Alpacas For Sale

Alpaca as an Investment:

• We offer FREE financing for up to 12 months with 25% of total purchase paid in advance
• We offer free board for THREE months with the purchase of alpacas from our breeding program. Fiber-quality alpacas will be agisted for up to 60 days free of charge
• Free transport of any female alpaca within a 150 mile radius
• Full disclosure of all medical history and health care records
• Ongoing support and consultation
• Industry standard guarantees on all breeding stock: Live birth guarantees and warranties, and full reproductive capability for our females
• Generous discounts available on multiple alpaca purchases
• Complimentary halter and lead
• Full credit toward Neonatal/Birthing Clinic

For the alpaca enthusiast, there are many options that exist to create a solid financial future by investing in the alpaca. Here are a few options for consideration:

Alpaca Ownership
It is best to first consider what your individual goals are for owning alpaca.  Would you prefer owning an inexpensive pair of pet quality males for fiber production or family enjoyment? Are you planning on becoming a part-time or full-time breeder? Do you wish to have hands-on ownership or investment only? Will you invest in alpacas for current financial returns or are you going to build a herd toward the day you retire?

Whichever way you choose to become involved, there is a plan for you. The alpaca industry is very young and represents a ground floor opportunity. There are a limited number of investments that have the potential to reproduce themselves every year as an alpaca does. Breeders can profit from staying small or growing into larger farms in the future. Nationwide, the average farm has 12 alpacas.*

Tax Advantages
The tax code for 2010 will allow a deduction of up to $250,000 for eligible personal property used in your trade or business (alpaca breeding for example). The deduction is taken on Form 4562 and is taken in lieu of deprecation. This amount may be used to offset any other earned income you may have (will not offset interest, dividends, rental income, etc.). There are limitations if you have a Subchapter S Corporation, LLC or Partnership as the entity must have income to offset the Section 179 deduction for it to pass through to your personal return.

As a simple example, if you have $75,000 in alpaca purchases (or tractors, etc) and have $100,000 of earned income you will have reduced your income to $25,000 before consideration of your other activities and deductions. The Section 179 deduction will be reduced to $25,000 in 2011 and beyond.  There are always rumors that Congress will change the tax law to reflect the higher deduction limits on a permanent basis.  We will let you know when (and if) that ever happens. If you have a CPA or other tax professional you may discuss these issues with them before you finalize your plans.

Real Estate Tax Valuations: Since alpaca are a federally recognized form of livestock, there may even be a reduction in local real estate taxes with a change in use, that livestock creates. Something to look into, at the local level.

Helpful Publications:
Farm Business Expenses
Publication 225 IRS Farmers Tax Guide  Please note section: "What's New for 2011"
Deprecitating Property
2009 Tax Law Changes Provide Saving Opportunities for Nearly Everyone:
Massachusetts Zoning Law

Hands-on Ownership
Many investors are choosing to leave the boardroom and head for the barn. Alpacas ownership can provide a stress-reduced, rural lifestyle while generating tax deferred wealth for the future. Raising alpacas qualifies for tremendous tax benefits.

Investment Only
If you are not in a position to tend to the alpacas yourself but want to reap the rewards of owning them, there are options for you as well. You can purchase the alpacas and board (or agist them) where someone else can provide the care. Your investment is compounding at an amazing rate and the cost of board is tax deductible for income tax purposes. If you like, you can board them at Island Alpaca farm, or a farm in close proximity to your residence so you can visit them whenever you choose, and get involved in the manage ment and husbandry of them.

Alpaca Compounding
Alpaca compounding is actually quite simple. Female alpacas produce one offspring every 11 to 12 months. The ratio of male to female is 50/50. Your female crias will be ready to breed between the ages of 16 to 24 months. Every time a female cria comes to breeding age you are adding one more source of new animals to your herd. You can also sell the female cria and purchase another female alpaca of breeding age, therefore, saving almost 2 years of time. This is alpaca compounding. The larger the herd, the faster it grows.

Recommendation: Alpacas: Financial Aspects of Alpaca Ownership A brochure published by the Alpaca Owners & Breeders Association covering the basics of alpaca investment. Call Island Alpaca Farm or email at info@islandalpaca.com for a complimentary copy.

When a male cria is born, the options exist to sell him as a potential herd sire, keep him to breed to your unrelated females, or keep/sell him as a fiber/pet-quality alpaca.

Alpacas are hardy animals and the mortality rate is very low. However, death does occur and this may affect the return on investment. Your alpacas are fully insurable with a vet exam and a yearly premium.

Income From Fiber
Alpaca fleece is widely known as one of the world's finest fibers, but it remains very rare. For every 32 pounds of sheep's wool, less than one ounce of alpaca fiber is produced.

The herds outside South America are not generally large enough to support industrial processing. However, fiber co-operatives have emerged which offer a ready market for breeders. Alpaca is also treasured by cottage industries and many breeders sell to directly to local spinners and weavers. The price that you receive for your fiber usually covers the cost for caring for your alpacas for the year.

There are just over 150,000 registered alpacas in the United States today,* so the need for more farms is great in order to meet the growing demand for fiber.
* (Based on Alpaca Registry Inc. statistics, 2010)

Alpaca as Pets/Fiber Quality Animals

Island Alpaca Company is now offering alpacas for sale to those who simply want to own them as pets, as fiber producers, or perhaps to replace their lawnmowers!  Most animals are halter trained. Our alpacas are quality males with great fiber and are a great way to get started in the alpaca business at a very reasonable price.
Our pet/fiber alpacas are healthy, well cared for animals with great personalities. They are males who may not have, or it is not yet known, if the alpaca have all the characteristics imperative for a herd sire. Most have been handled since birth and have been successfully halter/lead trained.  They may have show ring experience. Their fiber will produce quality roving for the hand spinner, or yarn for the avid fiber enthusiast.   They are a sensible purchase for families and spinners who want to enjoy their alpaca’s company and fiber but are not interested in breeding, or would like to gain experience by owning alpaca before entering into ownership of breeding stock.
Pet/fiber quality animal and would be registered as a non-breeder. Reclassification to a breeding status must have prior approval, and a supplemental fee to be used as a herd-sire.

Purchasing Alpaca: At What Price Level?

    Price: There are pet/fiber quality alpacas that can be sold for as little as $300. These will not have registration papers and/or are neutered. There have been alpacas sold at auction where a very special herd sires were sold for over $750,000. But the median price for a herd sire quality male alpaca would likely be in the range of  $15,000 and a very good quality male to about $30,000. Often two or three breeders will purchase a good quality male together and share the expenses as well as the use of the male. This is a good strategy if you can find other breeders with whom you feel comfortable entering into a business arrangement.
    Most new breeders will likely purchase a few bred females and continue to breed these females to improved quality herd sires until they produce their own herd sire-quality male.  This is less costly than buying a top-quality herd-sire but may take a little time. If you have chosen good quality females and good quality breedings, you should, in time, produce your own future herd sire - maybe several.
    Bred female alpacas or male alpacas who are of breeding age typically cost more than younger alpacas who may have to be maintained for a year or longer before they reach maturity. Mid-range price for good quality bred female alpacas somewhere between $10,000 and $25,000, but this varies a great deal.
    There are many lower quality females who can be purchased for less, but it is not logical to think that you will get the best quality offspring out of such females. That "great bargain" female won't look like such a bargain when you find that you cannot sell her poor quality off-spring. What about a great looking young female out of two so-so parents? This is when you must remind yourself that phenotype (looks) is not always genotype (the traits that the parent will pass on to their offspring.) It may be wiser to go with a bloodline that has many members who are all of good quality. But in the end, it is suggested that one purchases the best quality alpaca that they can afford, and choose breedings to improve the females off-spring.
    One choice a new breeder could take would be is to consider a lower priced, older female who has already produced several cria. Many new breeders often want to buy young females because they may appear to be of a higher quality. As alpaca age, they may not have the same presence as the younger animal, but may still be a very high quality animal, and a terrific producer. It also may be wise for a new breeder to purchase a female that has already had offspring, and is a proven mom.

Services at Island Alpaca Farm:

Please read more about the services that we offer with the sale of our animals here.

Farm-Stay Special Offer:

Should you be visiting the island to tour our farm and alpaca for possible purchase, the cost of your overnight stay would be applied towards your alpaca purchase. If you would be visiting to conduct a breeding (either drive-by or farm-stay breeding) you can be our guests for the night! (Subject to availability.) Please view our homes on our Accommodations Page. 

 

Phone: 508-693-5554
Location: 1 Head of the Pond Road, Oak Bluffs, Martha's Vineyard
Mailing address: PO Box 1515, Vineyard Haven, MA 02568

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