Inflation and horse care rates

[JojoSandman]

Now days and without trying to get into the causes. It is no secret that currently we are all experiencing unprecedented high inflation rates. Shortage in matetial, a broken supply chain, not to mention the sky rocketing of fuel prices. As a horse farm owner and a boarding facilities operator, I am struggling to keep up with escalating prices for-
Horse feed,
Hay,
Maintenance on the facilities,
Operating farm machinery,
Labor,
Transportation to horse related events etc…
In some cases such as fuel and hay, pricing has doubled !

The question that poses itself, what is an acceptable price hike(percentage increase)to your boarding, lesson, and services rates need to be adjusted to offset high operating costs. Clients don’t like a price increase that digs deeper into the portion of their discretionary income. Are there many out there like myself facing such challenges?. Any suggestions on how you can curb operating costs without jeopardizing horse care needs?

Would love to hear your point of view and ideas on how can we cope, indure and maintain a balanced horse boarding rate card structure.

Cheers!

[Texarkana]

I don’t have any clients, but I’ve been thinking about this a lot.

I’ve wondered if invoicing hay & feed separately might reduce clients’ sticker shock? It’s more work for the barn owner, but then you can pass those price increases on to the owner in real time, instead of having to raise rates repeatedly.

Unfortunately, I also understand the potential for client pushback- “you charged me for Dobbin getting 20lb of hay a day yet I know he doesn’t eat that much!” Or, “I know you say Dobbin needs the pricey senior feed, but I found a bag of all stock sweet feed at TSC for $10.”

On the flip side, I may counter the complaint of, “my barn owner raised rates because of feed prices but my pony eats almost nothing and Susie’s horse eats three times as much as mine!”

[clanter]

in the late 1970s when there was a similar event I was in new construction, we stop issuing fix rate bids and went to cost plus bids. The cost of materials was only guaranteed once they were purchased. But it was the only way we could actually insure the project could be completed…if done at all. More than one project was placed on hold.

Today, if I were running a boarding facility I would not let any boarder get behind in payment. If they are having trouble making the payment that needs to be addressed without delay. Forbearance could be a case by case adjustment but doing so does not help you pay your obligations.

To control costs, you may be able to bulk purchase items such as hay or bedding, a truckload verses a few tons as the cost to deliver or go get is already spent

Buying co-ops where you and others bulk purchase items may be a way.to arrange direct purchases bypassing middlemen

My expectation is there is going to be more than one stable to not survive

All I know is I have told my horses they are now and for the future on a diet. Hay is weighed. gain (IF they get any at all) is by weight. At least the ones we have now are easy keepers and in good health

.

[frugalannie]

I’m very upfront with my boarders about the state of costs. So having said, my board contract states how much hay, bedding and standard feed is included. If they choose to feed different amounts or types, that’s on them. (My feed room looks like a feed store there are so many different feeds! And we just have 11 horses here ).

I told them I’d do my best to hold prices steady through the pandemic as job insecurity was a big thing. They know an increase is coming soon and they know why. Besides the items you mentioned, our water prices are going up 40%, taxes are increasing and more.

I buy all my hay for the year right off the field so it doesn’t have to be handled more than once. Ditto shavings: I pay for a years worth and the guy delivers as is best for him as long as I have a years worth in my loft before December. I have two huge hay lofts so I can do this. And to be sure I have enough I count the baling twine and empty shavings bags every week. I have 8 years of use records so I know if something is out of whack.

I’ve worked with my hay and shavings suppliers for decades at this point. I hope they never retire, but there don’t seem to be any younger folks stepping up so I’m worried about the longer term.

[Scribbler]

@JojoSandman

Now days and without trying to get into the causes. It is no secret that currently we are all experiencing unprecedented high inflation rates. Shortage in matetial, a broken supply chain, not to mention the sky rocketing of fuel prices. As a horse farm owner and a boarding facilities operator, I am struggling to keep up with escalating prices for-
Horse feed,
Hay,
Maintenance on the facilities,
Operating farm machinery,
Labor,
Transportation to horse related events etc…
In some cases such as fuel and hay, pricing has doubled !

The question that poses itself, what is an acceptable price hike(percentage increase)to your boarding, lesson, and services rates need to be adjusted to offset high operating costs. Clients don’t like a price increase that digs deeper into the portion of their discretionary income. Are there many out there like myself facing such challenges?. Any suggestions on how you can curb operating costs without jeopardizing horse care needs?

Would love to hear your point of view and ideas on how can we cope, indure and maintain a balanced horse boarding rate card structure.

Cheers!

You need a business plan and accounting system that tells you exactly what your monthly costs are for everything and how much they are rising. And what the percent of each thing is in your total costs.

For instance, lease or mortgage might be a fixed cost or might rise annually. Hay might or might not be a large per cen of overall cost.

You need to never be in a position where you are subsidizing your clients by running at a loss.

Unfortunately boarders can be quite ignorant of costs as they don’t have to buy hay etc. I do self board, hay has gone up 20 per cent this year, it’s almost 50 per cent of my total monthly expense now.

[Robin]

We own our hay field and pay a neighbor farmer to harvest the round bales we feed. While we have box stalls, we are now only doing pasture boarding with horses coming inside each morning for individually fed grain meals. So short of a crop failure, cost of hay is controlled. A few other horsefolk I know have bought hayland a bit farther away from their stable (cheaper land further from population center) and also hire someone to harvest. We have always fed straight grain; initially oats but when I developed an allergy to oat dust, corn. We buy from a neighbor farmer at harvest time for the entire coming year and have grain stored at the local feed mill for a very modest cost. Any boarder who prefers a different grain or wishes a supplement fed is told that we will feed but they must supply and there is no price reduction as the extra effort and storage balances the material cost for grain.

As a convenience to boarders, I have offered to pick up whatever grain or supplement they may want as long as it is available at the local area farm stores I frequent BUT they must set up an account with that store.

For transportation to shows, clinics, whatever, you might create a list of people willing to do hauling with their rates and their contact information (could include your own if you wish to continue doing it). They boarders can clearly see if price is acceptable and “in line”.

Only suggestion for maitenance and labor is to try barter. We needed to get rid of dead trees and a new neighbor is delighted to bring his chainsaw and cut them to stoke his wood burning heat system. Another neighbor is very happy to help with fence maintenance and snowplowing in return his wife gets to ride in our indoor arena during off hours. I found that being a 4H adult advisor put me in touch with a lot of families who would consider labor barter arrangements.

[mfglickman]

I have one horse in rough board which has remained the same for the past 2 years. One in training board went up 5% over the winter, she said because of hay prices but probably a myriad of factors. She didn’t need to give me a specific reason and I was fine with the increase.

[Texarkana]

@mfglickman

I have one horse in rough board which has remained the same for the past 2 years. One in training board went up 5% over the winter, she said because of hay prices but probably a myriad of factors. She didn’t need to give me a specific reason and I was fine with the increase.

But here’s my question: will you be fine with an additional 10% increase (on top of the 5%) next year?

Because that’s where we are heading…

Prices on all things necessary for agriculture are going nuts.

[mfglickman]

Either I am or I can no longer afford to keep the horse in training. OP asked what a reasonable increase is and I shared one I felt was reasonable in my situation.