In a recent article in WSJ on October 3, 2008, alpaca investing was highlighted along with other alternatives to the traditional stock market. To be sure, alpacas have stood the test of time as a valuable commodity. That’s why folks with a propensity for land are considering alpacas for their livelihood. Not only is it enjoyable, it can be very profitable.

Coming from different walks of life: retired couples, young couples with children and professionals who work during the week but tend to their herd in the evening. With average herd sizes of 10-20 animals, this is certainly doable by working couples who may be considering larger herds in the future. And, with the 5-8 alpacas per acre, it doesn’t take much land to contain a fair number of animals.

In addition to the animal and fiber sales, there are significant tax advantages of alpaca ownership for the active, hands-on owner; such as: farm expense deductions and depreciation. Please refer to IRS publication 225, which is the Farmers Tax Guide.