Horsemen Bennie Sargent is passionate about the Kentucky Breeders Incentive Fund program and dispels the rumors.
The Kentucky Breeders Incentive Fund was developed by the State of Kentucky as an economic development program to address the issue of their racing bred stallions exiting the state at a high rate. But for as long as Benny Sargent can remember, the State of Kentucky has collected a six percent sales tax on stallions of any breed standing in the State.
Two years ago, Sargent was speaking with Kentucky State Senator Damon Thayer (R-Georgetown) and asked why the state didn’t include all the breeds instead of just the race breeds.
“He said they had already looked at that and at present an estimated $14 million was generated for the race breeds and less than $1 million for all the other breeds put together,” Sargent explained. “But Senator Thayer said he would look at it and I said we would like the opportunity to make something work for the non-race breeds as well.”
Sargent’s interest in the matter paid off.
A state law was passed and 80 percent of the money collected goes to the Thoroughbred’s, 13 percent goes to Standardbreds, and seven percent to all the other non-race breeds. The state documents the top 10 breeds in the state and pays out to those top 10 breeds, of which American Quarter Horses are by far the largest. The biggest chunk of the seven percent is going to the Quarter horse industry in Kentucky since they are the largest breed population in the state.
In 2006, $15 million was collected into the whole program. In 2007, $19 million was collected. A year in the program runs from July 1 to June 30. In 2007, the fund has already increased an estimated $150,000 and contains approximately $450,000 for Kentucky Quarter Horses.
With all the recent Quarter Horse traffic to get to Kentucky, the money invested in the program will continue to increase and will not run out of money since each year six percent will be deducted as a state tax on every stallion service used. The only way the fund can be stopped is if a law is passed to repeal it. But, as Sargent pointed out, since the economic impact thus far has been so great, it is unlikely to be repealed.
The law states that every two years each breed has to submit a report on the program to the Racing Authority as a checks and balances to look at the program and make sure it is doing what it is meant to do: Provide economic development. Upon approval, the program will be renewed.
Since Kentucky is such a heavily populated Thoroughbred state, artificial insemination and embryo transfers are not allowed within the Thoroughbred industry. In response to this, a proposal allowing the transfer of embryos has been submitted to the Racing Authority. An answer is expected in the near future.
Playing by the Rules
If the mandated rules are not adhered to, it is a state offense and bears heavy consequences.
A recognized vet has to certify that the mare was foaled in Kentucky. The Racing Authority is already checking on the Thoroughbred industry and officials will be doing the same for the Quarter Horse industry in Kentucky.
Currently, rounds are made by officials to make sure that mares are being bred, stallions are standing, and mares are foaling in the State of Kentucky.
“The best part is that you must also join the AQHA Incentive Fund and so the value of the points in the Incentive Fund is going to go up,” Sargent explained. “Since more horses will have to be entered in the Incentive Fund in order to be eligible for Kentucky points, the Incentive Fund stands to increase annually as well.”
Sargent feels that the Kentucky Breeders Incentive Fund is a very sound program. The program will be under the microscope by the Racing Authority to make sure that broodmares come to Kentucky and that breeders don't ship semen out of the state and make out of state foals eligible.
“This is an economic development program,” Sargent stressed. “It is not a rewards program, so the Racing Authority will be watching.”
The popularity of the program has been evident, and as the new crops of foals begin their show careers, everyone will most certainly be watching Kentucky bred horses to see how well the Kentucky Breeders Incentive Fund really works.
For more information, please visit the Kentucky Quarter Horse Associations website www.kyqha.com/kqhbif/incentivefund.htm.
Our thanks to Bennie Sargeant for taking the time to answer our questions about this fantastic new program. Bennie is the 2006 AQHA Horseman of the year and is passionate about the preservation and promotion of the Quarter Horse Industry. If you have any questions for Bennie, please contact him at 502.863.2944 or visit their website at www.sargentquarterhorses.com
