Lone Pine Aussies
In-Breeding:
Breeding of mother-to-son, father-to-daughter, or brother-to-sister.  
Early in the process of refining domesticated canines, in-breeding was made
employable because any animal considered “less than the best” was destroyed.  
With this type of mating a breeder can magnify individual areas, but in-breeding
intensifies everything good, bad and in-between.  

For this reason, breeders who don’t personally know every canine in their
breeding program from at least the last four generations could end up with more
negatives than positives.

Out-breeding:
Breeding pairs of the same breed to produce “pure-bred” puppies.  
Using several unrelated dogs removes the “mapping” ability, however, and will
result in the most random positives and negatives.  
This is akin to trying to find that small town you once heard of, that sounded like
a fantastic place to live – but, you don’t even know what state it’s located in.  
You don’t have a map, and if you did… you don’t know how to read one;

In this situation you could spend an entire lifetime trying to find your elusive
utopia – always hoping that tomorrow will bring success. Creating new life
without a map, actual first hand knowledge of the canines, will at best create an
equal win/lose situation.

"This is how we do it"

LINE-BREEDING:
Breeding to relations on one side at the second or third generation.  
Only breeders who have turned to an established blood-line for their foundation
stock, or who have created their own by facing a myriad of genetic variables for
years can off Line-Bred dogs.  

Second only to cloning, line breeding is utilized to maintain what was created so
meticulously.  

When the line-breeder decides to alter certain aspects of their line (for example
to improve an already brilliant intellect) they use first-hand knowledge of
generations of canine, not third-party information passed on like a game of
telephone… which is all that may be available to breeders who don’t personally
know their dogs.  

Breeding one line-bred dog to another line-bred dog is the only way to maximize
the breeder’s potential for having the best predictable outcome.  

In other words, while bad outcomes are still possible even with fantastic
canines, Line-Bred dogs give the best odds for a win/win situation.

Summary

Each of the methods above have their place in any given breeding program. The
key is to choose the method which gives us the best chances of producing
offspring which have the optimum chances of being both physically pleasing and
physically sound.

Our responsibility as breeders is to ensure that we are aware of why we use any
given method, of the risks involved, and of the steps required to reduce these
risks as much as possible. It is the responsibility of buyers to learn to ask
questions about health, testing and titles of dogs in their potential puppy's
pedigree, without jumping to assumptions about the breeding methods
employed.
Here are the three types of
breeding programs
for a recognized Breed.