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With the lease option you will "borrow" one of our
mature proven female alpacas to produce a cria for you. Leasing
is a wonderful way to build your herd at about 1/2 the cost of
purchasing a breeding female. It is an excellent way to build
a herd slowly while starting out in alpacas or looking for your
farm. You will also be involved in the business,
but at low risk.
There will likely be helpful tax advantages to you. The Alpaca
Owners and Breeders Associations (AOBA) explains:
"The less active owner using the agisted ownership approach
may not enjoy all of the tax benefits (possible), but many of
the advantages do apply. For instance, the passive alpaca owner
can depreciate breeding stock and expense the direct cost of maintaining
the animals. The main difference between a hands-on or active
rancher and a passive owners involves the passive owner's ability
to deduct losses against other income. The passive investor may
only be able to deduct losses from investment against gain from
the sale of animals and fleece. The active ranches can take the
losses against other income."
The lease contract is for 12 months at $500/mo, which includes
boarding. For an alpaca which is already pregnant at the start
of the leasing contract, adjustments will be made based on the
anticipated birth day.
There is no breeding fee. The leased dam is or will be bred to
one of our multiple award-winning herd sires. At your option,
you may select a herdsire from other area farms for a nominal
breeding management charge.
No credit is required. After the lease terms
are satified and seven months after birth the cria is free to
go home with you or can be boarded at our farm. There is no boarding
fee for the cria from birth to seven months.
Additional charges would be for vet care for the newborn cria
and full mortality insurance on the cria, which we strongly
encourage.
Lease Guarantee
1st Choice Alpacas gives a 30-day live birth guarantee.
If this guarantee is not satified, you may re-lease the dam or
another dam (if available) with lease fees paid to date applied
against the new lease.
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