Alpacas truly are the "Worlds finest Livestock investment". Since the arrival of the first imports into the United States the popularity of raising alpacas has been on a steady climb. In 1994 the U.S. herd numbered approximately 4,000 animals. In 11 years our national herd has grown to well over 50,000 head. Due to the long gestation period, and the closure of the national herd, demand for alpacas is much greater than supply and the average price of alpacas is also steadily increasing. 100% return on your initial investment is commonplace. With good breeding practice, every cria will demand more than the price of its dam. In addition, annual fiber production provides a yearly dividend.

Investment in alpacas offers a depreciable tax shelter and a compounding investment on which no taxes are paid until an animal is sold. At the same time, almost all of the start-up expenses are deductible. These include, but are not limited to, equipment, feed, vet costs, showing, and advertising. Tax incentives provide an investor immediate return in tax savings. Alpacas may also qualify for a capital asset deduction and like other capital assets they are fully insurable, protecting the owner in the case of unforeseen loss. An accountant with experience in agriculture is invaluable as you begin your alpaca adventure.