Arizona in the Saddle July 2014 | Page 19

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