Dairy shares, often referred to as dairy herdshares or cowshares, are a legal arrangement where individuals purchase a partial ownership stake in a dairy animal or a herd, such as cows, goats, or sheep. This agreement allows the owners to receive a portion of the animal's production, typically raw milk, as part of their ownership rights.
Understanding Herdshares and Dairy Shares
Dairy shares are a specific type of herdshare, which broadly encompasses shared ownership of animals like cows (cowshares), goats (goatshares), and sheep (sheepshares). While "dairy-shares" or "farmshares" are sometimes used interchangeably to describe these arrangements, it's important to note that the term "farmshare" can also refer to joint ownership of an entire farm's assets, including land, buildings, and equipment.
The primary purpose of entering into a dairy share agreement is often to legally access raw, unpasteurized dairy products directly from the farm. This model is particularly prevalent in regions where the direct retail sale of raw milk to consumers is restricted or prohibited by law. By becoming a part-owner of the animal, you are simply collecting a product from your own property rather than purchasing it directly from a farmer.
How Dairy Shares Work
A dairy share program establishes a contractual relationship between the farmer (who typically manages the animals and facilities) and the shareholders (who own a portion of the animal).
Here’s a typical breakdown of how these arrangements function:
- Ownership Acquisition: Individuals purchase one or more shares in a specific dairy animal or a portion of the herd. This initial investment grants them legal ownership.
- Boarding Fees: Shareholders pay regular fees to the farmer. These boarding fees cover the costs associated with the animal's care, feeding, housing, milking, and overall management. The farmer acts as the custodian and caretaker of the shareholders' property.
- Product Entitlement: As owners, shareholders are legally entitled to a proportional share of the animal's output. This commonly includes fresh, raw milk, and sometimes other raw dairy products like cream or yogurt, which they collect from the farm at designated times.
- Shared Responsibilities: While the farmer handles daily operations, shareholders often implicitly share in the responsibilities and potential risks of animal ownership, such as contributing to unforeseen veterinary costs or understanding the natural fluctuations in milk production.
Benefits and Considerations of Dairy Shares
Dairy shares offer unique advantages but also come with specific points to consider before participating.
Benefits
- Access to Raw Dairy: Provides a legal pathway to obtain fresh, unpasteurized milk and other dairy products in areas where direct retail sales are restricted.
- Direct Farm Connection: Fosters a direct relationship between consumers and the farmers who produce their food, promoting transparency and trust.
- Support for Local Agriculture: Helps support small-scale dairy farms and sustainable farming practices within the local community.
- Product Control: Shareholders often have a clearer understanding of the animal's diet, living conditions, and farming practices, influencing the quality of their dairy products.
Considerations
- Legal Landscape: Laws regarding herdshares and raw milk vary significantly by state and country. It's crucial to understand local regulations before entering an agreement.
- Farmer Reliance: The quality and consistency of the product depend heavily on the farmer's management practices and the health of the herd.
- Financial Commitment: Involves an initial share purchase and ongoing boarding fees, which can vary widely.
- Logistics: Requires shareholders to actively participate in collecting their share of the product, which may involve regular trips to the farm.
- Health and Safety: While many advocate for raw milk's benefits, it's important to be aware of potential health risks associated with unpasteurized products if not handled properly.
Legal Landscape and Consumer Information
The legality and specific operational requirements for dairy shares are not uniform. Each state or jurisdiction may have different regulations concerning raw milk and herdshare agreements. Organizations like the Farm-to-Consumer Legal Defense Fund provide valuable information on state-specific raw milk laws and herdshare guidelines, which can be a helpful resource for those considering participation. It is always advisable to review local laws and thoroughly understand any contract before becoming a dairy share owner.