Equine-related businesses statewide struggling due to pandemic

NEW YORK » Equine-related businesses statewide are struggling due to the COVID-19 pandemic, according to a recent survey by the Cornell Cooperative Extension Equine and The New York State Horse Council.

The assessment survey was released with the objective to better understand the perceived economic impact on equine-related businesses in New York state.

The target population for the survey was businesses owners or managers of equine-related businesses in New York State, including feed suppliers, veterinarians, horse lesson or training facilities, breeding facilities, boarding facilities, transportation services and more.

Under the New York State on Pause executive order, about 13 percent of respondents reported that their entire business was considered essential while 43 percent reported parts of their business were considered essential.

The survey’s more than 500 respondents were asked to report their annual gross revenue for a typical year. The majority, 70 percent, of these businesses indicated their annual gross income as less than $100,000.

One third of respondents expected the effects of COVID-19 on their business to be extremely severe, while 29 percent indicated very severe and 23 percent indicated moderately severe. Another 10 percent reported indicated the effects of COVID-19 on their businesses to be either slightly severe or not severe at all.

About half of respondents said they would be somewhat likely

or extremely likely to make temporary or permanent reduction to staff due to COVID-19. A smaller percentage said making temporary or permanent staff reductions was unlikely or extremely unlikely.

Meanwhile, half of the participants indicated that their business had or would incur additional expenses due to COVID-19.

A total of 159 respondents, 34 percent, indicated that they were concerned about losing their business due to the COVID-19 crisis. Around the same amount of participants said they were not concerned about this and a slightly smaller group reported being unsure.

“It is clear that there is perceived financial distress,” a press release from Cornell Cooperative Extension

Equine Saratoga County said. “Businesses are clearly indicating financial concern.”

Despite the reported struggle equine-related businesses are encountering - 37 percent of respondents reported needing financial assistance to keep performing the daily activities of their business - 73 percent indicated not receiving any financial benefit for programs, loans, or tax credits to offset losses. Some respondents reported applying for funding but waiting on a response and/or funds.

One respondent wrote that the crisis was “crippling any source of income- but we continue to have all or our normal expenses as horses continue to be fed and cared for, which is a high expense.”

To better understand the severity of COVID-19’s impact on the state’s equine industry, the release said, more information must be gathered.