Whether you can sell unpasteurized milk depends entirely on where you live. Federal law bans the sale of raw milk across state lines, but 32 states allow it under varying conditions within their borders. Eighteen states prohibit raw milk sales outright. The rules differ dramatically from one state to the next, covering everything from where you can sell to how the milk must be labeled.
The Federal Rule
Under 21 CFR 1240.61, no one may sell, distribute, or hold for sale any milk or milk product in final package form for direct human consumption in interstate commerce unless it has been pasteurized. This means you cannot legally ship raw milk from one state to another for retail sale, period. The regulation is enforced by the FDA and carries no state-level exceptions.
Within a single state, though, the federal government largely defers to state law. That’s where the patchwork begins.
States That Allow Raw Milk Sales
Thirty-two states permit the sale of unpasteurized milk when certain conditions are met. Those conditions vary widely. Some states allow raw milk on retail store shelves. Others restrict sales to the farm where the milk was produced, or limit transactions to farmers’ markets. A few only permit it through direct farm-to-consumer arrangements where the buyer physically visits the property.
The practical differences matter if you’re planning to sell. In some states, you can advertise and sell raw milk much like any other farm product. In others, you need a specific permit, must submit to regular testing of your herd and facility, and can only sell to individuals who come to you. North Dakota, for example, recently legalized raw milk sales directly to end consumers but still prohibits selling to wholesalers or retail stores.
Arkansas expanded its raw milk provision in 2025 to include goat milk, sheep milk, and whole cow’s milk sold directly to consumers at farmers’ markets or delivered from the farm. These kinds of incremental expansions have been a trend, with states loosening restrictions while still keeping guardrails in place.
States That Ban It
Eighteen states ban the sale of raw milk entirely. In these states, selling unpasteurized milk to consumers is illegal regardless of the setting. If you’re in one of these states, your only legal option for distributing raw milk may be through a herdshare arrangement, and even that isn’t available everywhere.
Herdshares as a Workaround
A herdshare (sometimes called a cow-share) is a legal arrangement where consumers buy a partial ownership stake in a dairy animal or herd, then pay a boarding fee for the farmer to care for and milk the animal. Because the consumers technically own the milk their animal produces, this can sidestep laws against selling raw milk. The consumer isn’t buying milk. They’re receiving milk from an animal they own.
Not every state recognizes this distinction. Montana, for instance, does not permit traditional herdshares because the farmer must register the herd as a security and comply with securities law, making the arrangement impractical. Other states treat herdshares as sales, meaning they’re only legal if the producer holds the same permits required for direct retail sales.
Where herdshares are permitted, the requirements typically include a written contract between the producer and the share owners, clear communication about how the animals and facility are managed, and restrictions against reselling the milk. Some states go further: producers must register with the state, label the milk as unpasteurized with specific warning language, and provide herd testing and sanitation records to participants. Michigan requires that the milk come from a single farm, be intended for human consumption, and never be distributed through a licensed food establishment.
Labeling and Permit Requirements
States that allow raw milk sales almost always require warning labels. The specifics vary, but the labels generally must state that the milk is unpasteurized and has not been treated to remove harmful bacteria. Some states mandate exact warning language about the health risks of consuming raw dairy, particularly for children, pregnant women, elderly people, and anyone with a weakened immune system.
Beyond labeling, most states require some combination of permits, routine inspections, and bacterial testing. You may need a certificate of registration, regular lab results showing your milk meets microbial standards, and proof that your dairy operation follows sanitation protocols. The costs and complexity of compliance vary, but treating this as a casual side venture without understanding your state’s full regulatory framework is a fast way to face fines or a cease-and-desist order.
The Health Risks Buyers Should Know About
If you plan to sell raw milk, you should understand the risks your customers are taking on, because in many states, part of your legal obligation is making sure they understand those risks too.
Raw milk can carry Campylobacter, E. coli, Listeria, Salmonella, Brucella, and the parasite Cryptosporidium. Between 1998 and 2018, the CDC linked 202 outbreaks to raw milk consumption, resulting in 2,645 illnesses and 228 hospitalizations. These are not theoretical risks. They occur regularly in small-scale operations even when farmers follow careful sanitation practices, because pasteurization is the only reliable method for eliminating these pathogens from milk.
Children, pregnant women, older adults, and people with compromised immune systems face the most serious consequences from these infections. Listeria in particular can cause miscarriage, and certain strains of E. coli can lead to kidney failure in young children.
Does Raw Milk Have Nutritional Advantages?
Many raw milk advocates claim that pasteurization destroys valuable nutrients. A systematic review and meta-analysis published in the Journal of Food Protection examined this directly. Pasteurization does reduce levels of vitamins B1, B2, C, and folate. Vitamin B12 and vitamin E also decrease, while vitamin A slightly increases. However, the researchers concluded that the overall effect on milk’s nutritional value was minimal, because milk naturally contains relatively low levels of these vitamins to begin with. Milk is primarily valued for its protein, calcium, and fat content, none of which are significantly affected by pasteurization.
The nutritional differences between raw and pasteurized milk are real but small enough that they don’t outweigh the food safety tradeoffs for most people.
How to Find Your State’s Rules
The Farm-to-Consumer Legal Defense Fund maintains an interactive map that breaks down raw milk laws for every state, including whether retail sales, farm sales, and herdshares are permitted. Your state’s department of agriculture is the authoritative source for current permit requirements, testing schedules, and labeling rules. Because raw milk laws are actively changing (several states passed new legislation in 2024 and 2025), checking for recent updates before you invest in equipment or begin advertising is essential.