Investment facts 

Alpacas have been called "the world's finest livestock investment." It is difficult to compare alpacas with other investments as pure investments. How much is peace of mind worth? Unlike the stock market, alpacas are depreciable over five years, giving the investor an immediate investment return in tax savings while the herd is growing.

Breeding stock held for more than one year is subject to capital gains, and alpacas qualify for Section 179 of the I.R.C., which, for 2002, allows an alpaca farmer to depreciate the first $24,000 of the investment. As you raise your alpacas, all expenses (i.e., food, veterinarian, supplies, computers, travel, tractors, showing, advertising, etc.), are deductible. In many states, those involved in farming will have a significant reduction in their real estate taxes. Unlike many investments, alpacas are 100% insurable.

Alpacas are not inexpensive, ranging from $5,000 to $50,000 for breeding females and $5,000 to $100,000 for high quality males. High quality proven males with exceptional offspring have sold in excess of $500,000. In many cases, financing your alpaca purchase can be done right on the farm as many alpaca breeders offer financing.

The alpaca herd grows at a limited rate, which helps to keep the supply and demand in check because:

• Gestation periods are eleven and a half months to a year with single births.

• The Alpaca Registry, Inc. (ARI) offers fully blood-typed protection and has been closed since 1998 to any newly imported animals.

• Mass production techniques, such as embryo transfer and artificial insemination, are difficult, if not impossible, due to the physical characteristics of the alpaca.

• More importantly, the Registry will not recognize any animals that are not produced naturally.

Financial Investment: Alpacas offer solid financial returns,
market is strong in the USA and returns are around 15 to 38%
(AOBA's Investment Brochure)