Why Alpacas
Alpacas are sometimes called “The world’s finest livestock business.” Alpacas are also sometimes referred to as “The huggable investment.” Alpacas are unique and are still considered rare. They are in big demand and people pay high prices for them. Tending to a graceful herd of alpacas can be profitable and allow one to live a rewarding lifestyle.

With the number of new alpaca farms steadily increasing there will still be a great demand for breeding stock.  The supply of alpacas will continue to be limited in the near future for a number of reasons:

1. Alpacas reproduce slowly usually having only one cria (baby) per year with a gestation period of 11 to 12 months.
2. Many breeders, especially newer farms, retain their offspring to build their herd to a certain level before choosing to sell any.
3. The U.S. and Canadian registries are closed to further importation so growth for alpacas is from within.  If you are thinking about getting started breeding alpacas it is very important that the alpacas you are buying are ARI registered, have pending registration or are ones that can be registered (both parents registered).

Demand for alpacas has remained strong and has seen sustained growth since their introduction here in 1984. Alpacas have a relatively long and trouble free reproductive life span. They can be fully insured against loss. They also are very friendly, inexpensive to raise, very hardy, trainable and require very little acreage. They eat grass and hay along with a special blend alpaca feed supplement. A small barn or three sided shelter is suitable for protection from the elements.

Many individuals that live in the city board their alpacas (agistment) at an established farm while they let their starter herd build. At a later date, if they so choose, they can become more hands on by raising their alpacas themselves.

About Alpacas
Alpacas, cousins to the llama, are native to the Andean Mountain range of South America, particularly Peru, Bolivia, and Chile. 

Alpacas were first imported into the United States in 1984.  Since then, the U.S. alpaca industry has grown steadily, according to the Alpaca Owners and Breeders Association (AOBA).  Current estimates total over 100,000 registered alpacas with the Alpaca Registry, Inc. (ARI) in the United States and more than 4,000 AOBA members in North America. 

There are two types of alpacas in the United States today.  Although almost physically identical, what distinguishes the two types of alpacas is their fiber.  The Huacaya (wa-Ki’-ah) is the more common of the two and has a fluffy, extremely fine coat.  The Suri is the rarer of the two and has fiber that is silky and resembles pencil-locks
Adult alpacas stand at approximately 36 inches at the withers with weights between 130 and 200 pounds. Alpacas are alert, intelligent, curious, and predictable.  They are herd animals that seek companionship (you should always have at least 2 alpacas). They communicate most commonly by softly humming. If you are around them much you will soon find yourself humming back.

Some breeders start with several breeding age females and one male, while other breeders may elect to start with several young animals.

Tax Benefits
Raising alpacas at your own farm, hands on, can offer the alpaca farmer some very attractive tax advantages. If alpacas are actively raised for profit, all expenses attributable to the business can be written off against your income. Alpaca breeding allows for tax-deferred wealth building. An owner can purchase several alpacas and then allow the herd to grow over time without paying income tax on its increased size and value until he or she decides to sell one or more alpacas.

Uncle Sam will pay a portion of the cost of acquiring your herd, assuming you are currently paying income tax and plan to continue paying income tax over the next 6 years. According to IRS code section 179 you may qualify to write off 100% of your original purchase price, up to a maximum of $108,000, in the year of purchase (this will expire in December of 2009). For example, if one is in a 45% tax bracket Uncle Sam will reduce your taxes by 45% of the cost of up to $108,000. Depending on your individual tax situation your tax advisor may suggest writing off your herd purchase over a period of years. (Please note: we are not offering tax advice nor are we tax experts so we suggest talking to your personal tax adviser to see what is best for you. You may want to get a copy of IRS publication 225, Farmers Tax Guide.)

Alpaca Values
The average range of values for registered females is from$10,000 to $30,000 with some selling for much more. Proven, top quality herd sires sell from $20,000 to $50,000 and more. Some of the very cream-of-the-crop herd sires have sold for hundreds of thousands of dollars.

Many people enjoy showing alpacas. Having alpacas that have taken ribbons from shows definitely increases their value. The market pays a premium for the finest animals.

Alpaca Fiber
Alpacas are shorn usually once a year.  Some produce up to ten pounds or more of luxurious fiber.  Long ago, alpaca fiber was reserved for royalty.  Today it is purchased in its raw fleece form by hand-spinners and fiber artists.  The fiber is also sent to mills to have it produced into yarn and finished goods. Knitters love the alpaca yarn.

Alpaca fiber is as soft as cashmere and as warm and durable as wool. It comes in 22 natural colors, yet can be dyed any desired shade. The fiber is used to make a variety of different types of usually higher end clothing. Containing no lanolin, alpaca fiber is naturally hypoallergenic.

Hikers, athletes and outdoorsmen love alpaca socks and clothing because of its natural wicking properties as it wicks moisture away from the body. Alpaca socks are comfortable even in the summer due to the moisture wicking abilities of the fiber and they also keep your feet warm and dry in the winter time. 

Additional performance characteristics include: stretch, water repellency, and odor reduction.  For travelers, clothing made from alpaca is desirable because it is wrinkle-resistant.