SO YOU WANT TO BE A HORSE TRAINER!
IT MAY NOT BE AS EASY AS YOU THINK
By Rick Dennis
March 11, 2015
Many an aspiring horse enthusiast has looked to the professional horse-training occupation as a lifelong career in the equestrian world. I receive a lot of inquiries pertaining to the business matrixes involved in becoming a self-employed horse trainer. Equally, the next phase of questioning involves outlining a business model or guide he or she may use to establish a private entrepreneurship in the equine industry. My answers are generally always the same: “Becoming a self-employed horse trainer as a general occupation requires a lot more knowledge and involvement than just training horses.”
Chelsi Guillory, a student of Rick Dennis, Gonzales, La., rode Some Hot Chic (Cali), to the Louisiana Stock Horse Association Triple Crown Championship and are money earners in reining, cutting and cow horse competition.
Even though becoming a successful and talented horse trainer and/or an instructor able to teach students how to win in the arena, may be someone’s ultimate goal, it’s equally important for the entrepreneur to understand and apply basic business principles from the onset of his or her entrepreneurship to avoid certain pitfalls associated with marketing, taxes, IRS 1099 issuance, insurance, banking, bookkeeping, accounting, operating costs, cash flow, equipment costs or determining if you, or those who may work for you, are employees or contract labor.
To the aspiring horse trainer and/or instructor, my first recommendation is to locate a higher educational training facility specializing in business courses or locate a business tutor from an individual just graduating from college with a business degree. From this interaction the aspiring horse trainer will receive an invaluable wealth of knowledge in understanding basic business principles, which are conducive to starting and operating a successful privately owned business. The business world is filled with pitfalls the young trainer should be aware of prior to engaging in self-employment and the only avoidance available is education through a business curriculum, private tutorship or on-the-job training.
Many a private-sector business has failed due to the latter, simply because the first-time entrepreneur doesn’t understand the basic principles of business, is not properly prepared to balance income and expenses, doesn’t allocate money to pay required business taxes plus penalties (where applicable), and at the end of the year finds his or herself in a deep hole from which there is no recovery. In order to run a successful business, the manager must be a master in time management, use common sense, and do the right thing. During the day, the manager of a privately owned business wears many hats to ensure every phase of the business is properly addressed in order to stay in operation and ensure profitability.
YOUR BUSINESS PLAN
Each new business should start with a well-thought-out and written business plan. The business plan should outline not only the goals of the entrepreneur but the necessary steps to achieve success. A business plan should be assembled in a realistic and common-sense manner that transforms the business over time, with expansion or reduction being adjusted to available cash on hand and not speculation. As the old adage goes, “A bird in the hand is worth two in the bush!”
The plan should also include adding adjunct enterprises to your horse-training business as multiple sources of revenue generation (i.e.) student training, horse breeding, horse selling, horse boarding, etc. Generally speaking, the best plan is one that incorporates many sources of income instead of relying on just one type. This ensures a steady cash flow when other sources of business income are experiencing a decline in revenue.
Charles Richardson, Jr., a top student trained by Rick Dennis, won five World Championships and one Reserve World Championship. He has won AQHA.LQHA State Championships and money earnings of over $417,000 in team penning, team sorting, reining, cow horse and NCHA.
The next step is to decide how you are going to receive the necessary training to enable you to open, operate and maintain a successful, privately owned horse-training facility. Generally there are two ways of going about receiving the proper training: either you work for a trainer as a “contract laborer” or an “employee.”
The difference between the two is a “contract laborer” is responsible for paying his or her self-employment taxes to include individual state and federal income taxes, federal Medicare and social security taxes, which includes the initial self-employment taxes as well as the employer match. At the end of the year, you’ll receive an IRS 1099 from the trainer you are working for, stating the exact amount of gross money you were paid ($600) and over) for which you will be responsible for paying your share of taxes to the taxing agencies. The combination of Medicare and social security taxes alone computes to 15.3 percent of your net profit.
On the other hand, if you have “employee” status, these taxes are automatically deducted from your payroll check and the matching amount is paid for by your employer. At the end of the year, you will receive a W-2 from your employer. It will state the exact amount of money you were paid along with the total itemized deductions. You will then file the IRS W-2 form with your annual federal and state tax filings.
The IRS has common-law rules to determine whether or not your relationship with a trainer falls in the employee or independent contractor category. In an abundance of caution, it’s advisable for the entrepreneur to seek counsel with a tax attorney or a certified public accountant to determine which category your relationship status falls into. Preplanning on your part may save you a lot of grief when it comes to tax filing time. For example, you could think you’re an “employee” and at the end of the year you receive an IRS 1099 advising you that you’ve been working as a self-employed individual (contract laborer) and you haven’t set aside the proper IRS or state withholding taxes during the year. This means that at the end of the year you may owe a significant amount of taxes for your failure to set aside the proper amount of withholding money.
Also, once you feel you have learned enough to become a trainer on your own and hire help, the above information is very important to help you run your own training business.
To protect his or her assets, the entrepreneur should be well educated in business insurance requirements. It’s advisable to sit down with an insurance agent specializing in the business needs of the horse industry to insure that you, as a professional trainer, are well protected in the event of litigation, accidents, injury or environmental disasters. If your horse-training facility is located on your personal property, a qualified insurance agent can steer you in the right direction concerning required insurance applications.
LEGAL BUSINESS STRUCTURE
The next addressed item in your written business plan is to decide what type of legal business entity you should use to best address your needs as well as protecting your assets in the event of litigation. The common names for a legal business entity depends on your needs and are often referred to as: a Corporation (S & C), Limited Liability Company, Sole-Owned Proprietorship, Partnership, etc. A visit with a business attorney should answer which category is best for you.
MARKETING YOUR BUSINESS
Danetta Comeaux shown with WR Masters Lady and Dual Peps Taffy. Trained by Rick Dennis, she and her horses won AQHA/LQHA State Championships and were World Qualifiers in reining and working cow horse. They were also reined cow horse champions and money earners.
The most advantageous way of marketing your newly formed business is by winning in the show arena in performance horse competition. Once you have established yourself as a winner, your client growth is due in part to word of mouth. A good website is another way of marketing your training facility and yourself. There are a lot of good, do-it-yourself websites out there in the industry to help you out. Still another way is to attend marketing seminars to educate yourself in the most advantageous means of marketing your training facility.
The first premise of business is to understand the banking world. Balancing a checkbook not only ensures that you have a daily working knowledge of the amount of cash on hand in your bank account but it also protects you from an overdrawn bank account. Another important aspect of banking is maintaining a great credit rating. A good credit rating is a vital necessity to the privately owned business owner to ensure credit card issuance, loan availability or a line of credit to run your business while you are waiting for accounts receivable to come in.
Another important aspect of running a successful business is to have accurate bookkeeping records. This is the part of your business that sends out invoices for services rendered or out-of-pocket reimbursable expenditures, accurately records accounts receivables, accounts for cash receipts or money spent, and overall balances the books for accurate tax filings. A good bookkeeping system can be set up and maintained by you or your wife, or you can hire an outside person or agent to perform this job. Either way, an accurate set of accounting records is the heart and soul of a properly run business.
Over all, I’ve been in business since 1984. Unlike most professional trainers, where horse training is their principle line of employment, my professional horse-training facility was added as an adjunct business to an already existing business as another source of revenue. This concept has afforded me the opportunity of enjoying my passion of training and showing reined cow horses, while at the same time providing my business with a cash infusion from another revenue source. The advantage of having a professional horse-training facility as an adjunct business, instead of a principle business, is that while my horse business may decline from time to time, my other sources of revenue ensures my business remains in operation and financially balanced.
So in the end, if your desire is to become a professional horse trainer, an education in basic business principles is a prerequisite to operating a successful horse-training facility, along with feeding horses, mucking stalls when the help doesn’t show up, exercising and training horses, learning to take care of a sick or injured horse, hauling up and down the road to show client horses as well as learning to win in the performance arena.
“Until Next Time, Keep ‘Em Between The Bridles!”
© copyright 2015, all rights reserved.
Wind River Company LLC
Richard E. “Rick” Dennis
Office/Mobile: (985) 630-3500
Web Site: http://www.windrivercompanyllc.com
THE FOUNDATION OF NEIDHART’S BREEDING PROGRAM IS BUILT ON LEGENDARY BLOODLINES
NEW FACILITY IN WEATHERFORD IS JAW DROPPING
By Glory Ann Kurtz
March 11, 2015
Jeff and Griselda Neidhart with Zara and Alan, two of their four children.
Photo by Kurtz
Look out cutters – there’s a new kid in town.
Jeff Neidhart, who lives in Farmington, N.M., is a highly successful individual in several diversified fields. They include practicing oncology and hermatology at his clinic in Farmington, New Mexico, being a sixth-degree black belt in Ji Do Dwan Tae Kwon Do, as well as the founder and master instructor at his own non profit Traditional Tae Kwon Do Institute. He also owns the first commercial Pinon Pine Nut Farm in the United States, with over 5,000 pinon trees and also founded the Farmington Botanic Gardens that connect the River Beach Foundation River Walk to the city of Farmington Park and Recreation lands.
The Neidhart Cutting Horses temporary sign at their new facility in Weatherford, Texas.
Photo by Kurtz
However, today, even though he is a physician, he has contracted the cutting disease and as a result owns some of the best broodmares in the industry that are being bred to the industry’s top stallions. He also has moved to the second state of this disease: renaming his cutting horse program “Neidhart Cutting Horses” and building a horse facility outside of Weatherford that is an innovative state-of-the art and jaw-dropping sight.
In the beginning …
Jeff’s father, Jim, and his brother David, grew up in Newton Falls, Ohio. Their farm was full of walnut trees and he and his brother farmed, rode horses, fished and hunted game birds on the family farm. David was an orthopedic surgeon and started a practice in Mankato, Minn. Jim and Jeff are both hermatologist/oncologists, with his father committing his professional career toward academic cancer patient care and research; first at The Ohio State University then MD Anderson/Comprehensive Center, followed by the University of New Mexico.
“I used to ride every weekend 20 years ago,” said Jeff. “Later, my father wanted top horses and got into reining but it just didn’t work and he got out.”
In 2002, Jeff’s father recruited him to help continue his patient care and research at the San Juan Oncology Associates PC in Farmington. Jeff followed much the same path as his father with medical training in internal medicine and hermatology/oncology at the University of New Mexico, Ohio State University and the University of Alabama in Birmingham.
While he was attending the University of New Mexico, Jeff started looking at horses and was impressed with Peppy San Badger. He started researching pedigrees and bought a Paint mare. His father even drove to Texas to breed their horses to Gay Bar Olena, a Paint stallion owned by Floyd and Mary Ann Moore of the 6J Paint Horses in Huntsville, Texas. His pedigree was regal, being sired by Doc O’Lena out of Delta, a Paint mare that was an NCHA Open Super Stakes finalist, a member of the NCHA Hall of Fame and the producer of earners of over $320,000. The ranch’s program was founded on great Quarter Horses, including Doc O’Lena, Peppy San Badger and their offspring.
Jeff and his wife Griselda, who is from the Dominican Republic and holds a medical degree in the specialty of Family Practice and Nutrition and is also a professional photographer, are the parents of four children: Haley, Madison, Zara and Alan. When the Neidharts are not working or enjoying cutting horses, you will find them admiring art or collecting antiques. Both are avid skiers and spend as much time as possible skiing and hiking the mountains of Colorado.
With the seed of cutting horses and their genetics planted in Jeff’s mind, he began his journey into the cutting horse business in 2011 with a few nice horses and soon became infatuated with cutting horses, their intelligence, beauty, physical ability and, most of all, their genetics.
Royal Blue Boon
In 2012, the couple expanded Neidhart’s dream by purchasing their foundation broodmare band from Elaine Hall, who owned NCHA Futurity Champion and leading sire Peptoboonsmal (Peppy San Badger x Royal Blue Boon) and his famous dam, Royal Blue Boon (Boon Bar x Royal Tincie x Royal King x King).
“I spoke with Elaine Hall and decided I really liked Patches Of Blue (Smart Little Lena x Royal Blue Boon) and her pedigree that goes back to the legendary Smart Little Lena and Royal King on the bottom. She said she would think about it and she wanted me to think about it and to call her later. She told me that I didn’t want that mare because she was old (born in 1994) and had Cushings disease. But I really liked the pedigree of that mare so Elaine put together a package deal for me where I could get My Sweet Sheree (a 1996 gray mare by Freckles Playboy x Docalady by Doc Bar), along with Patches of Blue and some others.”
Two of Jeff’s other purchases were a yearling mare named Bet This Girls A Cat (High Brow Cat x Bet Yer Boons x Peptoboonsmal) and the yearling mare One Catty Cupid (One Time Pepto x ARC Catty Dual), an NCHA Futurity Unlimited Amateur Champion and Augusta 4-year-old Futurity Open Reserve Champion that had been trained by Phil Rapp. Catty Cupid was sold in 2013 and Bet This Girls A Cat in 2014.
Even though he had never ridden a cutting horse, he became enamored with their pedigrees. (Since then Jeff has been to two of Phil Rapp’s cutting clinics and is planning on returning this June).
A scientific look at breeding cutting horses:
“I studied how people were breeding and realized that studying breeding and breeding crosses was serious business,” said Jeff, who by his own admission is “a scientist,” studying the Rasmussen Factor, Hybrid Vigor, Nicks, Genotypes, Phenotypes in horses.
Two foals on the Neidhart Cutting Horse ranch from an ad advertising “Our Foundation is built on Legendary Bloodlines.
The Rasmussen Factor (RF) is a term used, mostly in Thoroughbred circles, to describe inbreeding to superior female families through different individuals. The inbreeding must occur through the sire and the dam (i.e. be on both sides of the pedigree) and the duplication of the inbred female must be within five generations. Thus, inbreeding to full or half siblings with four generations would qualify, while inbreeding to the same son, would not. As an example, the highly successful sire Hydrive Cat (High Brow Cat x Ruby Tuesday DNA x Peppy San Badger) bred to Sweet Lil ruby (High Brow CD x Playboys Ruby) is an example of the Rasmussen Factor, with a 3×2 RF to Playboys Ruby. Once In A Blu Boon is another example of the Rasmussen Factor.
Click for Rasmussen Factor information>>
Hybrid Vigor, heterosis or outbreed enhancement is the improved or increased function of any biological quality in a hybrid offspring. An offspring exhibits heterosis if its traits are enhanced as a result of mixing the genetic contributions of its parents.
Click for information on Hybrid Vigor>>
The genotype-phenotype distinction is drawn in genetics. Genotype is an organism’s full hereditary information. “Phenotype” is an organism’s actual observed properties, such as morphology, development of behavior. This distinction is fundamental in the study of inheritance of traits and their evolution.
Click for Genotype-phenotype distinction>>
Nicking is the theory of copying the mating of a successful horse to produce another successful horse. Nicking theorists believe there is a benefit to the crossing of certain horses or sire lines and successful crosses can be repeated.
Jeff has discovered the usefulness, through the advice of Shane Plummer, owner of SDP Buffalo Ranch, and extensively uses www.equineline.com, an Internet program popular in the Thoroughbred industry but now including AQHA horses. It involves pedigrees, race records, mare produce records, sire progeny reports, nicking reports and much more for Thoroughbreds and Quarter Horses.
A “foundation” breeding program built on “legendary” bloodlines:
When he purchased Bet Yer Boons (Peptoboonsmal x Bet Yer Blue Boons), she was staying in Canyon, Texas, with Gregg Veneklasen, one of the leading veterinarians in the reproduction and cloning fields. He and Gregg have become good friends. It was during this time when he was introduced to cloning.
Jeff uses cloning to bring some of the industry’s greatest horses into his breeding program, which Jeff does in a very scientific way. In fact, today, he owns five clones of some of the industry’s greatest broodmares.
Royal Blue Boon Two and Royal Blue Boon Too, two yearling clones of Royal Blue Boon
Pedigrees and his breeding program are on Jeff’s mind today, with genetics being at the top of his list. He returned to Elaine Hall’s ranch and purchased Royal Blue Boon Two, a clone of Royal Blue Boon, the No. 1 cutting producing mare of all time with offspring earning close to $2.5 million. Some of her outstanding offspring include Peptoboonsmal, one of today’s leading cutting horse sires; Red White and Boon, an NCHA World Champion and her leading money-earning offspring, as well as Autumn Boon, Mecom Blue, Bet Yer Blue Boons, Peek A Boon, Duals Blue Boon and Peppys From Heaven. He also bought the recipient mare carrying Royal Blue Boon Two’s first foal, a Dual Smart Rey bay named Boon Smart Rey.
He also purchased recipient mares carrying clones of Peppys From Heaven (Peppy San Badger x Royal Blue Boon), a full sister to Peptoboonsmal with lifetime earnings of approximately $170,000 and Docalady ( Doc Bar x Patches of Blue x Smart Little Lena). Those clones are weanlings.
With his new purchases of these recipient mares carrying top-bred clones, he would soon become the owner of some of the best-bred horses in the cutting horse industry. Even though they could not become AQHA registered at the time, this did not deter Neidhart. He was intent on raising some of the best-bred performance horses in the industry by combining the genetics of the greatest cutting horses of the past with those of the current generations.
A cutting horse operation in Weatherford:
Seeing the need to be in the mainstream of the industry, the Neidharts bought 160 acres on Ballard Road, outside of the industry’s cutting horse capitol -Weatherford, Texas, that had been neglected and overgrown for at least eight years.
Vern Martin, Neidhart’s foreman from Farmington, and his wife Charlie, moved to Texas to set up the new ranch that only had a couple of small houses with very few upgrades on it. However, due to Neidhart’s desire for the best-of-the-best, today the ranch has become a bustling construction site that, when finished, could be the state-of-the-art cutting horse facility within the entire cutting horse industry.
Neidhart’s 264 x 228 show barn complete with breeding facilities, place for breding stallions, small arena, walker, breaking pen and seating to show horses to prospective buyers.
Photo by Kurtz
With a passion for excellence, Neidhart is building that looks like a huge arena. However, it is a huge show barn, 264 feet x 228 feet, including complete breeding facilities and a place for breeding stallions, a small arena, walker, breaking pen and even seating for showing horses to prospective buyers, along with several apartments ands other amenities. Close by is a separate and beautiful 250 feet x 150 feet indoor arena, along with a 40-stall foaling barn.
Neidhart had timed it right, as he was also lucky enough to hire Kathleen Braden as his Manager/Cutting Horses. Braden had run Don Horton’s Strawn Valley breeding and training facility until his highly successful 2012 dispersal sale. It was at that sale that Neidhart met Kathleen when he was the high buyer of the dispersal, paying $120,000 for a 2-year-old red roan colt, Smart N Metallic, sired by one of the industry’s hottest young stallions, Metallic Cat, out of The Smart Look, the No. 1 leading, living producer of NCHA money earners.
The purchase of the young stallion instantly catapulted Neidhart into the cutting horse show industry when he sent the 2-year-old to leading trainer Phil Rapp.
Today, Braden takes care of some of the best-bred broodmares in the industry, several with babies at their side, all sired by the industry’s most popular stallions and grazing in a beautiful green pasture. Another pasture includes well-bred, beautiful yearlings and yet another that holds recipient mares. He has several 2-year-olds at leading trainers’ facilities, including Rapp and Beau Galyean.
A yearling filly by Peptoboonsmal out of Ruby Red Cat, an earner of $37,857, and a High Brow Cat daughter out of the great mare Playboys Ruby. (shown with carrier mare)
She also oversees the broodmares who are currently having babies, and include Patches Of Blue (Smart Little Lena x Royal Blue Boon), a full sister to Red White And Boon, cutting’s all-time leading money-earning horse with $922,063 in earnings. Her produce have earned $122,000 in NCHA and NRCHA; Bet Yer Boons (Peptoboonsmal x Bet Yer Blue Boons) “Bonnie” winning over $73,000 as a finalist in both the NCHA Futurity and Super Stakes and with offspring earning over $241,000; Ruby Red Cat (High Brow Cat x Playboys Ruby x Freckles Playboy) with aged-event earnings of $37,857,making finals 23 times, dam of five performers and offspring earning $74,281 to date. (Playboys Ruby is NCHA’s #2 all-time leading producer, whose foals have won $1.7 million) and My Sweet Sheree (Freckles Playboy x Docalady), a full sister to the great mare Some Kinda Playgirl, listed by Equi-Stat as a top broodmare with lifetime earnings of $600,129. Sheree’s offspring have earnings of $27,138.
The Neidhart’s latest acquisition is June Bug Dually (Dual Pep x Junes Little Money x Smart Little Lena) with lifetime earnings of $224,733, third in 2007 NCHA Open Futurity with a 222, and a 2008 NCHA Super Stakes and Breeders Invitational finalist; semifinalist in the NCHA Open Derby, trained by Paul Hansma. She was also the 2010 Waco Futurity/Classic Non-Pro Champion. Jeff is planning on breeding her to Boon A Little, 1999 blue roan son of Smart Little Lena out of Autumn Boon, owned by Jill Freeman’s Charlotte Farms.
“That cross will produce female family inbreeding (Rasmussen Factor) to Peppy Belle by the way of Mr San Peppy and Peppy San, and Teresa Tivio, by way of Doc’s Remedy and Boon Bar, five generations back,” says Neidhart, who has four breedings to the young stallion. “I think they will be amazing horses.”
He also purchased Boon Quixote, a 1997 daughter of Boon Bar out of Chicks Magic Quixote by Doc Quixote; ARC Special Lena, Jae Bars Miss Quixote, and Sweet Little Ruby, a 4-year old mare by High Brow CD out of Playboys Ruby by Freckles Playboys)
The broodmares have several foals on the ground and are being rebred to some of the hottest sires in the industry, including: High Brow Cat, the all-time leading sire of cutting horses with offspring earning over $60,400,000; Peptoboonsmal, NCHA No. 4 leading sire and NRCHA #2, with offspring earning over $23.7 million; Dual Rey, with offspring winning close to $28 million; Metallic Cat, NCHA Futurity Champion, Horse of the Year Hall of Fame inductee and NCHA #7 with only two crops showing, siring earners of $1.6 million; Freckles Playboy, a deceased stallion with frozen semen that is still the NCHA #4 all-time leading sire with earners of $28.6 million and also a leading maternal grandsire of NCHA and NRCHA earners of $44 million; Smart Little Lena, also a deceased stallion with frozen semen that was the industry’s leading sire and maternal grandsire with offspring earning over $1.8 million and maternal grandbabies earning over $61.9 million; Smooth As A Cat, NCHA Horse of the Year, 2014 #5 leading sire with offspring earning $13.3 million; Dual Smart Rey, a 2014 top 15 leading sire, with offspring earning $1.8 million, that is out of The Smart Look, NCHA #3 all-time-leading producer; Cat Ichi, NCHA top 12 leading sire with offspring earning over $3.1 million and several others.
He is also breeding a lot to Dual Pep and plans to do the same with Freckles Playboy, using frozen semen.
The Neidhart 250 x 150 indoor arena where horses will soon be working.
Photo by Kurtz
This year he will also be breeding to One Time Pepto, NCHA Futurity Champion and in top 10 of all-time leading cutting sires and the leader of reined cow horse sires, with offspring earning over $23 million and sire of producers of $45.7 million; WR This Cats Smart, a 2014 NCHA and NRCHA leading sire with foals earning $5.8 million, CD Royal, a 1997 son Of CD Olena out of Boons Royal by BoonBar, with offspring earnings of close to $2.9 million, and Boon A Little, a 1999 blue roan stallion with$122,245 in lifetime earnings, sired by Smart Little Lena out of Autumn Boon by Dual Pep.
“I know what the pedigrees of my mares are but in doing the research on the popular stallions, I’m learning how many great stallions there are out there,” said Jeff. “I look at Magic Crosses but also which stallions are best for my particular mare based on the pedigrees.”
Bet Yer Metallic, 2013 filly by Metallic Cat out of Bet Yer Boons by Peptoboonsmal, in training with Beau Galyean.
The Niedharts also have four 2-year-olds in training for next year’s aged events, including: a filly sired by Bet Yer Metallic (Metallic Cat x Bet Yer Boons x Peptoboonsmal), in training with Beau Galyean; High Rey Of Freckles, a filly by Dual Rey x Ruby Red Cat x High Brow Cat, in training with Tarin Rice; Boons Smart Rey, a filly by Dual Smart Rey x Royal Blue Boon Two x Boon Bar, in training with Galyean and Twice The Boon DR, a blue roan filly by Autumnator x Boon Quixote x Boon Bar, in training with Phil Rapp.
There are also eight weanlings that would make a cutter’s mouth water, including a stud colt by Peptoboonsmal x Autumn Boon x Dual Pep; a roan filly by High Brow Cat x Autumn Boon x Dual Pep; a blue roan filly by Metallic Cat x Royal Blue Boon Two x Boon Bar; a red roan colt by Metallic Cat x Bet Yer Boons x Peptoboonsmal; a sorrel filly by Peptoboonsmal x Rubys Red Cat x High Brow Cat; a black filly by Black Cat Olena x Boon Quixote x Boon Bar; a red roan filly (a clone of Peppys From Heaven sired by Peppy San Badger out of Royal Blue Boon by Boon Bar; a grey filly (a clone of Docalady sired by Doc Bar out of Miss Bar 69 by Hollywood Gold) and a black filly by Smart Little Lena x Royal Blue Boon x Boon Bar.
A weanling clone of Peppys From Heaven, sired by Pepy San Badger out of royal Blue Boon by Boon Bar.
According to Braden, the weanling sired by Black Cat Olena (High Brow Cat x Little Chexy Lena) out of Boon Quixote x Boon Bar is her favorite.
“Black Cat Olena is the coolest moving young prospect that we have ever owned. His natural draw and his ability to move through himself is outstanding. He is very well balanced and has a ton of cow. He lost an eye during training that ended his career; however, he is bred to be a sire. His dam, Little Chexy Lena x Smart Little Lena earned over $40,000 and has a Top 10 Non-Pro NCHA Futurity finalist. She is also a multiple producer.”
“Everyone tells me that I need to breed horses to sell,” said Jeff; “however, I have made a commitment to not only breed horses, but have them trained as 2-year-olds and giving them the tools to have successful careers. I am breeding horses to create a successful cutting horse. Although my wife sometimes gets impatient with me, we agreed we would be in this for eight years and we’re already 2 ½ years into that.”
As Jeff learns more and more about scientific breeding, he has changed his plans about which stallions to breed his mares to this year, changing gears on about 20-30% of his previous choices following his study of genetics.
The Neidharts’ Mare barn
Photo by Kurtz
“On this year’s breeding, we won’t know for three or four years if we were right on some of these breedings and pedigrees, but it needs to be done,” said Jeff, who is not only breeding for top cutting horses but also ranch horses and reined cow horses. “I don’t know if I will be right but time will tell.”
Asked how he makes his decisions on which mares to breed to which stallions, Jeff said he first prints off of Equineline.com, which is a Jockey Club program that now has incorporated Quarter Horses.
“I put in a sire and a dam and the program calculates what the hypothetical foal is. I will look at the pedigrees to tell me how much Doc Bar, Mr Peppy San, Peppy Belle, Teresa Tivio, etc. there is. Then I’ll basically look at their numbers and circle where the Delta and Formula One breeding patterns and the Rasmussen Factors are present. I also research older and current successful cutting horses to see what their pedigree and patterns of breeding are.”
“I try to find Formula One and Delta breeding styles and Hybrid Vigor. Hybrid Vigor is the breeding of a sire and a dam who both have Rasmussen Factor (RF0 but to two separate families. It brings two very strong families together, which I will do with Playboys Ruby and Royal Blue Boon.
“One of those plans includes breeding Hydrive Cat to Sweet Lil Ruby to have the RF to Playboys Ruby, give those horses the best trainers to succeed and then once I’ve done that with the Royal Blue Boon family, I’ll bring those families together in a Hybrid Vigor. I will build the pedigrees independently and then I will bring them together
“They are usually 2 x 3 generational crosses or 2 x 4 crosses. I am trying to do 2 x 3 crosses for each family of Playboys Ruby and Royal Blue Boon and then bring them together, but the problem is I can’t bring them together for another five or six years. I am currently looking into other horses to do this with.”
“I think the babies I’m going to have this year will be awesome and then I’ll try to bring them together for the next generation,” says Jeff.
Click for Formula One Breed Pattern explanation>>
Click for Speedhorse Delta Pattern article>>
Also, as time goes by, Jeff is also anxious to see what other new breeding techniques will be discovered.
“Soon we might be able to choose and perfect getting certain colors and sexes, learn more about mitochondrial DNA and its effects, and see more changes, discoveries and inventions in the science of breeding. Currently there are ads in the horse magazines to choose the sex of your foal.”
However Jeff really doesn’t care about an offspring’s sex or color. “Personally I just want to breed successful performance horses,” he said.
It was Braden’s idea to change the name of the cutting horse operation from Confluence Farms to Neidhart Cutting Horses and give the operation its new brand: a heart with a capital “N” within it.
The new Neidhart Cutting Horses logo.
“The cutters just didn’t understand what Confluence Farms was all about and rather than having to explain about Neidhart’s other operations in New Mexico, she suggested just changing the name to something simple that they could remember and change the old web site to a new one that she designed, with the colors Griselda loves: blue and white.”
And once you’ve visited Neidhart’s cutting horse facility in Weatherford and seen firsthand the extent of the genetics and work that has gone into his cutting horse breeding program, you will realize that Neidhart Cutting Horses is a factor to be reckoned with in the performance horse industry.
Click for Neidhart Cutting Horses web site>>
WHO OWNS A NONPROFIT?
By Rick Dennis
Aug. 15, 2014
“Who owns a nonprofit” is a frequently asked question by readers of www.allaboutcutting.com. Actually, this is an excellent question and driven primarily by the many articles circulating throughout various horse-industry publications concerning nonprofit reorganization, drugs, and horses – mine included, e.g., “Where Is The Horse Industry Headed?” “Horse Doping Segments 1 -4” and “The Mechanical Horse – A Horse Under The Influence of Drugs,” along with Wind River Company LLC educational and training articles.
So exactly who owns a nonprofit? Actually, the answer is quite simple – No One! The Culliane Law Group simply states: A major misconception about nonprofit organizations concerns ownership of a nonprofit. No one person or group of people can own a nonprofit organization.
A perfect example of such a misguided conception is illustrated in Ginger Schmersal’s e-mail to the board of directors of the National Reining Horse Association concerning a proposed rule change to the drug-testing policy of this nonprofit. In her e-mail, she specifically states, “Craig asked that I share this article with you; it will be published later this month, so we ask that you please keep it confidential amongst yourselves until it goes to print. Craig and I hope that you as a board, vote for what is best for the horses. It is time we do what is right for them and NOT CONTINUE OUR SMOKE AND MIRRORS POLICY. We have to STOP WORRYING about public opinion and stand up and OWN our organization.”
Click for Ginger Schmersal’s e-mail to NRHA directors>>
Ownership is the major difference between a for-profit business and a nonprofit organization. For-profit businesses can be privately owned and can distribute earnings to employees or shareholders. But nonprofit organizations do not have private owners and they do not issue stock or pay dividends. And while nonprofit organizations can earn a surplus, that income must be reinvested in the nonprofit organization — possibly to benefit or expand programs according to the charitable mission. But that income cannot be distributed to persons.
If there is no owner, who manages and controls a nonprofit?
Once incorporated, the newly created nonprofit organization is a separate legal entity from its incorporators, directors, officers and employees. The nonprofit corporation owns assets of the business and is entitled to receive the revenue from its operation.
Many nonprofits are managed by boards; others may be managed by voting members. When a nonprofit first begins operating, the board members, along with the founder(s), may perform many of the tasks of the organization. As the nonprofit grows, the board may begin hiring staff members to develop and lead programs as the board and/or voting members continue to oversee the organization.
But none of these individuals or groups has any ownership rights in the organization. And while they don’t own the nonprofit, they do have significant legal and ethical duties that cannot be delegated to others.
Click for nonprofit law basics>>
Another interesting question emanating from the ownership of a nonprofit involved the liability of its members, officers, employees, and directors, e.g., “As a director or officer of a nonprofit, do I have any personal liability?”
The American Bar Association answers as follows: Nonprofit organizations are big business. Because of this and because of their unparalleled growth, nonprofits are receiving attention like they never have before, both from Congress and, because of this, from the Internal Revenue Service. Another more disturbing reason is the spate of highly publicized scandals involving individuals profiting at a charity’s expense.
Under these circumstances, anyone who participates in the oversight of a nonprofit organization would be well advised to pay close attention to its operations. One standard I would recommend be used to evaluate every activity of the nonprofit is: “How will this look on the front page of the local newspaper?”
What a Director Does/Does Not Do.
Directors are responsible for planning and directing the management of the nonprofit’s business and affairs. Directors have no individual power as a director to bind the corporation. Instead, directors take action as a body and those decisions are documented by Board resolutions. Directors who are also officers may be authorized by Board resolution to act on the corporation’s behalf in their capacity as officers, but the Board acts as a unit.
Nevertheless, each director is individually accountable to the corporation’s members and, in the case of directors of charitable organizations, to the state and federal regulatory authorities (primarily the IRS, the state taxing authority and, in many states, the Attorney General) who seek to protect the public’s interests in the charity.
Because it is so essential to the organization’s tax exempt status that it abide by its stated purposes, one of the principal duties of a director is to be aware of the nature and extent of the nonprofit’s exempt purposes and to assure that those purposes are properly pursued. The purpose of every act and decision of the director should be to advance the nonprofit’s purpose. If the personal aims of the individual are not the same as the aims of the organization, then the individual should not serve as a director.
Role of Corporate Officers and Agents.
Officers and agents of a nonprofit organization normally implement the decisions and policies established by the Board of Directors. Typically, the Chief Executive Officer of a charity (often designated as its “Executive Director”) and sometimes the Chief Financial Officer (typically called the “Treasurer”) answer directly to the Board. Most other employees, agents and contractors answer to the Executive Director or other senior management duly authorized by the Board.
Although a director of a nonprofit corporation, as a director, they should not be involved in the day-to-day operations and activities of corporate management any more than a director of a business corporation, this rule is often ignored in practice. For many nonprofit organizations, particularly small entities operating with limited financial resources, the directors may be the only active participants within the organization.
It is also typical for the directors and the officers to be one and the same individuals, particularly in smaller nonprofits. Nevertheless, it is important, from a liability standpoint, for the individuals serving in dual director/management positions to carefully document in the corporate record the capacity in which they are acting.
The liability exposures of nonprofit board members
The board of directors of a nonprofit organization can be exposed to a variety of lawsuits, ranging from allegations of wrongful acts to financial mismanagement to errors in judgment and negligence. Claims against directors and officers tend to be costly and disruptive to an organization. Perhaps even worse, if found guilty of misconduct, board members could be personally liable, placing their individual assets at stake. For this reason, directors and officers liability insurance (D&O) is an essential part of any board risk management program, providing financial resources for defense costs and any possible settlement.
The primary objective of a nonprofit board of directors is to provide oversight and direction to the organization so that it can successfully fulfill its mission. Although nonprofit boards are typically not subject to the same level of scrutiny as those in the for-profit sector, they nonetheless owe fiduciary duties to the nonprofit organization and its grantees and donors.
Any perceived breach of these fiduciary responsibilities can lead to legal action. A D&O claim can be brought against a nonprofit and its directors and officers for countless reasons and practices.
Click for liability exposures in nonprofits>>
Who can sue a non-profit board>>
Therefore, It is imperative that a nonprofit Board of Directors understands the risks involved as volunteers for the organization, their responsibilities as board members and how to protect themselves from personal liability.
Each nonprofit corporation is guided by a set of bylaws. Bylaws are the written rules for conduct of a corporation, association, partnership or any organization. They should not be confused with the Articles of Incorporation, which only state the basic outline of the company, including stock structure. Bylaws generally provide for meetings, elections of a board of directors and officers, filling vacancies, notices, types and duties of officers, committees, assessments and other routine conduct. Bylaws are, in effect a contract among members, and must be formally adopted and/or amended.
Control of a nonprofit
Since no individual or group of individuals can own a nonprofit, the only way to control a nonprofit is for more than one person to be in a position of authority to influence a voting majority in their favor. Historically, reviews of various equine nonprofit’s powers-that-be revealed the same individuals remaining in power over extended time periods – including years, and in some instances decades, with particular nonprofit’s.
The only way to resolve this power grab and control is to either vote the individuals out of office or institute legitimate term limits, for a specific designated time period, without the benefit of being re-elected once this designated time period has expired. Another way to limit control is to designate representatives of the most powerful and influential committees from across the spectrum of a nonprofit, without catering to one particular group or stereotype and limiting one individual from each division.
The constant rotation of personnel will prevent those in power from becoming enthralled with the ideology that their tenure of service to the nonprofit entitles them to ownership of a nonprofit when in fact it’s just an illusion on their part and nothing more!
“Until Next Time, Keep ‘Em Between The Bridles”!
Copyright 2014, all rights reserved.
Richard E. “Rick” Dennis
Office/Mobile: (985) 630-3500
Web Site: http://www.windrivercompanyllc.com
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AARON RANCH CELEBRATES PURCHASE OF PEPTOBOONSMAL WITH A FIRST-CLASS RECEPTION
By Glory Ann Kurtz
June 25, 2014
A cake and plates of goodies shown in front of a banner of Peptoboonsmal during a dinner held by the Aaron Ranch for guests of the Celebration who were served cake for dessert.
On May 31, the Aaron Ranch, Commerce, Texas, held a special Celebration of their purchase of the legendary performance horse sire Peptoboonsmal, and the opportunity to provide him a permanent home. It was described by one of the approximately 200 participants as “a huge success and a first-class reception.”
The celebration was an opportunity for people to see the ranch and training facility, as well as Pepto’s new home, barn and four-acre pasture.
“The Legend continues,” said the beautiful invitation, “because of the amazing talent and exceptional earning power of Peptoboonsmal’s sons and daughters. Aaron Ranch will continue to support and honor his legacy.”
The celebration included a buffet dinner, cocktails, entertainment and even a roping in their arena, along with a socializing event in the press box.
The ranch is owned by newcomers to the Western Performance industry, Phillip and Lori Aaron, who truly love horses, “especially horses of color.” They currently have close to 225 horses, including over 50 foals born this year, and run approximately 1,000 cow/calves on 7,000 acres in Commerce.
Phillip works nonstop on the ranch and manages the cow/calf side. Lori studies all of the genetic crosses, and works most of the time in Dallas. Their daughter, Cresha Aaron, is the ranch manager, all the while raising a family. Jay McLaughlin, who last September was the Reserve Champion of the NRCHA Open Futurity held in Reno, Nev., riding Blind Sided, a beautiful 2006 palomino stallion sired by Peptoboonsmal out of Shiney Chex by Shining Spark, purchased from Carol Rose, manages the show horses and training operation. In fact the Aarons were the buyers of approximately 49 head of horses during Carol’s dispersal sale held Aug. 16, 2013 sale.
Up until that time, one of the Aaron’s main objectives was to preserve the versatile Blue Valentine bloodlines. But their current stallion roster includes A Shiner Named Sioux, a 2006 son of Shining Spark out of Docs Sulena by Doc O’Lena, with earnings of $154,971, that the Aarons purchased for a reported $850,000 at the Carol Rose Dispersal Sale; Jasons Peptolena and Duals Blue Boon, both sired by Peptoboonsmal; Leo Hancock Hayes; Funny B Blue Muchaman; Stone Blue Valentine; Rojo Goose and Dry Fork Roan.
Phillip and Lori Aaron in front of the band instruments used by a band that guests to the Celebration of the purchase of Peptoboonsmal danced to.
“We just love the blue and red roans,” said McLaughlin, giving one of the reasons why the Aarons wanted to purchase Peptoboonsmal. According to Cresha, besides their own mares, they will be open to breeding up to 10 outside mares a year, but they would have to be exceptional mares.
Peptoboonsmal,, a beautiful 1992 red roan stallion, bred and raised by Larry and Elaine Hall, Weatherford, Texas, is sired by Peppy San Badger (Little Peppy), and out of the great mare Royal Blue Boon by Boon Bar.
The Aaron Ranch and Jay McLaughlin families shown during the Aaron Ranch Celebration on the purchase of Peptoboonsmal.
Royal Blue Boon:
The 1980 blue roan mare sired by Boon Bar out of Royal Tincie by Royal King, was owned her whole life by Larry Hall Cutting Horses, LLP. She earned $224,685.37 in lifetime earnings, including finishing eighth in the 1983 NCHA Open Futurity, being a finalist in the 1984 NCHA Open Derby, and Reserve Champion of the 1984 NCHA Open Super Stakes, as well as third in the NCHA Open Finals.
She became a leading broodmare as the dam of 17 foals, with 15 of them earning $2.3 million in NCHA competition, $2,996.89 AQHA World Show and $359.40 in NRCHA competition. They also owned 89.5 AQHA points. Her highest-money-earning offspring was a gelding, Red White And Boon, sired by Smart Little Lena, that was ridden by Mary Jo Milner to five straight NCHA Non-Pro World Championships in 200-2005, plus many other titles for lifetime earnings of $1.8 million.
She is also the dam of Bet Yer Blue Boons, who is also one of the industry’s leading broodmares sired by Freckles Playboy, owned and shown by Lindy Burch to $1.19 million in NCHA and AQHA lifetime earnings.
Phillip shown riding Duals Blue Boon in the roping. The blue roan stallion, also owned by the Aarons, is a 3/4 brother to Peptoboonsmal with $169,424 in NCHA lifetime earnings.
The Aarons also own Duals Blue Boon, a 1992 blue roan stallion that is a well-known three-quarter brother to Peptoboonsmal, sired by Dual Pep, a son of Peppy San Badger, out of Royal Blue Boon, that was owned and shown by Kobie Wood to $169,423.74 in NCHA lifetime earnings, . His full sister, Autumn Boon, a 1994 mare with $244,470.47 in NCHA lifetime earnings, is one of the leading broodmares of all time, owned by Karen Freeman.
According to an article in the April 2006 Western Horseman by Jerry Circelli, in 1991 they bred Royal Blue Boon to Peppy San Badger and transferred three embryos from the dam to surrogate mares. The result was the birth of a stunning red-roan colt, followed days later with the births of a red-roan filly and a pitch-black filly – all full siblings. The only problem was that only one of the foals could be registered as this was prior to the AQHA rule change following a lawsuit by Kay Floyd et al, that was mediated in court so that multiple embryos could be registered out of a single mare in a single year.
The other two fillies were AQHA registered following the Kay Floyd et al lawsuit and mediation. According to current AQHA records, TH Royal Red Peppy is owned by Atwood Quarter Horses, Inc., Kenwood, Calif. She was purchased from Larry Hall by Dean Sanders, Houston, Texas, in 1993 and Melissa Lyons, Iola, Texas, purchased her at the 1996 NCHA Futurity Sale. In 2010, the Atwood Ranches, Inc., Kenwood, Calif., purchased the mare. She earned $118,108 in NCHA cutting competition and qualified for the 2003 AQHA World Show in Amateur Cutting. She is the dam of 22 foals, with six earning $58,555.80 and 13 AQHA points. Two foals were born in 2013.
A large, enclosed viewing and entertaining area along one side of the arena above the stalls.
According to AQHA records, Royal Black Peppy is deceased. She was last owned by Black Rock Ranch LLC, Harrison, Idaho. Her last foal was in 2007. She was purchased as a 2-year-old from Larry Hall by Floyd J Moore Jr, in 1994, and 6J Paint Horses in 2000. She was leased by Jack Waggoner in 2001, Luke Lee Gaule, Springfield, Ill., purchased her on Jan. 14, 2002 and Western States Ranch, Poolville, Texas, purchased her on Jan. 23, 2002. Black Rock Ranch bought the mare on May 23, 2006. She had 15 foals, with 8 earning $76,825.09 in NCHA cutting, $4,282 at the AQHA World Show and $1,761.18 in NRCHA competition.
As time would tell, the Halls made the best choice when they decided the red-roan colt would be the one they would register but wanted to come up with a name that wouldn’t be forgotten. That happened when they came up with Peptoboonsmal after they saw an ad in a magazine for the well-known pink stomach remedy Pepto-Bismol.
Jay McLaughlin at the halter of Peptoboonsmal.
According to AQHA records, Peptoboonsmal, won a total of $180,487, capturing the 1995 Open title of the NCHA Futurity with Gary Bellenfant in the saddle; the 1996 Gold Coast Open Derby, finished fourth at the 1996 NCHA Open Super Stakes and was a finalist in the 1996 NCHA Open Derby and Augusta 4-year-Old Open Futurity.
In 2007, Elaine Hall, the widow of Larry Hall, sold Peptoboonsmal to Richard Fields, owner of Jackson Land & Cattle Company of Jackson Hole, Wyo., a native New Yorker and one-time consultant to Donald Trump, who was best known for his business success in the casino gaming and entertainment business.
Seven years later on May 4, 2014, Fields sold the stallion to the Aaron Ranch who are one of the largest landowners in Hunt County, Texas, and have been in the cattle business for decades, as well as breeding and raising working cow horses. The ranch is a family operation, sharing duties with their two children: Nelson and Cresha. Fields said he had agreed to sell the stallion only after he was assured that Peptoboonsmal would be able to live out his life in comfort on the Aaron Ranch, where he will be mainly breeding their own mares.
After his wins in the major cutting events, Peptoboonsmal soon became a legendary sire. According to AQHA records, through the 2013 crop year, he has sired 1,327 foals, with 841 (over 63 percent) being performers, earning close to $22 million in NCHA, NRHA, NRCHA, AQHA, SHOT, team penning and ranch horse competition. As a Maternal Grandsire, he had 1,407 grandbabies, with 419 (30 percent) performing to the tune of close to $11 million.
The first Peptoboonsmal offspring that made him a household name was a beautiful roan yearling colt named One Time Pepto that was sold by David and Clare Capps, who owned his full brother, and was out of their great mare One Time Soon, sired by Smart Little Lena and out of Uno Princess by Jose Uno. The yearling was purchased through the 2002 NCHA Futurity Sale by Jeffrey Matthews, Warsaw, N.C., for a whopping $380,000.
“Everyone thought I was crazy,” said Matthews in the Western Horseman article. “They all laughed when I bought him, but there’s probably not one of them who wouldn’t mortgage his house for that horse today.”
And today is no different…except Matthews would not part with his stallion that has himself become one of the industry’s leading sires today. In fact, in the May 1, 2014 issue of Quarter Horse News, he was named the “Top Junior Cutting and Cow Horse Sire,” with only four foal crops of performing age. In cutting, he had 242 offspring earning $4,738,651 while in cow horse competition, he sired 60 offspring earning $1,032,459. (Junior sires were sires whose offspring had posted no earnings to Equi-Stat prior to 2009.)
Today Peptoboonsmal is listed in the top of the lists of sires in the performance horse industry in Quarter Horse News statistical issues, with the most recent being the “All-Industry” statistics, published May 15, 2013 through 2012, where Peptoboonsmal is the second leading sire, with a total of $17,473,513 won by his offspring in cutting ($16,239,842), reining ($253,016) and reined cow horse ($980,655).
In the 2013 Quarter Horse News Lifetime Cutting Stats ending in 2012, 667 of his offspring had earned $18931,964 in the cutting arena, toped by Little Pepto Gal, $526,229; Copaspepto, $471,994, One Time Pepto 4331,097, Peptos Stylish Miss $305,712, Boon Too Suen, $261,641, Freckles Lena boon, $259,818 and Sweet Lil Pepto $237,783.
DUE PROCESS – DOES YOUR NONPROFIT NEED A RISK MANAGER OR A LAW FIRM?
By Rick Dennis
June 3, 2013
During my tenure of service as a drug enforcement agent and a law enforcement officer, I had to abide by certain rules of law in order to effectuate a criminal investigation, an arrest for violation of a crime, interrogation, search warrant applications, title 3 – wire taps, etc., commonly referred to as DUE-PROCESS.
Due-process, simplified, means all protocols of law governing our society must be adhered to in order to protect the rights of citizens in accordance with established law and constitutional guarantees of the United States of America.
A more precise definition of DUE PROCESS is as follows:
Due process is the legal requirement that the state must respect all of the legal rights that are owed to a person. Due process balances the power of law of the land and protects the individual person from it. When a government harms a person without following the exact course of the law, this constitutes a due-process violation, which offends against the rule of law.
Notwithstanding, there is a very close similarity with the rule of due process of the law in law enforcement with that of a nonprofit governing its membership or enforcing disciplinary action for a rule violation by a member in good standing.
A nonprofit is governed by a set of rules and regulations to govern the nonprofit and the members equally: those rules and regulations are called BY-LAWS. Each By-Law stipulates the exact manner and means afforded to individual members, especially members subject to disciplinary action by the Executive Committee or Board Members of the nonprofit in order to protect individual rights and to ensure impartial treatment of the member. This can also be referred to as DUE PROCESS.
Any act of deviation of established rules or practices stipulated in the By-Laws by any Executive Committee or Board Member concerning a member, subjects the nonprofit to a threat of reprisal by the member in question as well as unnecessary legal costs to the nonprofit, which can include legal fees and liability damage payouts from a lawsuit by civil action and, in specific cases, quite possibly culpable liability.
A more precise definition of Risk Analysis is as follows:
Risk analysis is the process of defining and analyzing the dangers to individuals, businesses and government agencies posed by potential natural and human-caused adverse events. In IT, a risk-analysis report can be used to align technology-related objectives with a company’s business objectives. A risk analysis report can be either quantitative or qualitative.
In quantitative risk analysis, an attempt is made to numerically determine the probabilities of various adverse events and the likely extent of the losses if a particular event takes place.
Qualitative risk analysis, which is used more often, does not involve numerical probabilities or predictions of loss. Instead, the qualitative method involves defining the various threats, determining the extent of vulnerabilities and devising countermeasures should a threat or attack occur.
Quite often, in the private sector, my company and I are retained to analyze a litany of processes to identify any perceived threat to the health and wealth of the corporation and design programs and procedures to eliminate these threats by procedural or process changes for adoption by the Executive Committee or Board of Directors of the corporation, not only to ensure future compliance by its employees and members but also for the future fiscal health of the corporation.
A Risk Assessment and Analysis does not limit its capabilities to a specific ideology but is used as a broad-based tool to identify, eradicate and enact future procedural changes for the benefit of the corporation, e.g.,:
I’ve written countless drug and alcohol interdiction programs for the private sector. These are used regularly to remove a specific threat from the work force of U.S. corporations, i.e., drug and alcohol use and abuse among the general work force. Equally, I’ve conducted risk analysis and assessment of a specific aspect of a corporation, e.g., physical assets and financial data, as well as writing suggested corporate policy changes to ensure the financial health of the corporation.
One of the most cognizant aspects of conducting risk analysis assignments is for the analyst to be continually vigilant of the Americans For Disabilities Act – ADA. This act, enacted by Congress, protects U.S. citizens suffering from mental or physical disabilities to insure individual rights are not violated.
Individuals suffering from any mental or physical disability are protected by this act in specific areas of our society such as in the work place and organizations. Any violation of an individual’s rights protected by the ADA can certainly invoke a federal investigation, as well as a civil suit for damages by the violated.
Therefore, does your corporation need a risk manager or a law firm? My answer to this question is simple. Every corporation should have on staff a risk manager or consultant, whether by third-party contract or on staff, to advise the corporation on specific matters of interest as a stop-gap-measure, before a matter is out of hand or control, to thwart damage to a corporation before it happens.
In my opinion, a risk manager is invaluable to a corporation and is often viewed as the “first line of defense” to prevent adverse effects to the corporation. A risk manager or consultant is surely less expensive than a law firm and quite often saves the corporation a significant amount of money in the long term.
Bear in mind that the Board of Directors can make any changes they deem necessary for the health and wealth of the corporation or nonprofit organization.
Equally, it’s my opinion that the law firm is the last resort when all else has failed in resolving an issue. The prudent point to consider is the ideology that situations should be avoided or prevented before a specific issue becomes a major issue. Remember – prudence and common-sense judgments are more often than not, “THE BETTER PART OF VALOR.”
Until Next Time, Keep ‘Em Between The Bridles!
Richard E. “Rick” Dennis
Wind River Company, LLC
Office/Mobile: (985) 630-3500
Web Site: http://www.windrivercompanyllc.com
THE FACTS BEHIND THE NUMBERS
By Glen Nelson
Dec. 23, 2012
The cutting industry produces a lot of aggregate data measuring results by the highest winnings and produce of this or that. Some factor in the mean averages and some gender information, which is helpful but still far too general to make effective breeding and purchasing decisions. The data is accurate but can unintentionally be misleading to the average cutting horse owner or breeder. A little more knowledge can vastly improve the information you rely upon and reveal some “facts behind the numbers.”
My methodology uses statistical analysis. I often hear from individuals who have a mare or a show horse that had a lot of success, contrary to what one of my articles has said. Well, I know a guy who won the lottery and yet I remain steadfast in my conviction not to play. Playing the lottery may be a lot of fun, but it is statistically “fools gold.” I want to make real decisions based on real information that provides me the best chance of success. It is fun to play but it is more fun to play and win! Let’s discuss some lesser known facts.
Does gender matter?
Yes! But there exists an irrational bias in our industry in favor of fillies. This is largely supported by the fact that mares can breed and geldings cannot. While geldings cannot breed, the vast majority of mares should not. Embryo transplant technology has raised the standard of what is a breedable mare. The highest and best use of a vast majority of horses is to ride them and this must be factored into all of your decisions. Sure, owning a $100,000 money-winning mare is more valuable than the same gelding, but if you are showing or promoting a mare or a stud, it may not matter as much. Many stud colts/geldings are under-valued because of the exaggerated view of fillies. To make the best decision you have to evaluate more closely.
Consider this, the best cross for your horse can be extremely gender specific. For example, stud colts from Doc Stylish Oak mares crossed on Dual Rey are 7:1 favorites over the fillies to win over $30K. Wow! As you sit at the auction, this fact would be important to know. Filly bias could lead you to the wrong conclusion. Many other crosses also have strong gender correlations in favor of stud colts/geldings while others strongly support the fillies. It is important to set aside industry norms and personal bias and ask the questions: What is my objective? What gender factors apply to the horse I am buying, training, or breeding? Get the information before you make a decision.
Some sale reports show breakdowns between studs, fillies and geldings, but show results do not. Sale results lag behind show results. This gives you a chance to get out ahead of the market by tracking show winnings by gender and thus getting a statistical edge. It also lets you save an enormous amount of money by adding this statistical data to your culling decisions. My previous article, “Cutting Horses and Texas Hold ‘em” develops this point in greater detail.
Gender also correlates with proven mares. Amongst others, consider what three of our industry’s top producing mares had in common. One Time Soon, Laney Doc and The Smart Look all produced stud colts at a substantially higher percentage of winnings than fillies. Gender data for mares is obtained easily, yet often not given the consideration it deserves.
Who should I breed to?
After you answer the question, Should I breed my mare? The next question is With whom should I breed her? Here aggregate data can be very deceiving. For example, While Peptoboonsmal was an industry-leading stallion for many years, he was a very narrow breeder. If you owned a Smart Little Lena mare or the famous mare Stylish and Foxie, your decision was easy. Pepto was a great cross. If you did not, breeding to Pepto was a riskier venture. Looking at the aggregate data would not tell you this. You have to look deeper. How will a specific stud cross on my mare? Magic Cross reports are good but they only look at the winners. Ask more questions. How long ago did the stud produce the money winners? How strong were the mares that produced the winners? How many horses failed? Why did they fail? How strong is the stud being promoted? Successful stud selection takes a tremendous amount of thought.
I just completed some work on WR This Cats Smart. Several things jumped out that exemplify the points made above that may assist you in your stud consideration. First, WR bred a lot of non-cutting horse mares. This included many ranch horses. When I adjusted the numbers for this, the results were far better than what the industry aggregate numbers had shown. Second, no apparent strong crosses appeared. He produced winners from a broad selection of mares. If your mare does not have a proven cross or the stud fee for the best cross is out of your reach, a stud like WR may be worth considering. His stud fee as a ratio of money produced adjusting for age, divided by cutting horses bred is very strong compared to his contemporaries. The point is that with WR there is more to the story than has been told.
Early identification of statistical data creates opportunities Smooth as a Cat is outstanding with Dual Pep mares. This was apparent from his early foal crops. Those paying attention got some great early buys. It was very surprising but One Time Pepto has struggled in his cross on Smart Little Lena mares based on his first foal crop but did well on Highbrow Cat and Dual Rey mares. This is exiting news for Cat and Dual Rey mare owners as finding consistent crosses for them has been difficult.
The past is a predictor of the future. Adding statistical data to your decision-making process can improve your results. Having demonstrated this, I still wish you good luck!