Alpacas as an Investment

If you are still wondering if investing in alpacas is a wise investment… consider the following article on Feb 4, 2012 from Smart Money Today.

Alpacas as an Investment

“You may have heard that Alpacas make a great investment because of their high annual yields of fiber and the lucrative income it can provide. But did you also know that the tax code makes offers for huge benefits to Alpaca owners?

Whether you’re an individual with the ability to raise an Alpaca for fiber on a small farm or breed alpacas to shear or sell on a larger area of land, the tax code is full of deductions that will make investing in an Alpaca even more profitable than many other forms of investment.

Section 179** of the tax code allows for taxpayers to begin claiming deductions for some capital assets, the things purchased as investments toward profits, as soon as they are purchased. Alpacas are among the limited number of purchased investments that are included in this section. These are benefits that you will not be eligible to receive if you put money toward a traditional investment opportunity, like buying stock or a CD.

If you own an Alpaca for over a year, it is subject to capital gains tax, like most other investments. Capital gains are profits from an investment that has been resold. Your initial livestock will be subject to this provision if you sell them, as will any offspring from your livestock.

At the end of the day, Alpacas are a form of investment that offer significant and unique tax deductions that will start benefitting you as an investor right away. As long as you keep them, you won’t need to pay capital gains taxes, so Alpacas can be a great long-term investment opportunity. Or, if you choose to sell them, take the profit and pay the capital gains taxes on the sale, you still come out ahead—you will have accumulated enough tax benefits between the time of purchase and the sale to compensate for paying livestock capital gains taxes on your Alpacas.”

Add to all of this that alpacas are 100% insurable. Can stocks do all of this?

(Make sure that you consult a tax advisor for specifics as they relate to you.)

**February 8th, 2012 – The “Tax Relief Act of 2010” and the “Jobs Act of 2010” had a substantial positive impact on Section 179 for the 2012 Tax Year – below is quoted from “section179.org”:

  • 2012 Deduction Limit – $139,000
  • 2012 Limit on Capital Purchases – $560,000
  • 2012 Bonus Depreciation – extended the 50% bonus depreciation on qualified assets placed in service during 2012

© Copyright 2012 Smart Money Today All Rights Reserved

Midwest Alpacas for Sale

As with every business, retirement is inevitable. These females are the best and the last of a well established herd. The owner, a long-time leader in our industry and I just had another talk about the details on these beautiful females. She has been so reluctant to let them go that I know that is why they are still available. However, she is willing to sweeten this offer and pay for the board and care for up to two full months. That way you can take ownership now and take some time to get your farm ready for them. She is finally willing to let her gorgeous girls go to a new home.

Shorn on 4/11

This is a high quality 4 in 1 package (3 females ready to breed and a yearling female) from the Midwest . What an opportunity to get retained fineness from this line at a ridiculously low price!

http://Alpacas4Less.com/BSA024.htm

Females of this caliber and consistency do not come along for sale very often. These beautiful ladies are ready to be transported to your farm right away or in the near future.

If you are even the slightest bit interested in adding great genetics from Full Peruvians, Full Accoyos, the likes of Caligula, Vengador, Camilio, Hemingway, 4Peruvian Legacy, 5Peruvian Chaccu and Crescent Moon’s Titanium then you owe it to yourself to check it out and see what’s available.

The statistics from the histograms (fiber characteristics) are included. If you need help understanding why this is an exceptional group of females… just contact me and I’ll be happy to interpret the results for you.

http://Alpacas4Less.com/BSA024.htm

It’s on a first come first served basis and this is the perfect time to start your alpaca business, or add to your existing herd with great genetics, great dispositions, great fleece and just all-around great girls at great prices.

 

Ten Tips to Happy Alpacas

Alpacas can adapt to the heat of our summer days as long as they have cooler nights to recover. When nighttime temperatures stay in the upper eighties, this tends to create an accumulated effect and gives reason to take special precautions to avoid heat stress.

Alpacas Love Water

Another point to keep in mind pertains to high humidity when coupled with high temperatures. When you combine the temperature and the percentage of humidity you get a “heat index value.” A value over 120 degrees can be extremely stressful and gives grounds for taking additional safety measures.

For happy alpacas keep these ten tips in mind.

1)    Always shear your alpacas as a first line of defense in hot weather. We set up our shearing day with our shearer a year in advance and make a fun event out of the day. If you only have a few alpacas, then consider joining your herd with another established herd. Many alpaca farms set-up cooperative shearing days with other local farms.

2)    Always provide plenty of cool water to drink throughout the day. We put extra water buckets out along the fence line in the shade during the hottest months of the summer. Keep them full of fresh water and remove the algae which may grow in the buckets. If you use automatic waterers be sure to keep them free of accumulated “gunk!”

3)    Always provide a shady area for them to rest. Even though they may choose to lie in the full sun and “sunbathe” they will move into the shade to cool off part of the day. Keep some of their food source in the shade as well if you can.

4)    Provide a large industrialized fan & misters in the areas where they congregate when the temperatures rise. If you have a swamp cooler, you may notice how they cush right in front of the cool air source.

5)    Provide free choice mineral salts in small feeders around the hay source. We use Stillwater Minerals brand of the Lama-Min 104. This is specially formulated for alpacas. www.StillwaterMinerals.com

6)    Discuss with your vet or other breeders the type of electrolytes to add to their water source. We use a “Cherry” flavored powder that we add to every-other water bucket. That way they can self choose if they wish to drink it or not. Some people mix a Gatorade Powder with water to a strength of ¼ the recommended amount on the label. Be sure to mix a fresh batch every day as it spoils quickly.

7)    Do not breed your males in the heat of the day, they could become overheated and go temporarily sterile. If you choose to breed during the summer months, then breed early or later in the day.

8)    If you have new born cria, be sure to monitor the cria’s nursing behavior.  They can easily become dehydrated during the warmest part of the day. Observe how often they nurse and get underneath their mom. The rule of thumb is every hour to two is normal. Every half-hour is suspect for poor milk production and every 10 – 15 minutes means there is probably something wrong and you need to intervene to determine how serious. As the cria gets older, they will start to eat hay and may be nursing less often. Just observe the routine and check out anything that appears unusual.

9)    Provide extra hosing of their legs & bellies with cool water. My girls come running to my hose when I announce “Shower time Girls”… shower time!” Just keep the water accumulation off their backs where it could create an increased humid condition and raise their heat stress level.

10)    If you must transport or keep the alpacas in an enclosed area, be sure to provide air circulation. Some transporters run air conditioned units in the big trailers, others just have open windows.

So in conclusion, I hope these tips helped you think about the ways you can keep your alpacas comfortable during the hottest part of the summer day. Please feel free to share these tips with your fellow alpaca breeders. I also invite you to post your tips to the comment section of our:  www.ProfitingWithAlpacas.com

Here’s to you and your alpacas enjoying a wonderful summer.

Alpaca United Inaugural Meeting

Hi Alpaca Enthusiast!

I wanted to share some very exciting news with you about the alpaca industry.

Finally there is a consorted effort to recognize alpaca fiber as an economic opportunity for the public.  Alpaca United has been formed as a legal entity that is creating a brand for products made from USA raised alpacas. The CEO, Nick Hahn, who is famous for creating the brand for “Cotton” is at the helm of this “United” effort.

Here is an invitation for anyone who would like to learn more about this initiative first hand. I know that you will be hearing more about this group in the coming months. If you are a member of AOBA, you are probably receiving these emails. If you are not, then let me know that you would like to be on the list to get the latest information about the branding progress. We will make sure that you get the announcements first hand. There is an opportunity to become an investor, if you wish to get more involved. However; this email is not a solicitation… only sent for information.

Here are the particulars for your review.

ALPACA UNITED INAUGURAL MEETING

Friday May 20, 2011 7pm

Welcome to Alpaca United, the exciting new fiber company causing a “buzz” among breeders, processors and industry service providers from coast to coast!

Friday May 20, 2011 at 7:00 PM during the AOBA Nationals in Denver, CO you will have an opportunity to participate in the Inaugural Meeting where company officials will explain why, how, when and where Alpaca United is performing as the first ever industry-wide branding, marketing and research initiative dedicated to adding value to alpaca FIBER!

Chairman, Lee Liggett-NM; Visionary and Legal/Financial sub-committee Chairperson, Claudia Raessler-ME and CEO, Nick Hahn-CT will be on hand as well as several Alpaca United Steering Committee members to answer questions and conduct interviews.

Be there and be the first to be awed as we unveil the new mark, logo and tagline for Alpaca United, L3C.

Alpaca United is not about “us” or “you”, it is the national, for-profit, textile fiber company that unites “us;” all alpaca owners, growers, breeders, processors and enthusiasts, against “them,” those other fiber suppliers to the global textile industry. We know how good North American alpaca fiber is in all its colors, types and styles, isn’t it time the rest of the world knew?!

Developed by Design & Voice, a professional ad agency, Alpaca United will be readily associated with other luxury brands in the textile and garment industry. Part of our push to close the loop between alpaca fiber producers and alpaca fiber end users, our new mark will give the viewer the right impression and the right message the first time! The entire Steering Committee eagerly looks forward to sharing this excitement with you! The grand unveiling happens only at the Inaugural Meeting!

Everyone is welcome and invited to attend… it’s free. Advance registration is recommended but not required. If you wish to register… click here for the details

What Color is Your Alpaca?

Alpacas of Anza ValleyFor Alpaca Enthusiasts that are new to the business, would you like to know some of the lingo? I remember when I was new and I felt like breeders were speaking a different language. They kept using abbreviations and making assumptions that I understood what they meant. In the beginning I didn’t even know where to go to get a translation. This was especially evident when someone was describing an alpaca’s color. So here is a list of the 16 natural fiber colors represented by the Alpaca Registry (ARI) used on the ARI certificate that shows the pedigree of each registered alpaca. These colors are the standard abbreviations used for suris and huacayas, and when placing alpacas in all the show classes.

 

ARI Natural Fiber Colors & Chart Codes LSG Light Silver Grey
W White LB Light Brown MSG Medium Silver Grey
B Beige MB Medium Brown DSG Dark Silver Grey
LF Light Fawn DB Dark Brown LRG Light Rose Grey
MF Medium Fawn BB Bay Black MRG Medium Rose Grey
DF Dark Fawn TB True Black DRG Dark Rose Grey

Registration Tips

When you register your new alpaca make sure that you follow the guidelines that ARI provides for selecting the best color match. It is best to order a Color Chart from the ARI website: www.AlpacaRegistry.com. Here’s a quote from ARI on the way to use the color chart. “When identifying the color of an alpaca’s fleece, take a clip of fiber as close to the skin as possible. Match the cut end to the closest color on the fiber chart. If the color matches a shade, record this match. If you find the color is darker than one shade but lighter than the next, it should always be categorized with the darker shade.”

If your alpaca has more than one color present on the body, head or legs, there is a place on the registration for you to note that. When checking the color for the body, use the side in the midsection portion about 4 – 6 inches below the midline.

Color Checkers at a Show

Of course, for the show, the Color Checker will use the chart next to the skin with the fleece still attached. Sometimes the color checker will come up with a different color than the one on the ARI certificate. If you question that decision, you have an opportunity to be seen by a judge before they start the show. The judge will always have the final say. Just ask the checker when that will be done and arrange to have a neutral party take your alpaca to the judge.

Just thought that you’d like to know some of the insider info…

Happy Alpaca Valentine’s Day

WOW! What a response to our Happy Alpaca Valentine’s Day video! By popular demand we’ve decided to make it available again…

One of the many things I love about this incredible business is the expressions of joy on the faces of people when they interact with the alpacas. We open our ranch to visitors quite often. When families bring their kids (of all ages) we like to have the camera near-by. So that the kids get to see themselves enjoying the alpacas. Don and I chose to create a photo collage video of a few of the cute moments of “love with the alpacas.”

We created this video for all to enjoy throughout the year. So if you are an animal lover of any sort… we dedicate this to you. If you can’t physically be with your four-legged friends, than perhaps this short video will put a smile on your face.

Click on the video to play and be sure that you have your speakers turned up too.

Feel free to share this site with your friends. And if you are an alpaca enthusiast feel free to post your comments. We’d love to read what you think.

Sending you lots of Hugs & Humms not just for this month of “LOVE”, but all year long!

Julie & Don Roy

Now is the best time…

Now is the best time to build or rebuild
an alpaca livestock business!

My friend and successful alpaca breeder, Jim Patrick of Denton Texas, wrote some very insightful information about the future of the alpaca industry recently. When he did… I took notice. Why? Because when he speaks… people listen and for very good reasons!  He has a background in Economics and Sociology and has been featured as a “futurist” in our alpaca community. Here is an excerpt he wrote on the status of the alpaca industry as of Nov 22, 2010.

“As a trend prognosticator and founder of ‘think tanks’ for over 25 years, I am here to share with you that our economy may be morphing into a new and exciting form. People worldwide are looking anew towards a simpler, less stressful life that is filled with natures’ basics. This means basic homes, with high energy heating / cooling systems and earth friendly power generation equipment. The rise of the family farm is upon us with many taking flight to ‘ranchburbia or farmville’ where the air is clean, things are smaller and simpler, and where robust gardens are the norm…times are a changing!

A land is just over the time horizon where wind turbines glow green, kids are home schooled or attend small community schools and virtual offices of man and woman caves are plentiful.  

Yes, changing times are upon us and we, the alpaca livestock industry, are excitingly part of this metamorphosis that is forming the second decade of the 21st Century and beyond. As I have said in countless interviews and speeches, being able to take advantage of the early signs of emerging trends can make a world of difference.

So why alpacas and where do they fit in the new economic and social matrix?

Alpacas are easy to maintain, fit all lifestyles, are odorless, cute, safe and friendly to all ages and they perfectly address the changing paradigm.  

ALPACAS ARE GREEN FRIENDLY… ALPACAS PRODUCE A FLEECE LIKE NO OTHER that is light weight, durable, very warm, hypoallergenic and their end products are gorgeously durable, ultra warm that dare the cold to touch your skin. It is the best of times to expand or enter into the alpaca livestock business!!!!

Alpacas give the investor a special ROI in the form of breeding new animals, producing special products from the fleece and the potential to garner new tax benefits.

Alpacas are easily handled by all ages without fear of intimidation or bodily injury. Owning cattle, equine, sheep, goats or other traditional forms of livestock carry a magnitude of more care and maintenance that greatly decreases their potential return on investment (ROI.) Alpacas can be maintained with less infrastructure and daily care….and their ‘poop’ has very little smell as a bonus and makes a great soil supplement that makes things grow organically!

The alpaca livestock business is not just about the cute and kind nature of these precious animals; it includes investment potential that can provide a nice ROI. Like any other investment, alpacas can carry risks and there are no guarantees, but, alpaca prices have never been lower largely due to the current pause in the economy; however, this is not going to be the case forever. 

So what is the best size alpaca business for you to expand or build to? Well, that depends on your life style, demographic foot print and willingness to take a risk.  

While some alpaca businesses are large… most are small, family owned operations of fewer than 20 head of alpacas with a ‘hands on approach’ being the norm.   

So, now is the best time to either get into the alpaca livestock business, or to enhance the genetic qualities of your current herd leading to an improved ROI. Waiting for our economy to ‘get better’ only will increase your costs and reduce your potential ROI. The times, they are a changing and now is the time to get on board the train to the future with alpacas!”

Jim’s other views are captured on CD # 7 of the http://www.AlpacaBusinessSecrets.com.
 
If you’re ready for alpacas, check out http://BuyingAlpacasMadeSimple.com.

Here’s to your successful alpaca venture, Julie

 

What do you get for $675,000? Answer: Alpaca

This is no April Fool’s… the alpaca industry is alive and well. The sale of one very special alpaca stud for $675,000 is only the beginning!

At the end of February, a very important event took place… The Snowmass Auction in Phoenix AZ. Most of us breeders use this event as a barometer about the price of alpacas for the year ahead. Based on the results of this event, the future looks bright, solid and prices are coming back up.

Two years ago, February 2008, the auction sales price for quality alpacas was the lowest in our industries history. There wasn’t even a Snowmass auction in 2009. However, 2010 is a very different story.

One of the reasons… in their own words: “Double “O” Good Alpacas is thrilled to announce that we are the proud new owners of Snowmass Matrix! We purchased Matrix at the Snowmass Making of Champions-Genetic Advancement Sale on February 27, 2010 for a record-setting price of $675,000, the highest selling alpaca at an auction!”

As I listened in to the live auction over the computer, I noticed that several farms bid quite high for this amazing stud. As the bids went over the half a million dollar mark, the energy got franetic! Gasps were heard and the auctioneer could hardly keep up with the increase of the bids. The serious bidding farms just kept the prices going up and up. Finally it was all over and it seemed unbelievable to realize that the final bid was $675,000!… however, Double “O” Good Alpacas feels that his worth is “PRICELESS!”

The future looks bright not only for prepotent MATRIX, but for our whole alpaca industry.

Next time I’ll comment on the high prices paid for some of the alpaca females sold at the auction.

Do you have an opinion on the results of the Snowmass Auction of 2010?

Julie

 

PHOTO:
Holding the newly acquired MATRIX, are the proud new owners, Ernie and Barbara Kellogg from VA standing next to the sellers, Julie & Don Skinner of Snowmass Alpacas.

Alpacas in Small Spaces…

 Alpacas in Small Spaces – Are They Too Crowded?
In this photo, you can see that all are eating together peacefully... for a short time.

In this photo, you can see that all are eating together peacefully... for a short time.

As I write this we are experiencing the 4th consistent day of rain and preparing for SNOW. This fact alone may not be newsworthy; however, we live in southern California! What I’m observing with my alpaca females applies whether you live in moderate or extreme climatic regions. It applies whether you raise your alpacas on pasture or in a dry lot environment. At times you may have to change their eating conditions, make other arrangements and possibly crowd them in for a short time. Now the question is: how do you know if they are too crowded?

The simple answer… I listen! That’s right; I observe and listen from a distance to figure that out. What I’ve observed boils down to … if they’re crowded they’ll do a lot of quibbling, a lot of spitting and posturing over who’s going to get to the feeder first and stake their claim. 

I count on enough space so that every single alpaca can be at the feeders all at once, without feeling crowded.  Best advise – just keep adding feeders, creating multiple feeding stations until you achieve that. And when the rains came and they all wanted to be inside at once… that’s what we chose to do. Normally these 12 wander among 3-4 other feeding stations… and they come and go at their will.

If you find yourself questioning the crowding issue in small spaces, then just spread out the feeders so that every alpaca could eat all they want simultaneously. You might consider creating special feeding areas for the cria – if they get squeezed out from the adults. Alpacas are extremely adaptable and that is why they make a great livestock business. You can start out small and expand as your needs arise. Your alpacas will let you know if they have outgrown the feeding arrangements!

 

Alpaca Starter Packages

If you answer YES to any of these questions then you might be interested in the concept of alpaca starter packages.

Have you wanted to start an alpaca herd or expand your present one?
Have you thought that the average prices for good quality pregnant females were just too high for you?
Have you talked about your dream to others only to have it disintegrate before it got started?

Benefits of Starter Packages:Pacas at the Poo Pile

  • Multiple alpacas for a single reduced price
  • A variety of bloodlines and colors to grow your herd
  • A variety of age and experience levels of females
  • Sometimes the seller will include a complimentary male companion, or one at a very low price
  • Depending on the circumstances, the seller may take financing and boarding as part of the arrangement

Basically a breeder puts together two or more females at a discounted price if you buy them all. The combination gives you a variety to start or expand your herd. You could get an experienced dam along with a maiden, or possibly two or more different colors or bloodlines. Often due to the circumstances you are able to purchase multiple alpacas at a price equivalent to a single alpaca.

Five years ago we started our herd with 4 pregnant females. We chose to take advantage of starter packages of quality females at reduced prices from two experienced breeders. Their herd reduction became our gain. Our decision enabled us to get a head start on building our herd with experienced pregnant dams that were expecting within six months. One of the pregnant females came with a female cria at side. So our single price purchase was really a 3 in 1. I strongly believe that a start-up breeder benefits from purchasing experienced dams along with maidens. If you have never birthed a cria – the experienced dams will teach you. And that creates peace of mind like you wouldn’t believe.

Alpacas4Less.com selects good quality alpacas that are owned by breeders who find themselves in the need of downsizing for a variety of reasons. After I personally interview them about their herd history, breeding and birthing experience, the seller and I come to an agreement on the best price for the animals. We then put a group together to create a starter package and offer them to you, our preferred clients. The price to you represents a recent reduction of at least 40% off or more. Generally speaking this is less than the breeder sells them to their own clients.

If you are looking for a way to grow YOUR herd. I highly recommend looking into starter packages.

Julie