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Investing in Alpacas can be done
in two ways.
An "Active Investor" is an owner
that raises their own animals on their own ranch. They invest in the
shelter, feeding, and care of the herd. The costs to start an Alpaca
ranch vary, but there are signficant tax benefits to this approach. For
more information on starting and running an Alpaca Ranch, refer to
the
business section
of this website.
A passive investor purchases one or more animals and boards or "agists"
their animals at another location. In this situation, the cost of the
investment is deducted from the sale of the animal or herd. This is still
a great way to benefit from Alpaca ownership without having the facilities, or
desire to manage the herd directly. A passive investor will ususally make
significant decisions regarding their investment, such as breeding decisions,
where they agist their animals, and significant health issues. In
addition, as with the active investor, the livestock investment can be fully
insured against accidental death or theft.
The benefits of investing in alpacas can best be described with an
example.
| Initial Investment |
$50,000 |
| Agistment (Boarding) fees |
$75/month |
| Breeding Fees |
$1500 per breeding |
| Insurance |
3 % of the value of females - No insurance on males |
| Percentage by sex |
50% Female, 50% Male |
| Value of Bred Female (2yrs old) |
$18,500 |
| Value of Maiden Female (Unbred 1 year old) |
$12,500 |
| Value of Juvenile Female (6mo old) |
$10,000 |
| Value of Male (Non breeding assumed) sold after 6 months
to partially offset expenses. |
$1,000 |
The values above are estimates, but are based on information obtained
from various sources, including published sales results and alpaca sales
listings. The prices for Alpcas has remained relatively stable
for the 20 years or more that Alpacas have been available in the United
States, but as with any investment, there is no guarantee that these prices
will continue in the future. For a summary of Alpaca sales results
obatined from an Alpaca Auction company, click the following link:
Alpaca Sales Results
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