A Call to Action
This article was originally written for publication in the Aiken Horse Magazine.
This month we turn our attention from contracts and liability issues to public policy and an opportunity for the South Carolina equestrian community to chart a bold course for the future of equestrian sport and our equine industry.
Last spring, in response to requests from equine industry advocates, the South Carolina General Assembly established the “Equine Industry Support Measures Study Committee.” The committee is made up of representatives from the house and senate, including Representative Bill Hixon of Aiken County. The remaining members include staff from the Department of Agriculture and equine professionals. The mission of the committee is to study the current health of the equine industry in South Carolina, evaluate the impediments to its growth and competitiveness, and make policy recommendations to address the challenges. The committee has held a series of public hearings, received data and input from a wide spectrum of the horse world, and sought out experts from a variety of fields. Several members of the committee even traveled to Kentucky to see first-hand how state and local governments support its vast equine industry. Later this month, the committee will issue its report to the General Assembly.
While South Carolina is not Kentucky, our state is home to a significant and diverse equestrian community. A 2019 study by the University of South Carolina reported that the Palmetto state is home to over 73,000 horses and ponies. The equine sector of the state’s economy generates 22,500 jobs and produces an annual economic impact of $1,900,000. While this is a good foundation, the potential to generate substantial economic growth and increase equine-related tourism is being constrained by several factors. These challenges include a lack of high-caliber competition facilities, poorly maintained state recreation assets, weak promotion by state agencies, and almost non-existent public financial support. As a result, South Carolina is losing many important opportunities.
Based on the work of the committee to date, several ideas are emerging which may provide the tools needed for the Palmetto State to reach its full potential as a leader in equestrian sport, education, and equine-related business. The leading ideas are designed to work together to advance the industry, promote equestrian sport and education, and increase equestrian-related tourism.
The committee sees the first step is establishing a state commission to lead the effort and manage the expectations of state government and the public. The commission would coordinate with the private sector and all levels of government to develop initiatives to improve the industry’s competitiveness and advance the interests of the diverse equestrian community. The commission would also manage funds that may be appropriated by the General Assembly or generated by other revenue streams to support the work of the commission. Additional powers, duties and responsibilities would be added depending on the nature and amount of funding the commission may receive.
In order to power real action by the commission across the state, there will need to be reliable and adequate funding. The committee recognizes that providing proper financial resources and targeted investment incentives are the keys to achieving its policy goals. Our neighboring states are already making substantial capital investments and providing strong financial support for equestrian economic activity. As a result, the South Carolina equine industry is less competitive and is not able to capitalize on the rise in popularity of equestrian events, competitions and horse-related experiences.
The leading funding sources for funding such initiatives include state issued equestrian-themed vehicle license plates, user fees tied to purchase of equine feeds, and money related to state revenue from horse racing. The committee may recommend some or all of them in its report. The Georgia Equine Commission relies on revenue from vanity tag sales. That program generates around $33,000 annually and funds a variety of projects. North Carolina imposes a fee on bagged equine feeds and it reportedly generates approximately $250,000 annually to support the work of equine initiatives. There is a bill pending in the South Carolina House that would establish a “nickel a bag” fee to fund equine promotion. The South Carolina Horseman’s Council estimates that such a user fee would bring in around $180,000 each year. The third option, horse racing related revenue, would bring in substantially more funding but it is also more controversial and legally complex. Allowing horse race wagering in South Carolina would not require the construction and operation of racetracks in the state. Under provisions of federal law and state Advanced Deposit Wagering (ADW) laws many states are permitting citizens to bet on races held in other states. Under this approach the state generates revenue by license fees for ADW businesses and related tax measures. It will be interesting to see if South Carolina explores that option.
After the committee completes its work, all further action will require that legislation be introduced and passed with the support of the Governor. In my experience as a state senator, the equine industry improvement initiative will succeed only if the industry and the equestrian community actively push for action. Members of the General Assembly have dozens of policy matters and constituent requests vying for their time and attention and very few members understand the challenges of the horse world. If South Carolina equestrians -- and all who are part of equine commerce and recreation -- want to see the equine industry grow and prosper, they will need to become active on this matter.
When the committee’s report is published, I encourage you to read it and contact your representative and senator to let them know the importance of supporting the equine industry in South Carolina. By taking forward-thinking action today, South Carolina can forge a strong future for its equine industry and the equestrian community for years to come.