What the Heck is a Herd Share?

If you've ever heard the term "herd share" you may have some questions. It's not exactly a household topic of conversation or something you would have learned about in school.So, what is a herd share, you ask?

Sometimes it's difficult to explain, but try to think of a herd share like a publicly traded company that you can buy stock in. I know, this sounds like a stretch, but stick with me for a minute...

A person (or family) wants access to fresh raw milk, but they don't want to or simply can't purchase a cow to be able to go out and milk themselves every day. With a herd share agreement, someone can buy shares of a local farm’s cow herd. Each share purchased entitles the shareholder to a set amount of milk each week or month.

The milk is like the dividends someone would receive if he or she owned stock in the open market.

After the shares are purchased, the buyer legally becomes part owner of that herd and can consume his or her fair share of the milk from the herd he or she is now part-owner of. The more shares purchased, the greater the amount of milk (dividends) is available.Herd share legality (and really raw milk legality overall) varies widely from state to state. Sometimes it is just a verbal agreement and sometimes there is an actual contract that must be in place where both the buyer and the seller have signed to show everyone agrees on the terms. Prices also vary - at one farm you may be able to purchase one herd share for $1 but at another farm they may charge $50. It's totally up to the farm. This is typically referred to as a "buy in."Sometimes these herd share agreements are also called "cow shares" or "farm shares" but it essentially means the same thing.

Of course, the cows will continue to live on the farm and the farmer will feed and milk the cow, as well as process and bottle the milk she produces.Typically, with a herd share, the share older will also be required to pay a monthly fee that goes towards upkeep on the cow that he has purchased part of. This also can vary widely from one place to another, and it's based on the farmers' costs to feed and care for their cows.