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Recommended Salary to own Horses?

Off Course
#1

I’m going to be moving out in the next 2 years. We own about 5,000 acres in central California. San Benito county to be more specific. We have a 20ish acre pasture right next to the house that I’d like to keep a couple horses on. I’m also going to have to bring my two llamas with me, and I plan on getting more llamas and some alpacas.

Town is about half an hour from our property, so I’d like to not have to drive into work every day. It’d be nice to work part time, but I’m not financially smart. I’d like to know other people’s thoughts on how much I need to make per year to own a few horses.

I won’t be needing to pay for board, and I can probably get away with feeding minimal hay as there’s so much grass around. Rent also won’t be a problem.

If anyone has ideas on what I can use the land for as well, that would be awesome. Most people around there own horses, but some people might be happy to board. It’s currently being leased out to cattle owners, but if I use the land I don’t want to be using it for the slaughter of animals.

#2

Boarding often doesn’t net you much of a profit so run your numbers carefully.

If you own 5000 acres you are pretty well off, and if it’s arable land you can lease to whatever is the functional farm activity in the area.

Figure out your costs. If you have to board in a big metro area your base costs are going to be monthly board ($800?), Farrier, regular vet calls, emergency fund, tack fund.

If you can graze horses year round on your own land your costs are by comparison very low. You need to price in regular farrier even pasture horses need a trim every 6 weeks. Annual vet floating and vaccinations. Mineral supplements etc. Hay if your pasture gives out seasonally.

If it’s your own property you will.howrver be sinking a lot into fencing, bush hogging, mowing, fixing buildings, etc. If you’re in California you need your own truck and stock van to evacuate from forest fires.

6 Likes
#3

Of course there’s the cost of actual horses.

You can get free horses but they will cost you down the road in vet bills, training fees, and human ER visits. Better to pay up front for good broke healthy happy horses that will do the job you want.

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#4

You can arrive at this number with a reverse budget.

Add up your personal non-horse expenses (housing, utilities, car, food, insurance, etc).

Then add up your horse expenses. Hay, grain, supplements, farrier, vet routine and a cushion for vet unexpected, any training or help with care you might want, inevitable tack and supplies replacements, any property upkeep you might be responsible for.

Add your savings amount that meets your goals. (e.g. add 25% if you’re shooting for a 20% savings rate.)

From this number, find out your effective income tax rate. Ballpark since you’re in CA might be 30%, so add ~42%.

And that is how much money you need to make.

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#5

5000 acres is a lot of land. Is it farmable? Here in the MidAtlantic ground leases are around $50/acre/year. That amount of land may generate a very nice income.

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#6

No one can possibly answer that question for you. You don’t need to be a financial wizard but you do have to know how to balance a budget whether you have horses or not.

Presumably there will be a cost to living, regardless of whether you have horses. Start there. Utilities, taxes, mortgage? Insurance, food, clothing, etc.? Car payment, student loans…?

What kind of job are you looking for? Are you in high school, college, out of school, etc? Are you working now?

If you’re not already working a job to support yourself, I would not be thinking about how to support horses. I’d be thinking about how to support yourself.

And, as was mentioned above - boarding does not usually turn a profit. It is possible, in certain situations, for it to be profitable. But it’s not likely that you’ll be able to board horses in lieu of a full time job.

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#7

My first thought was take a year or two and get yourself an education in finance/budgeting/land management/ and livestock management --with that you would have the tools to answer this complicated question. I have only 20 acres to manage and I wish I knew more about EVERYTHING from drainage to fencing to fertilizer to grass-types. I have only 4 horses and I wish I knew more about veterinary care, training, riding, psychology. I own a house and barn and out buildings --wish I knew more about roofs, heating/AC, Internet, electric, flooring —and of course, wish I learned it all 60 years go.

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#8

Welcome, kora! It sounds like you’re moving to a wonderful place!

Would you be comfortable telling us roughly how old you are and/or where you are in your life? I only ask because you used the phrase “moving out,” which to me sounds like you’re setting up solo housekeeping for the first time.

A thoughtful PP gave a way to reverse-engineer your income needs starting with your existing budget items. As you do that, I’d urge you to add retirement savings and professional training to your spreadsheet.

It may seem ridiculous to think about retirement if you’re only in your early 20s. But little contributions at the beginning can grow into massive numbers by the time they’re needed, without much effort on your part. In much the same way, investing in regular professional training (whether you’re working on your farm or in another non-horse job) will give you a solid base of understanding and a set of verified, portable skills should you ever decide to do something else.

Just my financially conservative two cents.

1 Like
#9

I note that the land is currently leased to cattle ranchers which tells me that’s probably the most economical use of it. You can lease to beef producers realizing that while the animals go into the food chain, no one will slaughter anything on the pastures, that’s not how it works.

I agree you sound young to me. I’d suggest spending the next two years doing some basic book keeping and financial management courses at community college, and also taking any farm management courses you can find. Also figure out what you can do to earn an income. Research the economy of your new area.

Half an hour commute to work is not a long drive by most people’s standards.

Often there is very little employment in small.towns, they just don’t have the infrastructure to need a lot of employees. Realize also that if you are in rural cattle country, so us every one else around you, everyone is living on acreage, and keeps their horses at home. So there won’t be a big market for boarding.

1 Like
#10

Also you need to think about how much you need to live on, food gas utilities internet medical clothing etc in addition to maintenance on the property. If you are living with your parents you can start by asking them.

#11

5,000 acres in San Benito County is an enormous resource. Presumably it is already managed by someone. I’d move slowly in terms of changes.

Cattle are a terrific use for that land. They keep it mowed and if they are run responsibly, they are why the land is beautiful to look at. If not cattle, you may be able to get someone to run sheep on it, but the problem with sheep is that they cannot protect themselves from predators like cattle can. You can’t really just leave the land empty, and horses alone aren’t as good at maintaining the landscape as cattle or sheep.

If you don’t have to pay rent or board, then your expenses are very very low, and you can keep horses quite inexpensively. You’ll want to be able to save so you have resources for vet bills and property improvements. Presumably someone is paying the property taxes and paying for the humans that are managing the land. Will that be you eventually?

$40k is a pretty minimal income in California. You maybe don’t need that now if you’re not paying rent, but unless your name is on the title, you may someday wish to be able to pay rent.

Regardless of your situation now, I recommend you develop a plan to create some personal income, so that you are not beholden to family, so that whatever happens, you have the resources to go forward. If nothing else, maybe some college courses in land management to give you some skills and expertise and networks to draw on.

3 Likes
#12

In that area there will be only about three months of grass; 20 acres would be inadequate to feed only spring grass, so you will need to feed hay (and have a hay shed). Hay prices (for quality horse hay, not cattle hay) can skyrocket with low rainfall, or low snowfall in the mountains… Keep in mind that Calif spring grass is high sugar. Not sure where in the county you will be, but Hollister is booming as a commuter town for people who work in Santa Clara county.

#13

Given that sale prices for parcels in the 500ac range in that county go up to $65million, I imagine that anyone with 5,000 California acres will have or can get a financial advisor to assist.

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#14

So…
@HungarianHippo Time to break out the popcorn? :cool:

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#15

I’m grabbing the avocados…

OP I think we need more details here - do you make money off of the llamas and alpacas? Do you plan on keeping them with the horses in the 20 acres? Have you ever owned a horse before? I ask since the cost of upkeeping a horse is more than many people think. Vaccinations, worming, dental, farrier work, tack, fencing, supplemental feed etc can really add up. It also depends on what you want to do with these horses. Do you want to ride them, or just give a home to some nice retirees to peacefully graze out the rest of their days?

1 Like
#16

QFP

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#17

You mentioned some people would be happy to board (their horses?). That will require infrastructure: horse-safe fencing, maybe multiple paddocks, maybe some lean-tos or run-in sheds, and water, to start. Working gates, as well - they need to open AND close and have good latches/chains (ask me about why that’s on my list). Plus parking for the boarders. Would you manage the horses? Self-care? Oh - and insurance. Especially if they will be riding on your property.

FWIW, I have two horses and I make in the mid-5 figures. Is my budget a bit stretched? At times. But I live in a very low cost of living area. CA is… not a low cost state. My horse expenses run me anywhere from $1300-$2000 per month, not counting emergencies. That is a separate line item, and I count on at least one a year.

What are the sort of taxes you will be paying on that land? You need to generate enough income to cover those taxes, minimum.

#18

I’m not quite sure what the (very impressive) California acreage has to do with anything, but I’m guessing the OP is a kid? Or an adult beginner, maybe?

The cost of horses completely depends on what you want to do with them, so “How much do I need?” is a meaningless question without more info.

Do you want to keep a tough, uncomplicated stock horse for the odd trail ride, or do you want an imported warmblood in full-time training with some terribly fancy BNT? That’s like the difference between a cute hoodie from Target and a boucle jacket from Chanel.

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#19

Rita Crundwell spent $53,700,000 taking care of her horses and did that while only making $80,000 per year

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#20

This post sounds very close to “bingo” to me.

Also, how much money do you need to keep horses? Well, you need all of it. Alllll the money.

4 Likes

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