The first step in starting up a bred heifer association is to incorporate a cooperative. A sustainable organization usually has a minimum of 20 active members. The heifers must be confirmed to be in calf and of appropriate size, quality and breeding acceptable to the association. The loan may be for up to 100 per cent of the purchase cost of the heifers. All heifers are branded with the association brand when purchased.
All calves are also branded.
The association owns the livestock. All cattle are sold in the name of the association. The loan for the purchase of the heifers is for a five-year term, with annual payments of principal plus interest. The proceeds from the sale of calves are applied to the loan payments due. If sale proceeds exceed the amount of the annual payment, the surplus is paid to the member.