Investment facts

Alpacas have been called "the world's finest livestock investment." It is difficult to
compare alpacas with other investments as pure investments. How much is peace of
mind worth? Unlike the stock market, alpacas are depreciable over five years, giving
the investor an immediate investment return in tax savings while the herd is growing.

Breeding stock held for more than one year is subject to capital gains, and alpacas
qualify for Section 179 of the I.R.C. which allows an alpaca farmer to depreciate the
first $250,000 of the investment. Consult your tax advisor on how it might benefit
you. As you raise your alpacas, all expenses (i.e., food, veterinarian, supplies,
computers, travel, tractors, showing, advertising, etc.), are deductible. In many states,
those involved in farming will have a significant reduction in their real estate taxes.
Unlike many investments, alpacas are 100% insurable.

Alpacas are not inexpensive, ranging from $10,000 to $40,000 for breeding females
and $5,000 to $35,000 for high quality males. High quality proven males with
exceptional offspring have sold in excess of $200,000. In many cases, financing your
alpaca purchase can be done right on the farm as many alpaca breeders offer
financing.

The alpaca herd grows at a limited rate, which helps to keep the supply and demand
in check because:

* Gestation periods are only eleven months to a year with single births.
* The Alpaca Registry, Inc. (ARI) offers fully blood-typed protection and has been
closed since 1998 to any newly imported animals.
* The U.S. government does not currently have a high security portal into the U.S.
for animals imported from countries that have hoof and mouth disease, which at this
time includes Peru and Bolivia. The only high security quarantine station that was in
operation in Key West, Florida was closed permanently by the Clinton administration.
* Mass production techniques, such as embryo transfer and artificial insemination, are
difficult, if not impossible, due to the physical characteristics of the alpaca. More
importantly, the Registry will not recognize any animals that are not produced naturally.

The Alpaca Registry, Inc.

The Alpaca Registry, Inc. (ARI) offers fully blood-typed protection to all alpaca
owners. The registry has been closed since 1998 to any newly imported animals. It is
very important for investors of alpacas to purchase only ARI registered alpacas. You
will not be able to register alpacas unless both of their parents are currently registered
with ARI.
All you need is love

Adding to the overall investment picture is the fact that alpacas are inexpensive to
raise, require small acreage, and are very hardy animals. Friendly and trainable yet
hardy and tough, the alpaca is truly an investment you can hug. Have you ever hugged
your stocks?
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