A lot of us are in the same boat right now.
I have 26 Dutch Warmbloods at the moment, and I doubt maybe even a fourth of them would be eligible to enter in the keurings. So they are just going to be breeding stock right now. That's just a challenge that comes with starting from nothing though; we aren't going to get our hands on superior genetics over night. We have to be patient and breed up.
I could allow horses below standard to enter keurings, if everyone else feels the same way, but these horses would have to be docked for such low ratings. Our goal here is to select the best animals for registration, and one day we will get into stride and have animals being registered left and right. I felt that the minimal "fair" ratings allowed for several fitness ratings is pretty lenient as a horse that would be described as "fair" should be none too impressive, but if I need to change it...