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INVESTING IN ALPACAS

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.
 
 
 
 

 


 


Long Plains Alpacas
P.O. Box 754 
301 Long Plains Rd
Buxton, Me  04093
207-727-3148

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