Alpacas are in strong demand; discerning buyers are paying high prices for breeding stock.

Baby alpaca and her mom

Why? Aside from being quite adorable, with highly sought after fiber, alpaca can provide diversified income streams and tax advantages. Very few animals can be both profitable and enjoyable. Alpaca are called the 'world's finest livestock investment'.

There are three primary ways that alpaca can significantly increase your revenue and decrease your taxes:

1. The purchase price of your breeding stock, barns, and fencing is fully depreciable, usually over the course of five years. This depreciation can create 'phantom income' each year, and give back a significant portion of their purchase price, depending on your tax situation.
2. Breeding alpacas can create tax-deferred growth of wealth. A small owner can purchase several alpacas and then allow the herd to grow exponentially over time without paying income tax on the increased size and value until and unless the owner chooses to sell their offspring.
3. If they are actively raised for profit, all related expenses can be written off against outside income. Expenses include feed, veterinary care, breeding costs, etc. These expenses help shelter current cash flow from tax.

Our alpaca taking a siesta

Alpacas do not require extensive acreage or facilities. One acre of grass pasture with a run-in shed is sufficient to house up to 10 alpacas. They are easy to care for, making them ideal for couples with children, retired people, those with full-time jobs or for anyone who would like to keep animals as part of their lifestyle.

Paco the curious alpaca

Some owners dont actually care for their animals on a daily basis. Agisting (boarding) of alpacas is available at many farms. Boarding allows people living in the city, or just waiting until they build up their herd to take advantage of the tax benefits without the initial outlay of money for barns, fencing, supplies, etc. Alpaca are a great way to diversify your financial portfolio.

As with any investment, it is not without risks. You should talk to breeders to familiarize yourself with the risks, visit farms to see what is involved with ownership and most importantly, ask lots of questions. Alpaca breeders generally carry full mortality insurance to protect this important asset from risk of death.

Why would you buy alpacas? Come on out to the farm, meet our friends, and you'll see why we say 'I love alpacas!'.