A couple of months ago I was approached by a helpful guy at the USDA who wondered how they could be helpful to alpaca farmers. I wanted my readers to hear some of the good 411 he had to share. Here is a guest post by Kevin Pearia from the USDA.

Government-backed home loans grow more popular each year.  Low-income families and individuals see programs like the USDA home loan as a way to make home ownership a reality.  People wanting to save some cash and live outside city limits should look into the USDA loan.

USDA HOME LOAN

The Department of Agriculture secures the USDA loan, which is specifically for farmers and low-income families. The goal of this program is to strengthen economies in rural areas across the nation. People moving into rural and suburb areas is the solution. The USDA also wants to give persons the chance to buy a home or property affordably.

The loan boasts a rare perk in the world of home loans—$0 down. Saving up for a down payment is usually the biggest burden for homebuyers. Take that out of the equation and most people could start the exciting process of homeownership.

The loan also gives homebuyers extra financing for renovations of a home or farm.

Applicants should work to repair credit to a good standing and meet debt-to-income ratio standards.

ELIGIBILITY

To be eligible, applicants must determine whether the location of their property is within USDA approved locales.  Applicants will also need to fall within a certain income bracket.

If you or anyone you know is looking to move to a rural area, go ahead and take the time to find  out more info about USDA loans today!

This is a really FAST video that TRIES to explore the fact that people get tax advantages from raising alpacas. I think it comes off a bit confusing.

But the way I see it – any publicity is good publicity.

What did you think about this video? Leave us a comment and tell us your thoughts.

Photo and Artwork by Valerie Newell of The Green Alpaca

The Alpaca Owners and Breeders Association (AOBA) is giving alpaca breeders something to celebrate this holiday season!

Through AOBA’s public relations efforts, a press release was distributed to the media highlighting alpacas as a green business. As a result, Alpacas are being featured as the perfect green livestock on a syndicated television special called “It’s a Green Christmas.” This is one of the largest exposures of alpacas to the general public to date.  Being shown in over 120 television markets, this segment is worth over $200,000 in television air time.

The one hour show features a variety of ecologically beneficial businesses and products.  Alpacas are highlighted for over 3 minutes as an all around environmentally friendly livestock.  Alpacas are discussed as being easy on the land and efficient users of food with highly desired manure.

Showcasing the alpaca industry is video footage from AOBA’s National Conferences including models wearing beautiful alpaca fashions on the runway, fleece competition judging, individuals spinning alpaca fiber and consumers shopping for alpaca garments.  The show also includes a visit to Alpacas at Windy Hill in Somis, California where Cindy Harris was interviewed while holding a 3-day old cria.  Cindy did a terrific job of educating viewers about alpacas in general as well as the different types of alpaca fiber and the variety of end products.

“It’s a Green Christmas” is airing from November 21, 2009 through January 4, 2010 across the United States. For a list of airing times and stations, visit http://itsagreenchristmas.com.  More markets continue to be added to the schedule.

Note from Alpaca Farmgirl: Is AOBA back? Let’s hope this is a sign of things to come! Alpaca Farmgirl encourages you to sign up or renew your AOBA membership, and to participate in the AOBA Farm & Ranch Guide. AOBA works for us. Let’s support our organization and we will all benefit!

I think we all can cite examples that would prove John’s theory to be true even if the numbers don’t fall exactly at 80 and 20.  You know what I mean, I’m sure of it.  Remember the last time you were in the checkout line at a store and after the cashier had rung in your purchase and then typed in the $10 you handed him… you found that penny in the bottom of your pocket so you’d get a quarter back instead of twenty-four cents?  You know what I’m about to say… the deer-caught-in-headlights stare…the oh-my-God-I’ve-already-hit-the-cash-tendered-button-now-what-do-I-do look.  That is a prime example of the 80% group.  I don’t want to be one of them.

I hope we can all still think of an example of the 20% of good customer service providers.  Maybe you went to a new restaurant, the food wasn’t so great, the lighting was a little dim but you were greeted and served by a bubbling waitress.  You didn’t have to ask for more water because she was there to fill your glass before you said a word.  When you thought you wanted pork chops, she’s paused at her order pad and quietly whispered, “They’re a little dry tonight – how about a steak instead?”  These are the kinds of simple gestures that make you return, to give it another chance.  Even though part of your experience was less than ideal, the warm personality and customer service of the waitress made you remember the night in a more positive way.

The alpaca industry is no different with regard to customer service than the grocery store or restaurant exemplified above.  Some farms are good, some not so good.  At a Suri Farm, we’re working to be in the top 1% of the 20%.  Nothing pleases us more than to have someone say, “Thanks, you’ve been so helpful.”  We know that the way we respond to customers not only reflects on our farm but also on the industry as a whole.  If we treat people well, they’ll come back to us as repeat customers.  If they feel satisfied that they’ve received good customer service, they’ll send us new customers!  This is how we will build a Suri Farm into a successful alpaca breeding business.

Providing good customer service can be simple if you follow a few basic rules -
Be positive and truthful, be understanding of your customers’ needs and communicate openly with them.

I can’t tell you how many times I’ve had people say to me (sometimes with a sneer on their face), “You’re always so happy.”  Sometimes my sarcastic side leaps out and I’d love to retort, “I’m sorry, I’ll try harder to be grumpy and miserable…would that please you?”  I think a positive attitude is contagious.  I don’t live in a dream world; I know there are curmudgeons who just don’t want to smile but I REFUSE to let their negative attitude override my positive one.  In my rules of good customer service I said be positive AND be truthful.  Even when you have to deliver bad news, you can do it in a manner that will buffer any negative response from your customer.  It is of utmost importance that you always be truthful when dealing with customers.  I don’t care how good you think you are at “bending the truth” it will always come back to haunt you and damage the reputation of your farm.

My second “simple” step to good customer service calls for understanding your customers’ needs.  Are you a good listener?  Or were you too busy thinking of what you wanted to say or do to hear what your customer really wanted or needed.  Sometimes, to understand your customers’ needs means sending them to another farm to purchase an animal that you don’t have.  Trust me, you may have lost one sale that day but you will gain the long-term respect of that customer and of the referred to farm.  You will also, inevitably have a customer sent to you by one or both of them.  Often if a salesperson doesn’t listen to his or her customer and forces a sale of something the customer didn’t want – that customer will never shop in that store again.  Not only that, but that customer will be reminded of the bad experience every time she looks at that dress or scarf or alpaca she didn’t really want to buy.

Last, and certainly not least, is that you MUST communicate with your customers.  Be it in person, by phone or via e-mail good lines of communication equal good customer service.  In today’s world of instant messaging, text messaging, cell phones, landline phones, etc. there is no excuse for poor or lacking communication.  Even if you have bad news to deliver, you must deliver the news.  If the customer’s dam won’t get pregnant by your herdsire, don’t avoid calling them.  Pick up the phone and discuss their options with them.  Resolve the issue together.  I can almost guarantee you that the overall response will be positive.  No, they won’t be pleased to hear that their dam’s not pregnant, but your positive willingness to get to the bottom of the problem will speak volumes about you and your farm and the good customer service you provide.

And good communication skills and customer service don’t end when the alpaca leaves your farm in the trailer.  If you want to have repeat customers who tout your farm to others, you must follow up with them.  Call or e-mail in a few weeks to check on the alpaca.  Send a thank you for your purchase card.  Keep that client informed of events going on at your farm.

I hope these tips will help you to provide excellent customer service to your client.  I challenge you to be one of the 20% gang.

Listen to this audio/video to hear Ian’s secrets for breeding for exceptional alpaca fleece. In this interview he talks about how you can tell if a young male  has herdsire potential. He also gives you some details on skin biopsies. When should you do them? And what will they tell you?

This is a must-see video for any serious alpaca breeder. Ian usually charges a lot of money for speaking engagements where he shares this very information. You can get it for FREE here!

Tip # 3 – Proven Herdsires Give You A Leg Up

Experienced breeders will most likely read the title of this article and instantly assume that proven is the better option here. I will lay-out the pros and cons of both arguments here, and come to the conclusion that proven males are in fact, the way to go for new prospective buyers.

Young and Sexy…

So a breeder friend calls you up and begins to boast about their new jr. herdsire / show prospect. With curiosity knocking on the door, you set-up for a time to visit. The upcoming weekend you drive down and your friend halters up the much heralded male. At six months old his fleece is a spinners dream and coverage that will demand the presence of any onlooker. All of a sudden a dazzling slideshow of the future flashes in your brain- images of breeders applauding you winning a Championship at AOBA Nationals, and going on to sell his offspring for six figures… And, he’s only $15,000 with all this potential! SOLD.

Three months later you are at the first show of the spring season, and your highly touted new jr. herdsire doesn’t look as impressive anymore next to the “Big Guns”. Nonetheless, you gladly took 2nd Place. By summer you and your future star have won two blue ribbons and a couple 2nd or 3rds- a successful season by many standards. The next year his fleece doesn’t come back quite as fine, and you decide this boy’s show career is over.

This is a common situation among all breeders. The idea of being in early on a future Champion producing stud is very persuading. Sometimes you pick em’, but more often you won’t, and the worst is still possible- buying an infertile male without a reproduction guarantee in his contract.

Pros Cons

- Purchase before animal’s peak value - Might lose value if not shown well

- Name recognition in marketing and shows – Could be infertile or produce poor quality

- Lag time until able to breed

They know the drill…

So you recently received an auction catalogue for the upcoming sale next month. One male in particular catches your eye who appears to be big and robust in his photo, is backed by quality genetics, and recently became proven with cria on the ground. At the sale you find the male and take a look at his fleece bag– fine and crimpy at almost four years old?! No show record though…You decide he’s the one though, and end up buying him for $15,000- completely under the radar.

From here the “bargain” could fulfill itself and the herdsire produce quality offspring and sell some breedings. The chances of this happening are more in your favor, the better the genetics are backing your male. Or, your $15k investment might not return due to poor production quality.

Pros Cons

- Ready to breed immediately - More difficult to find these “diamonds in the rough” at later ages

- Could be “under the radar” if never shown – Could be more difficult to promote

Nonetheless, the odds for long-term success are much more in your favor with example #2 Proven vs. #1 Unproven. Certainly going the latter route can be more frustrating as it can take longer finding the quality you want. However, for newer breeders especially, purchasing an already proven male offers you better production security, a “brand” to build, and well frankly, a herdsire who already knows what to do when he sees a maiden…

To go about either of these processes I suggest consulting an experienced breeder(s). If unbiased, they should send you in the right direction and even provide a list of promising bloodlines to invest in.

This tip contributed by Cooper Smith, Editor at the Alpaca Guy blog.

Tips From Successful Breeders Series:

Tip 1:Don’t Forget the Old Girls

Tip 2: Define Your Success

Magical Farms

In what can only be described as a brilliant business move, Magical Farms has rolled out an innovative alpaca sales/trade program called “Currency for Classics” . Inspired by the “Cash for Clunkers” automobile program, this program has alpaca breeders trading in, ahem, older model females for younger stock. Numerous jokes spring to mind about trading in the old broad for a newer model, but hilarity aside, the plan makes great financial sense for Buyers as well as for Magical.

I spoke with Tripp Forstner recently about the new program, which was his idea. “I thought of it awhile back, but we had to work out the details.”

The program works like this:

• You trade in your older female who has reached the end of her reproductive career (or are getting close to it). Magical Farms will give them a good home in one of their retirement pastures. They retain the right to breed the female, and they might do so, depending on her situation.
• In exchange, You receive 25% towards the purchase price of another alpaca from their sales list up to $5,000.
• You pay 25% down
• You may finance the other 50% over 4 years.

Magical Farms is one of the largest farms in America, with a herd of over 1600 alpacas and 400 acres of pasture. Not many farms would have the space and staff to take on a lot of older alpacas, but this one does. They are offering a nice “retirement village” for gals who have outlived their production lives when it comes to fiber and cria. (Alpaca fiber becomes shorter and more coarse with age. Most geriatric alpaca fiber can only be used for felting.)

In exchange, breeders can purchase newer stock with longer productivity and infuse new genetics into their herd. As females get older, they can be a financial liability to the farm when one considers feed and vet bills. Unloading these expenditures in exchange for a production animal can be a good solution for many farms watching their profit margins.

“It’s a win-win program,” says Tripp. “We gain new customers and new bloodlines, and people now have an option for their older girls. I love the older girls.”

Currency for Classics began on August 13th and will be going on for a limited time only. I spoke with Ty Forstner of Magical Farms this morning. He confirmed that the well-received program has been working well and generating sales.  Learn more about the program here. Watch a video about Magical Farms.

What do you think of this idea? What other innovative business ideas have you seen recently?

Define Your Success

We might automatically think of success in terms of $$, but if you think a little harder, there are other ways to define success. Maybe what you want is to be your own boss, to be able to take a vacation when you want to (after you find a ranch sitter), to work outside every day, or to be in charge of your own destiny.  Perhaps you want to raise your children in a farm environment that teaches them naturally about birth, death and responsibilities.

Money does not always equal happiness, there are many people who have lots of money and are very unhappy.

Remember to have fun! Enjoy the process of farming and the life you have on your farm.

This tip contributed by successful alpaca breeder Linda Gardner of Blue Moon Ranch.

Read Tip #1.

Farmers and Ranchers are often out in the fields working during the day.

• When do you like to conduct your business over the phone?
• When is the best time to call you? (Not unsolicited of course. Calls from your suppliers, colleagues, customers, etc.)

Photo courtesy of Dutch Hollow Acres.

Recently we talked about ways to survive the recession. Continuing with that theme, there are aspects of running a farm business that many of us ”hire out”. Some are things that we can learn to do ourselves.  Here are 5 things that you can learn to do for your farm business, keeping more of what you earn in the process:

1. Bookkeeping. If you pay someone to do your books, consider having them set you up with QuickBooks Pro 2009or something similar. This can save you some money and possibly help you be more organized.
2. Veterinary work. Does your vet give shots? Run fecals and IGG tests? Trim teeth? Draw blood? These are all things that you can learn to do for yourself, which could result in significant savings for your farm.
3. Advertising. Do you hire photographers and/or designers to do your advertising materials? This is an area where you might be able to learn some skills and save some money.
4. Marketing. Are you taking advantage of the online (free) marketing opportunities available with social media? This is an area where you “pay” with the time you invest rather than with cash.
5. Shearing. This is an excellent skill to have. Shearing your own alpacas saves money for sure. Plus it’s important to have this skill for emergencies.

Leave a comment and tell us – what are some other things farmers and ranchers can do to save themselves some money?