The foundation of any industry is at the basic production level. For the Texas equine industry, this foundation is the horse breeding farms throughout the State.

These research results on the management practices, expenditures and breakeven values for breeding farms in Texas tell us more than just the costs for individual farms. Expenditures by horse breeders are incomes to other individuals, businesses and industries in the Texas economy. Both the investments and annual operating expenditures made by breeding farms generate income for a wide variety of input suppliers as well as transportation and marketing firms. Indirectly supported by horse breeding farms are businesses such as: feed, fertilizer and agricultural supply firms, farriers, veterinarian services, as well as machinery and equipment dealers and manufacturers, etc. It is estimated that the breeding horse population in Texas is about 250,000. Given the estimated expenditures for horse breeding farms found in the 1993 survey, it is estimated that total statewide expenditures may be as high as $1.25 billion for this segment of the industry.

The Texas horse industry continues to be a growing and significant part of the State's economy. With over a million horses, Texas leads the nation in horse number, accounting for over 10 percent of the nation's total population. About 23 percent of all horses in Texas are used for breeding and raising yearlings. This segment of the industry serves as the foundation for the many and varied end uses of horses throughout the State and elsewhere. Expenditures by horse breeding farms are estimated to total some $1.25 billion statewide and are expected to grow in the future in response to demands from the new racing activities and other uses. Even though it exhibits a significant impact on the Texas economy, a 1993 survey indicates that most breeding farms do not make profits. Rather, it appears that many farms continue in operation as a result of motivations other than profit and are supported in part from other sources of income.

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