Background:
Direct to consumer raw milk sales are strictly illegal in the state of Ohio and
the Ohio Department of Agriculture has taken heavy-handed action against farmers
selling raw milk. The ODA has sent under-cover operatives to farms, cajoled
farmers into selling a gallon or two of milk and then taken legal action against
them. In September 2005 an ODA operative convinced Amish farmer Arlie Stutzman
to let him fill a gallon container from the bulk tank, pushed two dollars into
his hand and left the farm. That December the ODA started administrative
hearings against Stutzman that resulted in the loss of his Grade A dairy
license, depriving his family of a means of making a living. In March of 2006
the ODA raided Kentucky farmer Gary Oaks as he was attempting to deliver milk to
his Cincinnati-area shareholders, who collapsed and was hospitalized during the
enforcement action. The ODA pursued similar administrative actions against Darke
County dairy farmer Paul Schmitmeyer, revoking his dairy license for managing a
herdshare. The lesson here is
Don't Sell Raw Milk to
Anyone!
Herdshares:
The Schmitmeyers and their shareholders filed suit against the ODA, and as the
result of a December 2006 court decision (
Carol Schmitmeyer vs.
Ohio Department of Agriculture) and the election of Governor Strickland
herdshare boarding agreements that comport with Ohio contract law are now
legally recognized and the ODA paid compensating legal expenses. Herdshare
boarding contracts are private agreements between individuals who collectively
own the animals in a dairy herd and the farmer hired to manage that herd. What
that essentially means is that if you purchase a set number of shares in a dairy
herd and sign a boarding contract to pay for the care and management of your
portion of the herd you are then entitled to receive a corresponding amount of
the herd's milk production, depending on seasonal availability. It may sound
complicated but it runs pretty smoothly in practice and it is not difficult to
buy into a herdshare. On the other hand, buying into a herdshare should not be done
casually and requires an ongoing commitment to the herd, the farmer hired to manage
the herd and the other shareholders.
Herdshare contracts are not a smoke-and-mirrors trick to get around state laws -
boarding contracts are technically called agistments, such arrangements are
common in agricultural communities and are rooted in English common law. It is
very typical for farmers to lease extra land for running cattle, or to set up
contracts for others to manage their cattle. Additionally, shares can be sold in
virtually any enterprise - companies, time-share condominiums, boats, etc. The
very words "stock" and "stock market" come from the buying and selling of
livestock - cattle, pigs, sheep, goats, etc. Buying shares in a dairy herd is no
different from buying shares in anything else - those shares represent legal
ownership and responsibility. It is your responsibility to pay your monthly
boarding fee, and your responsibility to pick up your share of the herd's milk
production. If you don't pick up your milk when it is available then you lose
that distribution, but you still pay your monthly fee. You can buy or sell
shares, and shares can even appreciate in value.
The per-share price and monthly boarding fees are determined by the individual
herd manager and can vary throughout the state depending on local conditions and
competition. A typical per-share price for cow herdshares may be in the $40 to
$60 range, and a typical boarding fee may be $20 to $30 per-share. (There are
also goat herdshares available, and the per-share price may be a little less
although the boarding fee will probably be similar.) The money paid to initially
purchase your shares represents your investment in the herd and establishes your
legal ownership. The monthly boarding fee covers the farmer's costs of managing
and milking the animals for you. The herdshare contract also typically spells
out the manager's responsibility for testing and maintaining sanitary
conditions, but these are your animals and it is your right to inspect the farm
yourself. Many people find that they develop a close bond with their farm family
and bring their children to the farm to experience rural life. The ability to
"shake the hand that feeds you" is a direct benefit of the herdshare contract, allowing you to know and see how your food is produced.
Availability:
There are numerous farms around the state offering herdshare investments, most
in fairly close proximity to the major cities in Ohio. Given the ODA's hostile
stance against raw milk and its previous enforcement actions most farmers don't advertise
and keep a low profile, but it is not difficult to find out if there is one in
your area. Keep in mind that it is your responsibilty to perform your own due
diligence, find out if raw milk is right for you, verify that the farmer follows
sanitary procedures, practices good pasture management and has a healthy herd.
The
Weston A. Price Foundation is an
excellent resource for traditional foods, and its
sister-site has information specific to
raw milk. The following people can also answer questions or help you find out if
there is a herdshare in your area: