There are many reasons why so many people across the United States are investing into alpacas. Ownership is not limited to doctors, lawyers, accountants and veterinarians, but also handcraft artisans, city dwellers, celebrities, and families everywhere. Many have decided that alpaca is right for them.

The Basics

• Alpaca breeding is an alternative lifestyle with strong incomes
• Alpaca ownership creates a wide array of tax benefits
• Alpaca farming is a fulfilling lifestyle
• Alpaca ownership can include 2 alpacas to thousands!
• Alpacas provide a diversification in your financial portfolio
• Alpacas create a commodity that is both rare and in demand worldwide
• Alpacas are considered the “Aristocrat” of all farm animals
• Alpacas produce a luxury product that is in high demand. Textiles produced from fleece are known in fashion centers of New York, Paris, Milan and Tokyo
• Alpacas live a relatively long and trouble-free reproductive lifespan

The Lifestyle

Families across America are investing into this lifestyle. The idea of the family unit working together for common goals is enticing. Many alpaca owners choose to keep their animals on their farms while others prefer the “no hands” approach and agist or board the animals elsewhere. Wherever you choose to place your stock, the tax benefits are plentiful. Also, please bear in mind that alpacas are fully insurable against theft and mortality. A normal policy rate is approx. 3.25% of the value of the animal or $325.00 per $10,000.

Supply and Demand

Pricing is always generated by this factor. Alpaca ownership has enjoyed a growing interest coupled with a limited supply. Importation of alpacas started in 1984 and ceased in 1998. The US alpaca registry is closed to further importation to protect our national herd. In the early years, the U.S. Alpaca Industry created a breed registry called the Alpaca Registry, Inc. (ARI). ARI houses the databases of all alpacas in North America by the blood typing. When purchasing alpacas, a Buyer is assured of being provided the correct genealogy of that animal. Progeny can also be tracked as well through ARI.

The price of alpacas has risen throughout the years. Conformation and fiber characteristics are the fundamental guidelines of value. Exceptional females have sold for as high as $80,000 and males at $500,000. However, a nice female with quality fiber and good confirmation generally brings anywhere from $15,000 to $30,000. If that animal has won in the show ring, then the price increases. Herdsires that have proven themselves in the show ring and by their progeny also command a higher price.

Compounding

Well we know you have heard of compounding. This basic principal exists with alpaca ownership. They multiply! Imagine getting a return of $15,000 +/- on your $30,000 investment in one year? This does and can happen to you. The only glitch…you do have to sell the alpacas. Too many farms are reluctant to sell the animals and their return on investment is minimized. Don’t make that mistake.

Play with the following compounding table and exercise all the possibilities that would be right for you.

Validation

The following chart will demonstrate that alpaca ownership and breeding is thriving