Investing in Alpacas
The alpaca business
Alpaca ownership has been steadily growing in the U.S. for a number of years.
Prices have remained good for quality animals and has increased in recent years for the best animals. Demand continues to grow nationwide for these wonderful animals.
The national alpaca industry, represented by the Alpaca Owners and Breeders Association (AOBA) and the Alpaca Registry
(ARI) have been instrumental in creating a selective breeding program which has resulted in animals of superior quality in both body and fiber. These improvements are expected to continue as North America strives to produce the best examples of the breed.
Here is a quick list of just some of the advantages of owning alpacas:
The Alpaca Advantage
(from the AOBA advantage advantage page)
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Alpacas are safe. They don't bite or butt. Even if they did, without incisors, horns hoofs or claws, little harm can he done.
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Alpacas are small. They are easy to handle.
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Alpacas are useful. Providing valuable fleece for the clothing market.
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Alpacas are intelligent. They are pleasant to be around and easy to train.
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Alpacas are beautiful. They come in over 22 colors, and are clean and pleasant to be near.
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Alpacas do not require butchering in order to be profitable.
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Alpacas do not require special shelter or care.
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Alpacas are considered disease-resistant animals, which lowers insurance and veterinarian costs.
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Alpacas are adaptable to varied habitat, successfully being raised from Australia to Alaska and from 15,000 feet to sea level.
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Alpacas are rare outside of South America and cannot be mass-produced.
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Alpacas require minimal fencing.
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Alpacas can be pastured at 5-10 per acre.
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Alpacas are easy to transport. They can be traded across the country or around the world.
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Alpacas have a relatively long and trouble-free reproductive life span.
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Alpacas can be insured against loss.
More...
Tax savings
Breeding alpacas as a business may allow you to enjoy certain tax advantages.
But first, what are your goals?
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Start a full business as an alpaca farmer
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Raise alpacas part-time, outside of your "day job"
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One spouse dedicated to the farm, the other working outside
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Investment only, without personally raising the animals
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Want to invest slowly in alpacas, using an affordable monthly option
All these options and more are available to the investor. Each investment option may offers tax advantages to you. You should of course check with your financial advisor for your personal financial situation and potential level of benefit.
For a good description of alpaca investment benefits, please see the
AOBA Investment Potential page. Is has a wealth of additional information describing the many benefits of alpaca ownership.
The new economic stimulus package passed by Congress allows an additional 30% depreciation on capital goods purchased after September 11, 2001. This law stays in effect for three years. Talk with your tax advisor about the details or visit http://www.irs.gov (specifically review IRS publication #225, The Farmers Tax Guide).
Another lesser known tax benefit, and one we enjoy is raising alpacas may qualify your land for a public benefit property tax reduction or 50% or more, depending upon your local proper land usage incentives.
At Island West, we offer the services and financing options which will allow you to realize tax savings and real profits from your alpaca ownership.
We're here to help. No matter where you are in your investigation of this wonderful business, feel free to contact us about your investment goals!
-Brian & Frieda
