Equine Veterinary Practices Face Economic Challenges in 2026

The state of equine veterinary practices in 2026 is characterized by economic uncertainty, influenced by a range of factors including fluctuating weather patterns, international conflict, rising affordability concerns, and the potential impacts of AI on employment. The University of Michigan reported in April 2026 that consumer sentiment had dropped to its lowest level since the pandemic, and inflation since 2020 has significantly impaired purchasing power. Key findings reveal that food prices rose by 23.6%, transportation costs by 34.4%, and housing by 23% from 2020-2024.

Despite these challenges, the stock market is at new highs, and wealth inequality persists, with the top 20% of earners in 2024 accounting for 52.2% of total income. The top 1% of U.S. households hold approximately 30% of total household wealth, and those earning between $170,000 and $190,000 belong to this affluent cohort. Consumer spending has increased among higher-income Americans, while lower- and middle-income households face slowed growth.

Many equine practices cater to wealthier clients; a 2023 report from the American Horse Council indicated that 70% of horse owners earn more than $75,000 annually, with varying income brackets among this group. As reported in a 2025 survey by American Horse Publications, 51.1% of horse owners have incomes exceeding $100,000.

To assess the impact of these economic conditions on equine practices, a survey was conducted in April, gathering responses from 209 equine veterinarians. The findings reflected participation from various geographic regions, although Texas, the state with the largest horse population, had the fewest respondents at 4.8%. About half reported having one full-time equivalent (FTE) veterinarian, while 14.6% indicated three FTEs.

A crucial factor for many practices is revenue from sports medicine, which remains significant for practice income. When asked if sports medicine represented the majority of their revenue, 22% said yes, 27.8% reported about half, and 50.2% said no. The results showed that over half (54.4%) of those relying on sports medicine experienced increased revenue in Q1 2026 compared to Q1 2025, while only 37.7% of those without significant sports medicine earnings reported similar growth.

Further analysis revealed that 61.5% of respondents noted some client reluctance to spend on horse diagnostics or treatments, while only 4.8% identified solid resistance. Those practices heavily reliant on sports medicine were less likely to experience client reluctance.

The survey also highlighted disparities among geographical zones, with certain regions (Zones 3, 4, and 7) seeing more veterinarians reporting lower revenue. Conversely, practices in Zones 0, 2, 5, 6, and 8 had a higher percentage reporting improved revenue.

Interestingly, practice size appeared to have limited influence on revenue outcomes, although smaller practices showed a tendency towards better revenue production. This is possibly due to their amenable structure, focused on ambulatory services rather than costly hospital-based care. On the other hand, practices with six or more FTEs were more likely to report decreased revenues.

Despite the economic hurdles, many equine veterinarians continue to adapt and grow their revenue. For those experiencing declines, enhancing service efficiency, utilizing non-veterinary staff for routine tasks, and adopting telemedicine technologies may alleviate financial constraints, ensuring comprehensive care for clients even through challenging times.