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A stud farm is where horses are bred and the male and female parents are selected artificially to produce efficient racehorses. The stud fee is the price the owner of the mare pays to the owner of the stallion. The objective is to produce a champion and the coupling is designed to bring together the qualities of both parents.
The result of two horses breeding is a foal, which is the name given to a newly born horse. When horses reach racing age they become colts and fillies, and the breeders hope they show the qualities in the bloodline of both parents.
In many cases a horse can be more valuable for the owner at stud rather than on the race track. If a horse wins key races the stud value goes up, which means there is a greater incentive to send a horse to stud.
A horse’s stud value is based on the bloodline and results. When a horse is proven on the track owners face the dilemma of keeping a horse in training or sending it to stud. If a stallion or dam has a good race record through their offspring the stud value goes up, though there is not a direction correlation between a horse’s bloodline and how good they are in races.
Stud duties offer an alternative functions for horses who do not have enough ability to appear on the track, while proven stallions and mares are much in demand and that affects the breeding fee accordingly. At a stud farm the owner of the female parent pays the costs associated with keeping a horse producing offspring at a stud.