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His dad is a C papered stallion. That is average for a foundation horse. He only compared 'as good as' his sire, so he would probably paper C, as well.

His mom, on the other hand, is Red papered. That is equivalent to a B papered stallion. Your guy was not better than her, so he was gelded. Since he papered B he is probably a 'low' B, and mom is a 'higher' Red. Strict Breeding Advice tests the foal against both parents.

Yes, as far as getting better odds of an intact foal. But there are horses who have a C/yellow parent who test A/Blue, but those are rare. Also, leaving your mares in your pastures 30 days gives them a little advantage.