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"World's finest livestock investment"
Alpacas are often thought of simply as an investment, and it is true that they can serve well in this capacity. But raising alpacas is a business, also. You can’t buy an alpaca and put it away in a safe like a bond. The herd needs to be nurtured and cared for if it is to grow and prosper for you.
The alpaca business is about fleece. Alpaca fleece is some of the finest in the world. Garments made from alpaca fleece are soft, warm, light-weight and comfortable. Today, the alpaca garment industry is still in its infancy in the United States, and raising alpacas solely for the fleece is currently not profitable. Right now, the value is in breeding the alpacas and selling their offspring (called crias) for breeding stock. Currently female alpacas and “stud-quality” males sell at a premium. Sale prices are dependant on multiple factors including color and the quality of the fleece.
When we began, we were told that alpacas required little care. That is relatively true; they are easier to care for than most other livestock. But they are still living animals and require some time and effort. Setup of a new farm would require a minimum of a three-sided shelter, fencing and access to water. Alpacas do not require a lot of land. Depending on the region of the country, one acre of land can accommodate 5 to 10 alpacas.
The tax benefits of alpaca ownership, the profit potential, and, very importantly, the ability to insure your investment make alpaca farming attractive. The Alpaca Owners and Breeders Association (AOBA) website has a comprehensive description of the Investment Potential and Tax benefits of starting your own alpaca farm. Everyone’s financial situation is different and you should consult with your tax and financial advisors before investing.
We at Alpacas of Marble Ridge would be delighted to speak with you about the financial aspects of alpaca farming. We are happy to provide flexible terms for those who wish to finance their purchase. We can also help with setup and are proud to give ongoing support in the future.
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