
equestrian field. However despite the different interests, equipment needs, training
philosophies, and breeds of horses all of these market participants have some of the same
overlapping needs.
Having a place to keep and exercise your horse, being able to provide feed, and keeping
their feet and legs in good health are a few of the things every horse owner has in common,
no matter what their specific purpose or passion is. As participants in the horse industry
we share the need to maintain access to such resources and an interest in keeping horse
ownership affordable. Market conditions vary, often based on macro-economic factors
beyond our control. However there are things responsible market participants can do to
help reduce costs and insulate you from risk related to your equestrian pursuits at the micro
level. In doing so, you can make overall participation in the equestrian industry more
predictable and thereby more affordable, even if you do not have control over the variables.
Your ability to control cost and mitigate risk will be linked to the scale of your activities.
The specific nature of your activities, i.e. do you train race horses or breed Arabians, is not
as important the magnitude of them. If you are a hobby horseman, with one or two horses
of your own, you have less buying power, and your transactional needs are not as great as
though you were a professional trainer with a barn full of fifty horses. However, that does
not mean you shouldn’t. After all, the savings you realize can allow you to expand your
operations or just save for a vacation!
To some degree controlling costs is relatively simple. You can buy your hay in bulk,
negotiate a pre-paid contract with your farrier, etc. However, this type of activity may
require cash reserves that not all horse owners or equestrian business operators have
on hand. The alternative is to mitigate risk in every way possible to ensure unexpected
expenses do not become derail your equine activity.
Mitigating risk is not as simply as buying feed in bulk, but it can be affordable, and is
often a onetime expense, or a predictable fixed expense. For example, it makes sense for a
hobby horseman to obtain medical insurance for their horse to protect against unforeseen
veterinary expenses. Similarly having a liability waiver form on hand will protect you in
the event any person you allow to participate in an activity with or around your horses is
injured. Horse trainers should always have written agreements in place to define the rights
and obligations of each party and the remedies in the event either party fails to perform
according to the agreement. Likewise those who buy and sell horses should have a well
drafted purchase and sale agreement on hand, horse breeders should have stallion services
contracts, and stables should utilize boarding agreements. Putting the appropriate business
documentation in place is generally a onetime expense that can save you exponentially in
the long run.
English vs. Western, Performance vs. Halter, Professional vs. Amateur, these different
classifications may define our passions but our needs as participants in the horse industry
overlap. Every horse owner needs to buy feed, and consult with professionals such as
veterinarians and farriers, and every horse owner should take steps to protect themselves
from unforeseen and unnecessary expenses that can occur in this unpredictable market.
Much in the same way that a vet, farrier, or trainer has core competencies that you utilize to
maximize your chances for success and reach your goals, business and legal professionals
can add value to your business and protect your interests.
Adam Trenk is an Attorney at the Rose Law Group pc, and practices in the areas of
Equine Law, Land Use, Public Policy, Community Relations, and Business Law. He is an
Avid Horseman and is the Executive Director of Canter Arizona, a Non-Profit that Helps
Rehabilitate and Find Homes for Ex-Racehorses. Mr. Trenk served as an Elected Member of
the Cave Creek Town Council from 2009 to 2011 and today serves as the Community’s Vice
Mayor after being re-elected in 2013. Trenk is a champion of the Local Equine Community
and supported by the Arizona Horse Council. He can be contacted by email at
[email protected] or by phone at 602-402-3335. Like him on Facebook at
www.facebook.com/EquineAttorneys.
AZintheSaddle.com
July 2014
19