KY Incentive Fund Holds Steady for 2016

The Kentucky Thoroughbred Breeders' Incentive Fund accumulated $10.36 million from the state's 6% sales tax on stallion fees for fiscal 2016 and expects the number of mares registered to the program to be similar to that of fiscal 2015.

The KTBIF Advisory Committee met July 28 to review the history of the program inaugurated in 2006 and discuss projections for the next cycle of awards. The overall Kentucky Breeders' Incentive Fund—80% of which goes to Thoroughbreds, 13% to Standardbreds, and 7% for other breeds—earned $12.95 million from the stud fee tax in fiscal 2016, down about $88,000 from 2015.

Jamie Eads, director of incentives and development for the Kentucky Horse Racing Commission, said that historically about 55% of mares bred to Kentucky stallions are registered with the program. As far as registrations go this year, the number is within 100 when compared with the same period last year.

About 30% of mares bred to Kentucky stallions foal elsewhere to take advantage of other state-bred incentive programs. The KTBIF has attempted to get the remaining 10%-15% registered in the program.

The program has held up well given the sharp downturn in mares bred nationally that began in the late 2000s. There were 9,517 registrations for 2015, up almost 600 from 2014 and the highest number since 2009.

The advisory committee after a brief discussion opted to stick with the early nomination fee of $60 by Aug. 15 of the year of conception. The fee increases to $150 for late registrations through Dec. 31.

"I think $60 has been a great number," Eads said. "It's a great selling point for (the program)."

For 2015 the average award collected for wins in allowance and maiden special weight events in Kentucky was $2,615, according to KTBIF statistics. The average payout for wins in those races outside of Kentucky, but in the United States, was $2,129.

Because a large number of Kentucky-bred horses race out of state and overseas, about 81% of total awards for 2015 were paid on races held outside the state. Overall, awards for last year were paid on 3,934 races with an average payment of $2,680.

"It definitely gets spread around pretty well," Eads said.

Patricia Cooksey, assistant director and horse inspector for the KBIF, outlined procedures for farm inspections to check on registered mares. The advisory committee suggested covering more farms but fewer mares rather than more mares at fewer farms when spot checks are conducted.

In other business, the advisory committee—it now has five members instead of eight—tabbed Doug Hendrickson of Limestone Associates to serve as chairman. The other members are Dr. Stuart Brown II of Hagyard Equine Medical, Kerry Cauthen of Four Star Sales, Neil Howard of Gainesway, and Matt Koch of Shawhan Place.