Texas alpaca farms will continue to make a larger contribution to the State's agricultural production as the industry grows. Possessing enormous natural resources, Texas is a major agricultural state and an industrial giant. Second only to Alaska in land area, it leads all other states in such categories as oil, cattle, sheep, and cotton. Texas ranches and farms also produce poultry and eggs, dairy products, greenhouse and nursery products, wheat, hay, rice, sugar cane, and peanuts, and a variety of fruits and vegetables. The number of alpaca breeders in Texas has increased dramatically in recent years.