Oregon

A New Chapter for a Once Notorious Oregon 'Mega-Dairy' Site Draws Attention to CAFO Permits

Tue, 16 Jul 2024 14:24:50 GMT

Situated near Boardman, Oregon, a once infamous ‘mega-dairy’ site has embarked on a new journey, signaling a shift away from its controversial past. Known for its significant environmental violations and hefty fines, the site is now undergoing a transformation that makes its return to dairy farming highly unlikely. The current owner, Canyon Farms, is in the process of decommissioning the site as a Confined Animal Feeding Operation (CAFO).

The Troubled Past of Lost Valley Farm
Back in 2017, Lost Valley Farm received a CAFO permit from the Oregon Department of Agriculture (ODA) and the Department of Environmental Quality (DEQ) to house 30,000 dairy cattle. The farm’s problems began almost immediately. Owner Greg te Velde jumped the gun by housing cows before the necessary facilities were completed and without finalizing a waste management plan.

By the following year, Lost Valley Farm was facing severe repercussions for its mismanagement. The farm accumulated more than 200 violations, resulting in the ODA improving $187,000 in fines for issues such as overflowing manure lagoons and leaky waste storage systems. Unable to withstand the regulatory and financial pressure, Lost Valley eventually filed for bankruptcy.

Changing Hands and Continued Challenges
After its bankruptcy, the farm changed ownership several times. When Easterday Dairy took over, the site continued to struggle with regulatory compliance, ultimately leading to its closure in 2019, and the site was left without any cattle.

In 2023, Canyon Farms, managed by Fall Line Capital – a California-based venture capital firm – acquired the site. This new ownership brought a different approach, taking significant steps to address past violations and move closer to a fresh start. In April of the current year, Canyon Farms submitted an application to decommission the site as a CAFO. As the decommissioning process continues, the future of the former Lost Valley Farm site remains open-ended.

Oregon’s Commitment to CAFO Compliance
It’s important to note that the actions of one farm should not tarnish the reputation of others. Tami Kerr, executive director of the Oregon Dairy Farmers Association (ODFA), emphasizes this point, highlighting Oregon’s progressive approach to CAFO compliance.

“Oregon was one of the first states to adopt the CAFO program over thirty years ago as a progressive measure to protect water quality,” she explains

“The Oregon CAFO program maintains some of the highest compliance rates in the nation and is something we are incredibly proud of.

Oregon’s dairy farmers adhere strictly to environmental regulations and prioritize sustainable farming practices. These farmers are committed to protecting the environment and the health of their communities.”

A Future Under Scrutiny
Any future developments at the former Lost Valley Farm site will unfold under increased environmental awareness and community scrutiny. Despite the challenges faced by Lost Valley Farm, Kerr notes that Oregon dairy farms significantly contribute to the local economy, providing jobs and supporting rural communities.

“Our farmers are integral members of these communities, deeply invested in their well-being and committed to sustainable farming practices,” she concludes.

As Canyon Farms navigates the process of decommissioning the site, the story of this former ‘mega-dairy’ serves as a reminder of the importance of regulatory compliance and sustainable farming practices. Whether the future holds the promise of renewal or reinvention, one thing is certain: the past will weigh heavily in shaping the road ahead.

Dairy Report: Potential School Bill in Favor of Dairy, Oregon Dairy Under Scrutiny

Wed, 05 Oct 2022 18:44:12 GMT

A bill that reauthorizes federal child nutrition programs passed in an important house committee last week. It’s called the Healthy Meals, Healthy Kids Act. Both the National Milk Producers Federation and the International Dairy Foods Association are in support of the bill, saying in addition to expanding eligibility and increasing support to schools the bill increases students access to nutritious food by securing the ability for schools to serve all milk options consistent with dietary guidelines. The bill now moves forward to the full house.

Oregon Dairy Controversy

Controversy continues to swirl around Easterday Farms. The focus is now on a northern Oregon dairy operation. The Tri-City Herald reports Easterday Dairy has repeatedly been cited for failing to bring nitrate levels in water at the site under control, even without cattle there. The site is located east of Portland in Boardman, Ore.

Now, Easterday is suing the former owners of the site for breach of contract saying it’s their fault the cleanup hasn’t been accomplished. Easterday is asking for millions of dollars in damages or to be released from the purchase agreement. So far the Oregon Department of Ag has refused to issue a permit for a Confined Animal Feeding Operation (CAFO) until the nitrate levels are in compliance. Easterday filled for Chapter 11 Bankruptcy last year. That came after Cody Easterday pleaded guilty in a so-called ‘ghost cattle scheme.’

Klamath Water War Gravely Worries Oregon Farmer

Wed, 28 Jul 2021 17:33:21 GMT

Water is essential. So, understandably, worries are mounting, and farmers are growing frustrated at the federal government for cutting off their main water supply source in Klamath County, Oregon. The longstanding heated issue that brings both salmon and farmers to the table is now fueled by a historic drought, coupled with the ‘Bootleg Fire’ – that has little containment, already burning 200,000 plus acres.

While Todd Koch’s Oregon dairy and creamery is located 265 miles north in the Willamette Valley, he too is worried. Koch also farms 800 acres of alfalfa and grass, along with running a 160-cow beef operation in Klamath County.

Oregon’s geography differs greatly, with water coming in two forms: rain or snow. The western part of the state, where Koch’s dairy resides, gets plenty of rainfall to meet their needs. However, the eastern side of the state doesn’t fair as well, with the Cascades blocking most of the rain from reaching the high desert region.

Peaks of the Cascades collect that moisture in snowpacks, which is then slowly distributed through snowmelt throughout the spring and summer. However, the Klamath River Basin is arguably the worst-hit part of the state, especially now as the federal agency that controls water distribution would not release any water. This is the first in more than 100 years.

For Koch, it is tough. In a normal year, his beef cows would be grazing pastures and his 800 acres would grow nearly 3,000 tons of hay annually. However, with zero water, 2021 paints a drastically different story. “It is absolutely gut-wrenching,” Koch says. “It is crushing knowing how productive your farmland can be.”

With dried up pastures, Koch is now forced to feed hay to his cows, who would otherwise be grazing irrigated pastureland this time of year. “We have zero hay, too,” he adds. “So, we are forced to purchase hay to feed our cattle.”

Hay is difficult to locate and expensive when farmers can locate it. Koch states some hay can be found locally, for those farmers who have a well and can pump groundwater. But the cost of hay is running $80 to $100 more per ton than a year ago.

The reason water is being cut off stems from the Endangered Species Act, stating the water in Upper Klamath Lake must be maintained at a certain minimal level to protect endangered fish species that live in the lake. With record inflows, water can’t be released without risking extinction for the struggling fish.

However, the impact is also great to the farmers who feed the country, including Koch, who tries to put his focus back on his Canby, Ore. dairy, but still grows frustrated with what is happening in southern Oregon. He says that nobody is a bigger cheerleader for the fish than farmers, but also says there is no real accountability. “Shut off the water to help the fish population,” he says. “Then why are we not seeing recovery?”

Meanwhile, the U.S. Drought Monitor shows more than half of the west faces extreme drought conditions, including wide areas of California and Oregon. Scientists worry that the region may be experiencing the worst drought period in centuries.

For Koch, he is clinging to hope that the southern Oregon drought and fire situation improves sooner rather than later, but it is hard for him to put his worries to bay. It was just last September that the Willamette Valley was burning, which caused him to evacuate all his dairy’s heifers and dry stock. “It is a helpless feeling to be surrounded by a fire,” he says.

The Koch family has financially positioned themselves to get to next spring and they will constantly evaluate as they go. “We are trying to source as much hay as we can get right now,” he says. “When fall comes, we will manage the herd to the hay inventories we have and go from there.”

Unfortunately, other Klamath County farmers are not situated as well as Koch is. With rising hay prices and many uncertainties facing farmers, time is not on their side. “A lot of farmers in this area could lose everything they have,” Koch says.

Bulls Killed, Mutilated On Oregon Ranch

Fri, 20 Nov 2020 05:50:30 GMT

Oregon authorities are investigating the deaths and mutilation of five bulls on the Silvies Valley Ranch. The bull carcasses were discovered July 30 and 31 on the ranch in Harney County with no obvious cause of death.

Colby Marshall, vice president of Silvies Valley Ranch, told The Capital Press , there were no outward signs of a struggle — no rope burns on trees, no scattered hoof prints, no strangulation marks. The bulls, he said, look like they simply fell over and died.

Even stranger than the deaths, Harney County Sheriff Deputy Dan Jenkins said, are the mutilations. Only a few pieces of the body were removed on each animal — the anus, scrotum, testicles and tongues. One bull was also missing its penis and the tip of one ear.

The Harney County Sheriff’s Office, the Oregon State Police and the Malheur National Forest Emigrant Creek Ranger District are investigating.

Deputy Jenkins said a necropsy to determine the cause of death was not possible because when found the bulls were already past the 24-hour window when a veterinary inspection would have been effective.

Jenkins told The Capital press the missing body parts don’t appear to have been chewed, but the wounds appeared clean-cut.

“The parts were definitely cut out with a sharp blade,” he said. “There weren’t any signs of predatory eating or chewing. They were cut out by at least one person.”

The Oregon Cattlemen’s Association has offered a reward of up to $1,000 to anyone who can provide information leading to the arrest and conviction of whoever is responsible. A separate $25,000 reward is also being offered by an interested party.

Those with information about the case should call the Harney County Dispatch Center at 541-573-6156.

Judge Blocks Hammonds’ Grazing Permits

Fri, 20 Nov 2020 05:25:55 GMT

A federal judge has issued a temporary restraining order prohibiting Steven and Dwight Hammond from grazing cattle on four federal allotments in Oregon. The Hammond’s grazing permits were revoked in 2014 but were restored in January of this year by outgoing Interior Secretary Ryan Zinke.

In May, environmental groups Western Watersheds Project, Center for Biological Diversity and Wildearth Guardians sued the Department of Interior claiming the government violated its own policies in restoring the Hammonds’ permits. Judge Michael H. Simon issued the temporary restraining order Tuesday, June 3, and set June 28 as the date he will hear arguments regarding a longer-term preliminary injunction against grazing while the lawsuit is pending.

The Hammonds were the focus of a lengthy federal trial that convicted them of setting fires on BLM land in 2012, and the two spent several months in prison. After their release in 2015, federal prosecutors appealed the sentences, noting that under the statutes the Hammonds should have served 5-year mandatory terms.

Their return to prison in January 2016 sparked the occupation of the Malheur National Wildlife Refuge in Oregon led by Ammon and Ryan Bundy. President Trump pardoned the Hammonds in July 2018.

Issuing the restraining order, Judge Simon said the environmental plaintiffs have shown a substantial likelihood or irreparable harm if cattle are turned out on the public allotments on June 7 ad July 1 as planned.

Lawyers for the federal government argued that the environmentalists lacked justification for a temporary restraining order. Stephen Odell, the government’s attorney, said it is unlikely the environmentalists can prove that grazing will cause irreparable harm to the greater sage grouse and redband trout, which are the sensitive species in the area. Their allegations of irreparable harm are based on “generic” testimony of the plaintiffs’ expert, Clait Braun, who did not distinguish between proper and improper grazing or visit the allotments, Odell said.

“He’s never examined the habitat about which he’s purporting to make expert assertions,” Odell said.

Most rangeland health standards have been met for the Mud Creek Allotment, where the plaintiff seek to prevent cattle from being released on June 7, the government said. While the allotment has fallen short of the rangeland health standard for protected and sensitive species, that wasn’t caused by grazing but rather due to sagebrush habitat suffering from the encroachment of juniper, invasive weeds and fire, the agency said.

The environmental groups argued that the grazing permits were renewed due to the Hammond’s pardons rather than their grazing track record, which is contrary to federal environmental and land management laws. Interior Secretary Zinke should also have performed an environmental analysis of renewing the grazing permit instead of “categorically excluding” it from such review, they said.

In April, the BLM deemed the Hammonds’ grazing allotment a fire hazard – due to the fact the land had not been grazed for five years. The absence of grazing was due, of course, to the fact the Hammonds were in jail and their grazing permits had been revoked.

The wildfire risk had neighbors concerned, many of whom sent letters to the BLM. Since the 5,800-acre Hammond Allotment has been vacant, the BLM said in an assessment that crested wheatgrass is now a “standing biomass that has reduced the health and vigor of the stand. The standing biomass has also created additional risk of wildfire spread because of the amount and distribution of cured fine fuel.”

Oregon Approves 5 Dairy Expansions

Fri, 20 Nov 2020 02:57:45 GMT

Five Oregon dairies have been given permission to expand, adding a total of about 4,500 animals.

Forty-three people attended a public hearing on the proposed expansions last September, and 34 people submitted written comments.

But the Oregon Department of Agriculture said it doesn’t have authority to regulate most of the objections they raised.

Those include concerns about animal welfare, noxious odors from manure lagoons, decreased property values for neighbors, an increase in greenhouse gas emissions and water use, increased use of antibiotics and growth hormones, and growing traffic accidents from increased transport of manure.

Instead, ODA said, under the permit it issues, it can only regulate water quality aspects of the operations by prohibiting unauthorized discharges of manure, litter or process wastewater to surface and ground waters.

ODA did, however, require the five dairies to meet several new conditions that soon will be required of all large dairies and other large confined animal feeding operations.

The dairies will have to sample soil where manure is applied every fall, rather than every five years as currently required. They will have to test levels of nitrate nitrogen as well as the currently required total nitrogen and total phosphorus. And they’ll have to use a soil sample that’s less than three years old to calculate manure application rates.

The five facilities are:

Martin Dairy, in Tillamook, which has 1,252 animals. It has been approved to increase the land application area for manure and waste.
Hogan Dairy Farms, in Tillamook. The permit allows the consolidation of Misty Meadows Dairy and Golden Mist Dairy, and increases the total allowed animals from 4,550 to 5,200.
Pozzi Dairy, in Coquille. It’s now permitted to increase the number of animals it houses from 345 to 1,550.
Bonanza View Dairy, near Bonanza, about 24 miles east of Klamath Falls. It’s now permitted for 4,585 animals, up from 2,350.
Moisan Dairy, in the Marion County city of Keizer, which now is permitted to increase the number of livestock it houses from 1,900 to 2,300.

In 2007, the U.S. Food and Drug Administration issued a warning letter to owner Donald J. Moisan for multiple violations of food safety laws.

Those included holding animals under such inadequate conditions that animals bearing potentially harmful drug residues were likely to enter the food supply; and selling an animal for food that was adulterated with high levels of antibiotics while certifying that it did not contain illegal drug residues.

In 2014, ODA fined the dairy $2,800 for failing to follow its existing waste management plan.

Wym Matthews, an ODA program manager, said he’s confident Moisan Dairy has the ability to operate in compliance with its permit.

“You get a speeding ticket, you don’t lose your driver’s license for the first two, three, four tickets you get,” Matthews said. “That’s how we looked at the noncompliance. The facility did, in our minds, do a good job remedying the reasons for that noncompliance.”

And the FDA findings regarding animal welfare and food safety don’t have any bearing on a water quality permit, he said.

“That’s not something we can respond to,” he said.

Karen Debra Messer, a member of Salem’s Cherry City Vegans, was among those testifying against the expansions.

“The state of Oregon, in my opinion, would do much better by providing jobs for people who labor growing and processing almonds, soybeans, cashews, and our wonderful hazelnuts, instead of factory-farm animals,” Messer said, referring to nut milks.

The farming advocacy group Friends of Family Farmers also submitted comments.

Policy director Ivan Maluski said the group now is most concerned about pending approval of a new umbrella permit for confined animal feeding operations (CAFOs) under the federal Clean Water Act.

Oregon’s CAFOs share a National Pollutant Discharge Elimination System permit, which expired in 2014. State officials have been working with the U.S. Environmental Protection Agency to draft a new, five-year permit.

Until it becomes final, no new CAFOs can be permitted in the state.

Facilities also submit individual waste management plans under the permit, which is what the five dairies had asked to be modified.

“We continue to be very concerned that the likely approval in coming weeks of the statewide CAFO water pollution permit by ODA and DEQ could lead to a major expansion of new factory farm scale CAFO’s in Oregon in coming years,” Maluski said.

The proposed permit currently is under review by the Oregon Department of Justice, which could require an additional public comment period, Matthews said.

Oregon ranks 14th nationwide for dairy CAFOs, with 90,356 animals, according to the environmental group Food & Water Watch. Marion County, meanwhile, ranks second statewide for the number of dairy animals, behind Morrow County, home of Threemile Canyon Farms, one of the nation’s largest dairy operations.

Oregon dairy farmers brought in $598.9 million in 2012, according to the Oregon State University Extension Service.

Oregon to Hold First Hearing in Years for Dairy Expansions

Fri, 20 Nov 2020 02:55:36 GMT

State regulators will hold a public hearing on the proposed expansion of five dairies around Oregon after multiple requests from Salem vegan groups.

The Statesman Journal in Salem reports that this will be the first hearing in more than four years on changes to Oregon confined animal feeding operations, which are sometimes called “factory farms.” The hearing is expected in September or October.

After 17 requests from activists, advisory groups are now looking at how the state can restrict information about such farms from being released to the public. Officials say farmers fear releasing permits puts them at risk from people who want to videotape, trespass or vandalize property.

Environmental groups say the state is following a trend of restricting information about farms to the public.

Calls for 'Megadairy' Moratorium In Oregon Increase

Fri, 20 Nov 2020 02:06:39 GMT

Environmental groups are doubling down on demands for a ‘megadairy’ moratorium in Oregon as a new owner takes over a troubled operation in northeastern Oregon.

The Statesman Journal reports that Easterday Farms, based in Pasco, Wash., just bought the shuttered Lost Valley Farm in Boardman, Oregon, which was permitted to have 30,000 cows. In less than two years in operation, Lost Valley racked up nearly $200,000 in fines for more than 200 environmental violations.

Easterday has hired an Oregon lobbyist, and registered an Oregon corporation called Easterday Farms Dairy, LLC.

Advocacy groups want to make sure Easterday doesn’t reopen Lost Valley, and other operators don’t move into the state, until stricter rules for megadairies are in place.

“Weak rules have allowed industrial megadairies to push family farmers off the land, pollute Oregon’s air and water, and threaten animal welfare,” Amy van Saun, of the Center for Food Safety, said before a legislative committee Thursday.

A coalition of advocacy groups is lining up behind Senate Bill 103, which would apply to large dairies, defined as those with at least 2,500 cows, or those with at least 700 mature cows that do not get seasonal access to pasture.

The bill would place a moratorium on permits for new or expanded large dairies.

It also would define large dairies as industrial, rather than agricultural or farming operations, meaning they wouldn’t qualify for regulatory exemptions available to farmers.

The bills’ opponents say the state’s dairy farmers should not be punished for bad management at one dairy.

“Any bill that threatens right to farm is a threat to the heritage of our state,” said Shannon Lourenzo, who is on the board of the Tillamook County Creamery Association, which bought milk from Lost Valley Farm.

Opponents include all three commissioners in Marion County, which has the state’s second-highest number of dairy farms.

Oregon ‘Mega-Dairy’ Up for Auction, First Bid Set at $66.9 Million

Fri, 20 Nov 2020 02:03:45 GMT

Oregon’s second largest dairy, Lost Valley Farm, may soon have a new owner to start off the new year. Scheduled to be auctioned off Jan. 31, Randy Sugarman, the appointed trustee of the Boardman, Ore., operation has made the decision to sell the farm, water rights, equipment and property.

According to the East Oregonian, a prospective buyer has already submitted a bid to purchase Lost Valley’s assets for $66.9 million. Previously auctioning off 2,000 animals, the remaining 8,000 cows will not be included in the purchases agreement later this month.

The decision to sell the farm comes after the previous owner, Greg te Velde, originally placed Lost Valley up for sale last year after he faced losing his waste management permit. Te Velde, who received numerous notices from the Oregon Department of Agriculture (ODA) for improper waste management practices, was cited with endangering nearby drinking wells and groundwater.

While the farm reached the benchmarks set up by the state for cleanup, Lost Valley is continuing negotiations to reach a settlement with the ODA . Te Velde’s actions had previously raised concerns within the community, who see the facility as a ‘mega dairy.’

“Data from regular groundwater monitoring events and analysis by environmental experts has and continues to show that the dairy has not caused harm to public drinking water supplies or the environment,” Liz Fuller, a spokeswoman for Lost Valley, told the East Oregonian.

As a means to repay some of the $160 million in total debt racked up over the past year and a half, te Velde originally agreed to disperse of his cattle in April 2018. However, one day before the cattle sale, te Velde filed for bankruptcy, putting the sale on hold.

Appointed by the State Bankruptcy judge, Fredrick Clement, to take over the operation, Sugarman was given the task of resolving some of the issues originally created by te Velde. After working for several months to make improvements, Sugarman concluded that the facility would need to invest $35 million to $40 million to meet all of its pollution permit requirements.

“Going forward, it will be necessary to find a new owner, one capable of obtaining any future permits and funding critical capital improvements,” Sugarman said.

For more on this case, read:

Oregon ‘Mega-Dairy’ Loses Waste Management Permit

Thu, 12 Nov 2020 05:54:15 GMT

With contamination seeping into the soil from overfilled lagoons, the second largest dairy in Oregon, Lost Valley Farm, has only 60 days to remove 13,000 cows and clean their manure management system. After failing to comply with multiple violations, the operation now faces an uncertain future with the state revoking their waste management permit.

Built in April 2017, Lost Valley Farm has been in operation for only 15 months, however it has received numerous notices from the Oregon Department of Agriculture (ODA) for improper waste management practices. Cited with endangering nearby drinking wells and groundwater, the owner, Greg te Velde, is now battling legal issues after failing several inspections, not reporting waste issues and leaving fines unpaid.

Working to overcome these violations, te Velde agreed to remove 75-acre feet, approximately 24.4 million gallons, of manure and wastewater from his lagoons by June 1, but he missed that deadline. As a result of building his dairy without first obtaining the proper permits, te Velede now faces a class action lawsuit worth $1.5 million.

In a statement made by ODA spokeswoman, Andrea Cantu-Schomus, “It is ODA’s position that Lost Valley Farm cannot comply with its (wastewater) permit after continued violations.”

Due to the amount of violations met without results, the state invalidated Lost Valley’s waste management permit on June 27. Te Velde pushed to keep his operation running despite losing this permit.

“I just want to stay low and work on these issues,” Te Velde said. “They’re not really public issues.”

While te Velde claims these issues are not for the public, his actions have raised concerns within the community. After refusing to install an accurate flow meter to measure the water taken out of the endangered aquifer supporting the Boardman community, the Oregon Water Department took control of a groundwater well te Velde had planned to tap into.

Without this well, the dairy is facing a sever water shortage and must now bring in water to flush stalls and wash machinery, costing approximately $11,500 a week.

As a means to repay some of the significant debt racked up over the past 15-months, te Velde agreed to disperse of his cattle in April. One day before the cattle sale, te Velde filed for bankruptcy, putting the sale on hold indefinitely, according to Statesman Journal. The dairy is now up for sale with a price tag of $95 million.

Along with the operation’s growing waste management issues, the Tillamook County Creamery Association is looking to exit their contract with Lost Valley Farm. Though te Velde claims the creamery cannot cancel his contract because of bad publicity, Tillamook continues to buy his milk as they await a court decision. Currently, the creamery is separately processing and pasteurizing the farm’s milk due to low milk quality and unacceptably high bacteria counts.

Owning two other failing dairies in the state of California, te Velde is facing foreclosure from Rabobank, a Dutch agriculture lender. Currently, the Lost Valley Farm owner is receiving treatment at Capo by the Sea, a drug and alcohol rehab clinic. According to, John Kahal, the clinic’s owner, te Velde manages to conduct business for three to four hours while remaining in treatment.

In a statement made by the bank in court, “Rabobank is not willing to finance the drug-addled fanciful dreams of this debtor during a lengthy Chapter 11 case that involves about 24,000 cows, 28,000 other head of livestock, three dairies in two states and about $160 million in total debt.”

With only 60 days to remove the cattle and clean up the farm, Lost Valley Farm may no longer being dealing with manure management violations as ODA officials expect the dairy to shut down within the coming weeks.

To read more about Lost Valley Farm, click here.

Judge Hands Oregon ‘Mega-Dairy’ Over to Federal Government

Thu, 12 Nov 2020 05:54:07 GMT

Settling a lengthy court case battle between Lost Valley Farm and the Oregon Department of Agriculture (ODA), Judge Fredrick Clement made the decision to hand the second-largest dairy in the state over to an appointed trustee in order for it to continue to operate, according to Statesman Journal.

Built in April 2017, Lost Valley Farm has been in operation for only 17 months and has received numerous notices from the ODA for improper waste management practices. Despite willfully violating an agreement made with the ODA to maintain proper wastewater storage capacity, Multnomah County Circuit Court Judge Kelly Skye ruled in favor of the Lost Valley Farm owner, stating that, “Te Velde should know what it takes to get his dairy into compliance with regulations.”

However, Clement, a bankruptcy judge, ruled that te Velde was no longer the best person to run the farm.

“Te Velde is unwilling, or unable, to comply with his duties as a fiduciary,” Clement wrote in his decision.

“Since filing (bankruptcy), he has continued his long-standing habits of methamphetamine usage and gambling,” Clement wrote. “Drug usage has occurred once or twice per week, and he has gambled estate monies of $2,000-$7,000 monthly. Te Velde borrowed $205,000 without court authorization, and in a one-month period took personal draws of $28,000 more than authorized.”

On top of numerous fines accumulated during the past two years, te Velde has spent roughly $700,000 trying to comply with the legal settlement, according to Elizabeth Howard, his attorney. This is in addition to the $60 million loan te Velde took from Rabobank to build Lost Valley Farm.

“The Lost Valley mega-dairy has been a disaster from the beginning, and hopefully this decision will lead to it finally being closed down,” said Ivan Maluski, policy director for Friends of Family Farmers, in an interview with Statesman Journal.

As he awaits for a follow-up hearing on remedies for the wastewater storage capacity violation, Te Velde will also lose control of his two California dairies – GJ te Velde Dairy in Tipton and Pacific Rim Dairy in Corcoran. The appointed trustee will not only take responsibility for Lost Valley Farm, but for the California dairies as well.

While it remains uncertain if replacing te Velde with a trustee will accelerate or slow environmentals improvements at the dairy, creditors are reluctant to approve any spending on the farm until a consultant completes a report outlining all of the costs needed.

Te Velde also faces criminal charges in California for felony meth possession and bribing a police officer after an incident at a casino earlier this year.

For more on this case, read:

Owner of Oregon ‘Mega Dairy’ Fights Waste Management Battle

Thu, 12 Nov 2020 05:53:57 GMT

Despite state government actions pushing to shut down the second largest dairy in Oregon, Greg te Velde, owner of Lost Valley Farm near Boardman, Ore., continues to fight an ongoing waste management battle.

Built in April 2017, Lost Valley Farm has been in operation for only 16 months, however it has received numerous notices from the Oregon Department of Agriculture (ODA) for improper waste management practices. Cited with endangering nearby drinking wells and groundwater, te Velde is now fighting to keep the operation running.

Settling a lawsuit with the Oregon Department of Agriculture (ODA) in March, te Velde agreed to limit the farm’s wastewater output to 65,000 gallons a day, installing water-saving nozzles and cutting down on the number of “flush times” used to clean the facility. However, te Velde has broken this agreement according to ODA, who estimates that he has used an extra 19,000 to 375,000 gallons per day.

Te Velde had also previously agreed to remove 75-acre feet, approximately 24.4 million gallons, of manure and wastewater from his lagoons by June 1, but missed that deadline. According to the farm’s owner, the dairy has experienced some “spills and splashes, but nothing catastrophic.”

Wym Matthews, manager of ODA’s confined animal feeding operation program, disagrees.

“ODA is worried that pollutants from the dairy will eventually reach groundwater, even if they haven’t yet,” Matthews said.

According to Kirk Cook, a geologist and program manager of ODA’s pesticide stewardship program, heavy amounts of manure distributed on fields may have pollutants that could reach groundwater within two years under water-saturated conditions.

On top of numerous fines accumulated during the past two years, te Velde has spent roughly $700,000 trying to comply with the legal settlement, according to Elizabeth Howard, his attorney. This is in addition to the $60 million loan te Velde took from Rabobank to build Lost Valley Farm.

As a means to repay some of the significant debt racked up over the past 16-months, te Velde made an agreement with Rabobank to disperse of his cattle in April. One day before the sale was set to take place, te Velde filed for Chapter 11 bankruptcy protection, preventing the bank from foreclosing on the property.

With a number of unhappy government officials, lenders and even the operation’s milk buyer, Tillamook County Creamery Association, filing lawsuits, Lost Valley Farm may continue to rack up debt as its owner pushes to keep the facility running.

“We’ve done everything a regulatory agency can do,” said Nicole DeFever, attorney for the state government.

Despite efforts used to bring Lost Valley Farm into regulatory compliance, the state hasn’t shown “clear and convincing” evidence that he violated the deal “willfully,” which is necessary to prove contempt, according to Howard.

Working to keep his operation running, te Velde, who is currently receiving treatment at Capo by the Sea, a drug and alcohol rehab clinic, will continue to fight this ongoing court case in the coming weeks.

For more on the Lost Valley Farm case, click here.