The industry of thoroughbred horse breeding is in danger of disappearing and threatening to hit the horse racing industry in Puerto Rico, bringing to the Exchequer more than $35 million annually and generates 8,000 jobs, say members of that industry.

The crisis in the Puerto Rican horse breeding industry has caused the disappearance of many breeding farms. Five years ago there were 20 and today there are only 13 farms and some of them are close to “sink”, unless the Racing Board and the Government did not implement significant changes.

Several farmers noted that the economic situation has been partly the cause of their plight, but also note that there has been a domino effect caused by new patterns in the horse-trading business as a result of what they describe as “misdirected” incentives and the exclusively elimination of native horses, that paid 25% larger awards than other races.

Besides being a source of employment for people with pour education, horse breeding industry represents an income market for hay producers, blacksmiths and veterinarians. The numbers of employees in the agribusiness and annual sales have fallen dramatically in the last year and this concern to horse breeders.

Most farmers could not sell all his horses in 2009, and have had to also become owners of horses and run them at the Camarero racetrack in Canovanas, to extract some benefit, they said. Horse breeders describe as “a blow” by the Government to the industry the removal of tax exemptions for horse owners, and “excessive burdens” imposed on them by those who are interested to become horses owners. Although sales data in the colt racing industry compiled by the Department of Agriculture confirmed that their number has declined, on the other hand, reflects the average sale price per animal has increased.