Foal share-- worth it?

[Texarkana]

Does anyone have any positive stories with foal share arrangments?

I thought my breeding plans for 2014 were out the window when my mare had a horrible pasture accident in December, but she has recovered above and beyond expectations. The vet does not think a late May or June cover will be a problem. Yay! She’s not getting any younger, so I figure I might as well try!

I was offered a tempting foal share deal on a hot stallion very much outside of my price range. I wasn’t planning to sell… but this is such a good deal on paper, I’ll admit I’m tempted!

But… reality tells me that I’m going to lose out big time here. I’m just curious if anyone has any really great success stories with foal shares or if I should just pass and stick with what I can afford. :lol:

Thanks!

[LaurieB]

The important thing is to read (and understand) your contract. Every farm is different in what they require the mare owner to do. Many are slanted very much in favor of the stallion owner, but there are some that are quite fair to both parties.

Pay special attention to the requirements for the sale of the resulting foal (the usual method by which foal sharing partnerships are terminated.) Some farms want to choose which sale or sales company you must sell at, what age the foal must be sold, and which consignor you have to use. Sometimes there are even requirements regarding sales prep.

Bear in mind that if you do a foal share, you will be co-breeder of your potential foal and not the sole breeder, which will have an impact on breeders’ awards if you live in a state that offers them.

In most cases, the mare owner bears all expenses including such things as board and vet care for both mare and foal, BC nominations, sales fees etc. while the stallion owner simply provides the cover. If the price of the stallion you’re considering is high enough to make that seem like a good deal, read your contract carefully and go for it.

[Texarkana]

Thanks for the info, LaurieB!

The resulting foal would be KY-bred. Tennessee is a barren wasteland. :lol: Truthfully, the split awards never crossed my mind.

What you mentioned about the slant is exactly what I’m concerned about. I’m scared I will be footing a very expensive bill. I was told 60/40 split, with all pre-sale boarding/expenses on me. All sale expenses and any profits would be split 60/40… although I need to ask for more clarification because I don’t know if that includes prep.

So tempting on paper… but I think the farm will end up bankrupting me with the pre-sale expenses. And I’m afraid that the resulting foal won’t sell high enough to recoup my expenses, despite the hot sire. As a new breeder on a budget, I don’t have a lot of room to gamble. At the same time, I also don’t have resources to otherwise touch some of these sires!

[gumtree]

Most contracts regardless of the widget are negotiable some more then others. Foal shares can be written lots of different ways. The standard for many years always included the stallion season owner to be named as co-breeder. But this also included that ALL expenses were shared equally once the foal was weaned. Some included “extraordinary” vet expenses above the “norm” to be shared when the foal was still on it’s momma.

A few that I have done in recent years did not include the shared expense clause. But the season owner was not named as co-breeder. If the foal is going to be born in KY which has a very weak Breeders Award program or a state that has none it’s not that big a deal.

In my state, PA it is considering that we collected close to $70,000 in Breeders Awards last year. On average we earn around $40,000 per year. And we don’t breed in quantity.
So, we get calls from KY farms wanting to foal share with us. But unless it is a really strong and popular stallion we won’t do it.

Given the fact that your mare won’t be ready to be covered until May possibly June will limit her attractiveness to a popular stallion. Late foaling dates can and do get discounted in the ring. As a season owner I would be a little worried that we will have a short window to get the mare in foal. So, unless the mare has a extremely attractive pedigree I most likely would pass and sell at a discounted price. Bird in the hand.
I would bet the farm is sitting on a lot of seasons to the stallion that is being offered. A lot of farms are. I have been offered some serious discounts off of advertised prices.

I prefer to get a “pay out of proceeds” contract. Which means the season owner gets paid when the horse sells usually as a yearling. But you want to make sure the mare throws good foals and she has a pedigree that warrants the season. If the resulting yearling sells “short” you still owe the difference
.
I will only do foal shares with really top stallions if I can. But we don’t have a really strong broodmare band. Hopefully when the “big horse wins and or sells” we can upgrade.

When you say 60-40 I assume you are on the “60”? If so and the resulting yearling sells well the extra 10% should cover your production cost that the season owner is not contributing to.

If you want to post or email me the stallion and your mare’s pedigree I would be happy to give you an opinion on the deal.

[Texarkana]

Thanks for the info Gumtree.

I’m just going to pass on the foal share offer all together. It seems like a fair deal from the farm, but it just doesn’t sound like the best idea for me or my mare.

My mare does not have a commercially popular pedigree AT ALL despite her being black-type producer from a good family and very consistent. While this sire has been selling really high, I just don’t see a foal out of my mare selling well enough for me to come out in the black. Plus, I really wanted to breed for myself this go round.

Thanks again! And the search continues… I’m surprised how negotiable some of these farms have been-- I’ve been offered some really good deals, but I keep finding a reason to pass.

[Toadie_s_mom]

Texarkana, I’ve been wondering how your mare was doing. So glad to hear she’s ok

[Texarkana]

Thanks Toadie’s mom! She definitely beat the odds!

In hindsight, I’m so glad I didn’t buy a no guarantee season at auction in January. I had no idea how negotiable everyone would be on fees!

I am now just waiting on official clearance from my vet. He never called me back today-- there’s a chance he might be banging his head against the wall. :lol: But I wouldn’t be asking if I didn’t think she was sound enough.