Valley agribusiness ready to cash in on $7M racino impact

With horses comes big money being spent locally to keep them healthy

VALLEY FARMERS, AGRIBUSINESSES ON TRACK TO CASH IN ON HORSE-RACING COURSE'S $7 MILLION IMPACT

With horses comes big money being spent locally to keep them healthy

By KALEA HALL

khall@vindy.com

AUSTINTOWN

Feed, hay, straw, tack, horseshoes, supplements, ointments and veterinary checks are just some of the costs associated with horses.

Tim Hamm, president of the Ohio Horsemen's Benevolent and Protective Association and owner and trainer of race- horses, can go on and on about the impact of bringing horse racing to the Mahoning Valley.

"It's all good," he said. "It's all positive."

How good? The economic impact of bringing horse racing back to the Valley could be $7.1 million. A breakdown of prices shows:

• Feed: A thoroughbred horse eats 18 pounds of feed a day. About 1,000 horses at Hollywood Gaming at Mahoning Valley Race Course should eat approximately 18,000 pounds a day. A 100-pound bag of the top feed costs about $35, which brings the cost for feed in one month for horses there to an estimated $193,000.

• Hay: Horses eat a half bale of hay a day at about $7 a bale, putting the cost for hay at about $110,000 a month.

• Supplements/miscellaneous items: They cost an estimated $7 a day per horse [$7,000 daily for all Hollywood Mahoning Valley horses], so add another $210,000 monthly.

• Bedding straw: $150,000 a month for 1,000 horses.

• Blacksmith: $125,000 a month for shoes for 1,000 horses.

• Veterinary appointments: Per month $350,000 to $400,000 for 1,000 horses.

With 500 employed at the track by trainers and owners, Hamm estimates a $1 million payroll. About 60 percent of those employed here are expected to be from the community.

Penn National Gaming's deal with the horsemen's group calls for 988 stalls in 13 barns in Austintown. Thoroughbred horses such as those at the one-mile Hollywood track need the best of the best in feed, hay, straws, tack and shoes.

Bob Tenenbaum, spokesman for Penn National Gaming, said the company typically works with vendors for feed, hay, straw and tack.

"When we talk about using local vendors as much as possible that is not only for food and beverage, but it is also for vendors for the horsemen," Tenenbaum said. "Once the season starts out there, it is going to be like a little city between owners, trainers and jockeys."

Racing will begin Nov. 24 at Hollywood Gaming, and Hamm will bring 30 of his horses. He has traveled through the Northeast and at times in the South for racing.

"It's very convenient to have it [here]," Hamm said.

Feed the Need

Erica Wilson already is familiar with the horse-racing community. The nutrition consultant from Agland Co-Op Inc. works with trainers who run their horses at Thistledown, Mountaineer, Presque Isle and Northfield Park. Agland has worked with 20 to 30 trainers for a long time, so it has what the horses and trainers like, Wilson said.

Race-track feed is sweet and high in calories. Purina's Race Ready, the most popular brand, costs $18.11 for a 50-pound bag, she said.

Impact Horse Feed, the second-most popular brand, costs $15 for a 50-pound bag.

Horse owners and trainers typically will order in bulk, which can lead to an additional cost savings. At Agland, the bulk discount usually is $20 off a ton and $10 off a half ton.

"It's a business," Wilson said. "I have a lot of respect for the horse owners and trainers. This is their livelihood."

In addition to the feed, some trainers add Purina's SuperSport amino-acid supplement to it as a top dressing. It costs $47 for 25 pounds.

Wilson says the racino will impact Agland's business, especially since a retail location is in nearby Canfield.

"The track seems to have a pretty good reputation and not everyone is going to get in," Wilson said.

Purina offers a race-to-win program, which gives a winning horse on Purina's brands a free bag of feed.

HIGH-QUALITY HAY

Another necessity for horses is hay. Mark Stepuk of Stepuk Tree Farm on Washingtonville Road in Canfield sells hay to trainers.

"They demand higher quality," he said.

The higher the cut, the higher the quality and the higher the cost. The first cutting happens in mid-May to June, and the second cutting in early August. Stepuk tries to get four cuttings a year.

"The protein is higher with [each] cutting," Stepuk said. "It goes through a maturity stage. A third or fourth cutting can be $7 to $8 a bale."

Stepuk makes his hay in mostly small square bales, so it is easier to store and to handle for his customers, especially the horse trainers.

Stepuk offers four types of hay. Most of his alfalfa hay goes to racehorse trainers.

"The racehorse market is going to be a welcomed opportunity," Stepuk said. "There is definitely going to be more demand."

Stepuk goes into the hay season with 80 percent of his hay already sold to his regular customers.

"I think a lot of guys — if they have a hay provider — will keep it," he sad.

When it comes to pricing his hay, Stepuk checks the Farm and Dairy newspaper from Salem.

Last Thursday's edition listed the following prices at the Rogers Hay Auction on Sept. 24: first cutting: a low of $1.25 a bale to a high of $3 a bale; second cutting: $1 to $7 and third cutting: $1 to $6.50 per bale.

INCREASING DEMAND

Shane Conti makes between 5,000 and 10,000 bales of hay at his High Point Farms in Leetonia.

He has four to five clients who are horse racers. Hay prices are based on its quality.

"Cow owners do not want to pay the price that horse racers do," Conti said.

He is already seeing an increase in demand for hay while the supply seems to be down. He wonders how the market will be affected when the horses at Hollywood come in.

"I am turning down clients," he said.

Like Stepuk, Conti goes into the season with most of his hay sold and now it is, so he stores it until his customers come to get it. He is looking for more hay land because of the high demand.

Conti said he hopes the racino will bring him more customers.

"I think the racino will be good for the economy," Conti said.