Why invest in Alpacas?

Alpacas are considered the world’s finest livestock investment. You are investing in a commodity that has strong current demand and incredible potential demand, is insurable and offers numerous tax advantages. Breeding stock prices have remained relatively stable since the beginning of importation in the mid-1980′s. Because of the scarce supply, marketing efforts have been limited, and we have not even begun to create the potential demand for alpacas and alpaca fiber products. Alpacas are no longer imported from South America, so domestic growth will rely on the animals already in the North America. With support from a national organization (Alpaca Owners & Breeders Association, http://www.alpacainfo.com/index.html ), the U.S. is poised to be a world leader in the alpaca industry. Alpaca fiber is finer than cashmere and exhibits many qualities that make it more desirable than any other fiber. Textiles made from alpaca fiber are known throughout the fashion capitols of the world. The AOBA fiber co-op is working hard to ensure that we will be able to create and fulfill commercial demands with domestically produced fiber. Raising alpacas at your own farm offers some very attractive tax advantages. All expenses attributable to the endeavor can be written off against your income. Purchased stock can be depreciated over five years, and alpacas purchased after September 11, 2001 , for the next four years, qualify for the economic stimulus package. A helpful publication is the Farmers Tax Guide IRS publication 225 (accessible online from the IRS). Additional tax information is available on the AOBA website (http://www.alpacainfo.com/newsite/invest/taxes.html). Consult your personal tax expert prior to making any assumptions with regard to the impact on your individual tax situation.