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The
worldwide population of alpacas is barely three million animals.
As a result, alpaca fleece is considered a specialty fiber
with limited available supply. Alpaca fleece is comparable
to cashmere in softness and is often mixed with other fibers,
such as mohair, to vary the texture of the yarn produced.
A strong domestic commercial market for large volumes of alpaca
fleece is easily envisioned and a national fiber co-op is
working with breeders large and small to see this vision become
reality. In essence, our national herd (now numbering around
50,000) will have to reach 10 times that number before we
can provide enough fiber to meet commercial processing demands
so values will remain high.
Several
factors indicate that their value will remain high for many
years to come. First, they reproduce slowly - basically one
cria per year of which half are females. Second, unlike our
South American counterparts (other than 2 or 3 small ranches),
we selectively breed to improve both fiber quality and physical
conformation. Alpacas and llamas free range in South America
and are free to breed at will and crossbreed with each other.
Third, our national registry (The Alpaca Registry) of which
all pedigreed alpaca owners are members, voted in 1998 to
close the registry to all imports to protect values as well
as stem the tide of poor quality animals from flooding the
market. You can still import animals - but cannot register
them so few breeders are willing to purchase or breed with
these non-registered alpacas.
Alpacas
represent excellent investments - how good depends upon whom
you ask. The Alpaca Owners and Breeders Association (AOBA)
states in their investment brochure an annual return of 60-70%.
Alpacas represent an outstanding investment in an overall
investment portfolio- even without including the considerable
farm tax benefits. The tax advantages are numerous. First,
an alpaca breeder for profit (this is the key issue with the
IRS- no hobbyists!) can purchase several and then allow the
herd to grow over time without paying income tax on the increasing
herd value. This is an outstanding method of tax deferred
wealth building. During that period all losses can be used
to offset income from other sources like another job. There
are two ways of investing- actively, where you raise the animals
yourself or passively where you invest in animals and board
them elsewhere. Of course you should talk to your CPA for
specific details.
Alpacas
are extremely hardy, disease resistant and 100% insurable
for mortality and theft (typically 3-¼% of value/yr).
They are low maintenance. They have tremendous tax benefits.
And they are wonderful to work with on a daily basis.
If
you are interested in alpacas, please feel free to contact
me to learn more about these distinctive animals. I strongly
suggest you visit many farms and ask many questions so you
can make an educated decision as to whether or not alpacas
will or should even be in your future.
I can be reached either via e-mail
or by phone at 303.215-1923.
Call me and come on by for a visit and see my herd. I look
forward to hearing from you!
Deborah
K Robinson
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