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At Sterling Equine Appraisals, we've been hearing this question a
great deal lately. It is understandable that horse owners are
nervous about how the world economy will impact their
individual horse operations.
The exchange rate between the US
Dollar and currency of nations from which we frequently import /
export horses is especially critical to a stable valuation of
American horses. The Euro and Canadian dollar have all been higher
than the US dollar in recent times, making horses in the United
States less expensive to international parties. This is good for
those in the US trying to sell their animals "north of the border"
or "across the pond." However, it makes importing horses more
expensive for US buyers. This is probably the most favorable time
for US buyers to look within our own country for their next
prospect. American farms have spent years importing the best
performance and bloodstock from Europe. Take advantage of it and
find a bargain in your own backyard. Shipping across the US is still
less expensive than importation, even if you live near a major port
or quarantine facility. As
an equestrian, you may be one of the lucky people at the upper end
of the sport that is not terribly impacted by the financial
situation of many. But, if you're like most of us, you ride,
compete, or breed in the middle market, characterized by horses in
the $25,000 to $85,000 range. This market has been significantly
impacted by the tightening of the credit markets. Without easy
access to home equity lines of credit or uncollateralized personal
loans, including credit cards, equestrians in this realm find it
harder to finance their next "dream" horse. We're seeing a rise in
the number of horses donated to non-profits and schools because the
tax benefits of the donation are greater than what the horse could
be sold for in a reasonable period of time. Occasionally, the
recipients turn around and sell these horses for a deep discount
just to raise cash for their programs. We recommend that you contact
some of the riding programs in your area or search on-line for horse
rescue and adoption facilities.
Money Saving Tip: Ask your insurance
agent to review your equine insurance policy. It is possible with
the decline in the middle market that your horse may be over-valued,
and therefore over-insured. You could potentially be paying a higher
premium than necessary. Overall,
our sense is that the horse market is still strong and interest in
horses has not waned. While some may be cutting back on the distance
they're willing to travel, there are still plenty of active
equestrians and available horses. Sellers are also being more
flexible, arranging payment plans or offering leases with the option
to buy. If you are trying to sell a horse, consider how you can make
it more affordable for a newcomer to get into this exciting sport.
Maybe offering the first month of board free with purchase could
help close a sale that would otherwise be lost when the buyer
realizes the old adage, "The purchase price is the least expensive
part of horse ownership." But, expect that you will hear from many
potential buyers before your horse actually sells. This should not
frustrate you (but it will); it should be a good time to polish your
marketing and salesmanship skills.
Visit our website at
www.equineappraisals.com
and make sure to check out our Frequently Asked Questions page and
newly added Blog for the most up to date information and insights on
the horse market. We welcome your feedback and questions on our
opinions. Thanks for reading!
To read another interesting article on the current
condition, check out
Stock Horse Economics on the Equine Chronicle website.
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