FRANKFORT, Ky. — Last month, Arkansas state officials announced an outbreak of Equine Infectious Anemia (EIA), also known as Swamp Fever. It was a sizable outbreak on a farm in Clarksville located in the northwestern part of the state.

According to the Arkansas Department of Agriculture (ADA), “The number of positive horses in the index herd is substantial and alarming.” Various reports place the number at 40 of an 80-horse herd. Two of those 40 had died and the remaining 38 were euthanized.

Though Kentucky’s horse industry has lost about $400 million in cash receipts from its high point of $1.1 billion, in the last few years, horses still stand as one of the state’s largest ag components. So it comes as no surprise when equine problems arise in nearby states, the Kentucky Department of Agriculture (KDA) is on top of the matter.

Luckily, according to the ADA, “At present the infection seems to be isolated to the single herd. The owner of the herd does not show horses nor do they sell any horses to any extent.”

Kentucky officials have been in touch with their counterparts in Arkansas and the KDA has released information of its own assuring the public all is well here. State Veterinarian Robert C. Stout said Kentucky’s health requirements for equine entering the state are sufficient to protect the its herd from an outbreak of EIA from Arkansas.

“We do not believe the Arkansas outbreak increases the risk of disease to Kentucky’s equine population at this time,” he said. “The number of horses affected in the Arkansas outbreak is significant, but it appears to be isolated and under control.”

Kentucky Agriculture Commissioner Richie Farmer emphasized how important the horse industry is to the state. “Horses accounted for $700 million in farm cash receipts in Kentucky in 2010, so maintaining the health of Kentucky’s equine herd is one of our top priorities,” he said.

“Kentucky is the horse capital of the world, and the Kentucky Department of Agriculture will do everything in its power to keep it that way.”

Information from the USDA’s Animal and Plant Health Inspection Service (APHIS) states EIA is a viral disease with no vaccine or treatment and is often difficult to differentiate from other fever-producing diseases, including anthrax, influenza and equine encephalitis.

The KDA notes horses are required to be tested for EIA prior to entering the state. Stout reminds horse owners to isolate all new additions to a herd for a defined period of time and to implement biosecurity practices when taking an individual equine traveling or participating in events.

An industry in decline

 Kentucky’s horse industry has been suffering of late from an economic disease, of sorts, that has left a signature industry in an uncertain condition. C. Jill Stowe, an assistant professor in the University of Kentucky College of Agriculture’s Department of Agricultural Economics, said the decline is likely something being seen across the country – with an expected 3,000 fewer foals this year than last.

“That can lead to some of the decline. I think there is still some uncertainty as to whether breeders are going to be able to recoup their expenses in the sales ring, so they are continuing to cut back on the number of mares they’re breeding until the market finds it new equilibrium,” she said.

Stowe feels, especially with thoroughbreds, the industry trails the general economy by a year or 18 months, but she still doesn’t sense any real confidence in today’s economy.

“My guess would be that we are getting close to stability, close to a new equilibrium,” she said. “But as long as there’s as much uncertainty in today’s market, I think we are going to see more conservativeness.”

Conservative or not, the horse industry is still what most people probably think of when they think about Kentucky, said Stowe. That point may serve as a stabilizer, from a business perspective. “I would hope that’s something the state would embrace and try to leverage that advantage,” she said. “The equine market is much different than other ag commodities.

“In particular, the equine market here in this state is largely driven by investing behavior. These are luxury goods, so when there is less disposable income in times of recession or a downed economy like now, there’s less activity in markets like that.”

Stowe noted while the Thoroughbred industry is a large portion of the overall equine picture in Kentucky, there are still other healthy components of the industry, including Quarter Horses and Saddlebreds. She also said one of the real challenges is to get everyone to look at the industry as one of all horse breeds and not just Thoroughbreds.

“It’s probably past time for everyone to come together as a horse industry,” she said.