For some who breed and race Thoroughbreds, the decreasing foal crop is regarded as a bellwether for a business in decline. Yet, a clear-eyed look that goes beyond numbers–and the efforts to turn them around–offers an important reminder: North American Thoroughbred breeding and racing still has real strengths. But to ensure its future we need strategic, collective action to strengthen the sport and keep it vibrant for generations to come.Industry collaboration is the only path to revitalizing Thoroughbred production. Understanding the Foal Crop DeclineIn 1950, arguably the sport's heyday, the North American foal crop was 9,095. In the succeeding years it rose steadily, hitting its peak in 1986 at 51,296. Then things changed. The Tax Reform Act of 1986 took away many tax breaks that spurred investment in breeding. More recently, the 2008-2009 recession exacerbated the situation as credit markets that serviced the Thoroughbred industry dried up. By 2008, the foal crop was 35,274, and it steadily declined by 50% over the next 17 years, a time which saw a massive increase in casino gaming across North America as well as the legalization of sports betting in most states. The projected 2024 annual North American foal crop is 17,300, down 14.5% since 2020, but as noted, it hasn't been sudden.Smaller foal crops and tougher economic times have led to fewer tracks, fewer race dates, and smaller fields, creating the largest impact in the once thriving regional breeding and racing markets. Regional racetracks and sales companies that depend upon the lifeblood of local horses have been forced to dramatically scale back or shutter altogether. Without a thriving network of regional markets as independent ecosystems for locally produced horses, demand for racehorses is further depressed. A Global ChallengeRecently compiled data by the International Stud Book Committee covering 2015-2024 from Thoroughbred-producing countries show double-digit declines in foal crops across several nations, including Argentina, Australia, Brazil, Chile, New Zealand, South Africa, South Korea, and Uruguay.Turning to Britain and Ireland, according to a recent analysis by The Racing Post: “Another worrying decrease in the foal crop has been confirmed as the number of live foals registered with the General Stud Book in Britain and Ireland took its most significant year-on-year dip for a decade and a half.”These figures underscore that the challenges and pressures facing Thoroughbred production are global, not confined to any one country or region. One Mission, Two Jobs The Jockey Club's mission is keeper of The American Stud Book; as such, its first job is to ensure the integrity of the breed through horse registration, accurate pedigree and racing data collection, and reliable reporting on trends.It also works to make the sport stronger. Over the past 30 years, The Jockey Club has developed several for-profit companies serving various aspects of the industry. Profits from these businesses have enabled it to invest more than $100 million back into the industry, supporting 100+ initiatives including horse and rider safety and welfare, promotion and marketing, aftercare, and research.Recently, The Jockey Club backed three initiatives directed at growing the foal crop.First is the Mare Incentive Program, which waives registration fees for foals from specific mares that had not been bred recently. This program provides a resource for stallion managers to find these mares, and waiving registration fees provides a financial incentive to bring the mares back into production. Already, 205 such mares appear on the 2025 Reports of Mares Bred–a promising start.Second was the result of a concerted, year-long effort to make 100% bonus depreciation for horse purchases permanent, enabling owners to write off a horse's full cost in the year of purchase from investment income, making investing in new bloodstock more attractive. Working with National Thoroughbred Racing Association President Tom Rooney and others, the industry lobbied in Washington, D.C., to give breeders a concrete reason to invest again.The third program is the Breeder Organization Workshop, co-hosted by the Thoroughbred Owners and Breeders Association, to be held next week in Louisville, Kentucky, to encourage state and provincial breeder associations to consider creative measures to increase Thoroughbred horse production across North America, including combining regions to make state-bred races more attractive. The Road AheadEven with these initiatives, the horse racing industry continues to face real challenges, including tax policy shifts, economic ups and downs, and new tastes among fans. Fixing them will take teamwork from everyone–breeders, owners, tracks, and government–but we can do it together just like we did on 100% bonus depreciation. There are at least three critical areas on which to focus: Tax Policies and Industry Lobbying: recognizing that government is our partner. Advocate for tax policies that encourage breeding investment and wagering. The 100% bonus depreciation proves that smart tax policy drives real results. Push for permanent favorable treatment and leverage the impact that Thoroughbred breeding and racing have on jobs and ancillary businesses. There is a bill before Congress focusing on enhancing tax policy in support of ownership and another to aid in the deductibility of wager losses. Commonsense changes like these should be championed by all members of the Thoroughbred ecosystem. Grow the Fan Base. Expand national marketing and branding efforts, such as America's Best Racing, to grow the fan base, promote the on-track experience, and increase wagering. Leverage the best of the sport, the Triple Crown, Breeders' Cup, and the race meets that draw the largest crowds, to create more opportunities for the broadcast and streaming of racing content and further lean into social media and the power of influencers. We can't stand pat while other sports leagues, entertainment, and sports betting grow. Strengthen Safety, Welfare, and Integrity Standards. Organizations such as the Horseracing Integrity and Safety Authority, Thoroughbred Aftercare Alliance, and Thoroughbred Incentive Program protect horses and the sport's reputation, and while they continue to evolve, they are working and making a difference. Public confidence drives long-term growth, and these organizations serve as pillars for that growth. A Shared Responsibility for the FutureThe decline in the Thoroughbred foal crop is not the result of a single factor. It reflects a complex interplay of tax policy shifts, economic crises, industry consolidation, emerging competitors, and changing consumer behavior. These are challenges faced by many industries–and they are not insurmountable.The Jockey Club remains committed to being part of the solution. Through rigorous data collection, it provides the insights needed for informed decision-making. Through strategic investments, it works to expand the sport's economic base and fan engagement. And through collaboration, it seeks to unite stakeholders around a shared vision for the future.–Everett R. Dobson is the Chairman of The Jockey Club of America. The post Open Letter: The Declining Foal Crop And The Road Ahead appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.