By Pete Kennedy, Esq.
Montana has become the forty-third state to legalize raw milk distribution, doing so through a method that no other state has adopted. Montana residents can now get legal access to raw milk through purchasing securities, giving them ownership interest in a dairy animal or dairy animals. Dairy farmers wanting to sell stock in their animals need to obtain an exemption from the state securities registration requirement; the farmers fill out an application for the exemption with the Office of the Commissioner of Securities and Insurance (OCSI). Please do not contact OCSI.
OCSI has granted exemptions for stock offerings of dairy animals in the past including one in 2016 for an FTCLDF member selling ownership interests in dairy goats, but the Montana Department of Livestock (DOL), which has jurisdiction over dairy production and sales, had left open the possibility of taking enforcement action against producers under the exemption. During recent communications with OCSI officials, DOL leadership indicated it would honor the exemptions, changing its prior policy. DOL would still have oversight over raw milk producers operating under the exemption.
FTCLDF member Chris Rosenau was instrumental in forging the breakthrough on the DOL policy. Rosenau has led the effort to pass a raw milk bill the last three legislative sessions in Montana. OCSI limits stock offerings to ownership in four cows with 25 solicitations (meaning a maximum of 25 stockholders) per offering. It is not clear at this point how many goats could be included in an offering, but the number is probably around the same as for cows.
DOL will likely continue to regard the typical herd share arrangements existing in Montana (and many other states) as illegal even though Montana law provides a strong argument for their legality.
Rosenau, who has spent thousands of uncompensated hours working for a change in the state raw milk laws, regards the new DOL policy as a foot in the door and a step toward expanding raw milk access in the state. She plans on working with legislators to introduce another raw milk bill in the next legislative session.
FTCLDF drafted documents for the farmer member mentioned earlier who successfully obtained the exemption in 2016. Montana dairy farmers interested in applying for the exemption can contact FTCLDF at 702-208-3276 or at email@example.com by email. Again, please do not contact OCSI.
Delaware, Hawaii, Iowa, Louisiana, Nevada, New Jersey, Rhode Island—only seven states to go! Attorneys for FTCLDF have spent a substantial amount of time working to legalize raw milk distribution in Montana. The goal of legal raw milk in all 50 states is in sight. Please help us continue our push toward making this happen by becoming an FTCLDF member or by making an online donation at farmtoconsumer.org; checks can be mailed to: FTCLDF, 8116 Arlington Blvd, #263, Falls Church, VA 22042.
About the Author
Pete Kennedy is a Florida attorney who has worked on issues governing raw milk production and distribution since 2004. He compiled a summary of raw milk laws in each of the fifty states and is currently a consultant for WAPF on, among other things, policies and laws regarding raw milk. Pete was a founding board member of the Farm-to-Consumer Legal Defense Fund (FTCLDF) and served as vice president and then president for many years. He has consulted on and drafted raw milk, cottage foods, and food sovereignty legislation; drafted and reviewed herdshare agreements; worked on embargo, seizure, and recall cases involving raw dairy products; worked on foodborne illness outbreaks attributed to raw milk consumption; handled issues involving on-farm slaughter, custom meat, and poultry processing as well as problems with zoning and local ordinances.