Mr Parker said the practice was widespread in the US and Australia
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A cow-leasing scheme has been set up in Somerset to give hard-pressed dairy farmers a low cost way of expanding their herds.
Contract milking specialist Jim Parker, from Polsham near Wells, will rent out one of his Ayrshire or Holstein Friesian cows for about £600 a year.
The farmer is allowed to keep all the milk and any calves produced.
The idea enables farmers to increase or rebuild herds at short notice without a huge initial financial layout.
Mr Parker believes the scheme, which he is running with his daughter Tracy, is the first in the UK.
"Apparently in America and Australia, it's quite widespread, so we looked into it and thought there was an opening," he said.
"People want to expand and enlarge their herd so we thought we'd give it a go.
"It's not a cheap animal to buy, so a farmer can lease it from us for three to four years.
"At the end of that period, the cow becomes theirs, same principle as leasing a car."
Holstein Friesian cows are currently fetching up to £2000 at auction and pedigree cows can cost up to £6000.
Nick Howe, who worked as a herdsman in Somerset for 25 years before becoming an insurance inspector for the Cornish Mutual agricultural insurance company, said: "Farmers have been through a rough period with the price of milk, diseases like foot and mouth and bovine TB and enforced culling.
"By leasing the cattle, it gives the farmer the opportunity to put the herd back up to size again by leasing cattle on a long or short-term basis.
"It also gives the farmer the chance to expand the herd and get back on an even keel as quickly as possible."
Ian Johnson, of the National Farmers Union, said: "Getting hold of replacement dairy stock is difficult and expensive, largely because of supply and demand and bovine TB."
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