Assessing the Impact of the Tennessee Equine Industry

The Tennessee equine industry is alive and prevalent across the entire state. However, due to the expansiveness of the industry, lack of consistent record keeping, and large discrepancies among reporting agencies, it has proven to be difficult to accurately account for the total impact of the industry in terms of population, demographics, and overall economic impact. The objective of this study was to 1) determine population demographics and economic impact of the equine industry in Tennessee and 2) determine the public perception on the addition of live equine racing within the state. An anonymous, online assessment was developed (March-August 2022; Qualtrics, Provo, UT) to determine individual industry involvement, where respondents reported information based on ownership expenditures, business services, and overall financial activity. Data was analyzed for descriptive statistics using the means and frequency procedures in SAS 9.4 (Cary, NC). Economic modeling was performed using economic Impact Analysis for Planning (IMPLAN), an input-output model, to analyze the data to estimate the total (multiplier-based) economic contribution of the industry. Of the 2,009 respondents, 91% (n=1,830) were equine owners or leasers that identified 8,235 equids. Utilizing response results with previously estimated equid populations of 104,827 from the 2017 USDA Census, 165,800 from the American Horse Council, and population trend lines over time, an overall population of 140,000 equids was determined for Tennessee in 2021. Overall, ownership costs per equid was estimated to be $6,719, including boarding fees, healthcare, feed stuffs, pasture maintenance, and training. In terms of the addition of a racing sector, 38% (n=571) supported it, while 28% (n=427) did not, mostly due to welfare concerns for the equid. Despite the lack of economic stimulation from a racing sector, the Tennessee equine industry has an overall impact estimated to be $1.805 billion in total economic activity, 33,345 jobs, and $1.032 billion in gross state product. The equine industry has the opportunity for substantial growth and development in the coming years, including expansion of jobs, available services, and overall industry growth.