Go Canada - innovations to support breeders and buyers in Ontario

Words - Ken Snyder

With apologies to patriotic Canadians everywhere, the “O” that begins the nation’s stirring and beautiful national anthem might be adopted and altered by the Ontario horse industry to “Go Canada.” A reason?  Divide 173 race days (133 at Woodbine, 40 at Fort Erie) by approximately $65 million CAD in purse money. Go Canada indeed.

“If you have a good horse, there is an opportunity to make significant money here in Ontario,” said Peter Berringer, president of the Canadian Thoroughbred Horse Society and also someone with “skin in the game,” as they say.

He is a trainer with both a small string stabled at Woodbine and broodmares and stallions at his farm, Aurora Meadows in Rockwood Ontario, west of Toronto. He, like other Canadian trainers, is in the hunt for purse money that might surprise those in the horse industry. Statistics for 2021 from The Jockey Club (TJC) show that 1,853 Ontario starters earned $43,612,419 USD ($56,790,117.87 CAD) or $23,536 ($30,646.39 CAD)  in earnings per runner last year. The figure beats the same statistics for California, Florida, Louisiana and Texas.  

Earnings, however, are only a part of the story. Financial incentives to breeders in Ontario through a Mare Purchase Program (MPP) and Mare Recruitment Program (MRP)* make investments in Ontario racing worthwhile both for the present and in the future in breeding and racing. The MPP provides Ontario buyers of in-foal mares at select U.S. horse sales 50% of the purchase price up to $25,000 CAD.  Sales include Wannamaker’s Online Sale; Fasig-Tipton November Breeding Stock, MidAtlantic Winter Mixed, and Kentucky Winter Mixed sales; the OBS Winter Mixed Sale; and Keeneland November Breeding Stock Sale and January Horses of All Ages Sale. Additionally, there is a $2,500 CAD incentive for every mare bred back to a registered Ontario sire.

With Ontario horse sales under the recruitment program, mare owners bringing an in-foal mare into the province can receive $5,000 CAD through a Thoroughbred Improvement Program (TIP). The incentive applies to up to five in-foal mares per owner or entity. The $2,500 CAD incentive for breeding back to a registered Ontario sire applies also as with mare purchasing. 

Berringer said a few new stallions annually come into the province but that “the issue is we don’t have a large number of resident mares. 

“Mare Recruitment is trying to help us build Ontario-bred numbers,” said Berringer. “People will foal here and hopefully, with the incentives, people will breed back here. Then, when they have their horses, they’re probably going to benefit the most financially by racing in Ontario because you’re running for 40-percent bonuses if you’re running an Ontario-sired, Ontario-bred horse.” He added that the goal is twofold: to drive the Ontario horse population and increase the quality of the stock running in the province.

PETER BERRINGER

Funding for both the MPP and the MRP is through the TIP and comes from a pari mutuel tax returned by the government to the horse industry. Breeding programs total over $7 million CAD from the TIP, according to Berringer.

Ontario-breds are more than just important to racing in the province, according to Berringer. “It’s pivotal to racing. A strong breeding development program relates directly to our local horse sales and the racing product. We need a strong breeding program to have sustainable racing.”

Government statistics estimate that 45,000 people in Ontario depend on or benefit from horse breeding and racing, but Berringer thinks the figure might be low. “You have to be able to sustain all those farms and spinoff jobs on the farm and farm-related, which are imperative to the economic sustainability of rural communities.”

Berringer, as a farm owner, is sensitive to the impact of breeding and racing on operations and individuals not directly related to horse racing. His introduction to Thoroughbreds was working as a teenager at an uncle’s farm. “It was a multifaceted Thoroughbred farm with usually 60 to 120 horses at capacity in the winter. There were stallions and broodmares, yearlings and racehorses. I was lucky to have exposure to handling stallions, breeding and reproductive exposure, foaling, yearling sales prep, yearling sales, and breaking and training,” he said.

Transitioning to training came in his late 20’s when he was, at that time, the farm’s general manager/trainer. “I started to focus on training and racing because of the action and reducing my farm business to outside clients and a successful horse quarantine operation that I was operating for international horses.” On the farm, he met and worked with successful trainers and owners, and had exposure to top-tier Canadian champions.

Increased responsibilities on the farm along with obtaining a university degree while still working on the farm in the 1980s fed a burgeoning passion not just for the horses but the business.

This passion puts him on the tip of the spear for challenges not just facing his own racing and farm operations, but all Canadian horsemen and horsewomen. Canada’s tax structure for the horse industry is, according to Berringer, “the biggest detriment to our racing program.” It calls for a write-off of $17,600 [CAD] per entity per owner, a pittance compared to the U.S. tax structure that this year allows a 100% deduction of the purchase price of a horse. Lobbying efforts to improve the tax structure in Canada have been ongoing for some time but without much, if any, progress.  

In addition to incentives, there are also efforts on the racetrack to benefit Ontario horsemen and horsewomen. The Heritage Series of eight races for three-year-old Ontario-sired horses—four for fillies and four for colts—is in its second year divided between six races at Woodbine and two at Fort Erie between July and September. The Series provides an obvious boon to Ontario-sired horses to run in restricted stakes races. Last year, the first for the Series, purses for the eight races totaled $750,000. This year purses will increase from $80,000 to $100,000 per race. Horses accumulate points over multiple races with the points leader among fillies and colts earning a $20,000 bonus. Second- and third-place finishers in points earn bonuses of $10,000 and $5,000.

Lastly, if not most importantly, Ontario’s annual Premier yearling sale, this year at the Woodbine Sales Pavilion on August 31, generates interest and sales for Ontario-breds and not just within the province.  Berringer said many American owners with Canadian trainers as well as American trainers who race in Canada shop the Premier sales. “If you’re racing up here, it’s good to have an Ontario-bred horse because it gives you eligibility to a substantial and lucrative incentive program and bonuses as well as a possible place in the Queen’s Plate with a million-dollar purse as well as other stakes races.” 

Probably surprising to U.S. buyers are Canadian exports to U.S. sales. “There are 100 to 150 yearlings that sell every year down in Kentucky that are Ontario-bred,” said Berringer.

If Ontario racing is highly aggressive among racing jurisdictions in its breeding programs and incentives, it is, quite frankly, because it has to be. The COVID pandemic provides a prime example. “COVID really knocked the industry down when there were no spectators. At least in the U.S., spectators were allowed and business went on. We didn’t have any of that.” Adding to empty grandstands, Ontario racing, which usually begins in April, was pushed back to a June start in both 2020 and 2021. American racing, for the most part, continued the same meet schedules in the COVID restrictions.

Of course, Ontario racing right now experiences the same issues facing other racing jurisdictions in the U.S. All have horse shortages. Ontario may be complimented, though, for creating a means to minimize the effect on field sizes and typically producing fields larger than that in the U.S. Berringer points to racing secretaries at Woodbine both adding conditions and combining them to draw more entries into races. A recent Saturday at Woodbine and Santa Anita showed 84 starters for 10 races at Woodbine (8.4 per race) and only 68 starters for the same number of races at Santa Anita (6.8).  

Another issue shared by Ontario with the U.S. is a chronic labor shortage. The situation may be more acute in Canada than in the U.S. with a smaller immigrant base from which to draw. “A lot of the people that come to Canada are from Barbados and Jamaica to work on the backstretch, and it’s getting more and more difficult to obtain work permits. It’s increased over COVID,” said Berringer. The U.S., by contrast, has Central and South American countries with larger populations that have traditionally supplied their horse industry. The impact can be seen, said Berringer, by some U.S. stables who formerly came to Ontario to race, no longer coming north.

Home-grown efforts are underway to address labor shortages. Berringer points to a new program that the Ontario government started this year, which trains people for the horse industry and then provides financial assistance for the continuation of training. He takes a wait-and-see attitude toward the impact it may have. “It’s hard to find people to do this work early in the morning.” That goes for both Ontario and the U.S. 

The one major difference between Canadian racing and American, and where Canadian racing is most lacking in comparison is with new owners. There is just not the population base or large enough body of families historically involved in racing in Canada as in the U.S. “Racing struggles with this everywhere and probably the creation of a large fractional owner syndicate, and introducing people to the sport and excitement of it all, hopefully, will encourage new participants and they’ll purchase more and invest more in the industry once they get a taste for it; but it’s a struggle to find new breeders and owners,” said Berringer. 

He noted that leading Canadian trainer Josie Carroll, along with other top trainers in the U.S., receives horses bought by MyRacehorse, a syndicate offering “micro shares” that has been successful both in terms of business and on the racetrack. MyRacehorse, still in relative infancy, was part owner of the 2020 Kentucky Derby winner, Authentic.

Canada’s horse industry, not surprisingly, is dependent on its larger neighbor to the south, with a much larger selection of stallions. “It used to be a couple of years ago; it was 70 percent local horses produced [in Ontario],” said Berringer. “Now, it’s a fifty-fifty split.” He added that it is a trend more attributable to a decrease in Ontario of local breeding participants than an increase in U.S. stallions. 

Quantity, however, does not necessarily dictate quality. Bigger purses divided by a smaller pool of horses, as cited in the opening of this story, improve the odds for earnings with Ontario horsemen and horsewomen. “You’ve got to put it in perspective. In Ontario, we’re probably producing just over 750 foals a year. Statistically, there’s a lot more money for our foals than a lot of other jurisdictions.”

A point of pride with Berringer and other Canadians in the horse industry is the success of Ontario-breds. Say the Word, Channel Maker, and Count Again, who recently won a Gr. 1 race in California are only three of many Ontario-breds succeeding on the racetrack. Recently retired Pink Lloyd, sired by Old Forester, is, perhaps, the biggest star of Ontario-breds. Career earnings totaled $2,455,430 and included five Sovereign Awards for Champion Male Springer and the 2017 Sovereign Award for Horse of the Year. Incredibly, his wins were in 26 stakes races. Let it not be forgotten as well that the dam of this year’s Kentucky Derby winner Rich Strike is Gold Strike, Canada’s Sovereign Award Champion 3YO Filly in 2005.

The issue for Ontario racing isn’t good horses, apparently; it is just the need for more of them. With breeding programs, added racing for Ontario-breds, and the Premier sales, it won’t be for lack of trying. That especially holds true for Berringer, who is quick with a quip: “I still love horses and horse racing and still enjoy going home to the farm every day--ok most days--to work.  

Go Canada.

*Applications for the MPP and MRP by Ontario horsemen and horsewomen are available at the Canadian Thoroughbred Horse Society’s website, cthsont.com, under “Breed” and then “Incentives.”