What is a Herdshare? | Local Line

A 2019 report found that direct-to-consumer farm sales increased by 35% in 2020, reflecting a major shift towards local and sustainable food sources.

One unique farm business model gaining traction are herdshares. Herdshares offer a unique opportunity for both consumers and farmers to establish a closer, more sustainable relationship with food production.

Keep reading as we explore the concept of a herdshare, their benefits, legal considerations, and how to join or start one. We’ll also show how Local Line, a farm e-commerce software for farmers and ranchers, can help manage herdshare operations effectively.

Key takeaways

• A herdshare involves members "co-owning" a herd and receiving a portion of its produce, such as raw milk, in return.
• Herdshares foster a closer relationship between consumers and farmers, promoting sustainability and providing access to fresh produce straight from the herd.
• The legality of herdshares varies by country/region. Whether you run a herdshare or are a member of one, it’s important to understand and comply with local laws and regulations.
• Research local farms/herdshares, understand the costs and agreements involved, and ensure compliance with local regulations before joining or starting a herdshare.

What is a herdshare?

A herdshare is an arrangement in which individuals purchase a share in a herd of animals (e.g., cows, goats, sheep). They become "co-owners" and receive a portion of the raw milk and/or other products (e.g., meat, eggs) produced by that herd.

Raw milk is a popular herdshare product, but in some areas, selling raw milk directly to individuals is illegal. Herdshares, however, create a legal workaround (only in specific regions that allow it) for consumers (or herdshare members) to access raw milk.

How a herdshare program works

The farmer who runs the herdshare will manage the animals' day-to-day needs. Meanwhile, members pay a one-time fee (i.e., a sign up fee) and maintenance fees (i.e., contributes to the care of the animals). Another payment framework is operating a herdshare through subscriptions. Either way, the herdshare member will receive a product from the herd (e.g., raw milk, eggs, meat) in return for their payment.

For instance, Katie from Positively Grown LLC organizes their herdshare using Local Line's subscription feature. Consumers simply subscribe to Positively Grown's available shares, automatic payments are withdrawn from the members' account, and they receive raw milk in return.

Types of herdshare arrangements

Herdshares can vary based on the type of livestock involved. Here are three types of herdshare arrangements:

• Dairy herdshares: These are the most common, involving cows, goats, or sheep. They provide raw milk and dairy products.
• Meat herdshares: In this arrangement, members own a share of livestock raised for meat (i.e., beef, lamb).
• Other livestock herdshares: These might include chickens for eggs or other animals for various products.

Herdshare vs. other farming models

Herdshare vs. CSAs

While both community supported agriculture (CSA) programs and herdshares involve a direct relationship between the farmer and the consumer, there are distinct differences:

Herdshare vs. traditional farming/dairy purchasing

Traditional farming/dairy purchasing and herdshares share the same goal of providing access to dairy products. However, as Katie from Positively Grown explains, "the benefit is that we're cutting out the middleman." Herdshares allow farmers to build more of a relationship with members, giving them a different perspective on where their food comes from.

Benefits of a herdshare program

Let's dive into the benefits herdshares have on farmers, consumers, and animals!

Advantages of herdshares for farmers

• Steady and predictable income: Herdshares provide farmers a reliable source of income, as members pay regular fees (i.e., maintenance fees or using subscriptions).
• Stronger relationships with consumer: Farmers build a loyal customer base through direct interaction with their consumers who buy into their herd.
• Opportunity to operate on a smaller, more sustainable scale: While larger herdshares exist, it can help small farms thrive without the need for large-scale operations.

Advantages of herdshares for consumers

• Access to fresh, raw milk and dairy products: Consumers can obtain raw milk, which is unpasteurized and highly sought after for its health benefits (i.e., contains natural enzymes and beneficial nutrients).
• More control over food sources: Consumers know exactly where their food comes from (i.e., the herd of animals they buy into) and how it is produced.
• Support local farms: Consumers get to support local farmers and sustainable farming practices directly.

Advantages of herdshares for animals

• Better living conditions: Smaller herds and direct consumer involvement can lead to more humane and attentive animal care.
• Sustainable and ethical animal-raising practices: Herdshares promote transparency and accountability in farming methods (i.e., farmers will tend to pasture-raise their cattle and avoid using antibiotics or hormones).

Legal considerations of operating a herdshare

Herdshares offer several benefits for consumers, farmers, and animals. However, there are also legal considerations when running a herdshare in certain regions. Consider these three things if you plan on operating one:

• Understand the legal status of herdshares in your region/country: The legal status of herdshares varies by country and region. Research if operating a herdshare is legally allowed in your area.
• Local laws around selling herdshare products: Research local laws when selling herdshare products (i.e., especially raw milk); otherwise, you may face a penalty (i.e., being fined).
• Common herdshare regulations and requirements: Typical regulations to consider may include health and safety standards for milk handling, animal welfare requirements, and contractual agreements outlining the terms of the herdshare.

How to join a herdshare

Let’s review what to look for in a herdshare agreement, how to evaluate a herdshare, and four steps to join a herdshare near you!

What to look for in a herdshare agreement

• Cost of joining: How much will you pay and how often (e.g., weekly, bi-weekly, monthly)? Are you paying a one-time fee plus maintenance cost? Or are you paying through a subscription fee?
• What’s included: What type of share are you getting (i.e., half share, whole share) and what produce are you expecting (i.e., raw milk, cuts of meat, eggs)?
• Terms of the agreement: Ensure you fully understand the terms and conditions when signing onto a herdshare.
• Additional responsibilities you may have: Joining a herdshare is not a one-and-done deal. Make sure you communicate openly with the farmer about what’s needed from you.

Tips for evaluating herdshare farms

• Research the farm’s reputation: Look for reviews, testimonials, certifications, or awards. Also, look into how long they’ve been operating for. The more positive social proof and information you can find, it can be a strong indicator of the farm’s reliability and quality.
• Animal care standards: Research the herd’s living conditions and their kind of diet. You may also want to look into the farm’s health protocols for the animals.
• Consistent transparency and communication from farm: Choose a farm that’s open about their practices (i.e., answers your questions, runs farm tours). You also want to ensure they’re consistent with their updates and communication.

4 steps to find and join a local herdshare

• Research local farms: Look for farms in your area that run a herdshare program. Online farm directories, Facebook groups, and farmers markets are good places to start.
• Visit the farm: Schedule a visit to meet the farmer, see the animals, and understand the farm’s practices.
• Review the agreement: Carefully read the herdshare agreement to understand your rights and responsibilities.
• Making payment: Once you agree to the terms and conditions, determine how payment will go (i.e., will you have a one-time upfront cost plus monthly maintenance fee? Or will you pay through a subscription and pay bi-weekly?).

How to run a herdshare

What if you want to operate a herdshare? Read on to learn more about the legal and logistical considerations of running a herdshare, plus four steps to start one.

Legal considerations of a herdshare

As mentioned earlier, running a herdshare comes with a lot of legal considerations to ensure you do it safely and legally. Despite its nutritional benefits, raw milk (a popular herdshare product) can cause foodborne illness if not handled properly. As a farmer, the last thing you want is to be liable for one of your members getting sick. So, ensure you comply with all local regulations to ensure nothing falls through the cracks. Do this by connecting with existing herdshares for advice/information or researching online about your local milk-handling practice.

Best practices for managing a herdshare

Our best advice is to maintain high standards of animal care, communicate regularly and consistently with herdshare members, and keep accurate records of all transactions and operations.

You can effortlessly manage your herdshare operations like member communications, orders, and payment transactions using a farm software tool like Local Line!

4 steps to start a herdshare as a farmer

• Understand local laws: Research the legal requirements for herdshares in your country/region. If you plan to sell raw milk, look into how that’s handled to ensure you do it legally and properly.
• Develop a business plan: What’s your mission? What are your values? What do you want to achieve with this herdshare? Outline your herdshare business model so you’re fully align with the vision for your herdshare.
• Create a herdshare agreement: Before consumers sign onto your herdshare, draft a comprehensive agreement for your members (i.e., outline any costs, expectations, legal considerations, requirements). Work with professionals (i.e., contract lawyer) to create a proper agreement.
• Market your herdshare: Your herdshare won’t go noticed unless you spread the word! Connect with locals, leverage social media, run farm tours, or host community events to attract herdshare members. Use this opportunity to educate them about your farm, animals, and values.

Frequently asked questions (FAQs) about herdshares

What is the difference between herdshare and buying milk from a store?

A herdshare involves owning a part of the herd and receiving a portion of its produce, as a member of the share. Buying milk from a store is more of a simple transaction–you don't have any ownership in the process. Store-bought milk is also pasteurized, while herdshare milk is often raw and comes straight from the farm.

Is raw milk safe to consume?

Raw milk is safe to consume and contains beneficial nutrients that are often lost during pasteurization. However, if not handled carefully, it can also contain harmful bacteria like E. coli, Salmonella, and Listeria. For safe consumption, it's important for the farm to follow strict hygiene and safety practices, including regular health checks for the animals, clean milking procedures, and proper storage of the milk.

What are the typical costs associated with a herdshare?

When you join a herdshare, the expenses can vary depending on the farm and region. Here's what you can expect:

• Initial share purchase fee: This is a one-time fee to become a member of the herdshare program.
• Ongoing maintenance fees: These are regular fees (i.e., monthly, quarterly, or annually) that take care of the animals, covering things like feed, veterinary care, and milking operations. You might also have to consider additional costs like transportation if the farm doesn't deliver the milk and any special equipment needed for storage.

For unique business models, like subscriptions, consumers may only have to pay a regular (i.e., weekly, bi-weekly, monthly) fee to gain access to herdshare produce.

Can I sell herdshare milk to others?

Generally, herdshare milk is for personal use only and not for resale. This restriction helps to comply with local health regulations that govern the distribution of raw milk. It’s important to check your local regulations, as they vary widely and can impact what you can legally do with your herdshare milk.

How do I find a reputable herdshare farm?

• Researching online: Look for farms with positive reviews and a transparent history of good practices.
• Asking for recommendations: Talk to local farmers or local food networks, such as co-ops, organic food groups, and CSA programs, for suggestions.
• Visiting herdshare farms: Whenever possible, visit the farms to see their operations and meet the farmers. This can give you a better sense of their practices and the quality of their products.

Are herdshares legal in Canada?

The legality of herdshares in Canada varies by province. Some provinces like British Columbia have legal frameworks that allow herdshares under specific conditions. Meanwhile, Ontario has stricter regulations that make it challenging to run a herdshare. It's essential to research local laws and regulations to understand the legal status of herdshares in your area.

Can a business buy into a herdshare?

Whether a business can buy into a herdshare depends on local regulations and the specific terms of the herdshare agreement. Some farms may allow businesses to join and receive milk for use in their operations, while others may restrict membership to individuals. It's important to discuss this with the farm and ensure that it complies with local laws.

Can a restaurant buy into a herdshare?

Similar to businesses, whether a restaurant can buy into a herdshare depends on local laws and the specific herdshare agreement. Some farms may allow restaurants to join if the milk is used in their kitchen, while others may have restrictions. Additionally, restaurants need to comply with food safety regulations, which might prohibit the use of raw milk. Do additional research to verify local laws and regulations before proceeding.