The Challenges of Running Equine Enterprises in 2024
Now that we are well into 2024, equine enterprises face a series of challenges that require a blend of tradition and innovation. The equine industry continues to be a significant part of the rural economy, but with increasing costs and new health threats, the task of managing these enterprises is becoming more complex. This year, the challenges range from the steep expenses involved in breeding and training horses to ensuring their health and securing adequate insurance coverage.
Rising Costs in Breeding and Training
One of the most pressing issues for equine enterprises this year is the escalating costs of breeding and maintaining competitive horses. A couple of changeable years from a forage harvest perspective combined with the extreme wet seen by many parts of the country this winter has led to feed costs rising significantly. The need for additional forage supplementation has not only an impact on the cost of keeping horses over the winter but can also impact mares breeding cycles through the poor weather conditions and more time spent inside, which all has a knock on effect. This increase can strain any business, especially smaller operations that may not have the financial buffer that larger corporations rely on.
Furthermore, the increasing cost of wages due to increases in the national minimum wage, has had huge implications on the cost of providing labour-intensive services such as full livery. These financial pressures are daunting for those looking to enter or expand within the competitive scenes of the equine world.
Equine Health and Vaccination
Equine health is another critical area of focus this year. With the continuous threat of diseases such as equine influenza and herpes virus, vaccinations remain a cornerstone of preventive health care. The latest vaccine guidelines from the Equine Infectious Disease Surveillance highlight the importance of vaccines like Equip EHV-1,4 and Equip FT for combating diseases such as equine influenza and tetanus. These vaccines are crucial for reducing clinical signs and virus shedding, helping to maintain the health and performance of horses across the UK. For instance, Equip EHV-1,4 is recommended for horses from 5 months of age, with a follow-up dose 4–6 weeks after the initial vaccination and a revaccination every six months.
Staying abreast of these guidelines and ensuring all horses receive their vaccinations on schedule is vital for reducing the risk of outbreaks, which can be financially devastating. The costs associated with treating an outbreak, not to mention the potential loss of business during recovery, make preventive care a more cost-effective option for horse owners and caretakers.
Vaccinations are of particular importance to those who travel horses regularly, for example, to competitions, particularly international competitions or travelling to Europe for the Sunshine Tour. The movement of horses to and from the continent involves extra health risks from infectious diseases, there is also significant administrative activities around moving horses across borders.
Insurance Fluctuations and Market Changes
Insurance costs for horses and properties have also seen fluctuations due to market dynamics. These changes can significantly impact the affordability and accessibility of comprehensive insurance for many in the industry. Equine businesses need to stay vigilant and responsive to these market shifts to ensure they can continue to provide adequate protection for their assets without compromising on coverage.
The impact of these fluctuations can be mitigated by working closely with insurance providers who understand the equine industry. This relationship allows for better tailored policies that reflect the true risks and values involved in equine enterprises.
Financial Pressures in Competition Circuits
The financial demands of participating in and hosting equestrian events have also risen. Entry fees, maintaining high-standard facilities and the need for advanced technology for event management have all contributed to increasing the financial pressure on those in the competitive circuit.
Hosting competitions, in particular, requires a significant upfront investment in terms of facilities and logistics, which can deter many potential hosts.
However, these events are crucial for the visibility and economic sustainability of the equine industry. They provide opportunities for businesses to showcase their horses and training quality, which can attract clients and sales. Therefore, finding ways to offset these costs through sponsorship, public funding or strategic partnerships is essential.
How UK Agricultural Finance Can Assist
To help equine businesses manage these challenges, the UK Agriculture Finance offers several supportive measures:
- Bridging finance: With changing market conditions, UK Agricultural Finance’s bridging financing options help mitigate the impact of rising costs and allows businesses the space to resolve cash flow issues and create a more sustainable business model moving forward.
- Infrastructure investment: Strategic funding from UKAF supports businesses in managing the costs associated with hosting equestrian events and improving their facilities. Our agricultural property loans can be a good fit for equestrian businesses.
The support from institutions like UK Agricultural Finance is crucial for the sustainability and growth of equine enterprises. Our tailored financial solutions offer relief and assurance to business owners navigating the complexities of today’s market.
The challenges facing equine enterprises in 2024 are diverse and multifaceted. By understanding these challenges and utilising available resources like UK Agricultural Finance, the equine industry can navigate these turbulent times more effectively, ensuring the health of their horses and the stability of their businesses.
By staying informed and proactive, equine businesses can not only survive but also thrive in 2024, overcoming the obstacles that this challenging year brings.