World's Finest Livestock Investment

Around the world, alpacas are in strong demand, and people pay high prices for them. They are scarce, unique, and the textiles produced from their fiber are known in the fashion centers of Paris, Milan and Tokyo. There are excellent profit opportunities and tax advantages available to alpaca breeders.

Limited Supply of Alpacas
The developing market for alpacas has been restricted by supply.
Supply will continue to be restricted in the near future for a number of reasons:
There are less than100,000 registered alpacas in North America.
Alpacas reproduce slowly. Only one cria (baby) per breeding female per year.
Importation of the animal from South America is extremely restricted as well as difficult, risky and very expensive.

Increasing Demand for Alpacas
Demand for alpacas has increased dramatically each year since their importation from South America beginning in 1984.
North America has experienced exceptional demand for alpacas at very high prices.
Canada has an active alpaca market and many Canadians have recently purchased animals in the United States.
There is aggressive marketing and national media attention for the alpaca. AOBA (Alpaca Owners and Breeders Association) is taking a strong lead in these areas.
There is increasing demand for Alpaca fiber and products in the US. There are numerous efforts underway at the national and international levels to market North American Alpaca products.

Tax Advantages of Owning Alpaca

Raising Alpacas on your farm/ranch offers very attractive tax advantages. If you are raising alpacas for a profit, expenses associated with your operation can be written off against your income. Those expenses could include not only farm repairs, feed, advertising, veterinary care, vehicle mileage, farm related travel expenses, and depreciation of tangible property such as breeding animals, barns and fences.

You should obtain the services of a professional accountant to set up your farm accounting system. From your local IRS office you can obtain IRS publication, no. 225, entitled The Farmer's Tax Guide.