The novel COVID-19 virus caused a global pandemic disrupting lives, industries, and economies. The result was an impact on prices due to challenges with production and supply chain distribution. This study investigates the financial strain COVID-19 had on equine owners and leasers, what the market for equine care would bear if costs for care increased, and what factors contribute to their willingness to pay (WTP) for increasing cost of equine care. An online survey was distributed for 4 weeks to adult U.S. residents. Respondents reported their involvement in the equine industry, financial response to COVID-19, and responses to a double-bound dichotomous choice question on their WTP for care given a randomized increase (1%-20%) in their current cost (n = 506). Data were analyzed using interval regression models where a = 0.05 (Stata15). Respondents were separated into three groups: owner keeping their horse at their residence, owner boarding their equids, and leaser. Boarders reported mean monthly payments of 23.33 ± 90.37 USD (n = 15) for free board, 236.47 ± 151.92 USD, (n = 75) for partial board, and 514.75 ± 291.71 USD (n = 181) for full board. Results show all owners, leaser, and boarders have different WTP values which range from 18.5% to 26.2% increase in current care costs which extends beyond the presented range due to many respondents responding "yes" to both WTP questions (71% of owners, 6% of boarders, 65% of leasers). Equine owners, with on farm equids from the southern US were WTP 11% less than from other regions (P = 0.015). The current boarding fees from owners that board their equids lowered their WTP by 0.01% (P = 0.029) for each additional dollar paid, whereas current care costs were not a significant factor for other owners (P = 0.370) or leasers (P = 0.395). Those that had a full lease for their equids, housed on farm or at a facility, were WTP 15% higher (P = 0.036) than those that had a partial or no lease. In comparison, boarding status (full, partial, or no boarding) did not significantly (P = 0.51) impact boarder's WTP. Age of respondent and annual household income heterogeneously affected WTP across all groups. These results indicate the market for equine care can bear the increases in cost associated with financial distress related to COVID-19, and may aid equine owners, caregivers, and associated individuals in making informed decisions regarding essential care. Results from this study should be taken in context of the global pandemic and the restrictions in place, or lack thereof, at the time the survey was administered.
Keywords: board; double bounded dichotomous choice; equine; lease.
COVID-19 had a substantial impact on markets and livelihoods. Jobs were affected and the cost of goods increased as products were in short supply, driving up prices for essential and nonessential equine care for owners, caretakers, and other associated individuals. A survey was used to better understand the financial impacts COVID-19 had on equine owners and leasers to determine what the market for equine care would bear if costs for care were to increase. Data collected through an online survey of U.S. residents involved in the equine industry (n = 762) were statistically analyzed. We found that equine owners and leasers were willing to pay at least 14% more for equine care as a result of the increases in cost associated with financial distress related to COVID-19. This accounts for differences across age, sex, number of horses owned or leased, and equine characteristics. This may indicate budget reallocation to maintain continuous equine care.
© The Author(s) 2023. Published by Oxford University Press on behalf of the American Society of Animal Science.