PAGES

Monday, June 14, 2010

Horse farming: Agriculture or not?

The equine industry faces uncertainty as the broader agriculture industry decides how horse farming should be defined. "There is no universal definition of livestock or official classification of horses by the federal or state governments, so their treatment by both has varied across different issues," reports Natalie Voss of Business Lexington in Kentucky's Bluegrass Region. "For some experts, 'livestock' refers only to animals produced for use as food or fiber by humans. For others, any animal raised off the land for profit is an agricultural product and therefore livestock." The way horse farms are classified determines "how they are taxed, how they hire workers, and even the kind of government aid they are eligible for after natural disasters," Voss writes. (Photo: Kentucky Equine Education Project)

Wide variance in the type and size of horse operations also makes classification more difficult. Some farms are strictly commercial while others, mostly smaller ones, are "backyard horse owners, keep their animals as pets with no expectation of selling their beloved family members," Voss writes. In Kentucky cattle farms do not have to pay sales tax on feed or equipment because they are classified as livestock operations. Horse farms aren't afforded that same luxury.

Owners of horses used for racing, breeding or draft are allowed similar federal income-tax deductions, based on the age and use of the animal, compared to cattle owners. But horses not used for racing, breeding or draft cannot be claimed. "People provide services that improve the market value of the product, the horse, yet we don't capture that very well in our industry," Bob Coleman, extension horse specialist and professor at the University of Kentucky, told Voss. (Read more)

No comments:

Post a Comment