Water Management

The Beef-on-Dairy Revolution: How Black Calves and AI are Reshaping the Dairy P&L

Thu, 12 Feb 2026 14:22:27 GMT

The dairy industry is currently undergoing a structural transformation. What was once a singular focus on milk production has evolved into a multi-faceted agribusiness model. As Kansas dairy producer Greg Bethard puts it: “We might be more ranchers than we are dairymen now, because the uterus has more value than the mammary gland.”

The Beef-on-Dairy Revolution

The most significant shift in recent years is the black calf phenomenon. With beef prices at historic highs, the revenue generated from crossbreeding dairy cows with high-quality beef genetics has upended the traditional P&L.

“We have cows spitting out $1,400 calves now,” Bethard says. “It has changed the math for the entire operation.”

This new revenue stream provides a buffer that allows dairies to remain profitable even when milk prices are disappointing. Idaho dairy producer Hank Hafliger has embraced this by breeding a large percentage of his herd to Angus crosses, while TJ Tuls of Tuls Dairy in Nebraska, has vertically integrated by raising his own steers to 680 lb. before selling them, capturing more of the value chain.

“Angus breed on our pro-cross cow yields have been really good,” Tuls notes. “We’re producing an amazing calf, and it’s definitely been a nice injection [into the operation].”

Technology as a Management Tool

While the AI buzzword is everywhere, these producers are selective about which technologies they adopt. For Bethard, three must-haves for managing large groups are sort gates, activity collars and milk meters.

“I would never want to build a dairy without those three,” he says.

Tuls is pushing the boundaries further by testing AI-driven cameras to monitor employee performance, animal movement and milking procedures. The goal isn’t just to watch people, but to ensure that the dairy’s specific protocols are being followed consistently, which protects both animal welfare and milk quality.

“At the end of the day, though, it’s feeding you data back, and it’s what you do with that information. Having really good people who go out and act on the data that it’s giving you back really makes a difference.”

TJ Tuls

Vertical Integration and Sustainability

Diversification is the key to long-term resilience. Tuls has aggressively pursued vertical integration, building a trucking company and, most recently, a milk processing plant.

“We’re looking at how we can serve our own businesses,” Tuls says.

This includes a high-protein, low-sugar milk product that is already expanding across the Midwest and West Coast.

Sustainability has also become a revenue center rather than a cost. Tuls’ digester projects now produce enough gas to heat 6,000 houses per year. In Idaho, Hafliger is focusing on innovative manure management, working with scientists to extract micronutrients from manure to create new value-added products.

“In Idaho, manure management is going to be huge. We’re doing a lot of innovative studies, pulling out micronutrients out of our manure and utilizing it. That’s what we really need to focus on,” Hafliger shares.

The Water Constraint

Perhaps the most sobering topic during Milk Business Conference panel was the future of water. In Idaho, Hafliger notes that “water is king,” with every well metered and allocations strictly controlled by the state. Bethard, operating in the High Plains of Kansas, is already strategizing for a future with less water by transitioning his crop rotation toward wheat and soy, which requires fewer inputs than corn silage.

“We have to make sure that 30 years from now, we can still milk cows where we are,” Bethard says.

This long-term thinking — balancing immediate revenue from black calves with the existential reality of resource management — is what separates the top-performing producers from the rest of the field.

The modern dairy is no longer a single-commodity enterprise; it is a complex ecosystem of logistics, genetics and resource stewardship. By leveraging immediate windfalls like the beef-on-dairy market to fund long-term investments in technology and vertical integration, producers like Bethard, Tuls and Hafliger are doing more than just chasing margins — they are future-proofing their legacies. In an industry where water is becoming as precious as milk and data is as vital as feed, the successful producer of 2026 and beyond will be the one who balances today’s black calf revenue with the existential necessity of long-term resource management.

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The Great Dairy Migration: Why the Upper Midwest Is Winning the Heifer Game

Consumers Care More About Dairy’s Water Story

Wed, 26 Nov 2025 14:35:26 GMT

Dairy farmers are under the spotlight when it comes to water use, with consumers wanting more transparency than ever. For producers, managing this vital resource means balancing production needs with sustainability and regulatory expectations.

Tara Vander Dussen knows this all too well. The former environmental consultant and current co-host of the “Discover AG” podcast has spent much of her career helping farms navigate water regulations and sustainability challenges. She has also faced these pressures firsthand on her own dairy in New Mexico.

“Water is literally our limiting resource,” she says. “Conversations about the future of dairy revolve around how we access, use and conserve water.”

On an episode of “The Dairy Podcast Show,” Vander Dussen discussed why tracking and managing water is essential for dairies, noting that sharing these practices with consumers helps build trust.

Tracking and Cutting Water Use
Improving sustainability begins with understanding exactly how much water a dairy uses. Tracking provides a clearer picture of inefficiencies, helping farmers make smarter decisions.

“The first step [to improving water management] is knowing your numbers,” Vander Dussen says. “Through your farm’s permitting process, you can figure out how many gallons per cow per day you actually use. That baseline helps you see where water is going and where it might be wasted.”

Without that data, small leaks, overuse or inefficient equipment can go unnoticed, but improving water efficiency doesn’t always require large-scale investments or major infrastructure projects. Often, simple, low-cost adjustments, like repairing leaks, adjusting flushing routines or improving cleaning schedules, can make a big difference.

“The simplest management changes often have the biggest impact,” Vander Dussen notes, adding that the key focus should be figuring out how to recycle water as many times as possible.

Consumers Are Watching
With water under the spotlight, dairy farmers are finding transparency and communication more important than ever. Effectively conveying how water is reused and conserved is essential, particularly as consumers are becoming more engaged in understanding the sustainability of their food systems.

“With water becoming more limited, there will be more conversations with consumers about who is using water and how much of it,” Vander Dussen says.

She sees this curiosity as an opportunity to showcase conservation practices. Farmers can build trust by showing the steps they take to reduce water use and explaining why those choices matter. Part of that trust comes from presenting information in a clear, relatable way.

“We have to meet consumers where they’re at,” she says, “bring them into the fold of agriculture, bring them into food, without getting too lost in the weeds. It’s striking that balance of giving them information without overloading them.”

Vander Dussen also highlights the scale of the knowledge gap.

“We are trying to catch people up about a hundred years. That is a huge gap. What often fills it, especially online, is misinformation. One video or something trending on TikTok can shape perceptions. We have to do a better job and accept responsibility as farmers to bring consumers along on this journey.”

Making Every Gallon Count
There are several ways dairies can reuse water throughout the operation, and many farms already rely on these practices to stretch every gallon. The process often begins in the parlor with plate-coolers, where cool groundwater is used to lower the temperature of the milk. Because this cooling water hasn’t touched any contaminants, it can be used a second time for sanitizing milking equipment.

After its second use, the water is often directed to a lagoon for storage until it’s needed for barn management. From there, farms commonly use the recycled water to flush manure from holding pens during milking and later to clean alleyways where cows stand and eat. Once the water completes its job in the barn, it returns to the lagoon for another round of storage and settling. In the final stage, recycled water is applied to fields for crop irrigation.

The Future of Dairy Depends on Water
Across the country, water is central to dairy’s future, but how dairies use and conserve water is no longer just an operational concern; it’s a story the public is watching.

Vander Dussen sees this as an opportunity. By showing consumers how water is recycled, conserved and managed thoughtfully, dairies can build trust, highlight their farm’s sustainability efforts and strengthen community connections.

Why EPA Says Farmers and Ranchers Won't Need a Lawyer to Understand the Newly Proposed WOTUS Rule

Fri, 21 Nov 2025 16:10:31 GMT

Agricultural groups have been asking for a new WOTUS rule that eliminates red tape and clears up confusion for farmers and ranchers. As EPA unveiled its latest proposed Waters of the U.S. (WOTUS) rule this week , Deputy Administrator David Fotouhi says the agency’s goal was simple: clarity, consistency and fewer regulatory headaches for farmers and ranchers.

Fotouhi joined “U.S. Farm Report” for an exclusive interview to break down what this new rule means and why EPA believes it hits the mark.

A Rule He Says Brings Clarity and Certainty

Fotouhi says the agency’s top priority is eliminating uncertainty farmers have faced under previous interpretations of WOTUS.

“We really emphasize the need for farmers, ranchers and all stakeholders to have clarity in terms of how broad or narrow federal regulation of waters is in this country,” he says. “From Day 1, we start working on a proposed rule to bring that clarity and certainty to landowners across the country. On Monday, we are able to announce a proposal that is consistent with the law, that provides needed clarity on the extent of federal regulation, and that recognizes the primary jurisdiction of states and localities because they know their resources best.”

He adds that the proposal strikes what he calls a good balance.

“We think we really strike a good balance between protecting our nation’s waters and making sure farmers and ranchers can do the work that feeds Americans and produces the fuel this country relies on — without adding unnecessary regulatory burden to their day-to-day life,” he says.

EPA Says Farmers “Won’t Need a Lawyer” to Understand the New Rule

Fotouhi stresses one of EPA’s biggest priorities in rewriting WOTUS was ensuring farmers no longer need legal help just to determine whether they can work their own ground. He says the agency intentionally crafted the language to be plain, practical and rooted in the realities producers face every day.

“We take a fresh look at the Supreme Court’s direction and try to apply that in language that is easily understandable. Producers should not need a lawyer to understand how this rule applies to their property. We write it in a way that lets farmers look at their land and have a clear sense of whether federal permits are required.”

Fotouhi explains past WOTUS rules often included terminology that was vague, overly technical or open to interpretation, something EPA heard repeatedly during outreach with farm groups.

He says the agency makes a conscious effort to eliminate that ambiguity.

“We listen to farmers tell us repeatedly that the rule has to be understandable,” he says. “So instead of broad definitions that leave too much room for interpretation, we focus on concrete, workable language. We take geographic differences into account, we remove subjective criteria and we make exclusions, like the groundwater exemption, explicit so there’s no second-guessing.”

Fotouhi says that level of clarity is a direct response to years of frustration in rural America.

“We know farmers need certainty,” he says. “They need to know what they can and can’t do without waiting months for an answer. That’s why we put so much effort into making this rule clear, transparent and grounded in what the Supreme Court actually tells us to do.”

EPA Pushes Back on Claims the Proposal Overpromises

Some critics argue the agency risks overpromising. Fotouhi strongly rejects that idea.

“We take a fresh look at all the critical issues the Supreme Court lays out in the Sackett decision,” he says. “We think the previous administration does not faithfully implement that decision when they revise the rule, so we come back, reassess everything and come up with a definition that fully implements what the Court tells EPA and the Army Corps to do.”

He notes the agency made readability a priority.

“We try to apply the Court’s direction in language that is easily understandable, that takes geographic differences into account, and that doesn’t impose unnecessary burdens on farmers when they’re trying to decide if they need a permit,” he says.

Groundwater Exclusion: “We Want It Crystal Clear”

One standout change is the explicit exclusion of groundwater — language EPA says is included to eliminate confusion.

“Groundwater has never been part of the Waters of the United States, but we think it is absolutely necessary to make that exemption clear as day so there is no confusion about whether someone would need a permit for a discharge that may impact groundwater,” Fotouhi says.

He says repeated questions from stakeholders and newer case law convinced the agency to spell it out directly.

“Based on the case law that’s come out in the last few years and the general confusion we hear from stakeholders, we think it is incumbent on us to clarify this as clearly as we can,” he adds.

Final Rule Expected in Early 2026

EPA filed the proposal with the Federal Register , which means the rule’s comment period is officially underway.

“We publish the rule today, and it will be out for public comment for 45 days,” he says. “We know there is an absolute need for certainty and clarity and one nationwide standard, so we move quickly. We are hopeful that in the first few months of 2026, we can have a final rule out for the public.”

RFS: EPA Reviewing Comments, Aims for Certainty

Fotouhi also discusses EPA’s proposed Renewable Fuel Standard volumes, including record-setting biomass-based diesel levels.

“We understand how important it is to get this exactly right. From day one, Administrator Zeldin is laser-focused on ensuring the RFS strikes the right balance,” he says. “We know farmers and all stakeholders implicated by this program need certainty. We are working as quickly as we can to take final action.”

EPA’s Deregulatory Push: More Actions to Come

Fotouhi says the agency’s deregulatory actions announced earlier this year will have significant impact on agriculture.

“Reducing the cost of energy is one of our biggest focuses,” he says. “Many of the actions we identify are aimed at reducing energy prices for farmers, ranchers and manufacturers so we can reduce input costs and ultimately reduce the cost of the products they produce.”

This is evident through their efforts on WOTUS.

“The WOTUS proposal is a prime example; it’s designed to reduce unnecessary and illegal regulatory burden, and we are undertaking a score of additional actions across offices, working with USDA, the Department of Energy and the Interior Department, to identify ways to reduce input costs for agriculture,” Fotouhi says. “A thriving agricultural sector is a priority for the president, and lowering consumer prices is something we have to achieve.”

California's Water Crisis: Farmers Warn Water Rules Could Cripple Central Valley Agriculture

Wed, 01 Oct 2025 10:52:48 GMT

On Hansen Ranch in the Central Valley, fifth-generation farmer Erik Hansen grows a little bit of everything — pistachios, almonds, pomegranates, alfalfa, corn for silage and cotton.

“We farm 15, 16 different crops,” Hansen says. “Cotton is our biggest acreage crop, and that’s in the form of Pima cotton.”

That diversification has long been the Hansen family’s survival strategy. But in spring 2023, no amount of crop rotation could shield them from disaster.

“Where we’re standing right now was underwater,” Hansen recalls. “A mile from here, over by that PG&E substation, was the edge of the lake.”

The flood wiped out 600 acres of pomegranates and 400 acres of pistachios. One thousand acres of permanent crops gone in one season.

“It was a massive hit,” Hansen says. “We had about 5,000 to 6,000 acres under water. Some of that water lasted for over a year.”

From Too Much Water to Not Enough

The irony is hard to ignore: In 2023, floodwaters destroyed thousands of acres. Now, Hansen says it’s the lack of access to water that could cripple farms across the Central Valley.

“The last projections I heard were anywhere from 1 million to 1.2 million acres totaled in the valley,” he says, referring to farmland that could be idled by the Sustainable Groundwater Management Act (SGMA) .

Passed in 2014, SGMA requires local agencies to reduce groundwater overdraft and achieve sustainable use by 2040. On paper, Hansen says, that makes sense.

“To some extent it is good because you have to have a way to manage the overdraft,” he explains. “The problem is there are surface water facilities we developed back in the 50s and 60s that we’re just not using. A lot of that water is going out to the Pacific Ocean.”

For Hansen, the politics sting. He believes decades of state decisions — prioritizing fish and wildlife, reallocating water, and neglecting infrastructure — set up today’s crisis.

“I’m frustrated because the families that have been farming here for years, some decades, sometimes even more, are being footed with a bill for problems that somebody else created,” Hansen says. “If the state doesn’t look in the mirror, I think we’re going to find ourselves in the same position again.”

Young Farmers Face the Same Struggles

Forty miles south, 30-year-old Elizabeth Keenan is navigating the same regulatory headwinds. Her grandfather Charlie started Keenan Farms in 1972, acquiring one of California’s first pistachio orchards. Today, Elizabeth farms alongside her parents and brother.

“Rolling with the regulatory punches can be complicated,” she admits. “Despite pistachios being such a high-value product, despite having optimal land and weather conditions, we really have everything set up beautifully — except for legislation.”

Water, she says, is the most difficult hurdle.

“We’re up to a 50% allocation,” Keenan explains. “The base allocation is 2.2 acre-feet, so we get 1.1 acre-feet to use. Otherwise, we have to have open fallow fields. To pump more water, we have to buy it on the open market, and that’s expensive too.”

A Political Battle Over Flows

Signs line highways across the Central Valley warning that 80% of California’s river water flows out to the Pacific instead of farms. Assemblyman David Tangipa, a freshman lawmaker representing the 8^th District, says those numbers are real.

“It’s 100% happening,” Tangipa says. “Almost 83% of all water in the state is automatically pushed out for environmental purposes.”

California averages about 200 million acre-feet of water each year, Tangipa notes, but despite record rainfall, farms often get less than half of their allocations.

“We’ve prioritized so much environmental legislation that more than 80% of our water is pushed out immediately to the ocean, unnaturally,” he says. “Meanwhile, farmers get less water and more land goes out of production.”

Proponents of Current Water Flows

There are proponents of the current way the water flows, mainly for environmental reasons and to prevent saltwater contamination of freshwater sources.

California releases water into the ocean to prevent saltwater intrusion into freshwater supplies, protect endangered aquatic species and ecosystems, and maintain the delicate balance of the Sacramento-San Joaquin Delta estuary, a critical source of drinking and irrigation water.

A portion of released water is also used for stormwater management to prevent flooding, as it can be difficult and impractical to capture and store all of it.

And those in favor of environmental water releases say it’s essential to support broader ecosystem benefits like water filtration and carbon sequestration, which are important for overall environmental health.

The Ripple Effect

The Central Valley of California is a powerhouse in food production for the U.S. That area alone produces approximately half of all the fruits and vegetables grown in the U.S., as well as a large portion of the nation’s nuts and other foods. When you break down the numbers, the Central Valley accounts for about 60% of the nation’s fruits and nuts, and about 30% of the nation’s vegetables.

For Thomas Putzel, who works with farmers across the Central Valley, the impact of regulations isn’t just measured in acre-feet. It’s measured in livelihoods and the food supply.

“The environmentalists try to say farmers are wasting water,” he says. “But when we look at what farmers provide, we’re planting forests. One acre of almonds will capture 18 metric tons of carbon a year. That’s like taking 29 million cars off the road.”

Putzel says California voters already approved a water bond to build new storage a decade ago, but no new projects have been built.

“Not one shovel has gone in the ground in 10 years,” he says. “Actually, they took some of that money and tore dams down.”

Meanwhile, permanent crops wither when water isn’t available, leaving behind dead orchards that invite pests and rodents into neighboring fields.

“SGMA’s not necessarily a bad thing,” Putzel says. “But you’ve asked growers to run a marathon with their legs tied together. People don’t understand; food doesn’t come from a grocery store. It comes from a farmer. If California stopped shipping produce for one week, our stores would be empty.”

“Is Farming in California’s Best Interest?”

For Erik Hansen, the question is bigger than water allocations or acreage lost.

“Government is probably the biggest problem right now,” he says. “It just seems California hasn’t really decided whether farming is in their best interest. Politicians like to say they’re for small business and small farming, but virtually every piece of legislation makes it more difficult to survive.”

As the Central Valley wrestles with the challenges of floods, drought and regulations, one reality is clear: The fate of these farms is tied not just to weather and soil but to political decisions that could shape the future of food in America.

Water: The Overlooked Nutrient in Dairy Farming

Tue, 09 Sep 2025 13:45:10 GMT

Water is the most important nutrient in dairy farming, yet it often goes unnoticed. Vern Osborne, a professor emeritus from the University of Guelph, highlights its significance in a recent episode of “The Dairy Podcast Show.” Throughout the podcast, Osborne delves into the critical yet often overlooked role that water plays in dairy herd health and performance. He shares insights and advice from nutrient supplementation through water to improving water quality and facility design.

The Mega Molecule: Water’s Vital Function
Osborne affectionately refers to water as the “mega molecule,” emphasizing its fundamental role in every cell function within a cow’s body.

“Cows are incredibly sensitive to water quality, detecting elements at parts-per-million levels,” he says.

Transition cows, in particular, demonstrate a sharp increase in water intake. Osborne and his team explored supplementing water with nutrients such as glucose, soybean dextrose and omega fatty acids. Their research revealed water can carry vital nutrients to maintain cows in a positive energy status, affecting health and productivity favorably, even amid stressors like calving.

Practical Implementation and Facility Design
Osborne’s expertise extends to designing dairy facilities that facilitate optimal water intake. He shares insights from his engineering background and hands-on experience in constructing and renovating dairy barns. His work has led to the creation of integrated research facilities that consider water’s role in animal health.

Osborne recommends the location of water provision is as critical as its quality. Installing individual water bowls supplementing group troughs encourages natural water intake, reducing the need for forced hydration. Suction drinkers or moving water features can further stimulate cows to drink more.

“Cows love moving water, and they are suction drinkers,” he says.

Water Quality: The Hidden Element Affecting Health
Water quality has gained attention, as it directly influences the cow’s intake and overall health. Filtration systems, while a growing trend in dairy operations, remain underutilized. Osborne stresses the value of conducting a full chemical analysis of water sources. This analysis helps farmers incorporate water’s mineral content into diet formulation, enhancing nutritional balance without over-reliance on expensive supplements.

It does seem that removing iron from water or improving overall water quality has become more common over the last couple of decades.

“I think some people are starting to think that the return on investments is there,” he says.

In discussing water filtration, he warns against over-relying on chemical filtration processes, which can complicate mineral interactions and pose health risks. Instead, mechanical filtration methods are often more reliable for maintaining water quality due to their consistency and predictability.

Future Challenges and Opportunities
As Osborne points out, water remains an undervalued yet essential part of dairy cattle nutrition and management. He highlights the need to rethink water management not just as a resource, but as a complex input into the nutritional system.

He urges producers to consider the potential for rainwater harvesting and filtration as a sustainable practice, anticipating future costs related to water usage. With ever-evolving geographical and environmental pressures, understanding and integrating water management into dairy operations will be increasingly critical to the industry’s success.

In a world where every drop counts, Osborn says now is the time to give water the respect and attention it deserves in dairy farming. To listen to the entire podcast, go to Dr. Vern Osborne: Water & Dairy Nutrition | Ep. 154

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A Great, Big Sustainable Conversation with America’s Dairy Farmers

Mon, 07 Jul 2025 11:59:02 GMT

The U.S. dairy industry is not just a cornerstone of rural America’s economy; it is a microcosm of sustainability efforts that blend environmental stewardship with economic viability. While many discussions on sustainability focus first on environmental impact, profitability and efficiency are equally critical for the long-term viability of dairy farms. At the 2025 Dairy Sustainability Alliance Spring Meeting in Rosemont, Ill., four prominent dairy farmers from various parts of the U.S. offered a window into their daily practices and the challenges they face.

On her Virginia dairy, Joanna Shipp treats her cows like athletes, improving output with proper care and nutrition.

(Joanna Shipp)

Voices from the Field
Joanna Shipp, a seventh-generation dairy farmer from Virginia, who owns and operates Bowmont Dairy emphasizes the importance of efficiency and cow genetics. With 225 cows on her 1,000-acre farm, Shipp has learned to maximize her resources.

“We had to focus on cow comfort and throughput to increase milk production,” she says. By investing in advancements in cow genetics, Shipp transformed her cows into high-performing athletes, optimizing milk yield and farm efficiency even without expanding livestock numbers.

“The dairy cow really is an elite athlete,” she says. “She shows more performance as we enhance her diet and care.”

Adam Graft faces the opposite of drought on his Georgia farm. The overabundance of water has led him to build remote locations to strategically store it.

(Adam Graft)

Adam Graft, owns and operates Leatherbrook Holsteins LLC., a large dairy in Georgia; he previously practiced veterinary medicine on large dairies in central California for several years. He discusses the environmental benefits derived from increasing milk production per cow.

“Higher producing cows are better environmentally,” he says. “We save resources by getting more milk from fewer cows.”

Graft highlights the necessity of removing stress factors, such as heat and humidity, from the cows’ environment to ensure optimal production.

In Wisconsin, Katy Schultz returned to her family’s 400-cow dairy farm, Tri-Fecta Farms Inc., after working in the dairy industry for seven years to own and operate the family operation with her brother and sister.

Katy Schultz and her siblings have made community involvement a foundation of the Wisconsin family dairy —whether through a farm market or local events.

(Katy Schultz)

“Growing healthy crops to feed to our healthy animals has been key on our farm " Schultz explains. Her family has significantly improved crop efficiency, reducing the amount of land needed to feed their cows from 50% to 36%. She believes that by focusing on overall health, from the soil to the animals to the environment, while managing resources wisely, has made their farm more profitable and sustainable.

Jim Werkhoven, operating Werkhoven Dairy near Seattle, Wash., underscores the role of energy innovation in sustainability. His farm collaborates within the Sno/Sky Ag Alliance to operate an anaerobic digester co-processing cow manure and pre-consumer food waste.

Jim Werkhoven works with Washington Native American Tribes on conservation efforts.

(Jim Werkhoven)

“Capturing methane is proving to be potentially more profitable than milk,” he says, highlighting this technology’s impact on environmental preservation and economic sustainability. This partnership with local Native American tribes and conservation groups underscores the importance of community collaboration in sustainable agriculture.

Community Engagement at Its Core
Schultz discusses the transformative shift in farming mentality with the next generation taking over. When Schultz and her siblings returned to their family farm, they made a conscious decision to alter the narrative from isolation to integration. Their primary goal was to become an active part of their community, breaking down barriers by opening their farm doors to neighbors, schools and local conservation efforts. This intentional community integration manifested through events such as farm tours, 5K races and open markets. By fostering direct communication with their customers, Schultz emphasizes transparency, promising never to lie to them and encouraging open dialogue, even on challenging topics.

“I’m not going to sugarcoat it; it was a lot of work,” she says, “but when we opened our own farm market, we knew that this was going to be our ticket, to be able to have a reason to talk to people.”

At Schultz’s farm, a unique sense of identity is established by ensuring all events and projects remain local. Hosting a Wisconsin farm-to-table dinner, where all food is sourced within a 30-mile radius, is just one example of how the farm aims to connect local farmers with community members. Schultz underscores the importance of community involvement, suggesting if a farm were removed from the community without anyone noticing, it signifies a lack of sufficient engagement.

Shipp supports Schultz’s perspective, stressing the importance of farmers’ voices in community matters. Through her involvement in the national dairy check-off program, she highlights the significance of sharing local stories nationwide, strengthening the sense of community within the agricultural industry.

“It’s critical to be local, but we have to amplify those local stories across our whole country and around the world,” Shipp says.

Water Management: A Paramount Concern for Farmers
Water availability and quality present challenges across the country, significantly impacting farming operations. In the southeast, Graft faces an abundance of water, which requires strategic management to ensure efficient usage. By storing water and applying it as needed, he aims to enhance crop yields and minimize costs.

“We generate a lot of water, and one of our new things going forward is we’re trying to build a lot of remote locations and actually store that water for when the crop needs it,” he shares.

In contrast, Schultz, in Wisconsin, acknowledges that while water quality is not an immediate issue, ensuring clean water sources remains a priority. She actively participates in discussions on keeping lakes and rivers pristine, emphasizing the recreational value for residents.

“Really just being able to be at the table and have those conversations of keeping our water sources clean is just as important,” she says.

Werkhoven, from the Pacific Northwest, highlights the role of water quality in maintaining a sustainable ecosystem. His farm’s collaboration with a local tribe on a digester project exemplifies the successful relationships formed through mutual environmental goals. The partnership underscores the importance of interpersonal relationships, emphasizing collaboration over individual agendas.

“Water quality is really important, which means you have to apply fertilizer at agronomical rates at the right time,” he says.

Legacy and Stewardship: A Farmer’s Responsibility
For Shipp, whose farm dates back to 1839, farming transcends property ownership, embodying the responsibility of land stewardship. Her commitment to making informed decisions ensures the preservation of their land for future generations. This is something all farmers feel: a deep commitment to how to better care for their land, cattle and community, to have an opportunity for the next generation to take over and sustain it for the next generation.

In an era where transparency and community engagement are vital, these farmers demonstrate the importance of integration, environmental consciousness and legacy. Through active participation, open dialogue and innovative practices, they strive to build stronger communities and protect the land for future generations.

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Fight for Every Drop: Water Issues Hit Washington's Dairy

Fri, 06 Jun 2025 13:26:39 GMT

Water scarcity remains a formidable challenge in many agricultural sectors, and the dairy industry in Washington is no exception. For Jason Sheehan, a fourth-generation dairy farmer running J&K Dairy in eastern Washington, effective water management is crucial. With a herd of 3,000 cows and a farm spanning 2,000 acres, Sheehan’s operations are significantly impacted by water storage issues in the state.

Pro-Rated Water Management
Sheehan highlights how the water supply in the Yakima Valley of Washington is heavily dependent on natural snowmelt from the mountains. However, his water is now being allocated on a prorated basis.

“Pro rationing basically is because the water is coming into the reservoir as fast it’s going out,” he explains.

The rapid loss of snowpack leads to a cautious approach toward water storage control, which impacts how much water farms like Sheehan’s can access.

Brad Rippey, Meteorologist with the USDA says, “Soil seemed to be unusually thirsty across much of the west, so we’re not seeing all of that runoff go right into the reservoirs. If that were happening, we really wouldn’t have as much of a problem because that water would still be conserved. It would be held in a different form than the snowpack, but at least it would be stored in reservoirs, but we are seeing some loss due to thirsty soils.”

Current and Future Drought Conditions
According to the Department of Ecology for the State of Washington, the Yakima Basin experienced consecutive droughts in 2023 and 2024. Heading into the irrigation season, predictions indicate a possible third year of drought — a scenario not seen since the early 1990s. These conditions pose significant challenges for the region’s farmers.

While planting corn during an interview with Dairy Herd Management, Sheehan noted they would halt operations to wait for a new water allocation, saying, “Whatever is left in the reservoirs is what we get split up for the year.” Though operating on a 36" annual allocation, they are set to receive only 48% of that this summer, which is below the 70% needed to avoid drought conditions.

“70% is really what we need,” he says. “We get down below 70%, and we’re basically in the drought,” he says.

Adapting Farming Practices
Sheehan’s farming methods include no-till practices, and recently, he pulled out of a 120-acre pivot despite having planted on 117 acres.
“We’re chasing the chopper down, and I’ve got water ordered,” he says, illustrating the tightrope farmers constantly walk, adapting their practices based on the availability of water. “We’re going to start water up and try to get this field irrigated before the water is shut off. You kind of learn have to learn how to farm around the way our irrigation district works.”

Collaborative Solutions for Water Management
The Yakima Basin Integrated Plan was formed to manage water scarcity in Yakima County and has involved collaboration among irrigation districts, tribes and environmentalists since the mid-2000s.

Sheehan acknowledges the complexity of the issue but underscores the importance of increased storage capacity.

“In the end, what’s going to solve a lot of these water issues is simply storage,” he says. “We’ve got a lot of lower elevation water right now that’s going straight to the Columbia River and out to the ocean that we could be capturing -and we don’t.”

Water scarcity is an enduring issue demanding innovative solutions, and Washington’s dairy farmers are just one of many states that are on the frontline of this battle.

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Idaho's Dairy Ambitions: Surpassing Challenges and Embracing Growth

Tue, 15 Apr 2025 13:58:43 GMT

The dairy industry in Idaho is facing a dynamic period of change and opportunity. Despite recently being overtaken by Texas in milk production, Idaho’s dairy sector remains undeterred and ambitious. Rick Naerebout, CEO of Idaho’s Dairymen Association, shares an optimistically competitive attitude. He’s confident Idaho will climb back to a leading position in the future.

“We’re competitive,” Naerebout asserts, highlighting Texas’ processing investments while emphasizing Idaho’s strategic initiatives. “We’re happy to see that ability for those friends to grow down there, but game on. We’re going to take that No. 3 at some point in the future, and eventually, we’re not going to run out of water, because we’ve got a good state program in place to recharge our aquifer.”

Chobani’s Ambitious Expansion
Earlier this month, Chobani announced a groundbreaking $500 million expansion of its Twin Falls plant, aiming to boost production by 50% with an additional 500,000 sq. ft. of space.

Naerebout says this expansion is a testament to the region’s thriving potential, pointing out that dairymen in Idaho are producing over 2 million lb. more milk per day compared to the previous year – which showcases Idaho’s capability to scale milk production to meet rising demands.

“Our dairymen were growing at a 5% to 6% rate in the fourth quarter of 2024 and that carried forward into the start of 2025,” he says. “Our ability to turn milk production on and fill these kinds of demands is obvious.”

Managing Water Sustainably
Idaho sets itself apart with its proactive management of essential resources, particularly water.

Naerebout emphasizes the collaborative efforts among agricultural industries to innovate sustainable water management practices. These efforts ensure extensive acres remain productive and benefit not just the environment, but also the local farming community.

“We have agricultural industries, which makes up 95% of Idaho water usage, working with each other to figure out solutions to our water rights that allow acres to stay in production,” Naerebout says. “The best part is farmers are coming up with these solutions and working with the state agencies on solutions that keep farms and business and acres growing crops.”

Addressing Labor Challenges
Labor remains a significant challenge within the industry. Naerebout is upbeat, yet realistic, acknowledging how labor shortages could ripple across the nation due to federal policies. He says Idaho, like the rest of the country, must adapt to these labor constraints.

“The reality is if we don’t have labor in Idaho because of federal policy, there’s not going to be labor anywhere else in the country either,” he says.

National Impact and Innovation
Michael Dykes, president of the International Dairy Foods Association, applauds the partnership-based approach between producers and processors in Idaho’s Magic Valley. He compares Idaho Magic Valley’s unique model to the I-29 corridor in South Dakota, noting an overall increase in consumption of dairy products — further cementing the industry’s dynamic nature with $8-plus billion in processing investments.

“We have the most productive, innovative farmers anywhere in the world,” he says. “There’s a demand for milk and dairy farmers will produce the milk.”

Advancements in Dairy Component Yields
The sector’s success isn’t merely about quantity, but also quality. The industry has witnessed impressive advancements in dairy component yields, with the production of cheese reaching 11 lb. per 100 lb. of milk. Additionally, CoBank reported the genetic advancements in the U.S. dairy herd have pushed milkfat levels past historical highs, now standing at 4.23% nationally, based on calculations using monthly data from USDA’s National Agricultural Statistics Service. Milk protein levels have similarly improved, with 2024 closing at a 3.29% average protein content, marking a remarkable increase from two decades prior.

Idaho’s dairy industry exemplifies resilience and innovation, demonstrating its preparedness to tackle challenges while thriving in a competitive landscape. The future is promising, with sustained investments, sustainable practices, and an unyielding drive to be at the forefront of dairy production in the United States.

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Water Scarcity Challenges How Dairy Farmers Will Feed Their Cows in the Future

Thu, 09 Mar 2023 15:00:00 GMT

The U.S. is heating up and that could spell disaster for U.S. livestock producers. According to climate.gov, given the tremendous size and heat capacity of the global oceans, it takes a massive amount of heat energy to raise Earth’s average yearly surface temperature by even a small amount.

Dr. Thomas Borch with Colorado State University shared that the western U.S. is where the temperature is increasing the fastest. The U.S. drought monitor map documents that much of the western U.S. is changing from moderate to exceptional drought.

“And it means that 145 million people right now are living under these severe drought conditions,” he shared at the 20th Anniversary Milk Business Conference in Las Vegas late last year.

Couple this with alarming water scarcity issues facing the western U.S., and the alarms are going off, posing a legitimate question, “How are we going to feed our cows in the future?”

According to Dr. Borch, over the next 80 years not only the U.S., but the entire globe will become drier and drier.

Water Footprint

Households making conscious decisions, like shutting the running water off while they brush their teeth, likely won’t make a dent in the growing water scarcity issue facing the world.

“No, it might just not cut it and might not provide enough water to supply irrigation water for the crops,” Borch says.

In fact, according to Borch, 70% of all freshwater is used for irrigation in Colorado, Utah, Wyoming, Montana, North Dakota and South Dakota. While California, Nevada and Arizona use 49% of freshwater for irrigation and Texas, New Mexico, Arkansas and Louisiana use 45% of freshwater for irrigation.

“Think about how much of that irrigation water that’s being used to produce feed for animals,” he says.

Further statistics help break it down even further:

Cattle feed accounts for 32% of all water consumption in the Western U.S. and 55% in the Colorado River basin.
Surface water is the primary source of water, except in CA, NE, TX, KS, SD, and OK, where more groundwater is used.
66% of the cattle feed being irrigated from western U.S. rivers ends up as beef products and 34% goes to dairy production.

Aquifers are a major reliant, especially since so much feed relies on irrigation. The Ogallala is one of the world’s largest aquifers.

“This goes under Nebraska, Kansas, Oklahoma and Texas and provides about 25% of the total water supply used in agricultural production across the U.S.,” Borch says. “It provides $20 billion a year in food and fiber, and 90% of all the water coming out of this aquifer is being used to irrigate crops.”

To add some perspective on this, if the Ogallala were drained, it would take more than 6,000 years to refill naturally.

Staggeringly, the Ogallala is already depleted in several regions and is expected to be depleted in many more areas in the next decade. This is already limiting water access to dairies and feed supplies.

Colorado River Basin

The Colorado River Basin serves 40 million people on the western slopes, supports 16 million jobs and generates $1.4 trillion in economic benefits every single year.

“It irrigates more than 6 million acres of farmland,” Borch notes. “Failure is not an option.”

Borch shared that since 2000, the Colorado River’s flow has shrunk by approximately 20% compared to the 20th-century average.

Cost Savings Tips

Improve irrigation. In more advanced countries like Israel, which primarily rely on drip irrigation, this can help with application deficiency up to 90%. That means, more or less, all the water that goes into the system will turn into feed.
Technology. Precision technology, such as smart controllers, will save up to 20% of the water applied by a traditional controller.
Regenerative Ag. While adding cover crops to some states that are already challenged with water scarcity might not be doable, cover crops have several benefits, including improved soil health, lower irrigation needs, less fertilizer and increased C sequestration.
Dryland and Fallow Farming. Dryland agriculture uses the moisture stored in the soil from the previous wet season to produce crops during the dry period. The downside is that it is risky and insurance costs are high. Fallow is when land is left without sowing to increase carbon and nitrogen, improve moisture-holding capacity and improve soil health. The downside of this practice is while it prevents rivers from running dry, it limits feed production.
Agricultural Drainage Pathways. There is an estimated 45 BGD of irrigation runoff in the U.S. Adding tiling to fields can help maximize absorption, along with other benefits.

The planet noticeably has become hotter, challenging farmers on how they will feed their cows in the future. Drastic changes in terms of how we irrigate fields, manage soil types and more will need to be implemented to ensure we have enough feed for our cattle in the future.

13 Easy Ways to Lower Water and Energy Usage on Your Dairy

Tue, 25 Jan 2022 15:27:14 GMT

Building trust in food begins with empowering farmers through one of the largest and most diverse conservation- and sustainability-focused public-private partnerships in our nation’s history: America’s Conservation Ag Movement. To find the latest news and resources related to the Movement, visit AgWeb.com/ACAM

Producers tend to believe that in order to become a sustainable dairy operation, they have to go out and spend large sums of money to make updates to their farm. While money is required for certain sustainability upgrades, there are plenty of environmentally friendly improvements that can be done at zero cost.

In fact, simple yet effective sustainable advancements such as the practices listed below can help put more of your hard-earned dollars back into your pocket. If you are searching for new ways to become more sustainable on your farm, check out these 13 conservation practices that only take minutes to complete.

Minimize Water Usage

Agriculture is the largest water user worldwide, accounting for 70% of total freshwater withdrawals on average, according to the Food and Agriculture Organization of the United Nations. Therefore, it is important that farmers conserve this natural resource whenever possible. The University of New Hampshire offers up these tips when it comes to conserving water on your dairy:

1. Fix leaks. A leaking pipe joint or dripping faucet contributes to the loss of 10 gallons per unit per day, on average.

2. Pay attention when filling tubs or tanks. A water tub that is accidentally left to run over while filling with a hose is responsible for the loss of 5 gallons per minute. Install a float with a shut-off.

3. Capture the pre-cooler water that chills down milk. Allowing it to run down the drain can waste between 20 and 30 gallons of water every minute the water is running though the cooler.

4. Divert wash water from a clean-in-place (CIP) system to a storage tank. Then reuse the water through a pump to wash down the parlor.

5. Tune up your wash system to assure the air injection system is working properly, and then check the settings to see that you are only using the amount of water needed for each wash cycle.

6. Cow cooling doesn’t need water spraying continuously; cycle the unit off and on in coordination with a fan system.

7. Rinse small equipment in a sink or bucket, rather than with running water.

8. Watch how much you flush. If you use a flush system to clean the alleyways in your freestall barn, consider cutting back the number of times you flush to help reduce water usage.

Don’t Be an Energy Hog

A major and often-overlooked overhead cost on the farm is utilities. With simple upgrades, you can dramatically reduce your energy usage and bills, according to farm energy auditor Chad Kloberdanz. He provides these five pointers when trying to conserve energy on the farm.

9. Clean fan blades and maintain belt tension on fans. This can increase existing fan efficiency by 10% or more.

10. Keep an eye on what’s plugged in. Do you really need six batteries charging at once?

11. Take the heat down a few degrees. Dropping the temperatures from 70°F to 65°F can save up to 21% on a heating bill.

12. Air leaks are a major cause of heat loss and high energy bills. Use caulk and weatherstripping on all of your shop’s door openings and windows. This can reduce heat loss up to 37%.

13. Hold off on replacing low-use and small motors, such as drills, grinders and welders. Typically, a motor needs to run 2,000 hours annually to justify a replacement.

Water Roulette

Fri, 20 Nov 2020 05:31:41 GMT

Snowmelt from Nevada’s Snake Range of mountains feeds numerous springs, which provide water for cattle, crops and wildlife.

In Snake Valley, you’re about as far from big-city life as it’s possible to get in the lower 48. The more-than-100-mile-long valley straddles the Nevada-Utah state line 250 miles north of Las Vegas. Yet, for more than 20 years now, farmers and ranchers in this arid region have been in a rural versus urban tug-of-war.

The prize? Abundant groundwater under a valley where it rains 5" a year. Las Vegas wants it. The farmers and ranchers don’t want to give it up. After all this time, no one knows how things will turn out—but at the moment, the rural forces seem to have the upper hand.

Snake Valley is one of many regions struggling with

water-related issues. This story continues our coverage of how water is leaving its mark for producers across the U.S.

In late January, the Nevada Supreme Court ruled that applications for water rights filed by the predecessor of the current-day Southern Nevada Water Authority (SNWA) are no longer valid because too much time has passed since the original protest period. Protests to the plan were supposed to be heard within a year of filing the applications. But they have dragged on to the present day, and even though land changed hands, SNWA allowed only original landowners to testify. The court ruled that was wrong.

The ruling does not end the Las Vegas water grab threat, however. The water authority filed for new applications. Nevada’s state legislature almost took action to write a “legislative fix” to undo the Supreme Court ruling. After a contentious debate in an emergency budget special session, though, lawmakers rejected the bill on March 1.

It’s a classic fight over water. Until the recent economic recession slammed the brakes on construction, Las Vegas was one of the fastest-growing cities in the nation. Growth depends on water—and developers want to secure it any way they can.

In 1989, Las Vegas targeted water in lightly populated, faraway valleys, planning to deliver 200,000 acre-feet annually through 300 miles of 84" pipeline. When the authority bought ranches in Spring Valley in order to secure the water, residents of neighboring Snake Valley (so remote that electricity lines didn’t reach there until 1970) knew they were next in line.

People there envisioned the region becoming another Owens Valley, a notorious California case in which Los Angeles built an aqueduct, diverting a river for it and then filling it with groundwater, drying up a once productive farm area in the process. “In Snake Valley where we live, no one has yet sold to SNWA. Our family at the start made the decision not to sell and refused to talk dollars with people,” says Dean Baker, whose family has ranched around Baker, Nev., since 1954.

“The residents here are fighting to keep the pipeline out of Snake Valley,” Baker says. “It’s a tough and expensive fight. Las Vegas controls the political power of Nevada. SNWA has gotten $300 million from sales of Bureau of Land Management federal lands, sales created by Sen. Harry Reid. The goal is to grow Las Vegas and its gaming industry by using the water resources of rural Nevada.”

Even though the recent state Supreme Court ruling makes Snake Valley residents feel a little better about the situation, they know this fight may never really end. “The threat is still there. Absolutely,” says Gary Perea, who owns businesses in Baker and is a White Pine County commissioner. “Las Vegas is still moving forward with it. They refiled on all the old 1989 applications. They just got further behind in the line, is all that happened.”

The water conflict has made Dean Baker something of a celebrity as he became a spokesman for Snake Valley’s point of view. He says he abhors publicity and is not inclined to be front-and-center on issues but that he had to change in order to preserve the community’s way of life. The situation has gotten the attention of some U.S. media outlets, but Baker has been more prominent on numerous European television shows.

“Europeans have been more interested than U.S. media and more knowledgeable. We’ve had five French TV crews here and crews from Germany and other places. Europe has vastly different views on all this than America,” Baker says. “They put a totally different value on agriculture, dating back to World War II scarcity, and have gone to extremes protecting it. A German TV crew asked if they should help organize a boycott of Las Vegas in their country. A French TV reporter interviewed me with tears running down her face.”

Riding a ranch scattered over 70 miles, Baker points out the fallacy of pulling water from under the valley. Snowmelt from the Snake Range of mountains feeds numerous springs, which in turn provide water for cattle, crops and wildlife. Irrigation already in the valley has dried up some springs and wells. Piping groundwater out through a huge pipeline could dry up all the springs, he thinks.

“We’ve seen a very direct impact from irrigation. We’ve pulled the water level down, but not highly. We’re still able to make the land productive. If they pipe the water out, it will take out all the plants that depend on water and all the animals that depend on the plants,” Baker says.

Laurie Carson, a White Pine County commissioner who moved to the area from Las Vegas in 2002 with her husband, Doug, to start a small ranch 30 miles southwest of Ely, agrees that the pipeline would deplete Snake Valley’s water. “The science we’ve looked at shows that the recharge just isn’t there. If you talk to farmers, they say that when the springs are low, when the water is gone and it doesn’t rain, all they can do is sit back and watch the crops turn brown,” Carson says.

Snake Valley residents have gotten support from at least one unusual place. The Great Basin National Park, located on the Snake Range and headquartered in Baker, has been the ranchers’ ally in the water dispute.

“We don’t know the effect a water drawdown in the Snake Valley will have on flora and fauna. We have caves in the park and species in them are water-dependent. We’ve spent $2 million on research to help define the impacts of the pipeline and irrigation. This is Nevada’s only national park, and so far our national representatives have not come out on the side of the park on this issue,” says Andrew Ferguson, park superintendent.

The economic recession slowed Las Vegas’ growth, taking some of the pressure off the push to complete the water pipeline plans.

“Recession and drought raised havoc with their plan,” Baker explains. “They’re still getting the paperwork and permitting done.”

“They knew they were pushing growth beyond what the resources could bear, but they argue that you can’t let 2 million people not have water to drink. They said that every 10 years, they want to double the population. If you think only of money, you speculate on water regardless of the environmental impact.”

The recent Nevada Supreme Court ruling is a small victory for agriculture, but the future still looks uncertain to many people in the Snake Valley. “The court ruling is not as clear as one would hope,” Baker says.

Water Problems Creep Across the U.S.

Fri, 20 Nov 2020 05:31:41 GMT

More than ever, water is the tension bar between agriculture and society. Urban centers desperately need more of it to satisfy an increasing population. Farmers require it to produce the food for all those people.

With the Earth’s water supply finite but demands for it ever escalating, conflicts about water are becoming commonplace. Farm Journal is committed to covering agriculture’s role in this clash. The story below about water problems on farms in eastern Colorado is the first in what will be an ongoing series that promises to touch every corner of the nation.

Caught in a devastating three-year drought, state and federal water agencies in California say they will cut deliveries to farmers in much of the San Joaquin Valley by at least 85% this year. That will idle land and result in 40,000 lost jobs and $1.5 billion in income, says Richard Howitt, chair of the Agriculture and Resource Economics Department at University of California–Davis. In addition, the nation’s food security could be compromised because that region produces half our fruits, nuts and vegetables, along with other crops, such as cotton, wheat and potatoes.

The Ogallala Aquifer, which supports millions of acres of crops in eight Plains states, continues to decline. From the late 1940s, when farmers began irrigating in the Texas Panhandle, until 1980, portions of the aquifer dropped 100' and will fall another 100' by 2020, says Jim Goeke, University of Nebraska hydrogeologist. In Nebraska, the Department of Natural Resources recently issued a preliminary ruling that the Lower Platte River Basin appears “fully appropriated.” That could lead to a moratorium on new irrigation wells.

Texas, now in the midst of a long-term drought killing both crops and cattle, faces big problems. Nearly the entire state is in some stage of drought, according to the most recent U.S. Drought Monitor maps. A new report by Susan Combs, Texas state comptroller, projects the state’s popu-lation will double to more than 46 million by 2060, boosting water demand by about 27%. The water shortage could cost Texans about $9 billion next year and more than $98 billion by 2060, the report says. Combs calls for new water management strategies to deal with the crisis.

The Southeast, after several dry years, is no longer assured of consistent rainfall. That puts the city of Atlanta and its fast-growing suburbs in conflict with farmers as well as surrounding states. Even oystermen on Florida’s Gulf Coast complained as fresh water supply dwindled in Apalachicola Bay, which produces 90% of the state’s renowned oysters. In February, Georgia’s Gov. Sonny Perdue appointed 300 people, including farmers, to 10 regional water planning boards to monitor the situation.

Shortage of water isn’t the only difficulty facing agriculture. Quality is an issue in many watersheds and streams across the country. North Carolinians, among others, deal with ongoing battles regarding hog lagoons. Farmers in the Chesapeake Bay watershed have had to change management practices to rehabilitate its water, long important for fishing and recreation. Florida’s farmers and ranchers are dealing with stringent environmental regulations designed to protect sensitive wildlife habitat. In many other areas, farmers and ranchers are devising ways to protect watersheds and lakes with innovative fencing for livestock and conservation tillage for crops.

With our new series, we at Farm Journal will not only outline the problems but pledge to also look for answers that can help farmers and ranchers overcome this threat to their livelihoods and legacies. Technology already offers some possibilities: irrigation refinements that reduce water usage and drought-tolerant hybrids, to name just two.

Water is the overriding concern for farmers, ranchers and society as a whole. Without workable solutions, everyone loses. Share your thoughts and let us know about water
issues in your area. We want to hear from you.

Colorado’s Water War

For Darrell and Cindy Johnston, 2002 was the turning point. The worst drought in memory shattered hopes of a profit on their farm in Erie, Colo.

“We didn’t get any moisture. Snowpack was way down. We planted bone-dry. Crops sat waiting for rain. Water was allo-cated, and we had to decide which crops to irrigate. We burned our water up getting the crop up, then we were out of water. So we didn’t have a crop,” Darrell says.

The future didn’t look much better, either. Located on the Front Range just north of the Denver metropolitan area near I-25, with water supply both short and at a premium due to booming development, the Johnstons decided moving was their best option.

“When the drought hit, farms went from irrigated to dryland overnight. The problem in Erie is that the cities have control of the water and dictate how much we get. It’s been going on for 10 years now,” Darrell says.

Though they had both grown up in the area, the Johnstons sold some of their more valuable land near the interstate. They bought land with a more assured water supply 70 miles away in Fort Morgan, Colo., using an Internal Revenue Service Section 1031 Exchange to postpone capital gains taxes. They grow corn and sugar beets on the 700 acres in Fort Morgan and wheat, barley and hay crops requiring less water on the original 2,700-acre farm, which is now managed by their 23-year-old son, Brandon.

“Buying land in Fort Morgan is the hardest decision we ever made. But if we’re going to farm, we have to have water. When the 2002 drought hit, it was eye-opening to know we did not have water to irrigate,” Cindy says.

Lots of other Colorado farmers are seeing their worlds rocked in much the same fashion. In addition to the competition for water with cities on the Front Range, eastern Colorado farmers in the Republican River Basin and the South Platte River Basin have their own serious problems.

Four hundred irrigation wells in the Republican River Basin were recently shut down to comply with a settlement involving a Kansas lawsuit that requires certain flow levels. In the South Platte River Basin, pumping from as many as 4,000 wells has been limited or curtailed due to a plan to recharge the river’s water and comply with the Endangered Species Act, says James Pritchett, a Colorado State University ag economist working on water issues.

“Crop acreage has gone from 3 million to 2½ million. We’re likely to lose 250,000 acres in the South Platte, where we’re at 1 million acres now,” Pritchett says. “We’ve been depleting the aquifer at an unsustainable rate. Within one generation, we’ll have to find a way to continue agriculture in that area with less water.”

So far, farmers losing wells have gotten little compensation. “On the South Platte, they are not compensated. They are literally high and dry. On the Republican, these are voluntary measures through CREP [Conservation Reserve Enhancement Program] and EQIP [Environmental Quality Incentives Program], a token compensation nowhere close to what they could make from full production,” says Mark Sponsler, executive director of the Colorado Corn Growers Association.

Those economics won’t pencil out long-term for farmers caught in the 21st century water wars. The Johnstons enjoy farming their new Fort Morgan land but warily eye what’s happening to other producers.

“I just cannot comprehend that government can say, ‘Sorry, you’re done, too bad.’ A judge held the fate of all those people’s lives,” Cindy says.

You can e-mail Charles Johnson at cjohnson@farmjournal.com .

Wisconsin Judge Rules Against Dairy Farm's High-Capacity Well

Fri, 20 Nov 2020 02:48:11 GMT

A judge’s ruling could have far-reaching implications for the growing use of high-capacity wells in Wisconsin.

Administrative Law Judge Jeffrey Boldt ruled that the Department of Natural Resources failed to consider the accumulated effects of groundwater use when the agency reviewed an application for a high-capacity well for a $35 million dairy farm.

Boldt says the DNR “took an unreasonably limited view of its authority” and failed to adequately consider “basic science” when it evaluated an application for a high-capacity well in Adams County in central Wisconsin.

The proposed farm, Richfield Dairy, is in the Central Sand region, home of the heaviest irrigation and groundwater use in Wisconsin. Scientists say the effect of groundwater use has lowered water tables.

A DNR spokesman tells the Journal Sentinel agency attorneys are reviewing the ruling.

Trusteed IRAs: why they are popular, who should consider them, what benefits they offer

Fri, 23 Sep 2022 20:01:45 GMT

Q: I’ve heard a lot about trusteed IRAs. How do they differ from traditional IRAs?

A: Simply put, trusteed IRAs offer potential tax benefits of traditional or Roth IRAs with the protection and control of a trust. They provide tax advantages that stretch into the future and offer the ability to control how, when and in what amounts assets are distributed. Trusteed IRAs have become more popular given some of the inherent limits of traditional IRAs and the growing prevalence of self-directed retirement accounts combined with the decline of pension plans. They also are more cost-effective than setting up a trust and are generally more compliant with tax laws.

Q: Who should consider a trusteed IRA?

A: There are several reasons why someone should consider a trusteed IRA, the most consequential of which is if an owner has an interest in controlling assets and realizing tax benefits beyond their lifetime. This can mean an owner is concerned with the financial discipline or sophistication of heirs.

Other reasons include if an owner remarries and wants to provide for a current spouse as well as children from a previous relationship and/or is concerned about IRA management in the event of incapacitation.

Q: I’m in the middle of estate planning. How can a trusteed IRA help with the process?

A: They can help process if only to preserve the potential tax-advantaged accumulation of IRA benefits to pass on to heirs. Under traditional or custodial IRAs, a beneficiary is required to withdraw at least the Required Minimum Distribution (RMD) each year. However, a beneficiary may withdraw additional amounts, for any reason, at any time—and incur possible fees or tax penalties.

Additionally, owners can restrict payouts to a beneficiary to the RMD, enabling it to operate as a spendthrift trust. At the owner’s death, the trusteed IRA would be automatically split into separate accounts for individual beneficiaries, with distribution terms defined for each account.

Another benefit is that estate plans don’t need to be rewritten or updated; trusteed IRAs can be added independent of an estate plan to protect IRA assets which legally pass outside of wills.

Q: Is a trusteed IRA better suited to farmers or owners of farm assets?

A: Not expressly, but a trusteed IRA can play an important role in legacy planning and preservation of farm assets over multiple generations. Given the growing generation gap among farming families, trusteed IRAs could be a way help preserve farm family values over generations from beyond the grave. Moreover, as farm economics continues to change, farmers may find value in the highly customizable nature of trusteed IRAs. In the event of a divorce in the family, for example, assets can be made to not leave the family’s bloodlines.

Q: Are there any downsides to trusteed IRAs?

A: Given that a trusteed IRA requires a corporate trustee, it’s harder to change ownership and family members cannot be named as trustees. Not all financial institutions offer trusteed IRAs so they may not be widely available to interested clients. Additionally, while they offer greater customization and more control, trusteed IRAs carry some limits. To have the highest level of customization and control, a trust would need to be created.

Please send questions, comments or requests to address a topic or issue to Rees Mason at rees.mason@ml.com.