With innovative programs targeted to help the “little guy” breeder, B. Wayne Hughes’ Spendthrift Farm in Lexington, Ky., has paved the way for small-scale operations to have access to some of the finest stallion blood in the Thoroughbred industry.
A scarcity of small breeders enjoying success at the top level of the industry sparked the creation of Spendthrift Farm’s Breed Secure and Share the Upside programs.
To minimize commercial breeders’ risk, Spendthrift Farm four years ago introduced its Breed Secure program, which allows breeders to delay payment of stud fees to eligible stallions.
Under the program, breeders don’t pay stud fees until the sale of the resulting foal as a weanling or yearling (breeders’ discretion) at public auction, and only if the sale is profitable. Once the foal is sold, Spendthrift receives the stud fee (breeder gets first $6,000 of proceeds for a weanling or $12,000 for a yearling). The breeder also retains all proceeds after stud fee is covered. Any shortcomings are forgiven.
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