Executive Summary

Throughout 2007, as it has for over three decades, the New York State Thoroughbred Breeding and Development Fund served as a major factor and a key element in the growth of the New York State thoroughbred breeding industry. The Breeding Fund has returned over $330 million into New York's agricultural and equine economy. This industry continues to grow and has become a vital sector in New York's agri-business economy, as well as in its overall larger statewide economy. In 2007, the Breeding Fund disbursed nearly $1 Smillion directly to New York breeding and racing industry participants through its awards program and purse enrichment. Additionally, New York-Breds earned, for their owners and breeders, nearly $60 million at New York's four thoroughbred racetracks through open and restricted state-bred race opportunities - 7% higher than 2006 when the total reached $56.7 million.

The Thoroughbred Breeding Fund's overall mission - to preserve, protect, and promote the green-belt sector of NYS and to foster the growth and expansion of NY's thoroughbred breeding industry - underwent major advances all throughout 2007. The Breeding Fund's role as a catalyst in the preservation and expansion of the state's thoroughbred industry helped to grow and retain over 40,000 agribusiness jobs in all parts of New York's rich agricultural sector.

The 2007 report will highlight and detail records of receipts and disbursements of the Breeding Fund's three major incentive areas (breeder awards, stallion awards, open-company owner premium awards). Additionally, it will examine purse enrichments for races exclusively for New York-Breds conducted at the New York Racing Association's three facilities (Saratoga, Belmont and Aqueduct) and at Finger Lakes Racetrack. Lastly, the report contains the performance results of New York-Breds at the racetracks and an analysis of the success of the New York State Thoroughbred Breeding Program regarding farm growth, foal production, New York based stallions, and their progeny.

The awards distribution is, by far, the most important component to the overall New York breeding and racing program. In 2007, the Breeding Fund award levels and purse enrichment did decrease slightly for the first time in the past decade to $13,600,000. This comes after nine consecutive years of the Breeding Fund exceeding $14,000,000 in total awards. The awards to breeders again surpassed $7million - an increase of nearly 50% from just 10 years ago. These awards contributed to the success and viability of over 400 breeding farms throughout all of New York State. These farms account for nearly 43,000 acres of working landscape green-space and are vital to the agribusiness economy of New York.

In the "average earnings per starter" - always an important and reliable barometer of program success - 2007 represented the 1 4 ~ ~ consecutive year in which New York-breds ranked in the top four states among the nation. In 2007, the New York average earnings per starter of $19,415 enabled New York to finish 4th in the nation. Due to the Breeding Fund's percentage of handle reverting back to pre-April 1,2006 levels, both New Jersey and Pennsylvania finished 2007 with higher average earnings per starter. From 1994 to 2007, the New York average earnings per starter have increased by 55 %. New York-bred earnings reached nearly $80 million throughout North America during 2007. Those earnings were also over 77% higher than the $44 million that was earned in 1996. NY-Breds continued to run for increased purses restricted to state-breds at both NYRA and Finger Lakes tracks at a robust rate during 2007. There were nearly 1,000 races conducted in 2007 in New York just for NY-Breds.. . ..and these 985 races amounted to over $41 M in purse money solely for NY-breds!

The annual report contains an outline of the Breeding Fund's advertising efforts and promotional activities, comprehensive comparisons to other state programs, and a wide array of industry spokespersons' comments regarding the benefits and impact of the New York Thoroughbred Breeding and Racing program.

It is significant to note that the New York State Thoroughbred Breeding Fund has maintained its support of equine research and education so as to continue the hture success of the program. A healthy and enhanced equine population is critical to New York and the Breeding Fund recognizes this through our continued support of the Harry M. Zweig equine program at Cornell University. In 2007, the New York Breeding Program disbursed $301,000 to the Zweig Fund - an increase of nearly 12% in the last six years alone.