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Great Starter Herd Deal |
| What about Financing? |
Financial Observations
· The major tax advantages of
alpaca ownership include the employment of
depreciation, capital gains treatment, and if you are an active hands-on
owner, the benefit of off-setting your ordinary income from other sources
with expenses from your ranching business (See Tax Consequences of
Owning Alpacas.)
· The financial return using the
agisted approach, should you elect to board your
animals, is also very good. There are breeders who would be happy to discuss
agisting alpacas on behalf of prospective owners.
· Quality, color, gender of
offspring, and strength of the overall industry could
influence results positively or negatively.
· It is important that you make a
purchase decision using assumptions that reflect
your personal tax and financial situation, as well as your own assessment of the
alpaca industry.
· Financing terms are available from
some breeders and range from a few months
to two years or more.
It is always wise to consider both the upside and the downside of any potential
purchase,
It is important to feel comfortable with a range of possible financial returns
if your actual
experiences differ from your assumptions.
Hands-On Alpaca Ownership
There are essentially two ways to own alpacas. The first approach is to simply
purchase
the animals and begin raising them. The second approach is to purchase the
animals and
place them in the care of an established breeder. This arrangement for care and
boarding
of an animal on behalf of another is known as agistment. Under this method you,
as
owner, typically would still make the important decisions about care, breeding,
sales, etc.
This discussion will focus on the owner-raised scenario. Many breeders will work
with
you to develop an analysis designed for your particular situation; however, you
are
encouraged to independently develop your own financial analysis utilizing
professional
support if necessary. Expenditure of funds warrants a full assessment of risks.
The buyer
needs to establish a comfort level that this is the right balance for their
lifestyle.
Analyzing the feasibility of alpaca ownership requires making a set of
assumptions.
Determining the costs associated with raising the animals and how much they
might sell
for in the future are the basic elements used in projecting a return on the
investment. The
assumptions found here are estimates based on many breeders' experiences.
The hands-on method of raising alpacas, as either a part- or full-time business,
requires
that the alpaca breeder own a small ranch or acreage. The property would need to
be
properly fenced and have a small barn or shelter. Many new owners already have
outbuildings suitable for alpacas. The alpaca owner is presumed to supply the
day-to-day
labor. Many new buyers start with a breeding pair or two females (and purchase
stud services).
The financial returns are similar at different ownership levels, so don't feel
that you have
to be a large ranch to participate.
History
Alpacas (camelids) were revered and treasured by the ancient Inca civilization.
Today,
alpacas still live on the Andean plateau in the mountains of
beautiful animals were one of the key foundations to Inca commerce. The camelids
provided food, clothing, fuel and transportation to the Incas who were
accustomed to a
very harsh and hostile existence. The Alpaca and Llama have been domesticated
for
around 6000 years. Today, approximately 99% of the world's approximate three
million alpacas are found in
ndustry is in
primarily in either
Alpacas were first imported into the
130,000 in all of
greater than 210,000, the excitement and unique business opportunity the alpaca
affords
the North American breeder is easily appreciated.
Characteristics
Physical
Alpacas are recognized by their compact size, abundant, soft fiber, long necks
and ears
that typically point slightly outward. Their short, wedge-shaped heads are
adorned with
much wool and large, expressive eyes. The alpaca's tail is naturally short and
low set,
often giving the alpaca the appearance of having a rounded rear end. The rear
legs of the
alpaca may be set very slightly under, but the hocks should never be sickled.
The alpaca's
front legs should look straight or nearly straight when viewed from the front.
Their soft,
padded feet have two toes from which nails grow out and down. This foot design,
together with their small size allows them to tread very lightly over the
terrain. Alpacas
lack upper front teeth and enamel is absent from the insides of their lower
incisors. They
grasp forage with their agile split upper lip, nip it off with the action of
their lower
incisors against their upper pallet then grind their foodstuffs with their
molars.
Adult alpacas usually weigh between 100 and 170 pounds and
stand 2 to 3 feet at the
withers. Their life span is 15-25 years. Alpacas come in twenty-two natural
colors.
Besides basic white and black, there are many beautiful shades of brown, gray,
tan and
fawn (cream). White markings often decorate the face, necks, legs and feet of
alpacas.
The paint (or piebald) pattern exists in the species but not appaloosa markings.
Alpacas come in two fiber types - huacaya and suri. The
huacaya (pronounced wa-ki-a)
alpaca is characterized by a fiber that is dense, crimped, and wooly in
appearance. This
abundant coverage gives the huacaya a soft and huggable look and
explains the
overwhelming popularity the huacaya enjoys worldwide. Ninety percent of the
North
American alpaca herd consists of huacayas, and this plurality will remain
virtually
unchanged in the decades that lie ahead.
Alpaca fiber is prized for its softness (equivalent to mohair
and surpassed only by
vicuna), uniform fineness and strength. It is three times stronger than sheep's
wool. The
value and durability of alpaca fiber has been appreciated by world textile
experts for
many years. The best fiber (softest, finest, most uniform and dense) is found on
the
alpaca's sides and loin. The leg, chest, face and neck wool often consists of
thicker, less
uniform fibers.
Behavior
Alpacas are very herd-oriented and usually prefer the company of their own kind
to that
of other species. Within the herd, there is a hierarchy of dominant and less
assertive
animals. When frightened, alpacas tend to band together which simplifies moving
them
as a group.
The gentle character of alpacas makes them easy to handle by
persons who understand
their ways. While alpacas must become accustomed to human touch, most can easily
be
trained to halter and accept people. Rarely handled animals usually require some
form of
restraint for treatments but this can usually be accomplished by one person
holding the
animal. Adult male alpacas are typically less aggressive among themselves and
with
humans than are their North American livestock equivalents. Most male alpacas
can be
kept together in non-breeding situations and some in breeding situations as
well.
Alpacas are intelligent and clean. Alpacas have three
stomachs, are browsers and very
economical to feed requiring only good grass hay and a mineral supplement. They
produce practically odorless pellets (much like a rabbit) that are low in
nitrogen and make
excellent soil enhancers. They "go" in only a few spots making cleaning corrals
much
easier. Areas can be cleaned using a either shovel or a specially designed
vacuum that
mulches the pellets. The mulch pellets than can be used as fertilizer in flower
and
vegetable gardens.
Alpacas communicate with a variety of mostly quiet noises,
body postures and an
occasional spit when confronted by extreme adversity. Their most common sound is
a
soft, pleasant humming. They sound off an alarm call to signal the approach of
an
intruder. Some mother alpacas actually cluck to their new born babies. Alpacas
also have
readily understood body language involving posturing with ears, tail, neck
primarily to
establish pecking order in the herd. Young alpacas are especially curious and
often
communicate by sniffing and touching other animals.
Alpacas love water and use it as a cooling device in warm
weather. Most enjoy ponds,
pools and sprinklers and will come running when they recognize a person with a
hose.
Lying in water for extended periods of time, besides being
immediately cooling to the
animal, does cause fiber loss on the alpaca's legs and underside. (They do not
become
bald but appear shorn in these areas.)
Uses
As rare and treasured as alpacas are in
animals that have been bred for thousands of years for fine fiber with
consideration also
given to meat production and ease of handling. In
for their fiber, form, gentleness and amusing personalities. While the emphasis
of the
infant industry is on the production and perpetuation of the species in the
of art.
Breeding Alpacas
Female alpacas are ready for breeding when they have reached 75% of their adult
weight
which usually occurs between 12 and 24 months of age. Since a few may become
pregnant as early as 6 months of age, it is important to separate young ladies
from intact
males from this age until they are ready for breeding. Sexually mature females
are
induced ovulators and do not exhibit estrus cycles typical of most domesticated
animals.
If not pregnant a mature female is almost constantly "open" or "receptive" to
breeding.
Males mature more slowly than females and typically begin
breeding at 2 1/2 to 3 years
of age. Some, however, are precocious as youngsters and should be separated at
about 8
months of age from receptive females since fertilization by a young male is
possible any
time after the penis no longer adheres to the prepuce (sheath). Males "orgle"
continuously
while breeding which lasts a minimum of 15 minutes.
Breeding is done in a prone position and takes at least 15
minutes since the male dribbles,
rather than ejaculates, semen into the uterus of the female. While breeding, the
male
makes a continuous orgling noise and moves his front legs occasionally along the
sides of
the female. The mating process induces the female to ovulate so that she can
become
pregnant.
Methods of determining pregnancy include: (1) observing a
female's receptivity to an
intact male, (2) determining blood progesterone levels after 21 days, (3)
internal
ultrasound and/or external ultrasound. The first two procedures are indirect
assessments
and at times may be misleading. Unfortunately, the anatomy of many female
alpacas is
too small to allow rectal palpation or visualization of the pregnancy of
internal
ultrasound.
The gestation for alpacas is approximately between eleven to eleven and a half
months,
and females almost invariably produce a single baby. A young alpaca is called a
cria and
normally weigh from 10 to 18 pounds at birth. A cria is usually ready for
weanling at 5 -
6 months.
Provisions for Alpacas
Fencing
While alpacas like to investigate new areas, they do not tend to run away so
keeping them
home is seldom a problem. However, adequate fencing is critical to their
survival.
Exterior fencing must be high enough and tight enough to keep out all potential
predators
including the neighbor's dog. Woven wire or any solid material that rises from
ground
level to a height of five feet usually suffices. For added protection, some
owners add an
electric wire along the top. Internally, any combination of boards, woven wire,
cables and
barb less wire that stand about four feet and does not allow the smallest
animals to escape
under or through will do.
Housing
Alpacas are hardy creatures that adapt to all climates and have minimal
requirements in
the way of shelter. Access to an open barn or simple overhang that offers
protection from
storms and ample shade in the warmer seasons is all that is needed and is
preferred to
strict confinement.
Feed
Extremely efficient utilizers of feed, alpacas do well on pasture or clean,
grass-type hays.
Overfeeding and dependence on the use of protein-rich hays, such as alfalfa, are
unhealthy and should be avoided. Females in their last trimester of pregnancy,
nursing
mothers and growing youngsters require higher levels of protein and may benefit
from
supplemental feeding. Fresh water should always be available along with mineral
salt.
(Some alpacas like blocks while others prefer it in loose form). Alpacas are
sensitive to
the deprivation of essential minerals including, but not limited to, selenium
and
phosphorus. When green forage or hay from areas of specific deficiencies is fed,
animals
must be directly compensated for the mineral(s) that are lacking in their feed.
Health Care
Although generally hardy and disease resistant animals, alpacas greatly benefit
by
preventative medicine and ready access to veterinary services. A priority for
new alpaca
owners should be to enlist the services of a veterinarian with alpaca and/or
llama
experience or, if none is available, find a local veterinarian who is interested
in the
species and very willing to learn. Regular selenium supplements are required in
many
areas to prevent white muscle disease, while Vitamin D may be required to
prevent
rickets. An alpaca's nails should be trimmed regularly and not allowed to grow
long and
curl. The teeth should be inspected and incisors trimmed if they exhibit
excessive growth.
Shearing alpacas once a year will further add to their happiness and well-being.
The
Alpaca Registry
The Alpaca Registry documents the pedigrees of registered
animals and helps assure the
perpetuation of the alpaca as a unique species in
blood typing of all alpacas and has received widespread support from the alpaca
community as evidenced by the inclusion of at least 95% of the North American
alpaca
population in the registry at the time it officially closed (March 30, 1989).
With the
closing of the registry, only animals which qualify by blood typing as the
offspring of
registered alpacas are automatically eligible for registration.
Investment Potential
Why do people in so many countries call alpacas "The world's finest livestock
business?"
For any business asset to be valuable, it must possess certain qualities that
make it
desirable. Gold is scarce, real estate provides shelter, oil produces energy,
bonds earn
interest, stocks are supposed to increase in value, and diamonds symbolize love.
Alpacas
share many of these same attributes.
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 fleeces are known
in the
fashion centers of
opportunities and tax advantages available to alpaca breeders. Historically, the
alpacas'
value has sustained ancient cultures, such as the Incas of Peru. Today, alpacas
represent
the primary source of income for millions of South Americans. History has
validated the
value of the alpaca.
Livestock has been a traditional representation of wealth for
many cultures around the
world, long before financial stocks were sold on the New York Stock Exchange.
The
richest families of ancient times counted their wealth by the size of their
flocks of sheep
or herds of cattle. Today, wealth as a result of livestock ownership is not as
common, but
opportunities do exist for profitable farms and ranches. Tending to a graceful
herd of
alpacas can be an exciting way to earn a source of revenue and live a rewarding
lifestyle.
Since 1984, alpacas have appeared, almost simultaneously, in several countries
where
they have never been seen before. The
and many European countries have all acquired the foundation for national herds.
There
are even beginning herds in
animal so desirable? The bottom line: alpacas can be both profitable and
enjoyable.
Finally, alpacas are easy to transport, which makes it easy to move them from
one
location to another. They have a relatively long and trouble-free reproductive
life span.
Tax
Consequences of Owning Alpacas
Those considering entering the alpaca industry should engage an accountant for
advice in
setting up your books and determining the proper use of the concepts discusses
in this
brochure. A very helpful IRS publication, #225, entitled The Farmer's Tax Guide,
can be
obtained from your local IRS office. The goal of this discussion of IRS rules is
to provide
the guidelines for discussion with your accountants and financial advisors so
that you can
be more conversant in the issues of taxation as they relate to raising alpacas.
Raising alpacas at your own ranch, in the hands-on fashion, can offer the
rancher some
very attractive tax advantages, It alpacas are actively raised for profit, all
the expenses
attributable to the endeavor can be written off against your income. Expenses
would
include feed, fertilizer, veterinarian care, etc., but also the depreciation of
such tangible
property as breeding stock, barns, and fences. These expenses can also help
shelter
current cash flow from tax.
The less active owner using the agisted ownership approach
may not enjoy all of the tax
benefits discussed here but many of the advantages apply. For instance, the
passive
alpaca owner can depreciate breeding stock and expense the direct cost of
maintaining
the animals. The main difference between a hands-on or active rancher and a
passive
owner involves the passive owner's ability to deduct losses against other
income. The
passive investor may only be able to deduct losses from investment against gain
from the
sale of animals and fleece. The active rancher can take the losses against other
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 an animal or sell the
entire herd.
To qualify for the most favorable tax treatment as a rancher, you must establish
that you
are in business to make a profit and you are actively involved in you business.
You
cannot raise alpacas as a hobby rancher or passive investor and receive the same
tax
benefits as an active, hands-on, for-profit rancher. A ranching operation is
presumed to be
for-profit if it has reported a profit in three of the last five tax years,
including the current
year.
If you fail the three years of profit test, you may still
qualify as a "for-profit" enterprise if
your intention is to be profitable. Some of the factors considered when
assessing your
intent are:
1. You operate your ranch in a businesslike manner.
2. The time and effort you spend on ranching indicates you intend to make it
profitable.
3. You depend on income from ranching for your livelihood.
4. Your losses are due to circumstances beyond your control or are normal in the
start-up phase of ranching.
5. You change your methods of operation in an attempt to improve profitability.
6. You make a profit from ranching in some years and how much
profit you make.
7. You or your advisors have the knowledge needed to carry on the ranching
activity
as a successful business.
8. You made a profit in similar activities in the past.
9. You are not carrying on the ranching activity for personal pleasure or
recreation.
You don't have to qualify on each of these factors - the cumulative picture
drawn by your
answers will provide the determination. Once you've established that you are
ranching
alpacas with the intent to make a profit, you can deduct all qualifying expenses
from your
gross income.
If you are a passive investor, you are still allowed the tax benefits discussed
below. The
issue is whether you will be able to take the losses on a current basis. All the
losses can
be taken against profits or upon final disposition of the herd. The discussion
from here
forward presumes you are a cash basis taxpayer and you keep good records.
Accrual
basis taxpayers would also be allowed the same tax treatment, but their timing
might be
different.
First, the following items must be included in both a passive owner's and a full
time
rancher's gross income calculation:
· Income from the sale of livestock
· Income from sale of crops, i.e. fiber
· Rents
· Agriculture program payments
· Income from cooperatives
· Cancellation of debts
· Income from other sources, such as services
· Breeding fees
The following expenses may be deducted from this income. Please note, if you are
agisting your animals, not all of these deductions may apply on a current basis:
· Vehicle mileage for all ranch business (IRS publishes current rate)
· Fees for the preparation of your income tax return ranch schedule
· Livestock feed
· Labor hired to run and maintain your ranch
· Ranch repairs and maintenance
· Interest
· Breeding fees
· Fertilizer
· Taxes and insurance
· Rent and lease costs
· Depreciation on animals used for breeding
· Depreciation of real property improvements such as barns and equipment
· Ranch or investment-related travel expenses
· Educational expenses, which improve your ranching or
investment expertise
· Advertising
· Attorney fees
· Ranch fuel and oil · Ranch publications
· AOBA (breed association) dues
· Miscellaneous chemicals, i.e., weed killer
· Veterinarian care
· Small tools
· Agistment fees
Please note: For hands-on ranchers, personal and business expenses
must be allocated
between ranch use and personal use; only the ranch use portion can be expensed
for such
expenses as a telephone, utilities, property taxes, accounting, etc.
Once active alpaca ranchers have determined their net income or loss, it is
included on
their tax return as an addition to or a deduction from their ordinary income.
Losses can be
carried back for three years and forward for 15 years. To deduct any loss, you
must be at
risk for an amount equal to or exceeding the losses claimed. The "at risk" rules
mean that
the deductible loss from an activity is limited to the amount you have at risk
in the
activity. You are generally at risk for:
· The amount of money you contribute to an activity.
· The amount you borrow for use in the activity.
The passive owner's losses that are in excess of current income can be carried
forward
and taken against future income. In other words, the passive owner does not lose
the
deductibility of expenses, but the timing of the losses may be different.
All taxpayers must establish the cost basis of their assets for tax purposes.
This basis is
used to determine the gain or loss on sale of an asset and to figure
depreciation. In
determining basis, you must follow the uniform capitalization rules found in the
IRS
code. Animals raised for sale are generally exempt from the uniform
capitalization rules,
and there are other exceptions for certain ranch property. You need to become
familiar
with these rules.
Once you've established the cost basis of your various
assets, you take a deduction for
depreciation against your annual income. This process allows you to expense the
historic
cost of an asset to offset present income. The effect is to create non-taxable
cash flow on
a current basis. This benefit is especially attractive in an environment of
higher taxes.
Alpacas in which you have cost basis can be written off over five, seven, or ten
years if
they are being held as breeding stock. There are several methods of writing them
off,
beginning with the straight-line method, which allows you to deduct one-fifth of
their
cost each year, except the first year, in which the code allows for only six
months of
write-off. There are also several accelerated schedules that allow for a larger
percentage
of the asset to be written off early. Alpaca babies produced by
your females have no cast
basis and cannot be written off, although they may qualify for capital gain
treatment on
sale.
Capital improvements to the active or hands-on alpaca
breeder's ranch can also be written
off against income. Barns, fences, pond construction, driveways, and parking
lots can be
expensed over their useful life. Equipment such as tractors, pickups, trailer,
and scales
each have an appropriate schedule for write-off. The depreciation schedule for
each asset
class varies from three years to 40 years.
There is also a direct write-off (expense) method known as
Section 179 that allows a
substantial deduction each tax year for newly acquired items that are normally
long-term
depreciable assets. While this is subject to several limitations, it is widely
utilized by
small ranches to accelerate expense, if that is appropriate for your tax
situation. Owners
currently in high tax brackets who are changing their lifestyle in the next
several years to
a lower income level often use it.
The original cost basis of an asset is reduced by the annual
amount of depreciation taken
against the asset. Other costs add to basis, such as certain improvements or
fees on sale.
The changes to basis result in the adjusted cost basis of the asset. Upon sale,
excess
depreciation previously expensed must be recaptured at ordinary income rates.
The
recapture rules are a bit complex, as are most IRS rules, but the IRS Farmer's
Publication
mentioned earlier explains them well.
When an asset is sold, for instance a female alpaca that was
purchased for breeding
purposes and held for several years, the gain or loss must be determined for tax
purposes.
If an alpaca was purchased for $20,000, depreciated for two and a half years, or
say 50
percent of its value, and then resold for $20,000, there would be a gain for tax
purposes
of $10,000. In other words, your adjusted cost basis is deducted from your sale
price to
determine gain or loss.
Once you've determined the amount of a gain, you must
classify it as either ordinary
income or capital gain. The sale of breeding stock qualifies for capital gains
treatment
(excepting that portion of the gain which is subject to depreciation recapture
rules). Any
alpacas held for resale, such as newborn crias that you do not intend to use in
your
breeding program, would be classified as inventory and produce ordinary income
on sale.
This discussion of tax issues omits a number of rules that could impact your
taxes. Tax
preference items, alternate minimum taxes, employment taxes, installment sales,
additional depreciation, and other concepts of importance were not discussed.
Whether
we like it or not, this is a complicated world we live in: it often requires the
assistance of
professional accounting and legal assistance.
In summary, the major tax advantages of alpaca ownership
include the employment of
depreciation, capital gains treatment, and if you are an active hands-on owner,
the benefit
of off-setting your ordinary income from other sources with the expenses from
your
ranching business. Wealth building by deferring taxes on the
increased value of your herd
is also a big plus. It pays to keep your eye on the tax law changes instituted
by Congress.
Alpacas have been domesticated for more than 5,000 years. They are one of Mother
Nature's favorite farm animals. They are sensitive to their environment in every
respect.
The following physical attributes allow alpacas to maintain their harmony with
our
Mother Earth.
· The alpaca's feet are padded and they leave even the most delicate terrain
undamaged as it browses on native grasses.
· The alpaca is a modified ruminant with a three-compartment stomach. It
converts
grass and hay to energy very efficiently, eating less than other farm animals.
· Its camelid ancestry allows the alpaca to thrive without consuming very much
water, although an abundant, fresh water supply is necessary.
· The alpaca does not usually eat or destroy trees, preferring tender grasses,
which
it does not pull up by the roots.
· South American Indians use alpaca dung for fuel and gardeners find the
alpaca's
rich fertilizer perfect for growing fruits and vegetables.
· A herd of alpacas consolidates its feces in one or two spots in the pasture,
thereby
controlling the spread of parasites, and making it easy to collect and compost
for
fertilizer.
· An alpaca produces enough fleece each year to create several soft, warm
sweaters
for its owners comfort. This is the alpaca's way of contributing to community
energy conservation efforts.
OUR ALPACA EXPERIENCE
What is an Alpaca? What is the difference between an alpaca and a llama?
How
much does an alpaca cost? Are they hard to care for? What do they eat? These are
just a
few of the most frequently asked questions we have encountered in the alpaca
business in
the last 6 years. We now feel that we can answer these and other questions with
confidence.
We would like to introduce you to our world of owning, raising and caring
for
alpaca. Our lifestyle change began for us in April of 2002 when we purchased our
first
bred female. Six new cria are expected in 2008. The anticipation and impending
birth
of each cria is very exciting for us. We have one medium fawn herd sire and one
white
herd sire at this point in time. We have four great Pyrenees dogs that stay with
our
animals on a 24 hour basis. They guard and protect the alpaca against outside
predators.
We designed our ranch to be equipped with a perimeter fence of predator
proofed wire
and our interior grazing paddocks are divided into 1 to 5 acres each, ten of
which are
completed with two or three more to complete. Each paddock is gated and
surrounded
with smooth 5 wire fencing. This area takes up about 15 acres. Our three barns
are used
for storage of necessary winter hay supplies and equipment and can also serve as
cover
for the females. We really like to take a good look at our animals on a daily
basis, so the
females are brought into a corral with a barn every night. We like to visit with
them as
we view each one. They are very quiet animals to be around and they seem to give
you a
feeling of serenity and peace.
It has been a wonderful experience in building our ranch business from 50
acres of
vacant land to what is now New Venture Alpaca Ranch. We are located in North
Central
New Mexico about 40 miles north and east of
Sangre De Cristo mountain range borders our location, so we have, what we call a
piece
of heaven around us daily. The climate is sunny with incredibly blue skies
almost every
day of the year. We experience all four changes of seasons. Temperatures could
range
from slightly below zero in Winter to the nineties in Summer. Our air is
considered to be
semi-arid. Alpaca tolerate the climatic changes very well and seem to adapt
quickly to
the changes. In our experience, they are very easily cared for animals.
We hope that this little peek into our world has sparked an interest in
you to seek out
the alpaca for your lifestyle change if and when you decide you would like a
change.
Here are just a few things we help with.
· Starting your herd
· Planning your ranch for now and the future.
· Day to day operations of your ranch
· Developing your breeding program
· On the job experience ( hands on .. working on our ranch )
· Medical care of your alpaca
· Developing your feeding program
· Showing your animal in the ring
· Interaction between you and your alpaca ( developing the trust and bond )
· Marketing your fiber
It would take pages to list everything you will learn.
You can stay at our ranch and
experience what a wonderful life you can have raising alpaca. We will be there
in case
you have an emergency. Our care does not stop when you purchase from us, it's
just
starting.
Even if you do not purchase from us please call with any question you might
have. We
love
to talk about alpacas and want nothing but the best for the owners and animals.
The Life Style
The joy, ease of care and potential profitability of raising alpacas has
attracted people
from many walks of life to become breeders. For some, alpacas are a primary
source of
income, for others a part-time business venture, but a source of pleasure for
both. Young
couples with children can enjoy the benefits of owning and caring for alpacas as
a
rewarding family experience. People who have raised their kids and are seeking a
business and lifestyle to enjoy as they approach retirement are often owners.
Ultimately,
whether making the switch from a fast-paced, corporate way of life, or adding
alpacas to
an already established rural setting, breeding these unique, gentle animals can
provide
both income and pleasure, all included in a peaceful, stress-free lifestyle.
This lifestyle is made possible since alpacas can be raised on relatively small
acreage and
they are clean, safe, quiet, intelligent and disease resistant. Alpacas have
soft padded feet,
are gentle on the land and can be easily transported.
There are also plenty of family-oriented alpaca events around the country,
including local
and state fairs, alpaca farm open houses and auctions, and larger shows hosted
by alpaca
organizations, the largest and most impressive being the annual Alpaca
conference and
show presented by AOBA. Some breeders also choose to get involved in selling
products
made from alpaca fiber as a hobby or an additional home-based business venture.
The
spinning and weaving of fiber is a skill that can lead to profits.
Alpacas have brought impressive financial returns to families all across
the fun and hands-on nature of this lifestyle that has really captivated people
searching
for a simpler and more rewarding way of life. Even if you don't have the land
and are
committed to a full-time career, you can still begin your alpaca adventure by
purchasing
and boarding at a nearby alpaca farm or ranch. A retired doctor who is now a
full-time
alpaca breeder had this to say, "I would rather raise alpacas than anything I've
ever done.
Breeding alpacas is a labor of love and can be very profitable."
Who
Buys Alpacas?
Alpaca breeders come from many walks of life. Increasingly, alpacas are becoming
an
important source of income for many people. Entire families are full-time alpaca
breeders. Young couples with children might own three or four alpacas and enjoy
caring
for them. Retired couples, who have raised their kids, sold their business, and
retired to
the country, are often owners. The family whose members include a hand-spinner
might
own two or three animals for fiber production. Several breeders are
veterinarians who
have found the ownership of alpacas to be more rewarding than practicing
veterinary
medicine. Many herds are owned by families where one spouse has a city job, and
the
alpaca business is managed by the other on their acreage in the suburbs or the
country. A
large number of breeders are working couples who tend to their herd in the
evening after
work. There are even city dwellers who have discovered the option of boarding
(or
"agisting") alpacas, thereby giving them an operational alpaca operation while
still
retaining an urban career. For all owners, alpacas offer a great way to
diversify their
financial portfolio with a commodity that is both rare and in demand worldwide.
There are few large ranches with over 500 alpacas, small ranches of only two or
three
alpacas, and everything in between. The average alpaca herd consists of about
ten to
twenty alpacas. Most herds start out small and grow to the size that fits the
breeder's
ranch and financial goals.
Almost all breeders are in business for the long haul; they
believe in the future of the
industry. With the relatively small number of alpacas currently available, there
will be an
extended and steady demand for breeding stock to continue meeting the needs of
our
growing industry for many years.
It is important to recognize that alpaca ownership has
inherent risks, as do all livestock
and financial assets. You should talk to breeders to familiarize yourself with
the risks as
well as the rewards of alpaca ownership.
