Question - Is This The Right Time To Invest In Alpacas?
Answer – I would argue that there has never been a better time!.
The people that come out of this recession ahead of the game will be the ones who buy while the price is low and everyone else is selling. This applies to the purchase of alpacas the same as it does to buying property or stocks and shares. Once the recovery begins then the price of alpacas will recover also. How do I know this? Because people are still getting into the alpaca industry even in the middle of a recession!!. Serious alpaca owners that have managed their business well will survive and thrive. We used to say that alpacas are a great investment because they reproduce themselves every year. The same applies today. If you are purchasing when the price is low then you can afford to sell the offspring at the same low price. For the fortunate people that get into the business now the percentage of profit will be the same as it always has been. Their investment is still fully insurable for mortality & theft and the profits are far greater than most other investments. It is not the price that you sell for that matters, the profit is in the bargain you get when you buy. People who invest now will make out like bandits when the economy recovers. You can take that to the bank!!
After saying all of that I would add that in this market it is very much a case of “Buyer Beware”. Not everything that appears a bargain really is. If a farm is going out of business the chances are that they have been struggling for some time. Chances are also good that they have been cutting corners when it comes to nutrition, routine health management and registration of their alpacas. Be sure to purchase from a reputable breeder with many years experience in the business. Make sure that you are buying quality animals with well respected champion bloodlines. Make sure that the people you purchase from are still going to be in business to help you with training, ongoing support and to honor those future free breedings that they promise.
Often we are asked “Should we invest in Suris or Huacayas?”. My answer is always the same. Learn from our mistakes and invest in both. When we first started in the business eight years ago we loved the huacayas (fluffies) and so that is what we bought. Three years later when we had built our herd to the point that we were ready to start selling, two out of our first five serious potential purchasers were only interested in Suris. It was very painful to realize that after all of our hard work and investment building our herd we had to turn them away. Since then we have invested in Suris as well as Huacayas and now have the very best to offer in both. If you are getting into the business to eventually make a profit then does it really make sense to cut your client base in half by only offering either one or the other?
Future profits are not the only benefits that come from owning alpacas. Many people are attracted to the business because of the many tax benefits that come with ownership. I have to caution at this point that I am not an accountant or tax expert and would advise you to check with your accountant before investing. My understanding is that you can write off 100% of your initial investment in the first year or carry the credit forward over several years. You can also write off any expenses related to the purchase and upkeep of your animals such as fencing, barns, farm equipment, feed and hay, vet fees etc. If you agist (board) your animals at someone else’s farm you can write off the agisting expenses also.
The most important benefits of ownership however have nothing to do with future profits or tax benefits but rather the pure joy of owning and spending your time with these beautiful gentle creatures. We have owned alpacas for eight years now and the sales from our alpacas and products made from their wonderful fiber have been our only source of income for five years. We are loving the journey and couldn’t imagine making a living doing anything else. Our motto is “If You’re Lucky Enough to Own Alpacas, Then You’re Lucky Enough”. If you are interested in learning more our door is always open to visitors and we can be reached any time at (479) 677-2908 to answer all of your questions. Thank you for visiting our website..
