Kentucky’s equine industry had a total economic impact of almost $3 billion and generated 40,665 jobs last year, according to the 2012 Kentucky Equine Survey. The equine industry’s tax contribution to Kentucky was approximately $134 million.

According to project lead Jill Stowe, PhD, an associate professor in agricultural economics and University of Kentucky Ag Equine Programs director, the total economic impact is measured by the output effect and is an estimate of revenues earned by the sale of goods and services related to the equine industry and its interconnected industries. The study also showed that the value-added effect, which is perhaps a more descriptive measure of economic impact because it accounts for costs of production, has an estimated economic impact of $1.4 billion. The value-added effect is a measure of profitability and new income paid to workers rather than simply revenue.