Before you can use the Sheep Shack, you'll of course need to build it on your farm. It requires 10 Sheep Railings, 10 Crooks, and 10 Sod to construct. These items are earned via a combination of general news posts and individual friend requests sent to your neighbors. After you've collected these items, you'll need to ask four friends for help in staffing the building to actually finish it off.
After you've completed the Sheep Shack, it can obviously be used to store a limited number of Prized Sheep. Remember, these Prized Sheep are different than Adult Sheep, so all of your current Sheep may not be eligible for storage. Any Sheep that are stored inside the Sheep Shack can be fed for half the Animal Feed that they would normally require, and on top of this, completing the Sheep Shack will also increase your Animal Feed maximum capacity by 25 points!
As one final note, harvesting the Sheep Shack gives you a chance to find Golden Fleece, which can be used in new crafting recipes. The more Sheep you have in your Sheep Shack, the higher the chance you'll receive Golden Fleece for your farm.
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What do you think of this new Sheep Shack in FarmVille 2? How many Prized Sheep do you have available to store on your farm? Sound off in the comments!