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bobvicki
1874 Posts |
 Posted - 10/31/2009 : 2:11:27 PM
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quote:
We are rapidly approaching the time when the IRS says you need to be profitable,so we may be forced to sell at rock bottom prices.
Ed,
I believe that while your goal should be to be profitable, as long as you have good record keeping and can show that your goal is to be a profitable business you can avoid selling at rock bottom prices. I believe this was mentioned in discussions that can be found under the archived threads. The absolute best thing is to talk with your accountant before making drastic decisions.
Bob
Bob & Vicki Blodgett
Suri Land Alpaca Ranch
3288 Halter Avenue
Newton, Iowa 50208
641-831-3576
alpaca@iowatelecom.net
www.alpacanation.com/suriland.asp |
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Ed
572 Posts |
Posted - 10/31/2009 : 2:33:54 PM
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Another thing that really hurts is that a certain farm in N.W.Wisconsin is having a "bankruptcy" sale and is practically giving his animals away! We had people who were going to buy males from us go there and buy males for $90 apiece. They were given no handling advice by the breeder and these animals were wild as ever and these same people called my wife for advice! Not wanting to see the alpacas suffer she gave them advice but begrudgingly as she was upset. Instances like this hurt our industry. I heard from breeders close to them that their animals are essentially running wild!
Ed Geiser
Earthcare Suri Alpacas
Ed Geiser
146 N. Honey Lake Rd.
Burlington, WI 53105
262-534-4091
earthcare@wi.rr.com |
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gatewayfarm
1104 Posts |
Posted - 10/31/2009 : 3:16:08 PM
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quote:
Originally posted by Ed
Another thing that really hurts is that a certain farm in N.W.Wisconsin is having a "bankruptcy" sale and is practically giving his animals away! We had people who were going to buy males from us go there and buy males for $90 apiece. They were given no handling advice by the breeder and these animals were wild as ever and these same people called my wife for advice! Not wanting to see the alpacas suffer she gave them advice but begrudgingly as she was upset.
I know a local breeder that offers alpaca training - for pay.
Might be a way for you to supplement your income if you have the time and interest. Not everybody does.
I have, on occassion, hired myself out for a day to consult with new owners about everything alpaca related. Last time I think I made about $500 for a day, and they were very pleased with the deal. (Part of that included shearing lessons, and I ended up shearing about 15 animals - so I worked for it).
Gateway Farm
Alpaca, a natural elegance... |
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danimac
514 Posts |
Posted - 11/01/2009 : 2:03:04 PM
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Ed -- one thing to discuss with your accountant. You need to show that you're bringing in *income* for the IRS to consider your business a business. Not necessarily a profit. There are a lot of American farms that never show a profit, but are definitely run as a business and considered a business by the IRS.
Not an accountant, but I've discussed this with mine.
Cheers,
Dani
Dani McKenzie
Longbottom Meadows
Roy, WA
360-400-0348
http://www.longbottommeadows.com |
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laura0554
12 Posts |
Posted - 11/06/2009 : 10:49:53 PM
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I have been in the alpaca business only one year. Our first cria celebrates her first birthday tomorrow! Like many other new owners, I have only been able to do this due to the lower prices and anxious sellers. I equate this business with real estate. When we sold our home in the suburbs three years ago, we had 16 years of equity and could lower the price to sell it. Our mortgage was lower than the neighbors who had just purchased five years prior and owed almost twice what we paid. The point I am making is that every seller has their profit/loss margin. Fortunately, even if I paid 60K for six alpacas, every cria allows me to sell each for a little less if I have to, unlike a home. I think about those that paid the higher prices and then the real estate market "corrected" itself. Well, in essence, isn't that what is happening in the alpaca world? Weren't the prices inflated? Naturally, as more are bred in this country, the prices will come down. Hey, my first VCR cost $1000 in 1982 and now they can be found for $49. I don't wish that dramatic price drop for alpacas, but shouldn't we expect the prices to come down?
I feel for those that paid those high dollar prices on their animals, but at the same time, after birthing cria after cria each year,and selling them at good prices, shouldn't that be taken into consideration when determining how much one needs to sell in order to break even? If your $20k dam has produced four crias that sold for $5K each, do you still feel bad if you don't get a high price for that dam? Excuse me if I am oversimplifying, but I am trying to be very realistic. It truly is a buyers market and like everything else, there will be those who must sell to make ends meet (or satisfy Uncle Sam) and those that hold out for higher prices. In the meantime, we are just trying to grow, control our start up expenses and most importantly (to me) enjoy what we are doing.
Laura
R Half Pint Farm
Spotsylvania, VA |
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chris c.
1 Posts |
Posted - 11/10/2009 : 7:59:22 PM
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| Where just getting our first one and boarding her. We wouldn't be able to get one if the prices where still 15k a animal. |
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how's the economy affecting you?
