Alpaca Investment
Financial Aspects of Investing in Alpacas

Alpacas are known as "The world's finest livestock investment" for the following reasons:

• Alpacas are in high demand for their fantastic fleece, the enjoyable and profitable country farming lifestyle they support, and the excellent tax advantages that alpaca farming offers. They are scarce, unique, and the textiles produced from their fleeces are known in the fashion centers of New York, Paris, Milan, and Tokyo. The U.S. alpaca registry, ARI, is closed to foreign imports, protecting the U.S. Alpaca market, and the gestation length is nearly a year. Both these factors keep the growth rate of the alpaca population in check. With high demand and the slow growth of their numbers, alpaca sales values stay high.

• There are excellent tax advantages available to alpaca breeders, including the depreciation of farm assets, capital gains treatment, and if you are an active hands-on owner, the benefit of offsetting your ordinary income from other sources with the expenses from your ranching business. If alpacas are actively raised for profit, all the expenses attributable to the endeavor can be written off against your income. Be sure to look up IRS publication, #225, entitled The Farmer's Tax Guide; it can be obtained from your local IRS office, and consult with an accountant.

Start with the best quality alpacas available and keep breeding back to the best herdsires to ensure that your herd will provide a premium return on your investment. If you would like more information, please