Megadairy Update: Easterday Pulls Plug on Disastrous 30,000-Cow Dairy Project

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.

Cody Easterday and his wife, Debby, leaving his sentencing hearing.

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.

Make a Difference in Our Food System: Join a Commodity Commission!

Love West Coast albacore? Passionate about beer? Want to do something to change Oregon's food system for the better? If you care about where your food comes from and how it's produced, please consider joining one of Oregon's commodity commissions. Most include a member of the public, so check out the list of the positions available and make a difference in our food system!

This year the Oregon Department of Agriculture (ODA) is recruiting for 70 commodity commission seats, with a deadline to apply on March 15, 2021. Oregon’s 23 grower-funded commodity commissions support promotion, research and education to improve market conditions for their commodity.

A key point: they also give commissioners direct access to key Oregon agricultural opinion leaders and decision makers. Which means that new commissioners could help set the state's priorities going forward, encouraging the adoption of more regenerative, innovative practices rather than the business-as-usual, industry positions it has in the past.

Each commission has a board that includes producer and handler positions. Producers grow or harvest the commodity; handlers are the first to purchase the commodity from the producer and often are processors, distributors, or marketers. Most commissions also include a member of the public. Time commitment varies depending on the commission, and due to COVID-19 restrictions, remote attendance is an option.

Here are the commissions seeking public member applicants:

  • Blueberry
  • Clover Seed
  • Dungeness Crab
  • Fine Fescue Seed
  • Raspberry Blackberry
  • Strawberry
  • Sweet Cherry
  • Tall Fescue

Get more information and application forms. You can make a difference!

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!

Your Food, Your Legislature: Take Action to Protect Oregon from Invasive Canola

Canola has a long and sordid history in Oregon going back to 1990, when it was designated as a controlled crop with strict regulations on where it could be grown in the Willamette Valley, because of its habit of cross-pollinating with other crops. And ever since, producers have come back again and again to try to expand the restrictions on its production.

Canola field in Boardman, Oregon.

On July 1, current rules that cap annual canola production at 500 acres in the Willamette Valley expire, and—suprise, surprise—once again canola producers are attempting to roll back that restriction. The Oregon Legislature is considering SB 885, a bill that would maintain the current 500 acre per year cap indefinitely.

Meanwhile, according to Ivan Maluski, Policy director of Friends of Family Farmers, the ODA has announced a newly proposed rule to replace current expiring canola restrictions. "This draft proposal simply falls short of what is necessary to protect the unique attributes of the Willamette Valley’s specialty seed industry," Maluski writes. "ODA’s proposal includes no acreage cap, doesn’t explicitly prohibit canola production in a proposed Isolation Area, doesn’t prohibit herbicide tolerant or genetically engineered canola varieties, and leaves large parts of the Willamette Valley unprotected."

What can you do about it? You can e-mail your legislators and tell them to maintain the current restrictions as outlined in SB 885 (sample letter at bottom). You can also submit e-mail comments on the ODA canola rule by Friday, June 21 at 5 pm (sample text at bottom; written comments can be sent to Sunny Summers, Oregon Department of Agriculture, 635 Capitol St. NE, Salem, OR 97301).

Canola blossom.

Why should you bother? Here's what I wrote in 2012:

"The Willamette River, from its headwaters in the Calapooya Mountains outside of Eugene to its confluence with the Columbia north of Portland, forms the base of a long narrow valley that not only contains 70% of the state's population, it's also Oregon's most fertile agricultural area. Averaging only 25 miles wide, the valley's rich volcanic and glacial soil was deposited here by ancient Ice Age flooding and can be half a mile deep in some areas.

"Orchards, vineyards and farmland vie with urban areas for space in its narrow confines, and some crops have been tightly controlled to prevent problems with cross-pollination from the distribution of pollen by the wind, water and dust churned up by traffic along its length. Canola, also known as rapeseed, has been one of those controlled crops and has been regulated in Oregon since 1990.

"Because it is a member of the Brassica family (Brassica napus, B. rapa and B. juncea), it can cross-pollinate with with similar brassicas like cabbage, broccoli, cauliflower, kale and turnips, endangering these valley crops and the farmers who depend on them for their livelihoods. With the bulk of the domestic canola crop also contaminated with GMOs (approx. 93%), this presents a particular threat to organic farmers and seed producers, since current USDA Organic guidelines do not allow for genetically engineered material."

Canola cross-pollinates with many vegetable crops.

The Oregon Dept. of Agriculture (ODA) issued a temporary ruling in 2012 to allow planting of the crop in certain formerly protected areas, prompting Friends of Family Farmers (FoFF), the Center for Food Safety (CFS) and three Willamette Valley specialty seed producers to file suit to stop the ruling from taking effect. As a result, the Oregon Court of Appeals overturned the ODA's action, whereupon the ODA filed for a permanent ruling to allow growing of canola, prompting the legislature to pass a ban on the production of canola in most of the valley through 2018. Unfortunately, in 2015 a handful of canola growers unhappy with the previous bill pushed through HB 3382, which authorized 500 acres of commercial canola production per year from 2016 through July of 2019.

What all this means that if you care about being able to buy locally grown, organic, non-GMO produce at the farmers' market or greengrocer's, it would behoove you to write your legislators and submit a comment to the ODA. I've made it simple to do by supplying suggested text (below) that you can copy and paste into your e-mails or letters. (Thanks to FoFF for supplying bullet points).


(Find your legislator here.)

Dear [legislator],

I am writing to urge you to support SB 885. We must maintain current restrictions on Willamette Valley canola production that expire July 1 in order to protect the region’s important specialty seed industry and the hundreds of farmers, gardeners, and food producers who depend on it.

Thank you,

[your name and address]


(Here's the ODA's e-mail address.)

Dear Director Taylor:

I am writing because the Oregon Department of Agriculture’s draft proposal to address the risks from canola production falls far short of what is necessary to protect the unique attributes of Oregon’s world-renowned specialty seed industry.

I oppose the draft rule because it includes no acreage cap, doesn’t prohibit canola inside the proposed Isolation Area, doesn’t prohibit herbicide tolerant or genetically engineered canola varieties, and leaves many Willamette Valley farmers unprotected from the risks associated with canola.

The final rule should include: an acreage cap not to exceed 500 acres per year inside the Willamette Valley Protected District; a clear prohibition on canola production inside the proposed Isolation Area; a larger Isolation Area where no production of canola would be allowed; clear protections for seed farmers outside the proposed Isolation Area; and a clear prohibition on growing herbicide tolerant or genetically engineered varieties of canola.

Thank you,

[your name and address]

Make a Difference in Our Food System: Join a Commodity Commission!

Love West Coast albacore? Passionate about beer? Want to do something to change Oregon's food system for the better? If you care about where your food comes from and how it's produced, please consider joining one of Oregon's commodity crop commissions. Most include a member of the public, so check out this list of the positions available and make a difference in our food system!

Oregon albacore.

The Oregon Department of Agriculture (ODA) is recruiting for 63 commodity commissions, with a deadline to apply on May 10, 2019. Oregon’s 23 grower-funded commodity commissions support promotion, research and education to improve market conditions for their commodity. A key point: they also give industry members direct access to key Oregon agricultural opinion leaders and decision makers.

Hood strawberries.

Each commission has a board that includes producer and handler positions. Producers grow or harvest the commodity; handlers are the first to purchase the commodity from the producer and often are processors, distributors, or marketers. And most commissions also include a member of the public. (The dairy commission has a public member position available…just sayin'.)

Time commitment varies depending on the commission, but can be from four to 10 times a year, and phone participation is a possibility. Meetings generally last two hours, but can sometimes be as long as two days, with some expenses reimbursed. For more information, e-mail Kris Anderson. You can make a difference!

Click to see the list and apply.

Mega-Dairy Reform Bills Die, Threatening a Repeat of Lost Valley Disaster

I have rarely, if ever, republished a press release from any organization. But I was so appalled and ashamed by the spineless, kowtowing obsequiousness of the Oregon legislature when it comes to factory farms in our state that I'm making an exception in this instance. Instead of instituting a simple moratorium on approval of new mega-dairies in our state in order to get its regulatory house in order when it comes to our air, water and groundwater quality, animal welfare, human health, the survival of small farms and the vibrancy of rural communities—read my article, Big Milk Brings Big Issues for Local Communities, for details—our legislators instead bowed to pressure from agribusiness industry lobbyists to kill the bill before it even got out of committee. This denies Oregonians the right to listen to a full airing of, and a debate on, the future of our state.

The following was released by the following coalition: Columbia Riverkeeper, Food & Water Watch, Friends of Family Farmers, WaterWatch of Oregon, Center for Food Safety, Farm Forward, Animal Legal Defense Fund, Humane Voters Oregon, Factory Farming Awareness Coalition, Humane Society of the United States.

April, 12, 2019

(SALEM, Oregon) — Oregon is at risk of repeating the ecological and economic disaster that occurred at the Lost Valley mega-dairy in Eastern Oregon after three bills aimed at fixing the problem failed to pass this legislative session. This means the loopholes that allowed the Lost Valley mega-dairy (top photo) to rack up hundreds of environmental violations, threaten groundwater, and leave behind more than 30 million gallons of liquid manure can be exploited by the new owner of the property near Boardman. In the wake of regulatory and environmental failures surrounding the Lost Valley, which was permitted for up to 30,000 cows in 2017 despite significant public opposition, a coalition of nearly two dozen farming, consumer, animal welfare, and environmental groups had called for reforms, including a 'time-out' on state-issued permits for new mega-dairies.

Irrigating crops with manure slurry at Threemile Canyon Farm on the Columbia River.

Senate Bill 103 would have put a hold on licensing new mega-dairies to allow the Oregon Department of Agriculture and other state agencies time to ensure future industrial dairies wouldn’t cause similar unchecked damage. Senate Bill 104 would have allowed local governments to enact common-sense measures to prevent groundwater and environmental contamination from sewage and dead animals at new mega-dairies. Both bills received a public hearing but have died in committee without a vote

“The Legislature had an opportunity to place a time-out on new mega-dairies in the wake of the Lost Valley disaster, but failed to take any meaningful action,” said Tarah Heinzen, senior staff attorney for Food & Water Watch and a member of the coalition. “We will continue to call for a mega-dairy moratorium on behalf of all Oregonians—who value clean water, vibrant rural communities, and ethical business practices.”

A cow standing in manure slurry at Threemile Canyon Farm.

“Industrial mega-dairies are using loopholes in Oregon law to expand their operations while operating under the same rules as the small and mid-sized family farms they are driving out of business,” said Ivan Maluski, Policy Director for Friends of Family Farmers, another coalition member. “Unfortunately, even the most reasonable reforms were blocked by lobbyists representing the growing number of mega-dairy operators that are putting our family-scale dairy farms out of business.”

According to new data released this week from the USDA Census of Agriculture, the dairy industry in Oregon and across the US is consolidating into larger and larger operations. Nationwide, the number of dairy farms dropped by more than 17 percent in the last five years even as milk production and sales increased, with smaller dairy farms going out of business as the largest farms grow larger.

Another bill, SB 876, was requested by State Senator Michael Dembrow to tighten up rules to prevent unsustainable water use by new large dairies. An amendment focused on preventing pollution and overuse of threatened groundwater by new large dairies with over 2500 cows was offered in the Senate Committee on Environment and Natural Resources in the final days before a key legislative deadline, but even this modest proposal failed in a 2-3 vote with Senator Arnie Roblan (D-Coos Bay) aligning with two committee Republicans, Senators Cliff Bentz (R-Ontario) and Alan Olsen (R-Canby) to kill the reform.

A section of a 20-acre slurry lagoon at Threemile Canyon.

"We participated in Senator Dembrow's work group for several months, and had hoped it would have led to reasonable industry groups working together with us to prevent the worst mistakes made at Lost Valley from happening again,” said Brian Posewitz, who worked on the issue both as a staff attorney for WaterWatch of Oregon and as a board member for the animal welfare group Humane Voters Oregon. “For example, lobbyists representing industrial dairies blocked a provision in an amendment to SB 876 to prevent unlimited exempt use of groundwater by new operations over 2500 cows in areas where other agricultural water rights are restricted by rule or order due to declining and limited supplies. They also prevented creation of a task force, which would have had equal representation from the industry, simply to talk about animal welfare issues at industrial dairies.”

"I think Oregonians would be shocked to know that the majority of dairy products now come from industrial mega-dairies like Lost Valley that raise cows in extreme confinement, where animals often stand in their own feces, with little to no access to the outdoors. While it's no surprise that Big Ag worked hard to defeat these bills, we're disappointed that three legislators on the Senate Environment and Natural Resources Committee didn't listen to the majority of Oregonians who value animal welfare and sustainable food,” said Erin Eberle, Director of Engagement for Farm Forward.

"Lost Valley threatened groundwater, racked up hundreds of permit violations, treated their animals inhumanely, and left 30 million gallons of manure and wastewater behind, and yet the State Department of Agriculture didn’t prevent it from happening when they could have,” said Scott Beckstead, Rural Outreach Director with the Humane Society of the United States. “With a new owner of the Lost Valley site likely planning to re-open the 30,000 cow facility soon, we will keep working to ensure this and other industrial dairies aren’t allowed to exploit the loopholes in Oregon’s laws again.”

Read my series of posts outlining the long history of problems at Lost Valley Farm since it opened two years ago, including cows standing in manure from overflowing lagoons and a leaking tank containing dead cows, plus massive groundwater pollution, lawsuits from the state of Oregon and the farm's creditors, and former owner Greg te Velde's own arrest for soliciting a prostitute and possession of methamphetamine in Benton County, Washington.

My article Big Milk, Big Issues for Local Communities reports on the issues mega-dairies pose to Oregon's air, water, environment and communities. You can also find out Why I'm Quitting Tillamook Cheese and read other coverage about factory farms in Oregon.

Cows Living in Filth at Mega-Dairy While State Allows It to Continue Supplying Milk

This post summarizes media coverage involving incidents at Lost Valley Farm, one of two mega-dairies in the Boardman area that supply milk to the Tillamook County Creamery Association (TCCA) for its dairy products, including Tillamook cheese. Source materials used are listed at the bottom of the post.

Even before it opened, the Boardman-area mega-dairy known as Lost Valley Farm, owned by Greg te Velde of Tipton, California, was skirting state regulations by starting construction of the dairy without  having the proper permits in hand.

An article in the Salem Statesman Journal reported that "Oregon regulators approved te Velde’s Lost Valley Farm in March [2017], despite formal objections from a dozen state and national health and environment organizations that raised concerns about air and water pollution, water use and health impacts on nearby communities."

According to an article in the Capital Press, in its first year of operation alone, it:

  • Was sued by Daritech, a dairy equipment manufacturer, in federal court for allegedly failing to pay in a timely fashion more than $340,000 for the installation of equipment.
  • Was sued by IRZ Consulting for not fully paying for labor, equipment, materials and other services related to the construction and improvement of real estate.
  • Was sued by Laser Land Leveling, Inc., which sought to recover $1.4 million for labor, materials and other services. (The suit was settled out of court.)
  • Did not report as required on wastewater from the dairy that had overflowed into a pit not authorized for storage.
  • Did not maintain adequate lagoon storage capacity to deal with runoff in case of a storm.
  • Did not report as required that  liquid and solid manure had discharged from a tank, flowing into areas unauthorized for waste storage.
  • Was issued three notices of non-compliance with its CAFO permit between late June and late November of [2017], which required corrective actions.

Then the Statesman-Journal reported that te Velde had been convicted in July of 2017 of "careless driving contributing to an accident" after he hit an Oregon Department of Transportation truck on Interstate 84 in Hood River County and was fined $450. The same article reported that te Velde was arrested in August in a Tri-Counties, Washington, prostitution sting on charges of patronizing a prostitute and possessing methamphetamine. He was booked into the Benton County jail and subsequently released on bail.

At the time of his arrest in the prostitution sting, the same article reports, the Tillamook creamery, which processes the milk from Lost Valley and another mega-dairy in Boardman for most of its dairy products, issued a statement saying "we were extremely disappointed to learn of these allegations, and they very clearly go against the values and behaviors we hold true at the Tillamook Creamery Association." The article quotes Tillamook as stating that "the staff that we’ve worked closely with at Lost Valley are hard-working and dedicated to supplying high-quality milk, and we recognize that the alleged personal actions of one individual should not tarnish the professional reputation of everyone involved in the operation. That said, we expect the Lost Valley Farm organization to respond swiftly, responsibly and with a high degree of accountability in regards to this situation."

Lost Valley's problems didn't end there.

In February of 2018, the Capital Press reported that the State of Oregon had slapped Lost Valley with a $10,640 fine for allegedly discharging waste in violation of permit conditions, an amount that many critics called a slap on the wrist considering the number of violations found and the four citations the facility had been issued. Then in late February, the state decided to sue the mega-dairy for "repeatedly endangered nearby drinking water by violating environmental laws" and saying it should be shut down immediately, according to an article in the Statesman-Journal.

The Oregonian reported that "in the state’s lawsuit, inspectors said that te Velde and [Lost Valley manager] Love stored waste and wastewater in areas not permitted for it; never completed building all the required lagoons and other facilities to store it; the existing facilities regularly overflowed when it rained; they removed parts from a storage tank after agreeing not to; and the container that held dead animal bodies leaked."

Love and te Velde issued a dramatic written response to the state's lawsuit, which the Statesman-Journal reported as saying "the injunction would put them out of business, forcing them to lay off 70 workers, euthanize their cows, lose a $4 million per month milk contract, and default on local creditors."

The article continued: "'The department’s order would have significant ramifications to the local community where the dairy is located,' te Velde [wrote]. 'Many of our employees are Latino and rely on the dairy to support their family.'"

The Tillamook creamery, for its part, is reported to have said in an e-mail to the Statesman-Journal at the end of February that "based on a number of recent factors that indicate deterioration of the Lost Valley operation, Tillamook has initiated the process to terminate our contract with Lost Valley Farm."

Despite this, as of the end of March, Tillamook was still buying milk from the dairy, according to an article in The Oregonian, which also contained photos taken by an Oregon Department of Agriculture (ODA) inspector showing the horrendous living conditions of the cows at the dairy. The article quotes a spokeswoman for Tillamook as saying "it is better for the cows and environment to keep a relationship with the dairy."

Also in late March the State of Oregon announced it had reached a settlement with Lost Valley to allow it continue operating. An article announcing the settlement said that "under the new agreement, Lost Valley can generate up to 65,000 gallons of wastewater per day compared with the 514,000 the dairy estimated it would need. It also must comply with other terms of its permit, such as notifying the state if there is a wastewater or manure spill. And the dairy must remove 24.4 million gallons of liquid manure from its overloaded storage facilities by summer, so that it can avoid polluting local water sources during a heavy rainstorm."

Reactions to the settlement were swift.

"The state’s settlement barely requires more than compliance with the permit already in place—it’s a status quo deal that lets Lost Valley off the hook. The Governor and ODA should have continued seeking to close the operation, which they should never have approved in the first place,' said Tarah Heinzen, staff attorney with Food & Water Watch, in a press release issued by a coalition of farm, environmental and animal welfare organizations.

"If ODA refuses to use its authority to stop factory farms with repeated and serious violations, Oregon clearly needs stronger water and air pollution laws to bar such irresponsible proposals in the first place,” said Scott Beckstead, rural affairs director for the Humane Society of the United States. “For example, Oregon does not require air pollution permits or monitoring at factory farms, and legislation to establish air quality protections from the industry failed last year."

Amy Van Saun of the Center for Food Safety said in the press release that the organization was extremely disappointed in the state for not using its authority to prevent this factory dairy from coming in. "And now that disappointment continues with a weak settlement despite numerous, disturbing permit violations that endanger public health and the environment. We warned ODA and the Governor that this would happen, especially with an operation of this enormous size, and business-as-usual is not an acceptable response."

In the settlement, weekly inspections by the state to insure compliance were agreed to for a period of one year. If Lost Valley complies for that period, it will be allowed to return to operating under its original permit. Specifics have not been made available as to how te Velde and Lost Valley would rectify the violations outlined in the lawsuit and meet the new conditions for waste limits and removal while maintaining the same number of cows at the facility.


UPDATE: Lost Valley's owner, California businessman Greg te Velde, has been drawing water from a protected aquifer in the Boardman area, with the tacit permission of Oregon Governor Kate Brown, her staff and the directors of at least three state agencies, according to a damning article in The Salem Statesman-Journal posted on March 23rd.

It says te Velde "moved ahead without the necessary permits, using a loophole in Oregon law to pull water out of an underground aquifer that’s been off limits to new wells for 42 years, alarming neighboring farmers who say their water supplies are now at risk." The paper said it has documents showing that Brown and state officials "knew the dairy would fall back on the loophole if a proposed water trade was challenged."

The article said that te Velde drilled three wells into the aquifer that is used for drinking water by area residents. The aquifer, which local residents use for drinking water, was designated a Groundwater Management Area (GWMA), so named because nitrate concentrations in many area groundwater samples exceed the federal safe drinking water standard.

When state officials found out about the illegal wells, te Velde agreed to truck in water, but the newspaper reports that "records show he brought in little water. Instead, Water Resources officials discovered months later that te Velde actually drew most of the water from one of the wells, claiming an exemption for watering stock — just as the earlier memos among the governor's staff and state agencies had predicted.

"And when ordered to install a monitoring device on the well, te Velde put in one with an unauthorized reset button, according to Water Resources officials. Now, the state's water officials say they have no idea how much water the dairy is taking out of the aquifer."


UPDATE: A recent report in the East Oregonian newspaper indicated that Rabobank, a Dutch agricultural lender, claimed that Greg te Velde, owner of Lost Valley Farm, had defaulted on part of $60 million in loans for the Boardman dairy and two other dairies te Velde owns in California. "John Top, owner of Toppenish Livestock, said they will begin preparing next week for the auction, which is scheduled for April 27," the article stated. "However, according to a preliminary injunction filed in Morrow County, te Velde has not given the auctioneer permission to enter the dairy."

Today (Thursday, 4/5/17) I was able to reach Cody Buckendorf, Operations Manager at Toppenish Livestock, who said that an on-site auction was going ahead on Friday, April 27th, and that the auction company had been given access to the property. He said that their first day on the property to process cows prior to auction was yesterday, (Wednesday, April 5), and that the bank was estimating there would be 19,000 cows auctioned. When questioned about the conditions he observed at the dairy, he said that, contrary to the photos taken by the inspector that led to its shutdown (photos, above), "it was one of the cleanest dairies I've seen." Read the full post.


Read my article on Big Milk, Big Issues for Local Communities about the issues mega-dairies pose to Oregon's air, water, environment and communities, as well as Why I'm Quitting Tillamook Cheese and other coverage about factory farms in Oregon. Photos obtained via a public records request by Friends of Family Farmers which shared them with media outlets.

Source materials as follows: