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REQUEST FOR PROPOSAL
PARTNERSHIP FOR
INTERNATIONAL EQUINE FACILITY
STATEMENT
Information contained in this Request for Proposal (RFP) is confidential in nature. No information may be communicated or disseminated to a third party without prior written consent of the Michigan Equine Partnership.
GOALS
To build a World Class Equine Facility in the State of Michigan. This facility will include amenities and an overall design that does not currently exist in the United States. A facility of this magnitude will generate economic activity while promoting Agricultural Tourism and industry growth with the emphasis on the equine industry.
PROPOSAL REQUIRMENTS
Proposals with supporting data must be received or postmarked by June 1st, 2009. An oral presentation will be scheduled following a review by the MEP Equine Facility Steering Committee of the submitted reports. Oral presentations will be conducted at a mutually agreed upon location.
Proposals must include the following:
ORGANIZATION
The Michigan Equine Partnership is a grassroots, membership-driven coalition with the common goal of promoting equine interests as a hobby or livelihood through county ambassadors, a speaker’s bureau, lobbying and marketing.
Whether someone rides horses, sells equine tack and rider apparel, owns racehorses, breeds draft horses, grows hay, or practices equine medicine, the Michigan Equine Partnership (MEP) offers a united voice to:
The Michigan Equine Partnership facilitated a feasibility study for the funding and marketing of a Michigan Equine Facility designed for local, state, national and international equine shows and events.
ORGANIZATIONAL BACKGROUND
Formed in 2005, the Michigan Equine Partnership is a 501 c-6, non-profit with approximately 200 members committed to the entire equine industry.
CONTACT INFORMATION
Val Vail-Shirey
Executive Director
Michigan Equine Partnership
235 N. Pine St
Lansing, MI 48933
517-372-1500
517-372-1501 fax
Val@julianvail.com
TIME LINES
Formal proposals must be submitted on or June 1st, 2009. After review of all proposals, applicants will be notified of the final decision.
SUBMIT WRITTEN PROPOSALS TO:
Michigan Equine Partnership
235 N. Pine St
Lansing, MI 48933
val@julianvail.com
AGREEMENT
At the conclusion of this project, all materials, work sheets and supporting documentation developed by the consultant will become the exclusive property of Michigan Equine Partnership.
* * *
Economic Impact of the Michigan Equine Industry,
2006
Summary
Introduction
Recognizing the size and complexity of the Michigan horse industry, a team of
researchers from Michigan State University led an effort to analyze its economic impact.
More than providing a census of animals and facilities, the research employed economic
models to determine the direct and indirect impacts of the horse industry on the state’s
economy. The values were collected in the summer of 2007. Therefore, the number of
animals and operations as well as asset values were as of June 1, 2007 while the income
and expense values represented the last complete year (2006). The numbers reveal that
the equine industry generated $1.069 billion in annual economic impact for Michigan.
These values do not include racetracks but do capture race horses.
Equine operations by primary activity
There were 155,000 equine animals housed on 35,000 operations as of June 1, 2007.
Most of the operations were private residences which had an average of about three
animals.
Number |
Number |
|
|---|---|---|
| Private Residence | 26,600 |
86,000 |
| Boarding Stable | 1,000 |
11,500 |
| Training Stable | 550 |
7,500 |
| Breeding Farm | 1,600 |
21,000 |
| Lesson Stable | 200 |
2,800 |
| Other Farm | 4,400 |
20,000 |
| Other | 650 |
6,200 |
| Total | 35,000 |
155,000 |
Operations by number of head
Most operations had less than 10 equine animals. Compared to 1991, when the past
survey was completed, number of operations with 3-9 head grew by 44 percent.
1991 |
2007 | 1991 | 2007 |
|
|---|---|---|---|---|
| 1-2 Head | 14,700 |
15,400 |
24,000 |
24,000 |
| 3-9 Head | 11,500 |
16,600 |
54,000 |
76,000 |
| 10-29 Head | 2,150 |
2,650 |
33,000 |
38,000 |
| 30+ Head | 350 |
350 |
19,000 |
17,000 |
| Total | 28,700 |
35,000 |
130,000 |
155,000 |
Equine by primary use
The majority of equine animals were used for pleasure or were idle in 2007.
2007 |
1991 |
|
|---|---|---|
Head |
Head |
|
| Pleasure, idle | 79,000 |
60,500 |
| Breeding | 21,000 |
19,000 |
| Racing | 5,700 |
16,000 |
| Work(draft) | 12,600 |
8,500 |
| Competition(show) | 19,400 |
18,000 |
| Trail riding | 17,300 |
8,000 |
| Total | 155,000 |
130,000 |
Top sources of income for equine operations and owners
Michigan operations generated $150 million in income in 2006. Even though many
equine operations are not intended to generate income, racing, boarding and training
horses were the major sources of income. The other income category included income
derived from, among other sources, stud fees, mare care, feed sales and equipment sales.
Source |
Income |
% |
$ millions |
||
| Racing purses | 36.8 |
24.5 |
| Sale of equine | 32.1 |
21.4 |
| Boarding | 24.4 |
16.3 |
| Training | 18.4 |
12.3 |
| Lessons | 9.0 |
10.0 |
| Other income | 29.3 |
20.0 |
| Total | 150.0 |
100.0 |
These values are revisions to previous NASS estimates.
Annual expense categories for equine operations and owners
The top expenditure categories—excluding labor—were grain, hay, capital improvements
(labor and materials for buildings, fencing, etc), property taxes, health related
expenditures, boarding, training, hoof care, travel, and tack and clothing.
Expense Type |
Annual Expense |
|
$ millions |
% |
|
| Grain and supplements | 59.1 |
12.8 |
| Hay | 44.3 |
9.6 |
| Capital improvements | 43.5 |
9.5 |
| Property taxes | 40.4 |
8.8 |
| Veterinary and medicine | 36.1 |
7.8 |
| Boarding | 28.5 |
6.2 |
| Training fees | 26.9 |
5.8 |
| Farrier | 26.1 |
5.7 |
| Travel | 20.8 |
4.5 |
| Tack and clothing | 18.9 |
4.1 |
| All other expenses | 115.4 |
25.1 |
| Total | 460.0 |
100.0 |
These values are revisions to previous NASS estimates.
*Excludes labor expenses.
Labor Expenses
While the vast majority of labor was unpaid, Michigan equine operations spent a total of
$20.7 million on wages and another $4.5 million on benefits for labor in 2006.
Asset Value of the Michigan Equine Industry
The 35,000 equine operations in Michigan held assets valued at $4.35 billion including
$280 million in horses and other equine animals, $2.56 billion in land, and nearly $743
million in facilities and fences. These assets include race horses but not race tracks.
Asset Type |
Asset Value |
% |
$ millions |
||
| Equine animals | 280.2 |
6.4 |
| Land | 2,562.0 |
58.9 |
| Facilities (barns, fences, etc) | 742.6 |
17.1 |
| Fencing | 71.1 |
1.6 |
| Arenas and tracks | 42.2 |
1.0 |
| Tack and clothing | 70.0 |
1.6 |
| Tractors | 150.1 |
3.5 |
| Machinery/equipment | 61.4 |
1.4 |
| Trucks and trailers | 342.3 |
7.9 |
| Feed Inventory | 17.2 |
0.4 |
| Other supplies | 11.0 |
0.3 |
| Total | 4,350.0 |
100.0 |
These values are revisions to previous NASS estimates.
Summary of Annual Michigan Equine Expenditure Impacts
Expenditure impacts include all operations and owners. The total impact was $1.069 billion in
2006. The impact was composed of two parts: (1) the direct dollars spent by the equine industry,
and (2) the effect of those expenditures as they make their way through the state economy.
Direct* Annual Impact |
Indirect/Induced Impact |
Total |
Derived Multiplier** |
|
| $ millions | $ millions | $ millions |
||
| Total Operations and Owners | 703.9 |
364.7 |
1,068.6 |
1.52 |
* All dollar values measured in 2006 values.
** Ratio of total to direct.
Study authors
This report is the result of a joint effort of a research team at Michigan State University
with funding from Michigan State University Extension and the Michigan Agricultural
Experiment Station. Christopher A. Wolf is the principal investigator with respect to the
economic analysis. Steve Miller contributed significantly to the execution of the impact
assessment. Christine Skelly, Mary Rossano, and John Kaneene also had responsibility
for the survey. The National Agricultural Statistics Service Michigan branch and, in
particular, Marty Saffell were responsible for survey frame design and information
collection.
Methodology
This study is based on an extensive survey of the Michigan equine industry conducted by
the National Agricultural Statistics Service (NASS) of the United States Department of
Agriculture. NASS mailed the survey to potential equine owners and had staff visit
parcels of land representative of Michigan’s geography. The data from the mail surveys
and visits were combined to provide a statistically representative view of the number of
operations, equine animals, and economic variables.
Expenditure and asset information was fed into IMPLAN, a computer model of the
Michigan economy. This resulted in an estimate of the multiplier portion of the equine
industry’s impact on the Michigan economy.
******
Printable version of Request for Proposal
Printable version of Economic Impact Study
Printable version of Final Proposal
(Please note you must be able to download documents to your computer and you will need Adobe Acrobat Reader in order to view these.)
