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Exotic Animals,
Livestock or Pets?

Exotic animals, livestock, and pets
matter to the legal system, the insurance industry, and the IRS!



And, if you are an alpaca owner, it matters to you as well!

You see, there are tons of laws out there about this very issue. You may not be able to own certain animals where you live. Also, you may not be able to take various deductions for your animals. You may be able to insure or not insure your animals. It is really complex!

Let’s very simply define these terms.

Pets are domesticated animals that provide us with emotional comfort. Common examples of pets are cats and dogs.

Livestock are also domesticated animals that provide us with food or fiber or other physical benefit. Cows, sheep, pigs, and chickens are typical examples.

Exotic animals are generally a rare or unusual animal that is not indigenous to the area where it is now living. Quite often they are wild animals taken from their native habitat since they may not be able to breed in captivity. In the United States, alpacas had been labeled in this exotic category because they are native to South America. The animals in zoos are generally thought to be exotic creatures.

Each of these groups of animals may be used for commercial purposes – or not. For example, you can have a dog breeding business, a dairy business, or a tarantula business. So, whether you have a commercial venture does not matter to these definitions.

These definitions may seem simple enough at first glance, but there is a lot of overlap.

For example, our backyard chickens supply us with fresh organic eggs, but they also give us with great pleasure. Are they livestock or pets?

Also, our alpacas, which are indigenous to South America, generate fleece and baby alpacas, but we love them dearly. Are they livestock, pets, or exotic animals?

Our dogs and cats and guinea pig are simply pets! LOL.

Since it is really hard to classify these creatures, the local and state and federal government has provided legal definitions for us. I am not a lawyer (and I do not play one on TV either!), so I am not about to decipher all of the legalese.

However, I can tell you that alpacas are now livestock in the United States!

This news is fantastic, because it means that alpaca farms can be an agricultural business with the associated farm deductions, and with the ability to obtain farm loans and livestock insurance. Of course, you have to run your alpaca ranch as a true business to acquire these benefits.

When alpacas used to be considered as exotic animals, these benefits were generally not available. The classification of alpacas as livestock is huge for the alpaca industry!

Even if you do not have an alpaca business, your alpacas are still livestock and must follow any livestock rules in your vicinity.

But you can still love your alpacas dearly even if they are livestock!



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