Notorious Mega-Dairy Slated to be Decommissioned after Years of Violations

Waaaaay back in 2017, I began writing about the violations at the famously notorious and now-shuttered Lost Valley Farm. It was later sold to the massive Easterday farming operation before that collapsed, as well. In what turned out to be a prescient warning, I quoted an op-ed by Dr. Nathan Donley, a senior scientist in the Portland office of the Center for Biological Diversity, who wrote:

“The new Lost Valley [Farm] operation will generate as much waste as a small city that will be stored largely in open-air lagoons, then disposed of on fields. Without adequate oversight, there can be no question that every time the state approves a new factory farm it will be opening the door to dangerous health risks—not only for workers but for all those families unfortunate enough to have no choice but to breathe the air around those facilities.”

Tellingly, the problems began when the new owner of the former tree farm, Greg te Velde, cleared the land and started construction of the facility before it was even permitted. Despite that big red flag, permits to operate were issued by the state Dept. of Agriculture (ODA) and Dept. of Environment Quality (DEQ). 

Cows at Lost Valley standing in pools of their own waste.

Originally permitted to milk 30,000 cows, it was considered a state-of-the-art facility, but due to the erratic actions of te Velde, it never came close to housing that number of cows and was closed due to criminal charges against its owner and hundreds of violations of its permits.

In a 2019 post about the subsequent sale of the property, 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?"

Cody Easterday's family purchased Lost Valley Farms, renaming it Easterday Dairy.

Well, that turned out to be the Easterday family, who renamed it Easterday Dairy, then pulled the plug on their plans after four years of what can only be called Shakespearian-level drama. A partial list 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 his ranch, running head-on into an 18-wheeler hauling Easterday potatoes.
  • Many of the Easterday businesses declared bankruptcy in 2021 and most of the family’s massive farm and ranch empire was auctioned off. 
  • Cody was sentenced to 11 years in a federal penitentiary in California in 2022 for the fraud against Tyson.
  • The ODA handed down a notice of noncompliance in April of 2023 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 (OPB) reported in August of 2023 that Cody Easterday and his wife owed the Internal Revenue Service more than $12.5 million in personal taxes, which has issued a lien against their assets.
Cody Easterday and his wife leave his sentencing for fraud in the "Cattlegate" scandal.

In early 2023 the Easterdays reached an agreement with the former landowner, Canyon Farms, which is managed by Fall Line Capital, a California-based venture capital firm, in a $14 million lawsuit over how the land was being managed. In mid-August of that year it appeared that Easterday Dairy and Canyon Farms had come to an agreement to sell the property back to the California-based company.

OPB reported that in April of this year, Fall Line had asked to decommission the site as a Confined Animal Feeding Operation (CAFO). According to OPB, "while ODA has granted the request [to decommission the plant], three monitoring wells at the site still show elevated nitrate concentrations above 'background limits' or [has] nitrate levels from before the site was permitted as a CAFO. [The ODA's] Stapleton said the owner is required to bring the wells back into compliance and report monthly samples to ODA."

It is still not clear what standards state agencies are using regarding cleanup at the site.

According to Tarah Heinzen, an attorney for Food and Water Watch, the industrial dairy should never have been permitted in the first place since it is located on a federal Groundwater Management Area (GWMA). "This is an area where people are exposed to unsafe drinking water in part because factory farms and other big ag polluters are contributing nitrates to an already polluted aquifer,” she said. “It [did] not make sense to allow a new source of nitrates into a groundwater management area.”

Even though nitrates are universally acknowledged as extremely hazardous for humans to consume, current nitrate levels in monitoring wells in the GWMA are well over federal maximums. Despite decades of remediation efforts, levels have not shown any decrease and, in fact, the entire aquifer in the area on the banks of the Columbia River is now contaminated. Decades of inaction on the part of regulators has caused residents in the affected counties to sue polluters in federal court.

For decades, nitrate levels in wells in the GWMA have tested over the federal maximum.

"The ODA is requiring Canyon Farms to bring the monitoring wells below background limits, yet Oregon has a self-imposed goal to bring nitrate levels in groundwater management areas to seven milligrams per liter or less. The background limits for two of the wells are 15 and 19 milligrams per liter respectively," according to OPB's reporting.

“They need to require that the nitrates are lowered to a health-based limit of seven milligrams per liter, not the so-called 'background levels' that are currently in the plan,” Heinzen said. “We want to see this actually achieve results that are safe for public health and those who might be impacted in their wells down-gradient of this operation.”

The ODA has not yet clarified why it isn't requiring Canyon Farms to bring nitrate levels to the lower levels in its goals.

It seems that Dr. Donley's warning back in 2017was prescient, indeed.


Read "Why I'm Quitting Tillamook Cheese" about mega-dairies in Oregon and "Big Milk, Big Issues for Local Communities" about the real costs to our state of these industrial factory farms.

Photo of Lost Valley cows from ODA; photo of Cody Easterday from Capital Press; photo of Cody at his sentencing from KUOW.

Once Renowned Oregon Dairies Decimated by Factory Farms

How much is that grilled cheese sandwich worth to you?

It may seem like an odd question until you consider that the decline in American dairy farms has been catastrophic (see animation below). According to FarmAid, in 1934 some 5.2 million dairy farms dotted America’s countryside, but between 1997 and 2017, the U.S. lost half of its 72,000 remaining dairies and today fewer than 28,000 licensed dairy herds remain.

Thousands of small dairies once populated Oregon.

In Oregon, once renowned for the quality of its dairy products, one historian said that in 1914 there were 1,004 licensed dairies in Portland alone. A recent article in Portland Monthly states that the number of licensed dairies in Oregon dropped from around 500 in 1990 to 192 in 2020 and that, on average, Oregon is losing about six dairy farms a year. 

Loss of Dairy Farms in America: 1970 - 2023. From 460,000 dairy farms to 28,000 dairy farms.

Interestingly, while the number of individual dairy farms in Oregon has been dropping like a rock, the number of dairy cows has remained fairly steady. That's because of the influx of industrial factory farm dairies—aka "mega-dairies"—that have flooded into Oregon due to our lax environmental regulations that classify these industrial facilities as "farms" instead of the factories that they really are.

The largest is North Dakota-owned Threemile Canyon Farms, a 70,000-cow industrial facility that supplies the vast majority of the milk used to make Tillamook cheese and its ice cream, yogurt and other products. It's also one of the two largest in the United States, according to an article in Columbia Insight on mega-dairies' use (and abuse) of our water resources. Ironically it has called itself a "family farm" in public hearings in Salem.

As my friend, organic dairy farmer Jon Bansen noted on his tour of Threemile Canyon, "The scale is impressive, but the biology is horrifying."


Of the wells tested so far, around a quarter have contained high levels of the dangerous nitrates that have plagued the Lower Umatilla Basin since at least 1990.


Friends of Family Farmers (FoFF), an organization that advocates for Oregon's small family farmers, posted recently that mega-dairies have played a major role in driving dairy farmers off the land, stating that they over-produce and flood the market with cheap milk, making it impossible for small dairy farmers to compete, while externalizing their environmental and social costs on the state's taxpayers.

Wells on the Lower Umatilla Basin Groundwater Management Area in Umatilla and Morrow Counties (black dots) and the approximate locations of two mega-dairies (in red).

As an example, FoFF's post states that last May Governor Tina Kotek met with community members in Boardman—where several industrial agricultural facilities, including feedlots and mega-dairies, are located—where she set a deadline to test for nitrate contamination from agriculture from all 3,300 wells used by households (see map, above). Testing on that scale is a huge expense that will be borne by taxpayers rather than the polluters, but as of the deadline at the end of September state agencies had only managed to test 1,001 of the domestic wells in the Lower Umatilla Basin. Of the wells tested so far, around a quarter have contained high levels of the dangerous nitrates that have plagued the Lower Umatilla Basin since at least 1990.


It’s shameful taxpayers are left with the bill instead of agribusiness and industry
which have profited while contaminating the state's groundwater.


The federal government is stepping in to help with some of the cost to address the water crisis in the two counties affected, announcing $1.7 million dollars in federal aid to help deal with nitrate contamination in private wells. But according to Kristin Anderson Ostrom, Oregon Rural Action executive director quoted in the Hermiston (OR) Herald, "Folks can’t live out of 5-gallon bottles forever, and they shouldn’t have to. This is really just a long-awaited first step and there’s a lot of work to do to build on the testing we’ve already done.”

Ostrom added that it’s shameful taxpayers are left with the bill instead of agribusiness and industry, which have profited while contaminating the state's groundwater.

So what is having that grilled cheese sandwich worth to you considering the costs outlined above?

As I said in a recent post on social media, the fact that these industrial facilities were—and still are—allowed to operate on a federally designated, at-risk aquifer is outrageous. Oregon's taxpayers are and will be on the hook for the clean-up for decades while these extractive industries will be given a slap on the wrist (if anything) while continuing to operate.

Read my coverage of mega-dairies in Oregon, and why it's critical that we try to buy local when possible. Top photo of Mayflower Dairy delivery wagon from the fascinating website PDX History.

Your Food, Your Legislature: CAFO Regulations, Pesticide Ban Top Agenda

When it gavels into session on Monday, February 3rd, the 2020 interim session of the Oregon legislature is set to address a stunning, some would say impossible, roster of work in the 35 days it is legally allowed. From climate change to gun control to spending $1 billion in revenue—not to mention the threat of Republicans walking out to kill bills they're not happy with as they did last session—it's bound to be a bumpy ride.

Several bills affecting our food system are in play, including:

New regulations on confined feeding operations (CAFOs) with more than 2,500 animals (SB 1513): On the heels of the catastrophic failure of Lost Valley Farm, a 30,000-cow mega-dairy, this bill seeks to establish more stringent regulations of new industrial animal operations. Specifically, it requires the Oregon Dept. of Agriculture (ODA) or the state Environmental Protection Agency (EPA) to confirm the facility has an adequate water supply to operate and that it will need to obtain a separate permit for spreading animal waste on the land surrounding the facility.

According to Amy van Saun, a senior attorney for the Center for Food Safety (CFS), this bill is not adequate to address the problems raised by Lost Valley Farm. "The work group bill (similar to the bill proposed last session) does not go nearly far enough, and chipping away at the edges will not protect our community health and welfare from mega-dairies, including the new mega-dairy proposed at the infamous Lost Valley site. Further, we are concerned that the climate legislation again both exempts mega-dairies from controlling their methane emissions and creates a perverse incentive for people (especially from states with stronger controls) to set up or expand mega-dairies here, and to then sell dirty manure gas as 'renewable biogas' into the market," she said.

Study groundwater contamination and implement improvement plan for Lower Umatilla Basin Groundwater Management Area (SB 1562):  Some drinking water wells in the federally designated Groundwater Management Area (GWMA) in Umatilla and Morrow Counties are polluted with nitrates over the federal maximum allowable limits. Blamed on agricultural effluents, the area is the site of the state's two largest factory farm dairies—the 70,000-cow Threemile Canyon Farms and the not-yet-permitted 30,000-cow Easterday Farms Dairy, the original location of the now-shuttered Lost Valley Farm.

According to a study by Colorado State University, exposure to high levels of nitrates in water can cause "blue baby syndrome," (methemoglobinemia) a condition found especially in infants under six months. This results in a reduced oxygen supply to vital tissues such as the brain and can result in brain damage and death. Pregnant women, and even ruminant animals like cattle and sheep, are all susceptible to nitrite-induced methemoglobinemia. Nitrate contamination also has well-documented adverse health risks including increasing the risk of a variety of cancers, thyroid disease, and reproductive and gestational problems.

Additional pressure for legislators to act comes from the environmental watchdog Food and Water Watch, which is requesting the federal Environmental Protection Agency (EPA) take emergency action to address groundwater contamination in Morrow and Umatilla Counties. “Oregon officials have effectively abandoned their responsibility to protect people by doubling down on their failed approach to preventing groundwater contamination, which continues to put control in the hands of the very polluters that have created a pervasive threat to human health,” said Tarah Heinzen, Senior Staff Attorney with Food and Water Watch. “The Safe Drinking Water Act fully empowers EPA to take emergency action to protect human health in the Lower Umatilla Basin Groundwater Management Area in these circumstances," she continued, "and our petition demonstrates that it must.”

Ban aerial spraying of pesticide chlorpyrifos (HB 4109): In some agricultural communities current exposure levels to this developmental neurotoxin by children ages one to two exceed the U.S. Environmental Protection Agency’s (EPA) own allowable threshold by a staggering 140 times. 

Even at low levels of exposure by women during pregnancy, chlorpyrifos has been shown to alter brain functions and impair the learning ability of children into adulthood. Researchers at Columbia University have demonstrated that the presence of chlorpyrifos in the umbilical cord of developing fetuses is correlated with a decrease in psychomotor and mental development in three-year-olds. At high levels of childhood exposure, chlorpyrifos has been found to cause attention deficit, hyperactivity, slow cognitive development, a significant reduction in IQ scores and a host of other neurodevelopment problems. Children who live near farm fields experience the highest risks and impacts. A University of California Davis study found that women who resided within a mile of farms where chlorpyrifos and other organophosphate pesticides were applied had a 60 percent higher chance of giving birth to children with autism spectrum disorder.

Attorney van Saun said that CFS is "supporting a renewed push to phase out the dangerous pesticide chlorpyrifos from use in Oregon, following similar phase outs in Hawaii, California, and soon to be New York and the EU." She pointed out that a bill to phase out chlorpyrifos did not pass last session, "but the danger is still there for our kids and farm workers, so CFS is supporting efforts lead by Pineros y Campesinos Unidos del Noroeste (PCUN) to make this happen this session."  The hope is that the Oregon Legislature, through this bill, declares that the children of Oregon are more important than corporations that profit from exposing them (and the citizens of the state) to toxic chemicals.

Climate cap and trade (SB 1530): Also known as Legislative Concept 19, this bill follows the overall framework of last session's HB 2020, which failed to pass due to conflicts between urban and rural factions—some would say industrial and environmental concerns—in the legislature. According to an article from Oregon Public Broadcasting, "the bill would force big greenhouse gas emitters to obtain credits for each ton of gas they emit, and create an overall cap for emissions allowed in the state. That cap would lower over time, in theory ensuring Oregon meets stringent conservation targets in 2035 and 2050. Entities required to obtain permits could trade them with one another."

Additions appease critics of the more stringent requirements of the previous bill, including protections for rural Oregonians from rising fuel prices; new exemptions and subsidies for industrial companies; rebates for big industrial gas users and a grandfather clause for existing wholesale contracts, giving some large companies (hint: Boeing) a break until their existing contract expires and they can structure a greener one.

Establishment of an Oregon Hemp Commission (HB 4051, HB 4072, SB 1561): House Bill 4051 creates a new state commodity commission; HB 4072 directs the Oregon Dept. of Agriculture (ODA) to administer an Oregon Hemp State Program for studying growth, cultivation and marketing of hemp; SB 1561 deals with the commercial production and sale of hemp—changed from "industrial hemp"—as well as changing definitions of marijuana offenses and regulations regarding medical marijuana.

Stay tuned for future installments as the legislative sausage is made!