Small-Farm horse breeding for foal sales

Recreational and competition riders, trainers, ranch and trail owners, and other breeders looking for a particular bloodline or breed.

Sale price per foal or youngster, plus the occasional sale of a mare or trained horse. Income is lumpy and seasonal, with long gaps between breeding and sale.

• Horse handling and foaling care
• Understanding of bloodlines and conformation
• Basic bookkeeping and marketing

• Farm or equine liability insurance and mortality coverage, check what is available in your state
• Zoning, agricultural use rules and any limits on animal numbers in your county
• Vet bills, foaling emergencies and the chance a foal does not sell quickly
• Breed registry rules for registering foals and for breeding methods
• State health paperwork when selling across state lines, such as Coggins tests and health certificates
• Sales tax and tax treatment of horse activity, check with your state and a tax adviser (the IRS may treat it as a hobby or a business)

Startup costs for small-farm foal breeding are typically around $15,000 to $70,000, depending on your land, facilities, mares and stud fees. These are estimates, so get quotes for fencing, shelter, vet care and insurance before you commit.

Monthly revenue is typically around $800 to $4,000, depending on your breed, bloodlines, how many foals you sell and when. Sales can be uneven, and vet bills or a foal that does not sell quickly can affect results.

Check farm or equine liability and mortality insurance, county zoning and animal number limits, breed registry rules, and state health paperwork such as Coggins tests when selling across state lines. Ask your state and a tax adviser how horse activity is treated.