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ALPACA—Have you herd?

By: Gary A. Lochrane, Hardee County Extension Director/Livestock, Wauchula, Fl.

Many "urbanites" are moving to Florida each day, with developers changing over 200,000 acres of farm land per year as our state's human population growth explodes. In farm rich Southwest Florida, our county extension offices are inundated with calls from folks wanting to get away from the city life by buying or thinking of buying "small acreage" properties ranging from a few acres to a hundred or so acres. A question frequently asked is if there is some profitable "small farm" business I can enjoy on this amount of acreage? The answer is a resounding "Yes!"

Among the successful small farm alternatives cropping up in Florida is alpaca breeding. Currently, there are more than 40 existing alpaca farms throughout the state. This may seem like a small number, however, when you consider that only a few years ago (2001) there were only 4 alpaca farms you will get an idea of the growth that is occurring in this industry. So, what exactly is an alpaca?

Once cherished by the ancient Inca royalty of the high South American mountains, alpacas have been called "the huggable investment." Terms such as "cute, soft, cuddly, friendly, warm, lovable and "profitable" are what long term breeders say about these fabulous animals. There are two different types of alpacas, the suri, pronounced (sir-ee) and the huacaya, pronounced (wa-ki-ya). Suri fiber grows quite long and forms silky, pencil-like locks. Huacaya fiber is shorter, dense, and crimpy (wavy), giving it a very woolly appearance. An average alpaca weighs between 100 and 200 pounds and has a lifespan of around 20 years. Alpacas are gentle, easy to handle and can be pastured at 5 to ten per acre. Female alpacas start breeding at 18-24 months, typically produce one baby known as a cria (cree-ah) per year and may breed for twelve-to-sixteen years.

The average breeding female ("dam") sells for $25,000 to $35,000 or more with some alpacas selling for hundreds of thousands of dollars. Herdsire "stud fees" range from $1,500 to as much as $10,000 a breeding. Recently, 1/2 interest in one of the countries finest herdsire's sold for $750,000.

Alpaca fiber is among the world's finest fibers. It is soft as cashmere, warmer, lighter and stronger than wool, non-allergenic and comes in 22 natural colors. Each animal produces about ten pounds of this extraordinarily soft fleece per year. This fleece is usually "harvested" by shearing around the end of March (in Florida herds), helping the animals stay cooler through our hot summers. Once shorn, alpaca fiber can be processed into a wide array of finished product ranging from socks to high-end formal attire. With the current knitting and weaving craze-taking place nationally, the high demand for alpaca fiber is increasing.

There are significant tax advantages to becoming an alpaca owner. "Uncle Sam" can help alpaca owners and breeders by providing tremendous tax benefits. If you decide to become an alpaca owner and purchase animals by mid-September (allow at least 90 days before the end of the year to qualify), it is possible to have tax deductions exceeding $100,000. This is true for at least 2006 and 2007, and has now been extended till 2009. Many alpaca breeders are using these tax advantages to their benefit by building their herds as fast as possible. Currently, there are approximately 100,000 alpaca in the United States. To meet the growing demand for this exquisite natural fiber, the government estimates a need of a million alpaca. If you take into consideration that all importation of alpacas was stopped in 1998 and the length of gestation is 11.5 months, you can see that the industry is destined to be strong and profitable for many years to come.

So, how much land do I need to start an alpaca farm or ranch? Are there support organizations and groups that will help me get the ball rolling? What are the financial requirements? Are alpaca environmentally friendly? What about diseases and other health concerns? Can I own and breed alpaca without leaving the city? How do I know what to buy? Are alpaca's insurable?

To find out the answer to these questions and more, please contact the Hardee County Extension Service at (863) 773-2164 or Southeastern Alpaca Brokerage Services at 1-863-635-0744.

 


 

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