Purchasing a horse is one expense, but it’s difficult to predict the cost of maintaining a healthy and sound to animal an average expected lifetime of 25 years. While some aspects of horse care can be modified to lower expenses, it doesn’t pay to skimp.
Dr. Jorge Colon, DVM, Cornell University, associate professor of Practice, Educational Support Services/Center for Veterinary Business and Entrepreneurship (CVBE), discussed some of the costs associated with horse ownership.
Basic feed and hay, along with any supplements, are the first aspects to consider. Additional expenses include bedding, boarding or the cost of care at home, grooming, farrier work and any necessary gear. In some cases, insurance is an additional expense, and for those who participate in equine activities of any kind, there are costs associated with training, showing and transportation.
Colon said the cost of keeping a horse is high and may seem to have risen recently, but expenses have been rising steadily for a while.
Horses are accident prone, so do whatever it takes to keep their environment as safe as possible. Use safe fencing to minimize the risk of injury and set up the facility so horses can’t get into grain or into other horses’ enclosures. Keep the horse’s body condition appropriate – overweight horses are prone to laminitis and other problems.
Create a strong relationship with a large animal or equine veterinarian who understands you and your needs. Be sure the vet is someone you can have a good conversation with when facing emergency decisions.
When Colon was in private practice, his goal was to promote preventive care. Although it may appear that an equine veterinarian is adding costs during a visit, Colon said they are trying to help the horse owner avoid future, more costly visits.
“I’d rather be with [the horse owner] during the day trying to prevent the disease process than talking about how things are at two in the morning because we didn’t prevent the problem in the first place,” he said.
Although many horse owners don’t purchase insurance to cover unexpected medical expenses, Colon explained how insurance works. “Insurance is nothing but mitigation of risk by shifting the financial risk to a second party in exchange for a premium,” he said. “It’s shifting the risk of a financial loss you are not able to sustain. It depends on an individual’s situation and the value of the horse.”
He explained the “large loss principle” of insurance: anything you can afford to lose, you self-insure for. Anything you cannot afford to lose and don’t have the finances to pay for, shift the risk to someone who does have the money. In equine insurance, the worth of insurance depends on the financial value, not the emotional value, of the horse.
The most basic insurance covers mortality and theft. Add-ons include medical and surgical for issues like complicated colic surgery and a stay in the veterinary hospital. Colon urged horse owners to explore insurance options in order to choose the best one – or none.
Another insurance to consider, which may vary by location, is for private horse owner liability. This covers damage caused by a horse and may or may not be covered in a homeowner’s policy.
Equine ownership can involve higher level training and showing, which is an added expense to budget. Photo by Sally Colby
Many horse owners keep an emergency fund for unexpected expenses rather than pay for insurance, but how much should be set aside? Consider what funds might be needed for a severe injury that takes hours to repair, a colic surgery or a fractured leg that requires internal work.
“Any of these things can happen at any time,” said Colon. “What are the associated expenses with those incidents? By analyzing potential expenses, figure out the emergency funds. No one ever complains about having too much money in their emergency fund. Look at your own situation and determine what kind of hit you could absorb with an unexpected expense.”
In many cases, including colic surgery, the initial surgery is a major expense, but aftercare also adds up quickly. These expenses seem much higher today simply due to advancements in veterinary medicine that provide nearly the same level of care as a person who is hospitalized. “Those risks you cannot cover yourself,” said Colon. “That’s where insurance comes into play. Insurance is a side piece to emergency funds.”
Many horse owners are torn between the expense of boarding vs. keeping a horse at home. “I would assume all upkeep costs for the animal will be identical or similar,” said Colon. “At home, at some point you purchased the land and have a mortgage or lease.”
Another consideration is daily care. “At home, the labor costs associated with the animal are now on you,” said Colon. “You aren’t paying for boarding but now you supply it.” In some cases, costs turn out to be about the same for boarding and home care, and boarders don’t have to worry about the daily aspects of horse care.
Colon cautioned horse owners who board to be aware of the care their horse is receiving. “If you are a horse owner, as painful as it is when bills go up, I would be wary if the bills are not going up is because too many corners are being cut,” he said. “That isn’t a place you want your horse. Are they buying hay no one else wanted and that’s what they’re feeding your horse?”
For those keeping a horse at home, purchasing local hay ahead of time directly from a farmer and storing it properly is likely the lowest-cost method for hay. Storing hay properly is essential, and although it’s another expense, a good storage area will pay off quickly.
Colon believes recordkeeping can help manage horse-related expenses. “Budgeting is basically you ‘writing stuff down to keep track of stuff’ so that even if you want to appear surprised, your handwriting tells you that you shouldn’t be because now you actually know,” he said. “When you write down expenses, they will always look higher than what you thought they would be.”
A study among horse owners found the costs of horse ownership are usually three to four times higher than what the horse owner expected. This is due to not tracking expenses.
“If we can better track the cost of a horse – and our life in general – as to what we do and how much it costs, there won’t be surprises,” said Colon. “It’s human nature to not want to see things in the worst possible way. When you keep track of expenses through proper recordkeeping, you will be better prepared.”
by Sally Colby
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