It's that time of year again. All the 2-year-olds look great, the babies are being foaled and breeders are spending a fortune on the USTA's PATHWAY system, checking production records so they can pair the correct stallion to their mare. It's tough – graphic designers are getting rich posting full-page ads for Hoof Beats and other publications, not to mention the pop-up banners on all the Standardbred websites. There's a big picture of the stallion, either in full flight or standing majestically, with his racing prowess spelled out, along with his pedigree. Down in the corner you see what state he stands in. And then, somewhere on the page there will be a number followed by three zeroes. That's his stud fee, and although those of us who are not involved in breeding horses may think the Adam Bowdens, Joe McLeads and Harlan Nolts of the world just throw darts at a board, setting stud fees is part science, part art, part gut feeling, and all business. In Ohio, where I live, stallion fees range from $700 (for Heavenly Sound, a son of Rock N Roll Heaven) to $17,500 (for Downbytheseaside, a son of Somebeachsomewhere who needs no introduction). The majority of Ohio stallions stand for between $2,500 and $7,500. How does a breeder know what to charge? "You charge what the market will bear," joked Dr. John Mossbarger, master of Ohio's Midland Acres and a recent inductee to the state's Hall of Fame. That may sound a bit crass, but it's not. The market determines the value based on a combination of pedigree, conformation, on-track performance and where the horse is standing at stud – how do yearlings sell in that state, which is often directly influenced by the state's breeding program. But there are some intangibles. Joe McLead, who runs Sugar Valley Farms, just a stone's throw from the home of the Little Brown Jug, has some interesting observations on determining fees. "It's not just pedigree, performance and looks. What else is available with similar breeding?" is the question McLead asks himself. Sugar Valley stands Downbytheseaside in partnership with Diamond Creek Farms. "We have a relationship," said McLead. "In Seaside's case, his father [Somebeachsomewhere] was still alive and available. Do we want to keep him in Pennsylvania and have to go head-to-head with Sweet Lou, Captantreacherous, and so on. He had a lot of Ohio connections, and that's also a factor. We started him at $6,000 the first year. "It's always a crapshoot. The first crop is generally an indicator; if you get a good book of good mares. But you have to remember that you won't see results until the fourth year. Most stallions will have a drop off in the number of mares bred, especially in the third and fourth year," he continued. "You have to support the stud through that time. If not, you are almost sending a message." To clarify, let's say a mare is bred April 1, 2024. The foal is born March of 2025. He becomes a yearling on January 1 of 2026, and a 2-year-old on January 1 of 2027 – so four years with no race results. Harlan Nolt, who runs Wisconsin-based Wisco Farm, but stands Minnesota stallions, points out there are other considerations. "How long will his stud life be? What did you pay for him? World At War Deo was four for his first crop, while Easy Again was 10. But that's not 100% -- look at Bettor's Delight, he's up there," said Nolt, referring lastly to the 26-year-old who stands in Ontario for $20,000 Cdn. Nolt agrees with McLead that you can't drop the price in those interim years until the first foals are racing. McLead mentioned that he starts looking at establishing stud fees as soon as the stake season ends. ► Sign up for our FREE DRF Harness Digest Newsletter "With Seaside, we got immediate results on the track from his first crop, and we were able to move him up a couple times, [he stood for $12,500 in 2022] and now he is at $17,500 and he'll fill his book," he said. "Lather Up was a tough one, his pedigree wasn't the strongest and he was a bit erratic on the racetrack. We could have started him at $4,000 or $5,000, but he retired as the fastest horse in history and we thought $6,000 was the right number. He had some success with his first crop, so we left him there for 2024." Lather Up has shown a classic pattern, serving 129 mares in his first year, 114 in his second and then just 78 and 86 in years three and four. With the success of his first crop, it will be interesting to see how many mares he will breed this year. "Catch The Fire is a smaller horse, and he was still racing, so we limited him to 85 mares his first year and that allowed us to start him at $6,000," said McLead. So, in Catch The Fire's case, supply and demand became a factor, since many stallions breed over 100 mares. He was actually able to increase his book to about 130 mares the next two years. "I'm glad Pebble Beach is coming to Ohio," McLead added. "We kept his fee the same as it was in Kentucky last year, at $7,500. He has all the tools and was an elite Kentucky stallion despite competing in a state you are really racing against everybody [due to the generous mare residency program in the Bluegrass State]." In Minnesota, most stallions stand for $1,500 or $2,000, a reflection of yearling prices (only one Minnesota yearling has ever sold for more than $40,000 at auction) and racing opportunity (It is rare for a divisional winner to earn $100,000 in a season, while in Ohio that divisional champ will likely earn a quarter of a million dollars). Nolt led a group that paid over $200,000 for World At War Deo in a state where some stallions have been purchased for less than $20,000. "We took a chance. He's a good-looking horse, was good on the track and he is well-bred [a son of Chapter Seven], so $3,000 seemed right – that's high for Minnesota right now, but the program is growing and we think he is worth it. If he is going to be the best, and I think he has that capability, I thought we could go a little higher than usual," Nolt said. "You can't change the fee up or down until they have a crop at the races," he continued. "Maybe if the number of mares drops severely, but I don't like to. Maybe we offer a multiple mare discount. You also have to remember that only about half of our yearlings go to sale. A lot of folks race their own, so they can support their stallions with their own mares. "If a stallion doesn't pay for himself, it may be time to move on, but as long as he continues producing, we stick with them," said Nolt. "We nearly pulled the trigger and moved Southwind Flash, but he had a much better year in 2023 and he is drawing a good book of mares this year." What else is needed for a stallion to be successful? McLead says his uncle, Bill Walters, insisted the horse's name had to roll off the tongue. "When I was at Winbak, I had a few free breedings to some middle-of-the-road stallion with a dumb name. Why would you give a stallion a dumb name," he joked. That's it for this month. Now go cash. And don't worry, as a horseplayer you don't have to wait nearly four years to cash on a horse the way a breeder does with a yearling.