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Breeders' Incentive Fund | |||||||||||||||||||||||||
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Overview On April 16, 2007, the Kentucky Horse Racing Authority approved KyQHA's application to distribute nearly $370 thousand in Breeders' Incentive Fund awards to eligible Kentucky Quarter Horse owners. The primary goal of the KyQHA BIF is to increase equine economic activity related to the Quarter Horse breed, by enhancing profit opportunities for both new and existing owners and breeders. "The Kentucky Quarter Horse Association Breeder's Incentive Fund will be one of the most significant occurrences ever for the Quarter Horse industry in Kentucky,” said KyQHA President Norm Luba. Funds for 2006 will be dispersed before the end of 2007. While registration is not required to receive funds from the KyQHA BIF, you must be an active member of both the AQHA and KyQHA. KyQHA BIF Program Review The Kentucky Quarter Horse Association Breeders' Incentive Fund (KyQHA BIF) Committee will be meeting this summer to review the program, its mandate, methodology and results to date. All members are encouraged to contact a committee member if they have questions as to process. Only proposals or suggestions that are received in writing, and signed, will be considered. Please submit those to KyQHA BIF Committee, P.O. Box 910607, Lexington, Ky 40591-0607, no later than August 1, 2008. A list of all committees can be found here. NEW! - Fraudulent Participation Statement Thank you to all individuals who have reported alleged rule violations and/or fraudulent activity associated with the KyQHA BIF. Feel free to continue to report to us alleged violations and we will pursue those as we have others. Your name will not be used in any of our communications. The KyQHA is working through appropriate regulatory routes, both within AQHA and State of Kentucky channels to address these alleged violations. While this process may take some time, rest assured the integrity of our program has been, and continues to be our highest priority. See AQHA rules for how violations are handled within AQHA. The following statement was provided by legal authorities in Kentucky: "Any attempt in connection with the Kentucky Horse Breeders’ Incentive Fund to provide false or misleading information to the Kentucky Quarter Horse Association (KyQHA) or government officials, or to otherwise engage in fraudulent activity, shall result in appropriate disciplinary action by the KyQHA and the application of all civil and criminal penalties that may apply." Kentucky Sales & Use Tax For further information regarding the State of Kentucky's Sales and Use Tax, click here. The supplementary sales tax form can be downloaded here. For questions, or more information, please contact: Ricky Haven Introduction: The Kentucky Quarter Horse Association Breeders’ Incentive Fund The Quarter Horse is the world’s most popular breed, and the American Quarter Horse Association (AQHA) registers more than 150,000 foals annually. Because of their versatility, Quarter Horses in Kentucky are dispersed among many more counties and towns than any other breed. The Commonwealth, best known for its Thoroughbred industry, has more verified Quarter Horses (37,047 in 2005) than Thoroughbreds. The Quarter Horse industry is a vital element in Kentucky’s collective equine industry.[1] The Kentucky Quarter Horse Association The only official affiliate of the AQHA in Kentucky, the KyQHA is a state-chartered not-for-profit corporation designated by the Internal Revenue Service as a 501(c)(7) organization. The distribution of the funds allocated for Quarter Horses will be made through the Kentucky Quarter Horse Association Breeders’ Incentive Fund (KyQHA BIF). Administration of the KyQHA BIF The intent is that the KyQHA BIF avoids to the maximum extent possible the need for burdensome recordkeeping and administrative costs. Therefore, the KyQHA BIF will utilize a system in which incentives are based for performance horses on points earned through the AQHA Incentive Fund, and for racehorses on racing points awarded according to conditions and order of finish for races recognized by the AQHA. AQHA Incentive Fund points and AQHA racing points are collected and maintained as a regular procedure by the AQHA. Once the KyQHA confirms eligibility, calculation of incentives will be straightforward. By utilizing existing AQHA data resources, direct costs of administration will be minimized. The KyQHA Approach: Incentivizing Demand It is a firm consensus of the KyQHA board of directors that, regardless of breed or sport use, creating breeder incentives to supply more horses (for which there may not be a sufficient demand) will foster mediocrity and, of necessity, depress their market price. Therefore, the KyQHA BIF has been structured to create incentives that will only enhance demand. Establishment of incentives to boost demand for Kentucky-bred Quarter Horses, leaving their supply to respond in a natural market fashion, will improve the prices proffered for them. This is a vastly more efficient method of encouraging production than stimulating supply artificially and directly rewarding producers of foals demanded by no one. In addition, increasing the demand has the not-insignificant advantage of increasing the bona fide profit opportunities for horsemen. Encouraging people to breed horses is an ethical goal only if there is a legitimate chance of economic return. Concentrating incentives on the demand side is the only approach that assures this. The primary goal of the KyQHA BIF is to increase equine economic activity related to the Quarter Horse breed, by enhancing profit opportunities for both new and existing owners and breeders. The program developed was designed by individuals experienced in showing and racing, in the development and administration of incentive programs, and in the record of similar initiatives in other jurisdictions. The KyQHA BIF was also designed with input from AQHA officials. Horsemen who participate in sanctioned competitions, whether those are licensed pari-mutuel races or nationally recognized shows, tend to invest more money and time in their equine pursuits than their peers. Whether amateurs or professionals, these people tend to be more active in their associations and more politically active. They are, in short, the economic leaders of this industry, and this reality provides rationale for incentive fund emphasis on racing and showing. The following KyQHA BIF eligibility criteria must be met to qualify for awards: 1. The foal must have been born in Kentucky during 2002 or later; *Note: No semen shall be allowed to be shipped into Kentucky from out-of-state stallions for show horse awards. Semen may be shipped within Kentucky. It is the intention of the Kentucky Quarter Horse Association to evaluate the impact of stallion eligibility requirements on the industry prior to 2009 and to determine whether program modifications are warranted. Conclusion The KyQHA BIF will increase equine economic activity related to the Quarter Horse breed, by enhancing profit opportunities for both new and existing owners and breeders. The health of our Kentucky economy is contingent on ensuring the long-term viability of the horse, racing or non-racing, and thus maintaining the quality of life that we all recognize as uniquely Kentucky. [1] Quarter Horse Associations Join Kentucky Education Effort, the Blood-Horse, September 4, 2004 News * Breeders’ Incentive Fund Will Award Nearly $370 Thousand to Eligible Kentucky Quarter Horse Owners (April 19, 2007) |
