Why Invest in Alpacas?
Alpacas are a solid investment; they are good for families, couple, singles, the empty-nester, to the professional looking for an outlet to daily stress. While the individuals and families who have decided to experience the alpaca adventure are widely diverse in their backgrounds, they share a common love for animals and a desire to remove stress from their lives. It’s easy to get started, doesn’t require much acreage and can pay big dividends. It can also give you the freedom to live your dreams.
Investing in livestock may be a new concept for many people in today’s world, but investment in livestock used to be the measure of a man's worth. As recently as the late 1800's in the United States, wealth was judged often by the size of a man's cattle herd in many parts of the country. Today, livestock investments still share many of the characteristics of a traditional investment, such as stocks and real estate.
No other livestock has a greater investment value than alpacas. They are rare and in high demand. Their coats produce a fiber which is stronger and warmer than wool, yet light and softer than cashmere. As these natural fibers gain commercial value through their use by such top designers as Ralph Lauren, the continued demand will exceed the current supply. Alpacas have been called "the world's finest livestock investment." It is difficult to compare alpacas with other investments as pure investments. How much is peace of mind worth? Unlike the stock market, alpacas are depreciable over five years, giving the investor an immediate investment return in tax savings while the herd is growing.
As you raise your alpacas, all expenses (i.e., food, veterinarian, supplies, computers, travel, tractors, showing, advertising, etc.), are deductible. In many states, those involved in farming will have a significant reduction in their real estate taxes. Unlike many investments, alpacas are 100% insurable.
Alpacas are not inexpensive, ranging from $12,000 to $40,000 for breeding females and $5,000 to $35,000 for high quality males. High quality proven males with exceptional offspring have sold in excess of $200,000. You may finance your alpaca purchase right on the farm ask about our financing terms.
You don’t need a lot of space to get started. One acre of property is enough to graze 5 to 10 alpacas. They can be housed under open shelters, although many breeders do construct barns. They should be confined within fencing, to keep predators out.
Breeding Alpacas is a profitable business with an excellent future. You can live with a rewarding lifestyle while raising these charming animals that are intelligent, good with children, and easy to handle. You’ll build significant cash flow and tax-deferred wealth, while enjoying tremendous tax benefits today. (link to an explanation of tax benefits) – see copy below
Tax Benefits
We recommend using an accountant to setup your bookkeeping system and to determine your eligibility and state requirements for the full advantages discussed below. Some of the tax advantages include:
- Tax deferred building of wealth through herd compounding
- Exemption from state sales tax on items purchased for the farm
- Deduction of expenses for the farm against other active or passive income
- Favorable treatment of land in property tax valuation
- Treatment of many sales as capital gains
- All of these situations may not apply to you. Sales tax exemptions will vary by state, as will property valuations. Please see a qualified CPA for details.
Capital Requirements
Unlike many livestock animals, little land is required to begin enjoying the alpaca lifestyle. A small barn or shelter is all that is needed. Five or six alpacas can be accommodated comfortably on a single acre of fenced pasture. They eat very little and require little care. Equipment to care for your herd is minimal. Some of the expenses needed for startup include:
- Insurance for the farm and animals
- Small barn or shelter
- Fencing
- Feed
- Miscellaneous farm equipment
A typical alpaca will cost between $15,000 and $30,000. Some farms, including The Alpaca Trading Company will provide financing for these wonderful animals.
If you do not have a farm yet, but would like to begin enjoying significant tax benefits of these huggable investments, you can begin your farm by agisting your animals. All purchases of breeding animals come with up to 90 days free board. After that, for as little as $3.00 per day, The Alpaca Trading Company will keep and care for your alpacas until you are ready to bring them home. Call today, or better yet, come out and see us!
How to get started
New to Alpacs? Click here to go to our new breeder page. It explains financing, tax benefits, cap requirements, herd projections, investment info, packages, and getting started support.