Agriculture

Easterday son files to operate mega-dairy south of Tri-Cities. Oregon forced his dad out

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Easterday Farms and Ranch legal issues

The Easterday Family’s businesses have been embroiled in a bankruptcy case with debtors trying to recover more than $250 million after Cody Easterday was charged with wire fraud in a “ghost cattle” scheme.

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A fourth-generation Easterday has applied to operate a 28,000-cow dairy in Boardman, Ore., one week after his father was forced by state officials to withdraw his own permit request.

The application was submitted to the Oregon Department of Agriculture by Cole Easterday.

He is the 24-year-old son of Cody Easterday, who led the family agricultural businesses until declaring bankruptcy in February with Easterday Ranches and Easterday Farms.

The permit is needed before any animals can be housed in the dairy facility, 60 miles south of the Tri-Cities.

In announcing the new application late Tuesday afternoon, the Department of Agriculture noted there have been elevated levels of nitrates in both the soil and one well at the Boardman site.

A water quality advisory was issued for the property because testing shows soil nitrate levels could pose a risk of nitrate moving into groundwater.

Cody Easterday had been growing potatoes and other vegetables on the site while awaiting the outcome of the Confined Animal Feeding Operation (CAFO) permit application, according to an Oregon Department of Agriculture news release.

Groundwater concerns

In addition to the concerning soil tests, officials said, the results of recent testing on 11 groundwater wells showed one well exceeded the allowed concentration limit of nitrates.

The groundwater wells must be monitored by Easterday Dairy’s owner-operator every quarter as a condition of the no-animal CAFO cleanup permit.

The Easterday Farms fresh onion facility at on North 1st Avenue in downtown Pasco is part of a federal lawsuit claiming the Easterday family defaulted on payments.
The Easterday Farms fresh onion facility at on North 1st Avenue in downtown Pasco is part of a federal lawsuit claiming the Easterday family defaulted on payments. Bob Brawdy Tri-City Herald

Easterday Dairy is a Washington corporation with a North Industrial Way address in Pasco, like the Easterday Ranches and Easterday Farms operations. The dairy was registered in Oregon in March 2019.

Cole Easterday acquired controlling interest of the Boardman dairy site in March 2021, following his father’s resignation as an officer with the family businesses.

Troubled property

The embattled Cody Easterday, 50, faces lawsuits over his business dealings, along with a lengthy federal prison sentence for wire fraud by bilking Tyson Foods and an unnamed company out of more than $225 million in a “ghost-cattle scam.”

Easterday Ranches North Lot cattle feedlot near Eltopia in rural Franklin County
Easterday Ranches North Lot cattle feedlot near Eltopia in rural Franklin County Bob Brawdy Tri-City Herald

On July 1, Oregon officials said the older Easterday had 15 days to withdraw his application for the controversial mega-dairy or they would issue an order denying it.

The application for a large-scale, commercial dairy and feedlot had been in the permitting process for two years.

The property — purchased by Cody Easterday and Canyon Farms II LLC in April 2019 for a reported $66.7 million — was the previous site of Lost Valley Farm.

It had been Oregon’s second-largest dairy when it opened in 2017, but its troubled owner Greg te Velde quickly racked up more than 200 violations of its permits and thousands in fines, and was forced to shut down the sell the cattle in his own bankruptcy case.

The problems cited by state regulators included allowing manure to overflow storage lagoons, contaminating the local aquifer, and the mismanagement of animal waste and dead animals.

“As part of the purchase agreement, Cody Easterday agreed to clean up the facility under ODA supervision maintaining a no-animal CAFO cleanup permit,” the news release said.

Cleanup required

Cole Easterday’s new feeding operation application is similar to the one filed two years ago by his dad.

The original application was no longer valid because Cody Easterday’s name had been removed from official paperwork. Oregon state law requires the listed applicant to be the owner or operator of the facility.

Cody Easterday of Easterday Farms looks out over his feedlot off Nine Canyon Road south of Kennewick in 2005.
Cody Easterday of Easterday Farms looks out over his feedlot off Nine Canyon Road south of Kennewick in 2005. Tri-City Herald file

The father and son were recently notified by the Department of Agriculture that a transfer application is still needed for the no-animal CAFO cleanup permit to be placed in Cole Easterday’s name, the news release said.

Meanwhile, the operating permit will have to undergo the usual public notice and participation period, and receive ultimate approval by the Oregon Departments of Agriculture and Environmental Quality before Cole Easterday can move forward with the dairy plans.

He is responsible for having the soil tested from all fields that are part of the animal waste management plan for the operation, according to the Department of Agriculture.

Those test results are included in an annual report submitted by the operator, describing the nutrient management activities they completed for the previous year.

“The 2020 annual report from the Easterday property showed soil nitrate levels that could pose a risk of nitrate moving into groundwater. As a result, a water quality advisory was issued,” the news release said.

“An advisory is issued when there is a risk of violating permit conditions and is a proactive notification to alert the owner-operator that steps must be taken to prevent violations.”

The department said it is the first advisory issued since the Easterdays bought the property in 2019.

Reducing nitrates

As for the site’s 11 groundwater wells, the most recent testing showed results exceeding allowed levels. Those results were confirmed in standard, follow-up test.

“ODA is advising the operator on how to reduce nitrate levels,” the department said.

“ODA will now require monthly well monitoring tests, monthly sampling of tile drains adjacent to the monitoring well and reduced applications of nitrogen fertilizer and irrigation water on crop circles closest to the affected monitoring well.”

There has been opposition to the application, with a coalition calling for the state to deny the Easterday permit and pushing the Oregon Legislature to enact a moratorium on the creation of new mega-dairies and the expansion of existing operations.

Stand Up to Factory Farms wants policies instituted to “meaningfully protect our air, water and climate, and ensure the humane treatment of animals and the economic vitality of family farmers.”

The coalition includes community, environmental, farm and social justice organizations at the local, state and national level.

Organizer Kristina Beggen released a statement Wednesday saying the Department of Agriculture’s denial of Cody Easterday’s permit “merely opened the door for this new application, and fell far short of protecting the health of Oregonians and our climate.”

The coalition believes Gov. Kate Brown must take it a step further and eliminate any possibility of the mega-dairy happening by ensuring that the department denies the application.

“No matter who the applicant is, Easterday Dairy will produce dangerous methane emissions, highjack scarce groundwater resources, and pollute the air and water of frontline communities already struggling with the impacts of the pandemic,” Beggen said.

“Climate change-fueled wildfires and drought are sapping Oregon’s water resources, heightening the stakes and giving Gov. Brown and ODA one more reason to do the right thing and deny Cole Easterday’s application for a 28,000 cow mega-dairy.”

This story was originally published July 27, 2021 at 8:10 PM.

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Kristin M. Kraemer
Tri-City Herald
Kristin M. Kraemer covers the judicial system and crime issues for the Tri-City Herald. She has been a journalist for more than 20 years in Washington and California.
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Easterday Farms and Ranch legal issues

The Easterday Family’s businesses have been embroiled in a bankruptcy case with debtors trying to recover more than $250 million after Cody Easterday was charged with wire fraud in a “ghost cattle” scheme.