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 allows an alpaca farmer to depreciate the first $100,000 of the investment. Consult your tax advisor on how it might benefit you. As you raise your 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.

Adding to the overall investment picture is the fact that alpacas are inexpensive to raise, require small acreage, and are very hardy animals. Friendly and trainable yet hardy and tough, the alpaca is truly an investment you can hug.  Have you ever hugged your stocks?