The two chief factors which determine the profits realized from the horse breeding business are the cost of production and the quality of the product put on the market. As land values increase, taxes automatically become higher, and this together with the increasing cost of labor, makes the feed and care given the horse more expensive. These factors are so completely independent of the horse breeder that he has little control over the cost of production. This statement is not intended to convey the idea that no account should be taken of costs, or that costs do not vary. Quite the contrary. In fact, there may be sufficient difference in systems of feeding and management to mean loss to one man and profit to another. The fact remains, however that with even the greatest effort the producer cannot lower the cost below a certain point, and that this minimum has been increasing during the past several years.
Carroll, W. E., "Circular No. 18 - Better Horses for Utah" (1916). UAES Circulars. Paper 14.