The years-long fiasco began in 2019 when the Easterday family, potato and onion growers and owners of huge swaths of agricultural land in Eastern Washington, bought the notorious Lost Valley Farm megadairy after it closed due to criminal charges against its owner and hundreds of violations of its permits to operate. Originally permitted to milk 30,000 cows, it was considered a state-of-the-art facility, but due to the erratic actions of Lost Valley owner Greg te Velde, it never came close to housing that number of cows.

In a 2019 post, I asked, "Who would be crazy enough to buy a facility that will require millions of dollars to clean up and more millions to install a new irrigation system…with some 47 million gallons of liquid manure still remaining onsite—which one source estimated would fill 71 Olympic swimming pools?"

In the four years since the purchase, the renamed Easterday Dairy—which was never allowed to bring cows onsite until it showed significant progress at cleaning up the massive mess left by Lost Valley—only got into more trouble, a partial list of which includes:

• A massive fraud operation dubbed "Cattlegate" perpetrated by Cody Easterday, scion of the Easterday family enterprises, in which he claimed to be feeding 200,000 cattle owned by Tyson Fresh Meats but in fact the cattle existed only on paper and were created to cover up Easterday's losses on the commodities market.
• The death of Cody's father, wealthy cattleman Gale Easterday, who died shortly after the fraud was revealed when he drove his car the wrong way on the freeway near the ranch and ran head-on into an 18-wheeler hauling Easterday potatoes.
• In 2021 many of the Easterday businesses declared bankruptcy and most of the family’s massive farm and ranch empire were auctioned off. 
• In October of 2022 Cody was sentenced to 11 years in a federal penitentiary in California for the fraud against Tyson.
• In April of this year the Oregon Department of Agriculture handed down a notice of noncompliance to Cody's son Cole, who was put in charge of the dairy after his father's scam came to light, detailing more than 60 violations ranging from fertilizer spills to irrigation runoff to misapplications of manure on the dairy's property.
• Oregon Public Broadcasting reported in August of this year that Cody Easterday and his wife owe the Internal Revenue Service more than $12.5 million in personal taxes, which has issued a lien against their assets.

In a recent article in the Tri-City Herald, in deciding to give up the application to re-open the dairy, lawyers for the family told a court in early 2023 that they had reached an agreement with the former landowner, Canyon Farms II and Fall Line Capital, in a $14 million lawsuit over how the land was being managed, but that in mid-August it appeared that Easterday Dairy and Canyon Farms had come to an agreement to sell the property back to the California-based company.

What happens next to the property is an open question. Food & Water Watch Oregon, which has been advocating for a moratorium on new or expanded factory farms until Oregon gets its regulatory house in order, issued a press release that said "the [Easterday Dairy] site is located in an area already plagued with widespread nitrate contamination that has contaminated private drinking water wells for nearby communities. This contamination led Food & Water Watch and allies to petition the U.S. Environmental Protection Agency to take emergency action to address the drinking water crisis in 2020, and that petition is still pending."

Regardless of what happens to the property, the contamination of the land and aquifer under the site, already designated a federal Groundwater Management Area, will need to be cleaned up before it's developed, a daunting task that would potentially cost hundreds of millions of dollars.

An additional responsibility is Oregon's just-passed SB 85 that requires a multi-step process for water quality permitting, including a water supply plan, for new factory farms and temporarily closes an exemption allowing use of drinking water for livestock without a permit or water right. It also increases agency oversight of spreading factory farm waste on land where the groundwater is already contaminated with nitrates and gives authority to, but doesn’t require, local governments to require setbacks when siting factory farms.

We'll have see if the owners, and the bureaucrats tasked with holding the developers' feet to the fire, are up to the job.

Photos: Leaking tanks, including sewage and chemicals, when Easterday Dairy purchased the Lost Valley Farm property (top); Cody and his wife by Megan Farmer for KUOW.

When the recent e-mail from New Seasons Market arrived in my in-box touting its efforts at "digging down to the ground for Earth Day," I looked down the page to see what great companies they might be celebrating. Then I saw under the headline "Dairy Done Right" a photo of a pristine river with this copy:

"We’re on board for a dairy-licious sustainability initiative with Tillamook County Creamery Association and Zero Footprint to create a riparian forest on regional dairy farms within TCCA’s co-op. By replanting unvegetated ground with native species, the project will sequester carbon, protect and improve water quality, and enhance wildlife habitat."

That's when my head exploded. Why?

While I applaud companies' genuine efforts to reduce their carbon footprint and repair damage to natural systems, this kind of token effort on a few farms in the diminishing membership of the TCCA co-op is the definition of "greenwashing," or "misleading or deceptive publicity disseminated by an organization so as to present an environmentally responsible public image."

The vast majority of the milk used in Tillamook's products
comes not from cows on farms on Oregon's coast, but from a 70,000-cow
industrial factory farm dairy in Boardman, Oregon.

That's because the vast majority of the milk used in Tillamook's products—Tillamook is the commonly referred to name of the TCCA—comes not from cows on farms on Oregon's coast, but from a 70,000-cow industrial factory farm dairy in Boardman, Oregon, among those contributing to a crisis caused by pollution from industrial farms.

“If Tillamook and New Seasons want to sell real dairy ‘done right’ they need to stop sourcing from confinement mega-dairies like Threemile Canyon [Farms], which threaten our climate, clean air and water, and community health," according to Amy Van Saun, Senior Attorney for the Center For Food Safety. "They especially must commit to not contracting with the pending Easterday mega-dairy, which is proposed to reopen the disastrous Lost Valley mega-dairy near Hermiston, where residents are already suffering with a drinking water emergency caused in large part by mega-dairies in the area.”

Recent testing of drinking water from wells that draw from that area's aquifer shows the situation has grown dire. Even households that were fitted with reverse-osmosis filters designed to filter out nitrates were shown to have levels of the pollutant "between 29 parts per million to nearly 48 parts per million—up to nearly five times the federal safe limit" according to an article in the Oregon Capital Chronicle. 

In the same article, it quotes the technician who called with the test results from the six samples tested as asking, "No one is drinking this, right?"

Because of the extreme levels of nitrate pollution in the groundwater, mostly from agricultural sources, Morrow County has declared an emergency and the federal Environmental Protection Agency (EPA) is considering using its emergency authority to intervene in the region.

When you think Tillamook, think factory farms.

Tarah Heinzen, Legal Director of Food and Water Watch has advice for shoppers: “When you think Tillamook, think factory farms. Behind the company’s sustainability claims and idyllic images of family farms is a harsh reality: most of Tillamook’s milk comes from the state’s largest mega-dairy, raising tens of thousands of cows in confinement.

"This factory farm is a dirty operation, regularly violating state air quality laws and contributing heavily to the climate crisis," Heinzen adds. "Oregonians know better and are demanding better, backing multiple bills in Salem to rein in destructive factory farms [see NOTE below]. Oregonians have the right to know the truth behind their food. And the truth is, there is nothing green about Tillamook.”

In addition, the TCCA is the subject of a class action lawsuit on behalf of consumers who are alleging that Tillamook violated Oregon's strict Unfair Trade Practices Act, claiming that most of the cooperative’s milk is produced by cows confined in an “industrialized dairy factory” in Morrow County, rather than living on small family farms with access to pastures in Tillamook County as the company advertised.

Dairy done right? I think not.

Consider contacting New Seasons and letting them know this kind of greenwashing of dirty practices isn't acceptable.

Read the article I wrote for Civil Eats about the damage mega-dairies do to communities.

NOTE: Two bills addressing factory farms have advanced out of the Senate Natural Resources committee of the Oregon Legislature and are headed for the Rules Committee before going to the floor for a vote. One is a temporary moratorium on new or expanded facilities (SB 85), the other is for a package of reforms that is still in process (SB 398).

Legislative maneuvering on the part of Oregon's powerful agriculture lobby has killed one bill and basically gutted another since my last Legislative Report.

The Factory Farm Moratorium bill, SB 85-1 (formerly HB 2667), suffered a setback when an amendment was proposed (SB 85-3) limiting the bill to apply only to poultry factory farms, as well as shrinking the moratorium from eight to only two years, not nearly enough time to make the necessary changes to Oregon's laws and regulations. According to one insider, "while the amendment was an attempt by the committee to offer a compromise, industrial interests will never get to neutral on a moratorium, let alone support it, [so the effort] was all in vain."

A press release from the Stand Up to Factory Farms coalition of 50 public interest groups cites problems caused by current mega-dairy operations that would be unaddressed by the proposed amendment, including:

• The 11 mega-dairy facilities operating in the state produce over 17 million kilograms of planet-warming methane every year. 
• The Lower Umatilla Basin, home to some of the largest operating and proposed mega-dairies in Oregon, suffers from depleted and degraded groundwater with widespread nitrate contamination to drinking water wells, affecting the health of area residents. 
• Forty years ago, Oregon was home to more than 4,000 dairies, mostly small, family-owned businesses. As factory dairy farms have come to dominate state milk production, just over 200 family-scale dairies remain.

Despite public hearings showing Oregonians are in favor of the moratorium by a 3-to-1 margin, the new amendment basically gutting the intent of the original bill is being promoted as a "compromise" by industrial agricultural interests in the state.

More information here.

TAKE ACTION NOW: Sign this petition to support a full moratorium on factory farms so Oregon can establish a comprehensive regulatory system to protect our health, the health of our communities and the environment.

The Canola Protected District (SB 789) bill, which would permanently place restrictions on growing canola within Willamette Valley Protected District, has passed out of committee thanks to the help of citizen action. The Willamette Valley is one of the last regions on earth suitable for large-scale brassica seed production—crops like kale, cabbage, mustard, collard greens, broccoli, cauliflower, Brussels sprouts and kohlrabi—and grows over 90% of the world's supply of many brassica seed varieties.

Canola is a low-value oil seed oil product that can cross-pollinate with brassicas, and because it is mostly a genetically modified (GMO) crop, is particularly dangerous for Oregon's organic seed industry—if organic seed is found to be contaminated from GMO crops, the whole seed crop from the farm can be destroyed, potentially putting it out of business.

The bill will now be sent to the full Senate with a "do pass" recommendation from the committee. More information here.

Raw Milk Sales (HB 2616), the bill to expand small farmers' ability to sell raw milk to the public, was killed in committee by pressure on legislators from large dairy interests, as well as a disinformation campaign targeting legislators at a public hearing regarding the safety of the product.

The bill would have expanded the venues where farms under the micro-dairy exemptions could sell raw milk, to include delivery, at farmers' markets and farm stands if they label the raw milk. The bill would also have legalized the retail sale of raw cow milk and cow milk products to retail stores including butter, cheese and ice cream.

Though the disinformation was refuted by farmers and advocates who cited an internationally accepted product standard to ensure safety, after the hearing the Oregon Department of Agriculture (ODA) issued a surprise ruling that would require farms selling raw cows' milk, most of which have three cows or less, to get a Concentrated Animal Feeding Operation certificate from the state, normally a process only required of farms with more than 200 cows. Oddly, Oregon is the only state in the nation whose regulations—and the proposed ODA ruling—only apply to raw milk from cows, not raw milk from goats or sheep. Go figure.

TAKE ACTION: Sign the petition to let legislators know safely produced raw milk should be available to Oregonians.

Oregon's 82nd Legislative Assembly convened on January 17, 2023, with a long roster of proposed legislation to work through during its 160-day session, many of those involving the food Oregonians will be putting on their tables in the future.

Three of these bills are of particular concern:

Raw Milk Sales, HB2616: Currently, Oregon has the most restrictive laws on raw milk sales of any of the Western states, including Washington, California, Idaho and Nevada. This bill would authorize sale of unpasteurized milk from small-scale farms through a delivery service or at farmers' markets or other farm-to-consumer sales locations if the milk is labeled as unpasteurized.

In a state that prides itself on having a national presence in the dairy industry, in reality our state has been losing small dairy farms by the dozens in the last few decades because of the pressure to “get big or get out.” Because of this pressure, created by artifcially low prices for factory-farmed milk and the high cost of processing in the centralized food system, many small farmers choose to produce raw milk for their immediate community.

Currently it is impossible to obtain a license to sell raw cow’s milk in Oregon. Because of the exclusion from the sanctioned licensing program—and pressure from industrial producers on insurance companies—raw cow milk producers, who are following the letter of the law with the license exemption, are being dropped from their farm insurance policies. The goal of this bill is to create more opportunity for small farmers to diversify their offerings, a pathway to licensing for farmers who want to grow their raw milk business, and to ensure that raw milk is safe and accessible to Oregonians. More information here.

TAKE ACTION: Sign the petition to expand raw milk production in Oregon.

Farm Direct Enhancements Bill, SB507: This bill would make improvements and clarifications to Oregon's Farm Direct Marketing Law that was passed almost a decade ago.

At that time, farmers, academics and food system activists came together to pass a law, sometimes lovingly called “The Pickle Bill,” allowing farmers to bring certain low-risk, value-added products like jams and jellies, pickles, lacto-fermented vegetables, dried herbs, etc., to farmers' markets and their farm stands. It opened up opportunities for small farms to differentiate themselves at the market, reduce waste, and create shelf stable products they could use to stretch their income year round when the weather doesn’t cooperate. At the time, it was one of the most progressive cottage food laws in the country.

This bill would address:

• Online Sales: Explicitly permit the online sale of products that fall under the Farm Direct Marketing Law.
• Modernizing Distribution: Allow for the contracting of a third party entity for the facilitation of a sale, marketing and/or delivery of products from the farm to the consumer.
• Additional Products: Expand products eligible for Farm Direct Exemption.
• Clarify Ingredients: Define and clarify the non-farm-grown ingredients allowed for valued-added products.
• Consignment: Expand consignment eligibility to certain value-added products.

More information here.

TAKE ACTION: Tell your legislator to support the Farm Direct Enhancements Bill.

Factory Farm Moratorium, HB 2667: This bill places a moratorium on the Oregon Department of Environmental Quality (DEQ) and State Department of Agriculture (ODA) on issuing or renewing licenses or permits to allow construction or operation of new industrial confined animal feeding operation (CAFO) or additions to existing facilities (also known as Tier 2 CAFO permits).

Oregon has fewer regulations around these facilities than California and Washington, and as a result the state is becoming a target for these types of industrial facilities—55 and counting. Placing a pause on issuing new permits will help Oregon prioritize the agricultural legacy we want for our state.

The factors that legislators and public officials must consider when licensing these facilities include:

• Land Use
• Pollution of Our Air, Water and Groundwater
• Consolidation of Crucial Infrastructure
• Water Use
• Climate Change
• Rural Economic Development

More information here.

TAKE ACTION: Send a letter to your legislator (template provided).

Thanks to Friends of Family Farmers, Food and Water Watch and Stand Up to Factory Farms Coalition for much of the information in this report.

The Oregon Department of Agriculture (ODA) and the Oregon Department of Environmental Quality (DEQ) must deny a permit for the proposed Easterday Dairy to operate a 30,000-cow mega-dairy near the town of Boardman, Oregon.

Why deny the permit?

First, the Lower Umatilla Basin, the site of this proposed industrial operation, was designated a Groundwater Management Area (GWMA) in 1990 due to nitrate/nitrogen concentrations exceeding 7 milligrams per liter (mg/L). Nitrate concentrations in drinking water are linked with serious health concerns for infants and pregnant or nursing women, not to mention contributing to a variety of cancers and other health conditions.

In the more than 30 years since that designation, recent testing of drinking water from wells that draw from the groundwater shows the situation has grown even more dire. Even households that were fitted with reverse-osmosis filters designed to filter out nitrates were shown to have levels of the pollutant "between 29 parts per million to nearly 48 parts per million—up to nearly five times the federal safe limit" according to an article in the Oregon Capital Chronicle. 

In the same article, it quotes the technician who called with the test results from the six samples as asking, "No one is drinking this, right?"

Because of the extreme levels of nitrate pollution in the groundwater, mostly from agricultural sources, Morrow County has declared an emergency and the federal Environmental Protection Agency (EPA) is considering using its emergency authority to intervene in the region.

The technician who called with the test results from the six samples
of water asked, "No one is drinking this, right?"

Then there's the history of the specific site of the proposed dairy. Initially developed as the 30,000-cow Lost Valley Farm—which has been reported on extensively here—owner Greg te Velde began building even before he had state permits in hand. In 18 months of operation, the state issued more than 200 citations for environmental violations ranging from overflowing manure lagoons, cows forced to stand in their own filth and dead animals overflowing a dumpster. Te Velde himself was arrested in a prostitution sting and charged with felony meth possession. Lost Valley declared bankruptcy in 2018.

The scion of the vast Easterday Farms agricultural empire in Washington State, Cody Easterday, bought the failed facility for $66.9 million in early 2019, promising to clean up the heavily polluted land and restore it to profitability. Renamed Easterday Dairy, it almost immediately ran into its own set of soap opera-worthy dramas.

Cody himself turned out to have a gambling problem, which led him to create a "ghost herd" of cattle to disguise his debts, eventually pleading guilty to defrauding Tyson Foods, Inc., and another company out of more than $244 million over a period of six years by charging them for the purchase and feeding of more than 200,000 cattle that existed only on paper.

Easterday Dairy intentionally applied almost three times the allowable amount of nitrogen fertilizer on the property during the 2021 crop season.

Those troubles exacerbated the issues with the dairy, with the state putting an indefinite "pause" on the permit even though the Easterday family replaced Cody's name on the permit with that of his 25-year-old son, Cole. Moreover, according to the Kennewick, Washington, Tri-City Herald, "despite a January 2021 warning about nitrate levels, the landowners say Easterday Dairy intentionally applied almost three times the allowable amount of nitrogen fertilizer on the property during the 2021 crop season."

Then in July of this year, facing years of delay and with mounting financial issues and more violations even with no animals onsite, Easterday proceeded to sue the former owners of the property for breach of contract, asking for $14 million in damages or to be released from the purchase agreement, according to several news sources.

The issues with increasing nitrate pollution from decades of state mismanagement in the region, which is also experiencing increasing drought conditions due to climate change along with a drain on the at-risk aquifer from agricultural uses, should by itself condemn the permit. But the catastrophic damage at the site and the actions of the owners speak to the need for a permanent denial of another mega-dairy for the good of the environment, the people in the community, and the air, water and groundwater we all share.

Top photo from Stand Up to Factory Farms. Photo of Cody Easterday from Easterday's public Facebook page. Drought map from Food and Water Watch.

A coalition of community, small farms and environmental groups is collecting signatures on a petition demanding that Governor Kate Brown deny Easterday Dairy a permit to open a 30,000-cow mega-dairy on the site of the disastrous Lost Valley Farm just outside of Boardman, Oregon.

Their timing may be fortuitous, since last month the Oregon Department of Agriculture (ODA) released a finding that the property was found to have elevated levels of nitrates in the soil, a dangerous pollutant known to cause methemologlobinemia, or “blue baby syndrome,” in infants, as well as the risk of elevated heart rate, nausea, headaches, abdominal cramps and an increased chance of cancer, especially gastric cancer, in adults.

So far the group Stand Up To Factory Farms has collected more than 1,400 signatures on the petition it plans to present to Governor Kate Brown tomorrow. (If you are interested in signing the petition, you can do so here.)

This is the second permit application the Easterday agricultural conglomerate has made to the ODA. The first application was withdrawn by Cody Easterday after the ODA put it on "indefinite hold" when Easterday pleaded guilty in federal district court to defrauding Tyson Foods, Inc., and another company out of more than $244 million over a period of six years by charging them for the purchase and feeding of more than 200,000 cattle that existed only on paper, a scheme dubbed "Cattlegate." Many of the other Easterday family holdings subsequently declared bankruptcy in court.

In July, a permit application naming Cody Easterday's 24-year-old son, Cole, as the applicant was filed with the ODA in a move widely seen as a desperate ploy to keep the property that the Easterday's bought for $66.7 million in 2019. An article in the Capital Press at the time said Easterday had plans to invest another $15 million in upgrades, including completion of a wastewater treatment system that was never finished, as well as bringing the farm into full environmental compliance.

According to a Stand Up To Factory Farms press release, “a broad swath of community, environmental, animal welfare and public health organizations have raised concerns given the Easterday family’s financial distress, the outsize impact mega-dairies have on drinking water quality, climate change, and the enormous quantities of water they use.”

The coalition notes that the mega-dairy, located on a federally designated Groundwater Management Area (GWMA), would use “20 million gallons of water per day in the midst of a historic mega-drought and generate 128 million gallons of manure-contaminated waste water in an area with dangerously high nitrate levels [already] in the community’s drinking water.” (See my article, "Big Milk, Big Issues for Local Communities" about the problems these industrial-scale factory farms present.)

Read more of my coverage of the Easterday Dairy story.

Top photo from Stand Up to Factory Farms.

The Oregon Legislature adjourned "sine die"—which translates as "without a day," i.e. with no appointed date for resumption—on June 26, after a session marked by the usual rancor between the GOP minority (which staged a virtual "walkout" over objections to Governor Brown's COVID restrictions, the third year in a row for that maneuver) and the Democratic majority. Despite that and the fact that the session was conducted online due to the pandemic, there was some progress on strengthening our food system. Below is a summary of the hits and misses of the most important bills affecting our local food system:

Hits

Grant program to increase small-scale meat processing capacity (HB2785): The grant fund was allotted $2 million, plus an additional $300,000 for OSU’s Clark Meat Science Center. According to a report from Friends of Family Farmers' Amy Wong, "This long-overdue investment should be considered a major milestone for small farmers and ranchers who have pushed for expanded processing for decades." What this program means for you is that, in the future, more locally grown, sustainably produced meat from small Oregon farmers should be coming to your table.

Bovine Manure Tax Credit (HB 2451 and SB 151): This measure died in committee. It would have continued funding tax credits for factory farms that use methane digesters to product natural gas. The vast majority of these credits have gone to Threemile Canyon Farms, the 70,000-cow mega-dairy supplying most of the milk for Tillamook cheese products, which is owned by an out-of-state corporation. It's a big step forward that our legislature rejected a highly greenwashed process that maintains investment in fossil fuel infrastructure, one that also props up a factory farm system that harms small farmers, rural communities and our environment, not to mention the animals it exploits.

Double Up Food Bucks (HB 2292 and SB 555): The Double Up Food Bucks (DUFB) program assists recipients of Supplemental Nutrition Assistance Programs (SNAP, formerly known as food stamps) to purchase locally grown fruits and vegetables from farmers' markets, farm share sites and retail outlets that participate in program. This important program was funded at the $4 million level—a big jump from the initial $1.5 million funding level in 2019. Nearly one in four Oregonians experienced hunger during the pandemic and this program is a triple win for eaters, farmers, and local communities.

Farm to School Grant Program (part of the Education Dept. budget): The Oregon Farm to School Grant Program, which was in danger of being eliminated altogether, was awarded $10.2 million, maintaining its current level of funding.

Misses

Oregon Organic Action Plan (SB 404): This bill would have increased funding to the Oregon State University Extension Service for new positions related to organic production as well as funding for expanding the market for organic crops and products. Assurances were made to advocates that it would be included in the final budget reconciliation bill, but at the last minute it was dropped from the bill.

Moratorium on permits for industrial dairies (SB 583): Sadly, as posted in the mid-session report, this bill that would have allowed a pause in the permitting of new and expanding mega-dairies died in committee. Lobbying by powerful industrial agriculture interests have once again prevented the state from enacting reasonable protections of Oregon’s air, water, climate, rural communities, small farmers and animal welfare.

Thanks to Amy Wong, Policy Director for Friends of Family Farmers, for her help in compiling this report.

Big news broke yesterday about the Easterday Dairy application to restart a 30,000-cow operation on the site of the catastrophic Lost Valley Farm mega-dairy in Boardman, Oregon.

According to a press release from Stand Up to Factory Farms, a coalition of consumer and environmental public interest groups, the Oregon Department of Agriculture (ODA) and the state Department of Environmental Quality (DEQ) announced that the agencies had temporarily suspended work on the pending Easterday Dairy permit because of legal concerns.

The "pause" of the permit was announced by the ODA's CAFO program manager, Wym Matthews, at a meeting of the state CAFO Advisory Committee, which provides feedback to the department about its Confined Animal Feeding Operations (CAFO) Program.

Cody Easterday, whose name and signature appear on the ODA permit application, pleaded guilty on March 31st in federal district court to defrauding Tyson Foods, Inc., and another company out of more than $244 million over a period of six years by charging them for the purchase and feeding of more than 200,000 cattle that existed only on paper.

In a scheme that has been dubbed "Cattlegate," Easterday pleaded guilty to wire fraud—making use of electronic media including telephone or fax machine, email or social media, or SMS and text messaging—which he allegedly committed in order to cover up his massive losses on the futures market. His trading activities are the basis for another pending federal matter against Easterday that is being brought by the Securities and Exchange Commission.

The Easterday family, which Cody has headed since the death last fall of his father, Gale, has extensive holdings in Washington and Idaho. Two of the family's largest companies, Easterday Farms and Easterday Ranches, have declared bankruptcy in the wake of the scandal.

In the advisory committee hearing, Matthews said that the bankruptcies of these two major parts of the family's businesses appear to touch on parts of the proposed Oregon facility and are a major reason for pausing the permit process. "The Oregon property is in question at this time," he said. "The applicant status and ownership status [of the dairy] is potentially in question, which would cause us to pause."

In an e-mail response to my questions, ODA communications director Andrea Cantu-Schomus said that while the permit application itself is still active and pending, the Oregon Department of Justice continues to gather information about this rapidly evolving situation.

“It’s a relief to hear that ODA and DEQ have stopped work on the permitting process for Easterday Dairy,” according Stand Up to Factory Farms coalition organizer Emma Newton. “Easterday’s failure to disclose fraud and major financial difficulties during the application process gives ODA and DEQ ample grounds for the permit’s denial." Calling the pause on the permit a first step, Newton calls on the agencies to "deny the Easterday Dairy permit once and for all.”

Read more about the Easterday scandal and the subsequent bankruptcies of Easterday Ranches and Easterday Farms. Get more information on the Lost Valley Farm debacle and the dangers that mega-dairies present to Oregon's rural communities, the health of its citizens, and the state's climate, environment, air and water.

The Oregon Legislature is at its midpoint, where bills have either been scheduled for a public hearing and work session and are moving forward, or are dying in committee, or are being sent to a Rules or Revenue committee where the mid-session deadlines don’t apply. A summary of the most important bills affecting our local food system is below, with links to take action.

Moratorium on permits for industrial dairies (SB 583): Sadly, this bill that would have allowed a pause in the permitting of new and expanding mega-dairies has died in committee. Lobbying by powerful industrial agriculture interests have once again prevented the state from enacting reasonable protections of Oregon’s air, water, climate, rural communities, small farmers and animal welfare.

However, advocates were able to secure a public hearing in the Senate Committee on Energy and Environment and they need as many concerned constituents as possible to submit testimony to let legislators know it's not a subject that's going to get swept under the rug by powerful interests. Food and Water Watch has produced a template for your testimony that you can copy and paste into the legislative submission form. (Choose the meeting date of April 1, 2021, at 1 pm, then click on SB 583 to copy and paste your testimony.) Also consider sending a copy of your testimony to your legislator. For additional information on mega-dairies in Oregon, read my article "Big Milk, Big Issues for Local Communities."

Grant program to increase meat processing capacity (HB 2785): Unanimously passed out of committee with a recommendation for passage, this bill establishes a grant program to fund the building, upgrading or expansion of local meat processing facilities. Oregon’s already acute lack of meat processing capacity has been exacerbated by COVID-19, and investing in processing capacity will go a long way in creating food system resilience post-pandemic. Amy Wong of Friends of Family Farmers said this program would build "infrastructure and hopefully technical assistance for bringing existing, and potentially new, processing facilities up to standards compliance."

It is critical for the members of the Ways and Means Committee and your legislators to understand the importance of helping rural communities recover from COVID-19 and build long-term rural economic development. E-mail committee members and also e-mail your legislators to let them know how much you value and support access to local food. For more information, read about how important access to local meat processing is to Oregon growers.

Oregon Organic Action Plan (HB 2269 and SB 404-3): The Senate bill (SB 404-3) had a successful public hearing on March 15th and is scheduled for a work session on March 29th. The House bill (HB 2269) would increase funding to the Oregon State University Extension Service for new positions related to organic production as well as funding for expanding the market for organic crops and products. This bill likely will end up in the Ways and Means Committee and it will be important for you to e-mail the Co-Chairs and let them know that we want more organic production in Oregon. And consider e-mailing your legislators to let them know how much you value and support access to locally grown organic food.

Funding for Double Up Food Bucks program (HB 2292 and SB 555): The Senate bill (SB 555) had a successful public hearing and work session and is currently in the Ways and Means Committee. The House bill (HB 2292) would continue funding to assist recipients of Supplemental Nutrition Assistance Programs (SNAP) to purchase locally grown fruits and vegetables from farmers' markets, farm share sites and retail outlets that participate in program. With nearly 1 in 4 Oregonians currently struggling to afford to buy enough food to feed themselves and their families, the number is closer to 1 in 3 in Black, Indigenous, and Latinx communities. E-mail your legislators and let them know that this program not only helps keep our neighbors healthy by providing them with fresh, locally grown food, but also benefits our communities and supports local farms.

Renewal of the Bovine Tax Credit (HB 2451 and SB 151): This bovine manure tax credit proposed to give taxpayer money via tax credits for an additional six years to industrial facilities like feedlots and mega-dairies that have methane digesters that produce biofuels. While industry claims that digesters reduce greenhouse gas emissions, the fact is that burning biogas actually releases carbon dioxide and other pollutants—including smog-forming nitrogen oxides, ammonia and hydrogen sulfide— potentially offsetting other greenhouse gas reductions. Tarah Heinzen, an attorney for Food and Water Watch, said they presents a false solution that doesn't address the underlying problem of methane emissions. At this point it looks like the House and Senate versions of the bill may have died in their respective committees and the tax credit will not be renewed.

Stay tuned for future developments in the 2021 Your Food, Your Legislature series as the legislative sausage gets made! 

In the growing scandal around the scheme that has been dubbed "Cattlegate," Easterday Farms is now tangled up in the bankruptcy of its sister company, Easterday Ranches, a giant ranching and feedlot operation in Washington state that filed for Chapter 11 bankruptcy protection earlier this month. The filing was made after a meatpacker sued Easterday Ranches for defrauding it of $225 million for 200,000 nonexistant cattle.

Cody Easterday, president and CEO of Easterday Ranches, one of the largest agricultural operations in Washington State, is implicated in a complex modern-day cattle rustling operation involving 200,000 "ghost cattle" that apparently existed only on paper. Easterday was contracted to buy and feed the bovines for Tyson Fresh Meats, a division of Tyson Foods, then deliver them to slaughter at Tyson's processing facility, invoicing Tyson for their purchase and upkeep. The problem was that he never bought the cattle, but still invoiced Tyson for them, allegedly intending to use the money to cover losses he'd incurred in the commodities trading market.

An article in the Spokane (WA) Spokesman-Review said that on Monday (2/8), Easterday Farms filed for Chapter 11 bankruptcy seeking protection from its creditors. It said "according to court records made public Tuesday (2/9), Easterday Farms has and continues to sell feed to the ranch side of the business that has been caught up in an alleged scandal of missing cattle owned by Wallula-based Tyson Fresh Meats Inc., a subsidiary Tyson Foods Inc."

In addition to being the president and CEO of Easterday Ranches, Cody Easterday is also the head of Easterday Farms—one of the many sprawling and intertwined holdings of the Easterday family that includes private planes, hangars, giant storage and packing sheds, restaurants and million-dollar homes. On its 18,000 acres in the Columbia Basin, Easterday Farms grows onions, potatoes and other produce, plus feed and grain for the cattle in the family's feedlot operations.

Easterday Farms is also the owner of the former Lost Valley Farm, the 30,000-cow mega-dairy that failed catastrophically in 2018 when the Oregon Department of Agriculture (ODA) shut it down after issuing more than 200 violations of its permit in two years of operation. It cost millions to clean up the "environmental mess"—including 30 million gallons of manure and wastewater—left by the previous owner.

At the time of the sale in 2019, Easterday was required to reapply to the state ODA for a Confined Animal Feeding Operation (CAFO) permit to operate a 28,300-cow mega-dairy on the site, which it did under the name "Easterday Farms Dairy." While the ODA issued a "letter of satisfaction" at the end of 2019 for the cleanup at Lost Valley Farm, according to sources the Easterdays will still need to invest $15 million to bring the facility into full environmental compliance.

Cole Easterday, a co-owner of the new dairy business, said, "Though the situation with Easterday Ranches and Easterday Farms is unfortunate, Easterday Dairy LLC’s commitment to our current CAFO permit and our permit application is unchanged,” according to an article in the Capital Press.

The article quotes Stephanie Page, natural resources program director for the ODA, as saying that the lawsuit and bankruptcy potentially add another layer of complications. "I think we’ve all been on the same page in terms of not wanting to jump to conclusions," Page said. "We’re just continuing to evaluate the info we’ve gotten about the business structures, and how they’re separate but also making sure we understand how they’re interrelated."

In an e-mail, ODA communications director Andrea Cantu-Schomus said that the ODA and the state Environmental Protection Agency (EPA) are "required by Oregon law and EPA CAFO rules to consider all applications and issue permits for facilities that meet all legal requirements."

When asked whether the bankruptcy filings may impact the viability of Easterday's operations at the dairy, she said that the agencies are exploring Oregon Revised Statutes* and federal rules for CAFOs to determine whether they have the authority "to verify the ongoing financial status of an applicant and or operator" in the permit review. She termed the lawsuits and bankruptcy filings "a rapidly evolving situation" and that "the state will proceed with integrity and transparency."

Though this is hardly the ODA's first rodeo when it comes to issuing permits to large industrial facilities that go on to create problems.

“We know from experience that ODA and DEQ are likely to claim they don’t have the authority to deny Easterday’s permit,” said Tarah Heinzen, Food & Water Watch Legal Director. “Recent events underscore that this is just not true. They can deny a permit to any applicant who hasn’t disclosed all relevant facts or who has misrepresented any facts in their application. Easterday Ranches’ and Easterday Farms’ significant financial distress surely qualifies.” 

Cantu-Schomus later clarified in an e-mail when asked about whether the agencies are able to put a permit application on hold while determining its status that "there is no time requirement for ODA or DEQ to complete CAFO Permit development and start the public notice period."

Adding pressure to the ODA's permit process, a coalition called Stand Up to Factory Farms is pushing a bill in the state legislature for a mega-dairy moratorium in order to institute regulations on industrial factory farm dairies to protect Oregon's environment, air and water and the health of its communities.

In light of the Easterday scandal, the coalition issued a press release saying that "denying the [Easterday Farms] permit is not enough. It’s been clear for years now that these facilities housing tens of thousands of cows and producing waste on par with many cities are mega-polluters regardless of the operators. It is time for Oregon legislators to enact a mega-dairy moratorium to protect our state from irresponsible mega-dairy operators and prevent harms from massive industrial dairies until regulations are in place to protect Oregonians."

Amy van Saun, a senior attorney for the Center for Food Safety, responded in an e-mail to a question about the Easterdays' various businesses, "While the intricacies of the various Easterday entities may not yet be clear, including to state regulators, one thing is clear: Cody Easterday and the Easterday family are the principals and the ones accused of massive fraud in Washington.

"It is beyond the pale that ODA and DEQ would still consider permitting the Easterdays to operate such a massive new source of nitrates and methane in Oregon," van Saun wrote.

Read more about the Easterday Ranches scandal.

* ORS 468B.217 and OAR 340-045

Photos from Easterday's public Facebook page.