SD18 - The Study of Virginia's Equine Industry


Executive Summary:
Senate Joint Resolution 57 passed by the 2004 Virginia General Assembly calls for the Virginia Department of Agriculture and Consumer Services to study ways to enhance the economic development of Virginia’s equine industry. The Commissioner of Agriculture and Consumer Services was directed to create a task force to assist the Department in defining the scope of the study, conducting the study, and formulating findings and recommendations. The Department was also directed to examine incentives to generate growth in the industry and evaluate obstacles that may hinder the economic development of the industry.

The Department was further directed to submit an interim report on the progress of the study to the Governor and the 2005 Session of the General Assembly. The Department is to complete the meetings of the task force by November 30, 2005, and submit to the Governor and the General Assembly a final report of its findings and recommendations by that time.

The purpose of this interim report is to communicate the issues identified thus far by the Equine Study Task Force and to briefly explain their importance to the economic development of the equine industry in Virginia.

To date, the Equine Study Task Force has met four times, has reviewed the nine areas referenced in SJ 57, and has identified key issues that should be further examined and addressed by recommendations.

This interim report provides eight recommendations which may be initiated during the 2005 General Assembly Session. The recommendations are as follows:

1. The task force recommends that the General Assembly support legislation to permit the establishment of an equine feed checkoff through a referendum that allows horse owners to vote on this self-assessment.

2. The task force recommends that the funding of the .05% allocation of pari-mutuel monies for the Virginia Equine Center Foundation, .05% for the Virginia Horse Industry Board, and .15% to the Virginia-Maryland College of Veterinary Medicine be restored and not be subject to a total allocation cap.

3. In consideration of the major contributions of the Virginia Horse Center to the state’s equine industry and to the state’s economic growth, and due to the fact that the Center faces significant competition from state-supported horse centers in surrounding states, the Equine Study Task Force is recommending funding for the Virginia Horse Center be restored by the General Assembly to $890,000 per fiscal year for the original debt service.

4. Because of the economic stimulus it creates and the increased marketing opportunities the program generates for small horse breeders, the task force recommends that the funding for the Virginia Horse Breeder Incentive Program be restored by the General Assembly to the levels at the inception of the program -- $125,000 in general funds per fiscal year.

5. The task force recommends removing from Chapter 29, Section 59.1-391 -- “Local referendum required” from the Code of Virginia. This would allow the Virginia Racing Commission and local jurisdictions to control the approval of new sites. It is estimated that satellite wagering facilities seven through ten would be in operation within 12 to 18 months of the passage of such legislation pending Virginia Racing Commission and local approvals.

6. The task force has worked on numerous recommendations stressing promotion and education as the best and most efficient way to further develop horse trails in Virginia. Cross promotion to the general public will need to be coordinated with Virginia Tourism as well. The final report of this study will enumerate more specific recommendations while highlighting other complementary issues.

7. The task force recognizes the need for additional study regarding promotion of all segments of the industry. The task force supports future surveys of the equine industry by VASS.

8. Due to the issue being considered by the U.S. Congress, the task force recommends that the slaughter of horses for human food and the exportation of horsemeat as human food need not be addressed any further by this equine industry group.