Alpaca livestock prices have remained relatively stable at their usual levels of the last seven to ten years, with the occasional ups and downs that go along with the natural changes in the general economy.  Like the housing market, be prepared to ride out the occasional "down" times, and enjoy the occasional growth bursts, too.  Generally, though, alpacas hold their value. ARI registered, breeding female huacayas generally average between $10,000 and $50,000 each, and suri females average between $18,000 and $90,000 each. Herd sires of either type are holding strong in the marketplace with prices ranging from $3,000 to $750,000 for a single breeding male (low end represents “unproven, newly breeding males” while the high end represents proven males with multiple ribbon-winning progeny on the ground). With an available market of American registered alpacas available in the United States at approximately one hundred fifty thousand (150,578 animals) total in 2007, and considering the present closure to imports for registration with the Alpaca Registry, all indicators point to a continuing price stability for the purchase of quality ARI registered alpaca in the U.S. for several years. The fact that each female alpaca of breeding age typically may produce only one cria (offspring) a year, and accepting the general average of a 50/50 ratio of male to female offspring, adds to the slow and steady growth of the American alpaca herd, as well as adding to the intrinsic value of every breeding alpaca. Alpaca product prices are also remaining steady, with retail prices for sweaters averaging anywhere from $45 for a “no-name” blend with a very small percentage of actual alpaca fiber in the sweater that is combined with a high volume of synthetic content, to $480.00 for a single, similarly styled woman’s sweater made of one hundred percent (100%) pure, “baby alpaca,” marketed and labeled with an American designer or company’s name. Future supplies of both alpaca livestock and alpaca fiber products in the US will undoubtedly grow exponentially to the average growth rate of the American herd reproductively (@ 30% per year). The alpaca fiber products business could even grow beyond this thirty percent growth expectation due to increased consumer awareness, improvement of milling and processing facilities and capabilities, and more approachable prices for the average consumer as competition among vendors, designers, wholesalers, and retailers escalates. Uses and Benefits of Alpaca One of the most gratifying, comforting and valuable aspects of owning, breeding and caring for alpacas is their very earth friendly nature.  They provide a number of useful products and services to mankind and our planet, without having to lose their lives to do so.  In fact, it is in the best interest of the planet that most of these animals live out their expected twenty to twenty-five years of their lives fully, providing their precious fleece through annual shearing. Let’s take a look at some of the many uses and benefits of alpacas: Alpacas make wonderful livestock to own. They are small and not dangerous (compared to horses, donkeys or ponies). They are easy to care for and maintain, eating approximately 20% the volume of hay and grain a horse, donkey, or pony will eat. They are less emotionally needy than the average dog, and even eat less and generally require less veterinary care per year than the typical family dog. They require less grooming and other care than most cats, dogs, horses, ponies, or even some rabbits! They are quiet and do not cause loud noises, disruption and destruction to their environment.  Alpacas, in fact, are extremely clean, preferring to utilize one or two areas decided upon by “the herd” as their place to eliminate their wastes.  They will not soil their own bedding or any other area other than the designated area(s).  This makes for very easy clean up and hygiene of an alpacas living quarters and pasture.  Speaking of pasture, alpacas don’t require much of that, as up to ten alpacas may occupy only one acre of grazing land.  Therefore, a pair of two alpacas can be easily kept as backyard pets for most family households, relying on something as simple as a two or three sided shed for year-round shelter. Alpacas are terrific animal therapy participants.  They serve well as animal therapy for people who are sick.  They are enlivened and amused by their presence in area hospitals, retirement homes and other personal care and therapeutic facilities.  Alpacas are good animal therapy for those individuals experiencing personal crisis in their lives; for small children as an early introduction to meeting and experiencing animals larger than the family dog (thereby building their inner courage and confidence); for pre-teens and teens in need of a positive focus, direction and healthy activity to engage themselves with; and for many people who are handicapped and would benefit from exposure and time well-spent on a farm with quiet and gentle animals who will not intimidate them, rush them, kick at them, bite them, throw them (because they’re too small to even attempt to “ride,”) and alpacas won't bite them (they haven’t the teeth for it, anyway). Of course, alpacas are mostly and best utilized and appreciated for their amazing fleece.  This fleece produces luxurious, strong, warm and silky-soft fiber that is spun into yarn, woven, boiled for cutting and sewing, knitted and felted in the creation of a myriad of products that can be used worldwide by millions of people. It is not derived from an animal that has been intentionally kept at the brink of starvation in order to achieve its fine and extremely soft texture.  Alpaca is environmentally, socially and ethically “correct,” and will remain so. Click HERE for The Farmer's Tax Guide Are you a Hobby Farm?  Are you a Business?  Click HERE to find out what the IRS says about that. Click HERE for IRS defined Business Expenses Investment Potential /Investment Facts (reprinted with permission from AOBA) 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, for 2003 and 2004, allows an alpaca farmer to depreciate the first $100,000 of the investment, and there is potential for 50% bonus depreciation through December 31, 2004. As an alpaca farmer raises 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. Huacaya herd sire, Dom Lucilio of Enchantment Alpaca Farm in Ruidoso, NM, sold in May of 2004, for $460,000.  Huacaya herd sire, Snowmass Invincible, sold in 2005 for $580,000! He presently holds the highest “sale price” of any alpaca in the world. In many cases, financing an 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 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 Registries (American, Canadian and Peruvian) will not recognize any animals that are not produced naturally.