Advantages of Alpaca Ownership


What are the specific investment advantages of alpaca  ownership?/strong>/p>

  • Direct expenses are tax deductible.  Any of your expenses that can be directly  attributed to your alpaca business are eligible as a legitimate write-off. This  includes fencing, barns, feed, hay, vet expenses, tractors, insurance, travel, advertising,  and more.  Most states allow your land to  be reclassified as agricultural with the applicable reduced property  taxes.  This is commonly referred to as  the “Greenbelt Rule.”
  • Depreciation is allowed over 5 years for alpaca  breeding stock. 
  • Breeding fees for quality males range from $1000  to $10,000.  This is an excellent  opportunity for additional revenue for your alpaca business. 
  • Fleece and related products can be sold.  You can determine the amount of work that you  invest in fleece processing.  The more  work that you invest, the higher your profit margin.  Alpacas are shorn annually and yield 3-10  pounds of fleece per year.  Alpaca  produces luxury garments that are very soft, lightweight and much warmer than  wool by weight.  The sales outlets  include several alpaca fiber co-ops, cottage industries, internet and your farm  store.
  • AOBA research shows that a starter herd of 5  females and two males will grow to approximately 126 alpacas in 10 years.  The income of each of these alpacas is  tax-deferred until you actually sell the animal. 
  • Alpacas are a steady growth industry.  There are no “puppy-mills” in the alpaca  world since a female alpaca only produces one cria (baby) each year.  Gestation is over 11 months, so the growth of  the USA  industry is slow but steady growth. 
  • The ARI (Alpaca Registry) is closed to further  imports from South America.  This protects alpaca investment from a flood  of alpacas into the United    States.   This means the US  herd of alpacas must grow quite considerably to meet the international demand  for the luxury fiber.
  • Alpacas are hardy pseudo-ruminants that are very  efficient at metabolizing nutrition.  Many  more alpacas can be run on an acre of pasture than traditional livestock.  This makes the alpaca perfect for the small  farm of less than 10 acres.  Since alpacas  have 2 padded toes instead of a hoof, they are very gentle on pasture unlike  horses or cows.
  • Many farms sell alpaca manure as additional  income.  Alpaca manure can be placed  directly on plants without composting without damage to the plants since it is  very low in nitrogen.
  • Eco-tourism has become very popular with many  agricultural enterprises, and the alpaca industry is no exception. 
  • Alpaca are 100% insurable, so catastrophic  losses can be minimized.  The cost of the  insurance is deductible as a business expense.
  • An alpaca business can include selling products,  breedings and alpacas.  Services, such as  consulting, alpaca training, agistment, and transporting, are also valuable  sources of income.
  • Alpacas live for 20-25 years, and a female  alpaca usually produces one cria per year until she is very old.  It is reasonable to expect that a female  alpaca will produce 10-15 crias in her lifetime.