NAICS 112920 Quarterly Industry Report
Horse and Other Equine Production
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 112920Sector: Agriculture, Forestry, Fishing and Hunting (11)Updated: Q1 2026
About This Report
This Fair Market Value industry report (NAICS 112920) provides valuation-focused intelligence for professionals assessing equine production businesses. Additional data is drawn from Bureau of Labor Statistics[5].. Data is sourced from USDA NASS Census of Agriculture[3], USDA ERS agricultural market analysis[4], and SBA size standards[6] to support business appraisals, acquisition due diligence, lending decisions, and investment analysis for equine enterprises.
Industry Definition & Overview
Horses and Other Equine Production (NAICS 112920) encompasses establishments primarily engaged in raising, breeding, and training horses, mules, donkeys, and other equines for sale or sport. The U.S. equine industry supports an estimated $7 billion market encompassing breeding operations, training facilities, boarding stables, and related enterprises. The USDA Census of Agriculture[3] captures equine inventory and farm data, with the industry characterized by a highly fragmented structure where no single company holds more than 5% market share.
Equine operations serve diverse market channels including thoroughbred and quarter horse racing, show competition across multiple disciplines, recreational riding, ranch and working horse markets, and therapeutic riding programs. Revenue depends on breed, bloodline quality, training level, competitive performance records, and regional market demand. Texas, California, Florida, Kentucky, and Oklahoma rank among the top equine-producing states. The USDA Economic Research Service[4] notes that equine enterprises frequently generate income from multiple sources including stud fees, broodmare boarding, young horse development, and sales consignment services. Operating costs are driven by feed, veterinary care, farrier services, facility maintenance, and labor, with many operations depending on supplemental income from owners.
Business valuations for equine operations must assess breeding stock inventory and pedigree quality, facility condition and capacity, training arena and track infrastructure, client relationships and boarding contracts, brand reputation within specific breed registries, and land value in areas where equine operations face development pressure. Tax considerations including IRS hobby loss rules and breeding depreciation schedules are critical factors in equine enterprise appraisals.
What's Included in This Industry
- Sector-specific valuation multiples and financial benchmarks for equine production operations
- Revenue and profitability analysis across racing, show, breeding, and recreational horse enterprises
- SBA size standard classification and lending threshold data for NAICS 112920
- Comparable transaction data from recent equine facility sales, breeding program acquisitions, and ranch transfers
- Breed-specific market analysis covering thoroughbred, quarter horse, warmblood, and specialty breed segments
- Workforce and labor cost benchmarking for trainers, barn managers, grooms, and exercise riders
- Industry risk assessment including market cycle volatility, liability exposure, and regulatory compliance
- Tax considerations overview covering IRS hobby loss rules, breeding stock depreciation, and like-kind exchanges
- Capital expenditure profiles for barns, arenas, tracks, fencing, and equine-specific infrastructure
- Production metrics including foaling rates, sales prices by breed and age, and training program outcomes
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Agriculture, Forestry, Fishing and Hunting | 11 |
| Subsector | Animal Production and Aquaculture | 112 |
| Industry Group | Other Animal Production | 1129 |
| NAICS Industry | Horses and Other Equine Production | 11292 |
| National Industry | Horses and Other Equine Production | 112920 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 711211 | Sports Teams and Clubs | Spectator sports establishments including horse racetracks and rodeo organizations that create downstream demand for trained performance horses |
| 713990 | All Other Amusement and Recreation Industries | All other amusement and recreation industries including riding academies, trail riding operations, and equestrian recreation enterprises |
| 541940 | Veterinary Services | Veterinary services providers delivering equine health care, reproductive services, lameness diagnostics, and performance medicine programs |
| 115210 | Support Activities for Animal Production | Support activities for animal production including equine farrier services, nutritional consulting, and breeding management advisory programs |
| 424520 | Livestock Merchant Wholesalers | Livestock wholesale merchants and auction companies that support horse marketing transactions including consignment sales and private treaty deals |
| 311119 | Other Animal Food Manufacturing | Other animal feed manufacturing operations producing specialized equine feeds, supplements, and performance nutrition products for horse operations |
SBA Lending Summary
136
Total SBA Loans
$110.0M
Total Loan Volume
$809K
Average Loan Size
13 yrs
Average Loan Term
9.50%
Average Interest Rate
480
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[2]
Key Insight: The SBA[7] classifies Horses and Other Equine Production (NAICS 112920) with a size standard of $2.75 million in average annual receipts. Most equine operations are small family enterprises or boutique breeding programs well within this threshold, qualifying for SBA-backed lending[8], government contracting preferences, and USDA agricultural support programs. Eligible businesses can access SBA 7(a) loans[9] for working capital, equipment, and acquisition financing, while 504 loans[10] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | U.S. Bank, National Association | 8 | $34.0M | $4.3M |
| 2 | Zions Bank, A Division of | 8 | $25.3M | $3.2M |
| 3 | Live Oak Banking Company | 8 | $23.5M | $2.9M |
| 4 | The Huntington National Bank | 40 | $20.7M | $518K |
| 5 | Celtic Bank Corporation | 8 | $1.2M | $150K |
Frequently Asked Questions
Common questions about this industry.
What is the NAICS code for horse breeding and production?
Horses and Other Equine Production is classified under NAICS code 112920, covering establishments primarily engaged in raising, breeding, training, and selling horses, mules, donkeys, and other equines.
What is the SBA size standard for equine production?
The SBA[7] sets the size standard for NAICS 112920 at $2.75 million in average annual receipts, qualifying eligible equine operations for small business lending programs and government contracting preferences.
How large is the U.S. equine industry?
The U.S. equine industry supports an estimated $7 billion market per industry analysis, with the USDA Census of Agriculture[3] tracking thousands of equine operations across racing, show, breeding, and recreational market segments.
What factors drive equine operation valuations?
Key valuation drivers include breeding stock pedigree and competitive records, facility quality and capacity, training program reputation, client relationships, land value, and geographic location relative to equestrian market centers per USDA[11] agricultural data.
What tax issues affect equine enterprise valuations?
The IRS[12] hobby loss rules (Section 183) require horse operations to demonstrate profit motive, while breeding stock depreciation schedules (typically 7 years) and potential like-kind exchange treatment under Section 1031 for breeding animals affect after-tax enterprise value.
Which states lead in equine production?
Texas, California, Florida, Kentucky, and Oklahoma rank among the top equine-producing states per USDA NASS[13] data, with Kentucky holding particular prominence in thoroughbred breeding and racing.
What revenue streams do equine operations generate?
Revenue sources include horse sales, stud fees, broodmare boarding, training fees, lesson income, show prize money, breeding stock commissions, and facility rental for events and competitions.
What risks affect equine operation valuations?
Critical risks include market cycle volatility in bloodstock prices, high liability exposure from equine activities, competition from alternative recreation, labor shortages in skilled positions, and property tax and land use pressures in suburban areas.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [3]USDA Census of Agriculture nass.usda.gov
- [4]USDA Economic Research Service ers.usda.gov
- [5]Bureau of Labor Statistics bls.gov
- [6]SBA size standards sba.gov
- [7]SBA sba.gov
- [8]SBA-backed lending sba.gov
- [9]SBA 7(a) loans sba.gov
- [10]504 loans sba.gov
- [11]USDA usda.gov
- [12]IRS irs.gov
- [13]USDA NASS nass.usda.gov
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