Why livery yards are rethinking their business models

The livery industry is facing increasing pressure from rising costs, changing weather patterns, higher welfare expectations and growing biosecurity concerns. As a result, many yard owners are having to rethink traditional business models to ensure long-term sustainability.

Rising Costs and Financial Pressures

Operating costs across the industry have increased sharply in recent years. Feed, bedding, forage, insurance, utilities and maintenance have all seen substantial rises, placing increasing strain on yard finances.

Last winter’s hay shortage saw many yards face unexpectedly high hay bills throughout the winter months, leaving some reconsidering whether providing hay remains financially viable within packages. As a result, more yards are now looking at rationed systems, or separating forage costs from livery fees altogether.

At the same time, staffing remains one of the biggest pressures facing yard owners. Annual increases in the National Minimum Wage, alongside greater employer responsibilities surrounding contracts, pensions and sick pay, mean employing staff has become considerably more expensive.

And with these rising costs, many yard owners are struggling to make a sustainable income themselves. A recent poll undertaken by LiveryList found that fewer than 15% of yard owners earn minimum wage or above, with many citing long working hours and increasing business costs as the main reasons.

Weather and Welfare Challenges

Changing weather patterns are also having a major impact on how yards operate. Wet winters and increasingly unpredictable seasonal conditions are affecting turnout availability and land management, with many yards struggling to protect grazing through the winter months.

This has forced some businesses to reduce horse numbers, limit turnout times or redesign turnout entirely to maintain both land quality and horse welfare standards. Others are investing in improved drainage, track systems or all-weather turnout areas to help manage increasingly difficult conditions.

Balancing welfare expectations with practical land management has become a growing challenge, particularly on smaller or heavily stocked yards.

Increased Biosecurity Requirements

Another major issue affecting the industry is the increase in infectious disease outbreaks across the UK, particularly strangles and equine influenza. With unprecedented numbers of reported cases so far in 2026, biosecurity is now a far greater consideration for yard owners than ever before.

Many yards are implementing stricter protocols for new arrivals and horses out competing or training. Quarantine periods, vaccination requirements and temperature monitoring are becoming increasingly common to reduce the risk of outbreaks and protect both horses and businesses.

While essential, these measures also add to workload, staffing demands and operating costs.

Rethinking the Traditional Livery Model

The biggest challenge for many yards is that they no longer feel able to provide the same level of services for the same prices. Rising costs across every area of the business mean that many traditional livery models are becoming increasingly difficult to sustain.

As a result, some yards are now completely restructuring their services to reduce labour demands and improve efficiency. This may include offering more assisted DIY or flexible livery options, simplifying daily routines or reducing labour-intensive inclusions within packages.

Many businesses are also reviewing:

• Staffing efficiency and working hours
• Yard layout and workflow efficiency
• Inclusions such as hay, bedding and feed
• Turnout management systems
• Water and electricity usage
• Machinery and maintenance costs
• Time-saving infrastructure improvements

For many yards, improving efficiency is no longer simply about increasing profit margins — it is about reducing excessive workloads and creating a more manageable, sustainable business model for the future.

Understanding True Running Costs

Business sustainability is essential for the long-term success of any livery yard. However, with costs fluctuating so widely month-to-month, many businesses are finding that what they charge no longer reflects the true cost of providing services.

The first step for any yard owner is understanding exactly what the business costs to run. Only then can informed decisions be made about pricing, services and where efficiencies or savings can realistically be achieved.

For many in the industry, adapting business models is no longer optional. It is becoming essential to ensure both financial viability and the continued ability to provide high standards of horse care in an increasingly challenging operating environment.

If you own a livery yard, keep it safe with valued protection from SEIB. Call us now to get a Livery Yard Insurance quote on 01708 850 000 or email info@seib.co.uk to find out more.

About SEIB

SEIB Insurance Brokers have been providing insurance for Horses for over 60 years. We provide a flexible range of policies to suit your needs from Horsebox Insurance and Horse Trailer Insurance too. Our experienced team of horse owners can help provide you with advice on what cover you might need.