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Financial strain of COVID-19 and its impact on willingness-to-pay for equine care

The novel COVID-19 virus caused a global pandemic disrupting lives, industries, and economies. The result was an impact on prices due to challenges with production and supply chain distribution. This study investigates the financial strain COVID-19 had on equine owners and leasers, what the market f...

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Autores principales: Thompson, Jada M, Kibler, Michelle L, Ivey, Jennie L Z
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Oxford University Press 2023
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10112674/
https://www.ncbi.nlm.nih.gov/pubmed/36966356
http://dx.doi.org/10.1093/jas/skad091
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author Thompson, Jada M
Kibler, Michelle L
Ivey, Jennie L Z
author_facet Thompson, Jada M
Kibler, Michelle L
Ivey, Jennie L Z
author_sort Thompson, Jada M
collection PubMed
description The novel COVID-19 virus caused a global pandemic disrupting lives, industries, and economies. The result was an impact on prices due to challenges with production and supply chain distribution. This study investigates the financial strain COVID-19 had on equine owners and leasers, what the market for equine care would bear if costs for care increased, and what factors contribute to their willingness to pay (WTP) for increasing cost of equine care. An online survey was distributed for 4 weeks to adult U.S. residents. Respondents reported their involvement in the equine industry, financial response to COVID-19, and responses to a double-bound dichotomous choice question on their WTP for care given a randomized increase (1%–20%) in their current cost (n = 506). Data were analyzed using interval regression models where a = 0.05 (Stata15). Respondents were separated into three groups: owner keeping their horse at their residence, owner boarding their equids, and leaser. Boarders reported mean monthly payments of 23.33 ± 90.37 USD (n = 15) for free board, 236.47 ± 151.92 USD, (n = 75) for partial board, and 514.75 ± 291.71 USD (n = 181) for full board. Results show all owners, leaser, and boarders have different WTP values which range from 18.5% to 26.2% increase in current care costs which extends beyond the presented range due to many respondents responding “yes” to both WTP questions (71% of owners, 6% of boarders, 65% of leasers). Equine owners, with on farm equids from the southern US were WTP 11% less than from other regions (P = 0.015). The current boarding fees from owners that board their equids lowered their WTP by 0.01% (P = 0.029) for each additional dollar paid, whereas current care costs were not a significant factor for other owners (P = 0.370) or leasers (P = 0.395). Those that had a full lease for their equids, housed on farm or at a facility, were WTP 15% higher (P = 0.036) than those that had a partial or no lease. In comparison, boarding status (full, partial, or no boarding) did not significantly (P = 0.51) impact boarder’s WTP. Age of respondent and annual household income heterogeneously affected WTP across all groups. These results indicate the market for equine care can bear the increases in cost associated with financial distress related to COVID-19, and may aid equine owners, caregivers, and associated individuals in making informed decisions regarding essential care. Results from this study should be taken in context of the global pandemic and the restrictions in place, or lack thereof, at the time the survey was administered.
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spelling pubmed-101126742023-04-19 Financial strain of COVID-19 and its impact on willingness-to-pay for equine care Thompson, Jada M Kibler, Michelle L Ivey, Jennie L Z J Anim Sci Economics of Animal Production The novel COVID-19 virus caused a global pandemic disrupting lives, industries, and economies. The result was an impact on prices due to challenges with production and supply chain distribution. This study investigates the financial strain COVID-19 had on equine owners and leasers, what the market for equine care would bear if costs for care increased, and what factors contribute to their willingness to pay (WTP) for increasing cost of equine care. An online survey was distributed for 4 weeks to adult U.S. residents. Respondents reported their involvement in the equine industry, financial response to COVID-19, and responses to a double-bound dichotomous choice question on their WTP for care given a randomized increase (1%–20%) in their current cost (n = 506). Data were analyzed using interval regression models where a = 0.05 (Stata15). Respondents were separated into three groups: owner keeping their horse at their residence, owner boarding their equids, and leaser. Boarders reported mean monthly payments of 23.33 ± 90.37 USD (n = 15) for free board, 236.47 ± 151.92 USD, (n = 75) for partial board, and 514.75 ± 291.71 USD (n = 181) for full board. Results show all owners, leaser, and boarders have different WTP values which range from 18.5% to 26.2% increase in current care costs which extends beyond the presented range due to many respondents responding “yes” to both WTP questions (71% of owners, 6% of boarders, 65% of leasers). Equine owners, with on farm equids from the southern US were WTP 11% less than from other regions (P = 0.015). The current boarding fees from owners that board their equids lowered their WTP by 0.01% (P = 0.029) for each additional dollar paid, whereas current care costs were not a significant factor for other owners (P = 0.370) or leasers (P = 0.395). Those that had a full lease for their equids, housed on farm or at a facility, were WTP 15% higher (P = 0.036) than those that had a partial or no lease. In comparison, boarding status (full, partial, or no boarding) did not significantly (P = 0.51) impact boarder’s WTP. Age of respondent and annual household income heterogeneously affected WTP across all groups. These results indicate the market for equine care can bear the increases in cost associated with financial distress related to COVID-19, and may aid equine owners, caregivers, and associated individuals in making informed decisions regarding essential care. Results from this study should be taken in context of the global pandemic and the restrictions in place, or lack thereof, at the time the survey was administered. Oxford University Press 2023-03-26 /pmc/articles/PMC10112674/ /pubmed/36966356 http://dx.doi.org/10.1093/jas/skad091 Text en © The Author(s) 2023. Published by Oxford University Press on behalf of the American Society of Animal Science. https://creativecommons.org/licenses/by/4.0/This is an Open Access article distributed under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0/), which permits unrestricted reuse, distribution, and reproduction in any medium, provided the original work is properly cited.
spellingShingle Economics of Animal Production
Thompson, Jada M
Kibler, Michelle L
Ivey, Jennie L Z
Financial strain of COVID-19 and its impact on willingness-to-pay for equine care
title Financial strain of COVID-19 and its impact on willingness-to-pay for equine care
title_full Financial strain of COVID-19 and its impact on willingness-to-pay for equine care
title_fullStr Financial strain of COVID-19 and its impact on willingness-to-pay for equine care
title_full_unstemmed Financial strain of COVID-19 and its impact on willingness-to-pay for equine care
title_short Financial strain of COVID-19 and its impact on willingness-to-pay for equine care
title_sort financial strain of covid-19 and its impact on willingness-to-pay for equine care
topic Economics of Animal Production
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10112674/
https://www.ncbi.nlm.nih.gov/pubmed/36966356
http://dx.doi.org/10.1093/jas/skad091
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