After a federal judge denied a request for a manure easement reinstatement, which is needed for operation, Easterday Dairy hit another setback to open their Boardman, Ore. dairy.
The long battle for the Easterday’s began in 2019, when they purchased the dairy from Lost Valley after it was shut down for water quality violations. Earlier this year, Easterday sued the former owners for the breach of contract saying it’s their fault that the nitrate clean-up hasn’t been accomplished. Moreso, the Oregon Department of Ag refused to issue a permit for a Confined Animal Feeding Operation (CAFO) until the nitrate levels are in agreement. Easterday filed for Chapter 11 Bankruptcy in 2021. This came after Cody Easterday pleaded guilty in a so-called ‘ghost cattle scheme,’ that sentenced him to prison for 11 years.
Recently, U.S. District Judge Andrew Hallman denied an injunction allowing Easterday Dairy to apply manure and wastewater to adjacent farm fields owned by Fall Line Capital. Hallman said that the lawsuit is about the significant disruption in the business relationship between the Easterday’s and Fall Line that was caused by the criminal conduct of Cody Easterday.
“The court is sympathetic to the hardship the Easterday’s face, which includes the potential loss of their dairy business,” Hallman said. “However, those hardships were self-inflicted by Cody Easterday’s 230-million-dollar fraud and the agreements they willingly entered after.”
Tami Kerr, the executive director of the Oregon Dairy Farmers Association (ODFA) commented that ODFA is very supportive of the longstanding CAFO program in Oregon.
“Our dairy producers have a high compliance rate and have made significant investments to protect the water quality in our state,” she says. “ODFA has been engaged in the permitting process to ensure consistency with the regulations for all producers.”
Without a plan for managing waste, state regulators are unlikely to approve a CAFO permit for Easterday Dairy.
Hallman adds that there are significant concerns regarding the financial health of Easterday Dairy following fraud and bankruptcies.
He adds, “While it’s unlikely that the Easterdays will ever obtain a live CAFO permit and be able to maintain a functioning dairy, which represents irreparable harm, their proposed remedies far exceed any relief this court could grant.”
Originally developed by Greg te Velde, the manure and wastewater from the facility’s 30,000 head of cattle was intended to help fertilize surrounding farmland.
