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In short, yes he can. Hay when used as bedding can hold several different types of parasites as well as molds and fungus'. Laying on molded hay and then licking himself can cause the dog to get an infection. Please clean out all the hay and take your dog to the vet. When you know what is wrong and are able to deal with it, sanitize the surrounding area of the cage. If you purchase any more bedding, make sure it is sealed and guaranteed safe for bedding. Straw and pin shavings are a good insulator for outdoor bedding that have a lower percentage to cause an infection.
The average purchase price of a Labrador Retriever from a responsible, reputable and knowledgeable breeder ranges between $900.00 - $1350.00 depending on if the puppy comes from show or working stock and other costs of raising a litter of puppies.
Champion in general means that a dog has earned his/her Championship Title in Confirmation Showing. Champion bloodline means that the puppy has dogs in his/her bloodline, ie: grandparent that has won their Championship Title. While Champion sired or Champion damed means that the father of the litter (Sire) or mother (Dam) has earned his/her Championship Title. To win a Championship Title, the dog must be of the set standard of the breed and have the best confirmation (body, movement, temperament, ect.) in the class the dog competed in. It is a very good thing, but you should always ask to see title paperwork though to confirm it is true.
There is a difference in AKC Champions and International Champions. AKC takes many many times of showing a dog in competitions against other dogs of the same breed. International can be gotten in 1 day if the dog meets the 'standards ' for the breed.... An International is not nearly as meaningful as an AKC Champion.
Contacting your local Positive Reinforcement trainer and signing your dog up for classes will be the easiest way to stop this behavior. You need a trainer to work with you and your dog as you are walking to correct this behavior. But until that happens, I would suggest spraying the leash and harness with a bittering spray you can buy at any pet store to discourage your dog from wanting to bite at the leash and harness. The trainer will help you use treats to encourage your dog to walk beside you instead of pulling.
You can use the head harness to teach the pup to lead. You control the head and the rest will follow and it does not hurt the dog. You can find this in any pet store.