AQHA Incentive Fund Information
I've had several questions about the AQHA Incentive Fund.
This is a really neat investment into your foal's future! Each year, I pay into a fund based on the amount of mares bred. This fund is specifically for Incentive Fund Horses only! The stallion MUST be nominated each year for his foals to be eligible. Once your foal is born, you must check off on the foal registration the Incentive Fund nomination box and pay the additional fee. This will enroll your foal into a lifetime earning pay-back fund.
You as the nominator, even if you sell the foal down the line, are locked into a pay-back. Here is how it works,
Once the foal is nominated, if at anytime he or she earns points in an AQHA show, the points are tallied at the end of each competition year and, based on the fund's earnings each year, amount of horses, etc., each point is given a value. There are exceptions. Youth, Rookie, or Level 1 classes do not count toward incentive fund payouts. According to SHW 260.7, points earned in Amateur and Open Level 2 and 3 will be eligible for AQHA Incentive Fund Payout.
Then the horse's earnings are split between the Stallion owner, The foal nominator, and the Owner of the foal at the time the points were earned. The Owner at the time the points are earned will receive 70% of the earnings for a job well-done. The$ Nominator will get 15% and the Stallion owner will get 15% of the earnings.
Not bad for a small investment into your foal at the very beginning when you send in their registration paperwork!
This makes your foal more valuable than one that is not nominated! Because there is actual earnings that can be earned just by getting points in an AQHA show. The AQHA has also changed to where the owner does NOT have to get a special competition license to earn the incentive fund!!!
In 2015, the "per point distribution" for incentive fund horse owners was $15.65. Stallion and foal nominations were $5.65 each per point earned. So if a horse earns 10 points in a year, that's $150 to the owner, and $50.65 to you as the nominator! That is almost a month of feed for my stallion! That's a set of winter show-fees at schooling shows! Tank of gas to get you somewhere. And it is lifetime of earnings! A friend of mine received a $200 check in the mail after not seeing anything for a long time. Her horse was shown at an AQHA select show and she received a check out of the blue on a horse she nominated! It was a great surprise! She sold the horse 10 years ago!
Please check out the rules and information on AQHA. Read the literature that is out there that talks about it. Here is one of last year's AQHA Journal articles about the Incentive Fund.
I am excited to be enrolled in this fund!
AQHA is making major changes to the Incentive Fund.
Please see their website for the current information.
Future foals will not be eligible anymore due to AQHA ending the Incentive Fund Program
If you wish for us to look at performance incentive programs, please email me their information.