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Suri Llamas: Investment & Opportunity
By Tom Riley
 SLA
keured suri llamas are a rare and valuable commodity. At the
time of this writing, it is estimated there are fewer than
1,500 suri llamas in North America. This presents a ground
floor opportunity almost unparalleled in the livestock community
to invest in the improvement and preservation of an ancient
breed. Owners of keured suri llamas benefit from the tax advantage
of raising livestock which are compellingly beautiful, and
by their very nature calm, intelligent and peaceful.
Potential Profits with Suri Llamas
- Sale of keured breeding and show stock
- Sale of keured offspring and breeding services
- Sale of suri llama fiber and end products
Tax Advantages
For many people the tax advantages alone make raising suri
llamas a financial win.
- You may choose an active or passive approach to the suri
llama business. Both have tax advantages.
- Section 179 of the IRC allows you to deduct expenses
for your suri llama business up to $105,000.
- Income from other sources may be sheltered by expensing
farm related business items.
- Most states have real estate tax breaks for suri llama
operations.
- Breeding stock held for more than one year is subject
to capital gains, rather than ordinary income. Refer to
IRS Publication 225.
- If you choose to be a "hands-on" suri llama
breeder, all your expenses related to the business are deductible.
Refer to IRS Publication 525-2004 Farmer's Tax Guide.
- Purchased suri llama breeding stock can be depreciated
over five to seven years.
Portfolio Diversification
- Suri llamas are a 'tangible asset.' They can be touched
and enjoyed and contribute to a healthy lifestyle.
- Traditional investments such as stocks and bonds are
out of your personal control.
- Diversification of assets provides more stability to
your portfolio.
- Suri llamas enhance existing assets by putting your land
to work.
Building Wealth Through Herd Growth
Suri llamas are an asset that reproduces (compounds) and
has a renewable end-product in their fiber. Suris are an investment
that is depreciable, fully insurable and grows annually without
gains until you sell.
The chart below illustrates what you might expect over the
course of five years from an initial investment of five bred
suri females.
You may choose active participation or agistment in raising
suri llamas. Active participation is a lifestyle investment
It allows you the pleasure of having suri llamas on your land
and you make all the decisions about breeding and management.
Agistment allows you to invest in suri llamas without taking
a direct role in the farm activities. Agisting is the practice
of purchasing livestock and boarding it on someone else's
farm, leaving the care and maintenance to the farm operator.
This passive ownership still allows the owner to depreciate
his or her breeding stock and expense the cost of maintaining
the animals while enjoying them on weekends.
Many banks or farm credit organizations will provide financing
if you-have a business plan. Established suri llama breeders
may offer terms on the purchase of animals. Terms wiII vary
with each breeder.
Consult your tax professional to discuss starting a business
with suri llamas today!
CRIA COMPOUNDING
Start with five pregnant females in year one--see
how your herd grows by year six.
As in all livestock operations, results of individual breeding
programs may vary.
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