It is wise to investigate any potential investment very
carefully and it is no different with alpacas. There are
several places you can go for alpaca information to assist
you in your quest. The Alpaca Owners and Breeders
Association maintains a web-site at:
ALPACAINFO.COM Contact them to receive a farm and ranch
guide to help locate alpaca farms in your area.
There are also affiliate organizations throughout the
country that are good sources of information. The affiliate
organization for the northeast is the New England Alpaca
Owners and Breeders Association which has a web-site at:
NEAOBA.ORG
By visiting sites such as these you will be able to contact
farms in your area directly to arrange visits. Strive to
visit as many farms as possible. You will learn something at
each farm that may help you decide if alpacas are an
appropriate investment vehicle for you. Should you decide to
take the plunge you will also have picked up invaluable tips
on barn set-up, fencing, and husbandry. As well as learning
what characteristics to look for when purchasing stock,
which is perhaps the most daunting task. Try to purchase the
best quality you can afford on your budget. Not all females
need be show quality themselves to produce high quality
offspring. Production females can get the job done quite
nicely. Females who are a bit older with proven quality cria
on the ground are sometimes a good option. Make sure they
are bred to males that are outstanding- check a males
progeny to ensure he produces consistently high quality
offspring and if it is a young male it is wise to make sure
he is the progeny of one of these males.
There are many advantages to alpaca ownership -
Alpacas are fully insurable and there are several livestock
insurers that write policies on alpacas. If you have a small
herd and are just starting out it is very wise to insure
your animals for a loss could be devastating- financially as
well as emotionally. If you are financing your purchase of
alpacas the seller will require it.
There are many tax benefits available to those raising
alpacas. It is best to consult with a CPA for advice on your
particular situation but briefly, capital expenses such as
breeding stock, barns, fences etc. are depreciable expenses
while feed, vet visits, show fees and travel, insurance and
breeding fees are deductible. The IRS publishes a Farmers
Tax Guide- Publication 225 which is available at:
IRS.GOV/Pub/IRS-PDF/P225.pdf
With the recent changes in the tax law alpaca ownership has
become even more favorable. Due to the Jobs and Growth
Reconciliation Act the 179 deduction jumped from 25,000 to
$100,000 and the 30% bonus depreciation also increased to
50%. It's a good time to buy alpacas!
Alpacas really need to be considered a business rather than
an investment. They need to be cared for, marketed
effectively, and ultimately sold. It is prudent to have a
business plan in place before purchasing any animals. Do not
hesitate to contact us with any questions you may have or to
arrange an in depth visit to our farm.