APRIL  2005

More dairies settle with Waco, but the water problem is still there
Waco crows, but Judge's ruling simply allow case to move forward
ECDS goes on-line

Where’s the Steaks?
Muleshoe, Texas: One of the last dairy frontiers

Texas dairy couple’s plan comes together to reach ultimate goal
Yucca in ration decreases number of rumen protozoa in dairy cows
 

While the list of dairies involved in the Waco lawsuits might be growing shorter, the big picture is that no matter what agreements are made or no matter what dairies shut down, it doesn't resolve Waco's water issue as they'd like the public to think. It also doesn't mean they will come out the victor on the lawsuits they've filed against 14 Bosque River dairies if the case continues to go forward and be heard in court.

The newest dairy to be dropped from the City of Waco lawsuit is Parks Hill Dairy owned by Harold Wayne Parks of Lingleville. Parks said he made a decision to go out of the dairy business and "pulled his own permit" at the end of March. He said when his former tenant, Joost Smulders, left the dairy in December 2004, he determined not to actively seek a new dairy tenant.

He consulted with his attorney James Bradbury of Jackson Walker LLP in Fort Worth to inform Waco of his decision and to establish an agreement that would allow him to be dropped from the suit.

As a dairyman for 50 years, Parks said he was tired of the struggle with Waco these past few years and the money it took to fight the lawsuit. "If Waco doesn't think the dairymen have spent their own out-of-pocket money over all this, they're wrong," he said.

Bradbury emphasized that in Parks' settlement, he did not give up anything to Waco. "He didn't give up any rights, surrender, or try to appease them. In essence, he withdrew his permit application but reserved his right to operate if he wants to at another time," he said. Further, Parks has the right to pasture cows on his property.

"I'm out of the dairy business and I'm relieved to get this thing settled," said Parks.  "Now, I'm going to push down my barn so I don't have to pay taxes on it anymore."

Parks' settlement rides closely on the heels of two other recent settlements reached by Lonnie Hammonds, owner of Centex Dairy and Paul Van Leeuwen, owner of Triple Dutch Dairy. Although the dairies are being sued by the City of Waco under the Clean Water Act for primarily the same causes, the individual settlements have differed somewhat.

The most unusual is the recent Centex Dairy settlement where the owner, Lonnie Hammonds, received $315,000 from the City of Waco to basically terminate his state permit. Hammonds said his insurance provider paid the City of Waco $330,000 in order to get him dropped from the suit. In turn, the City of Waco paid Hammonds and retained $15,000 for their own expenses.

Centex Dairy is the first and only dairy thus far that has given up a state wastewater permit on a permanent basis and been paid by the City of Waco to do so. Hammonds said the settlement was determined in conjunction with a conservation easement agreement attached to the land that permanently prohibits the land from future use as a dairy or concentrated animal feeding operation. A conservation easement is a legal agreement used by some groups to limit the uses of the land in order to protect its conservation values.

Although Waco has been boasting about their deal with Centex, claiming they succeeded in removing 1900 cows plus 500 more from Parks Hill Dairy out of the Bosque River Watershed, there's a marked difference between permitted head and the actual number of milking cows that have been removed.

Parks said his dairy was permitted for 500 cows but when Smulders vacated the premises, he was not milking near that many. "He was only milking about 80 cows when he left," Parks said. He added that it had been months since Smulders had milked 500 cows because he was milking at two additional dairies.

Even though Centex is permitted for 1900 head, Hammonds said he has never milked that many cows. "At the most, I've milked close to 1,000 head," he said. He sold his cows last June and kept them on the dairy until Dec. 3 at which time they were removed. The dairy has been empty since then. Most recently, he's been selling equipment out of the dairy but the property has not yet been sold.

Hammonds said he's glad to be out of the dairy business. "Everyone's situation is different but I did what I had to do." He said he agreed to a permanent termination of his permit instead of a 10-year expiration agreement because of  tax implications. "The permanent termination agreement offered a tax advantage to me whereas it wouldn't have otherwise."

Hammonds said he knew it would be impossible to lease his dairy because of the lawsuit. "As an empty dairy, I was losing about $10,000 a month on lease income and out another $2000 or more for utilities, taxes and insurance. Anyone knows that an empty dairy deteriorates."

Representing Triple Dutch Dairy, Bradbury said Waco had initially asked for 18 provisions which were narrowed down to four in the settlement. The four provisions that were agreed to include: the dairy will haul off 50% of solid manure to a composting facility or for beneficial use outside the watershed; the dairy will meet set deadlines for complying with new TCEQ requirements for increasing the capacity of waste storage ponds, certify that new standards have been met and provide certification and re-certification documentation to Waco; the dairy agrees to achieve a 10 ppm P reduction in wastewater application fields that are over 200 ppm currently; and to allow Waco to observe soil sampling and testing to verify compliance with restrictions on application of waste to fields.

Other dairies that have settled out of the suit include:  Dutch Cowboy Dairy owned by Steve and Paul Byl ; Keith Broumley Dairy, Excel Dairy owned by Alan Vander Horst, Russell Carpenter Dairy, and J&L Dairy owned by Jimmy Don Pack.

Dairy agreements have remained confidential until these newest agreements were released in the Waco Tribune Herald in late March.

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When a U.S. district court judge from Waco recently handed down rulings against Bosque River dairy operators concerning the ongoing lawsuits, Waco couldn’t wait to glorify the news.

But, what do these rulings actually mean?

Plain and simple, U.S. District Court Judge Walter Smith of Waco, made a preliminary determination that Waco adequately alleged their theories or cause of action against the dairies which allows the case to move forward. Secondly, if there is a trial, the case will be heard in the Western District of Texas at Waco instead of the Northern District in Forth Worth as requested in a change of venue by dairy operators.

Regardless of Waco’s boasting, folks should bear in mind that the judge’s decision was not based on any evidence and that the allegations made by Waco against the dairies must be proved in court.

Dairy attorneys had filed a motion to dismiss certain allegations by Waco as a first response to the suit. But, in a rare and highly unusual move, Waco reviewed the motions, addressed the deficiencies raised by the dairymen and redrafted their lawsuit to amend their original complaints.

In the ruling, Judge Smith made it clear that a motion to dismiss “is viewed with disfavor and is rarely granted.” He further stated the complaint must liberally be construed in favor of the plaintiff (Waco) and all facts pleaded in the complaint must be taken as true.”

Considering these statements, it’s clear that a plaintiff’s claims are first considered to be true until proven otherwise and that motions to dismiss those claims are not easily accomplished but worth the effort.

Specifically, the judge denied a request by dairymen for a motion to dismiss Waco’s claims that phosphorus from cow manure is a hazardous substance under federal law.

 In the motion, dairymen argued that Waco’s claims are defective because cow manure and other phosphorus-containing materials are not listed as hazardous substances under the Comprehensive Environmental Response, Compensation, and Recovery Act (CERCLA). Dairymen argued that CERCLA addresses “elemental” phosphorus,” derived from phosphate rock, but not the kind of phosphorus that comes from dairy cows.

The judge cited a previous case that states “when a mixture or waste solution contains hazardous substances, that mixture is itself hazardous for purpose of determining CERCLA liability. Liability under CERCLA depends only on the presence in any form of listed hazardous substances.”

The judge denied a change of venue to the Northern District saying that prior claims against the dairies had been properly venued in the Western District. Based on the reasoning that dividing the lawsuits between the districts would be a waste of time, he decided the entire case should be kept in Waco instead of moving the case or part of it to the U.S. District Court in Fort Worth.

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ECDS goes on-line

Erath County Dairy Sales (ECDS) located in Dublin, Texas, has recently gone on-line with their regular Friday and monthly special sales in an effort to offer their customers a convenient way to buy cattle when they can’t attend the sales in person.

Customers can catch the auction broadcast live on www.dvauction.com or on www.erathcountydairysales.com on the day of the sale about five to 10 minutes before the sale begins. The monthly special sales, generally held on Wednesdays, begin at 1 p.m., central standard time (CST). The weekly ECDS sales begin at 12:30 P.M. (CST) each Friday. The broadcast will auction everything from baby calves to packer cows. ECDS can be contacted for information on post sale vet checks, testing, and hauling arrangements at 254-968-SALE or 254-968-7253.

Christie Beyer, spokesperson for ECDS, said going on line opens the door to a larger customer base while offering easy accessibility to their loyal customers and new ones.

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If you're asking "where's the beef?" look no further than Hico, Texas, on Sat. May 21, when the Second Annual Texas Steak Cookoff will be held.

Most folks will agree that nothing smells much better than a hot, sizzling steak, right off the grill. According to the success of last year's first annual steak cookoff, participants were eager to chow down on the more than 2,000 steaks that were served. The cookoff received national attention and was sponsored by several large, national companies and corporate chains.

Sponsors and cookoff organizers are making ready for this year's event that promises good food, entertainment and fun for all.

Bring the family and enjoy a good time. Tickets are $20. Proceeds go to Camp John Marc for Chronically Ill Children in Meridian, Texas. For more information, Visit the cookoff's website at www.texassteakcookoff.com.

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Pete Hettinga of Progress Dairy in Muleshoe, Texas, said when it comes to dairying, "west Texas may be one of the last frontiers." Hettinga, who partners with his brother Hein at the new dairy, moved his wife Melody and their three sons, Joel, 28, Jared, 26, and Josh, 23 to Muleshoe last year. The dairy began its operation on Dec. 18, 2004.

Currently milking 1500 cows 2X per day, Progress Dairy is permitted for 7,000 head that includes young stock. The dairy is located on 1380 acres in the vast area of Bailey County where the Hettingas farm their own feed. The dairy is the newest one to be built in Muleshoe, following closely on the heels of several other new dairies that have sprung to life in that area in the past few years.

Built by Stanley Jones, Progress Dairy is a double 50 parallel milking barn and basement. The parlor is equipped with a combination of milking equipment with no automatic takeoffs.

When asked, Hettinga said "yes, the family has experienced some culture shock" when comparing the differences between Oakdale, California (near Modesto) to the wide open spaces of Muleshoe. But, it's something they're getting used to and enjoying.

"Muleshoe is a farm community, and that's one thing that drew us here. There are tractor dealers available, a hardware store located downtown, and a couple of restaurants. The low humidity is a plus for the cows and even though the winters get pretty cold, the cows don't seem to mind it as long as they have windbreaks. I don't have free stalls and don't intend to build any," he said.

Hettinga added that although some of the dairy services are still a little tight, for the most part everything else, like feed companies, are very accommodating. He said labor was available and had not been a particular problem. "You know how that goes. We started with a new crew. You train so many and end up with about 10% of what you started with. They just have to get used to a dairy operating 24-7."

Hettinga said Texas offers a lot of opportunities that have long since vanished in California. "Oakdale is located in an urban sprawl. The real estate is expensive, and to build a facility for expansion costs a lot of money. My sons will one day want their own families and the move to Muleshoe allows us to expand so the dairy can support everyone."

Hettinga pointed out that the milk market in Texas is good and that feed availability in Muleshoe is reasonably priced.

Very aware of today's environmental pressures in the agriculture industry, Hettinga said another big plus is that west Texas has no surface water---with underground water at about 200 feet.

Although he said he feels that environmentalists are "biting the hand that feeds them," today's dairies have to be extremely cautious and must be aware of the general perception by the public. He said he honestly feels that dairies should be safely located at least five miles apart from each other. "The beauty of this area is that it's all spread out. And I think there's plenty of room for dairies to be at least five miles apart."

Hettinga said the people in Muleshoe have been very receptive and that Janet Claborn, executive director for Muleshoe Economic Development Corporation, had done an outstanding job.

"People here are more laid back. We first came to this area because our accountant, Pete Hoekstra, advised us to take a look here. Also, we knew several dairy families in the area. We've met other people too and we enjoy visiting with them. We feel very welcomed."

As a second generation Dutch, Hettinga has been involved in the dairy industry all his life and is adamant about providing a future for his sons. "We looked for two years before choosing Muleshoe. It’s about 80 miles to Lubbock which is plenty close for me. I wanted to be in an unpopulated area. But, there's plenty of places not too far away that my sons can go to for entertainment."

Josh, the youngest son, commented that although Muleshoe is a lot different from where they were, he said the family loves the wide open spaces and it has all worked out great.

"We knew if we wanted to expand, we'd have to move. None of us [brothers] were seriously involved in a relationship and it just seemed that we were blessed when the door opened for us to come here."

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Everyone likes to see a plan come together. But, it doesn’t just magically happen. If you’re really serious about what you want out of life, you have to work at it everyday.

Although Roel and Dee Dee Stoker, owners of Ned-Tex Dairy near Selden, married at a relatively young age, they knew from the first what they wanted to do. Unlike those who allow life to lead them around by the nose, the Stokers took control of their destiny years ago. Owning a dairy together was their ultimate goal. “We did it together, and we love it,” said Dee Dee.

With her friendly smile and outgoing demeanor, Dee Dee is the opposite of Roel, who’s mellow and laid back. But, their outward differences complement one another’s personalities and the many common interests they share results in a “togetherness” that can’t be denied.

Dee Dee and Roel are both from dairy backgrounds and from large families. Roel is from the Netherlands and one of six children who was raised on a dairy with his parents and siblings. Dee Dee was born in Kingston, New York, into a family of eight siblings but moved to Holland when she was 12 years old with her parents, Hidde and Shirley Osinga.

It was in the Netherlands where Roel and Dee met, fell in love, and in 1983 ended up moving to the U.S. In 1984, she and Roel married in Paris, Texas to begin a lifelong adventure of marriage, child rearing and dairying.

While in Paris, the Stokers learned of better opportunities available in central Texas. With that in mind, they moved to Stephenville. Roel’s father, Jannes, and his two brothers, Marten and Ruurd built Triple S Dairy on Hwy. 281. In 1993, Roel and Dee Dee branched out on their own to build Ned-Tex Dairy, permitted for 600 head and currently milking 460, 3X per day.

Dee Dee said the climate--with less rainfall and less humidity--and the community---was the answer to what they were looking for.

When the problems with Waco began to heat up a few years ago, the Stokers became a little uneasy and investigated some other areas out west. “But, we’ll never move,” Dee Dee said. “We love it here. We’ve got green grass and trees, good neighbors and we enjoy living here and so do our kids.”

The Stoker’s have patterned their lives around their children, families, and dairy. Family get-togethers are a big affair. At least once a year, the Stokers go back to Holland to visit relatives, friends and two of her sisters who still live there.

The Stoker’s son, Roeland, 20, is a sophomore at Tarleton State University (TSU) majoring in business management. He works for Clyde Lowther Consulting and helps his father on the weekends at the dairy. The Stoker’s daughter, Heather, 17, will graduate from Stephenville High School this spring.

Ned-Tex Dairy is located on 319 acres with plenty of room to graze their dry cows. They raise all their own feed except for corn silage. The dairy has two free stalls that house 250 cows each with construction of a third freestall underway.

“Come rain or shine, we’ll have all our cows under cover,” Dee Dee said. The new free stall is being built by Nate Stutzman who’s made a lifetime career of dairy construction. Bobby Williams of Williams Works recently installed a new double 15 Schlueter-designed parlor with Surge equipment and automatic takeoffs. ”It works great,” Dee Dee said.

Dee Dee said they have gone on with their plans to make improvements, in spite of the current problems with Waco. “The only negative feelings around here come from Waco, not us. We have a healthy attitude and have taken positive steps to operate our dairy according to the state rules. We waited a long time before building the new freestall because of the Waco situation, but we finally decided to go ahead with it. It’s cost us a lot more now to build than it would have if we’d done it sooner.”

Dee Dee said Waco’s perception of the dairies is not realistic. ”As a dairy, we know what rules are made to be followed and we try very hard to abide by them. Just like anyone else, we like clean water and a clean place.”

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SarTec Corporation, founded in 1983, manufactures a line of yucca-based products that have widespread use from golf courses to the cattle industry. With its home office located in Anoka, Minnesota, SarTec is committed to providing cutting edge natural products tailored for specific agricultural uses.

Since its inception 22 years ago, SarTec has been granted six product and process patents for the use of yucca-based grain conditioner and special handling equipment for use in cattle feedlots. The company offers complete processing control over the addition of water to grains through the use of its SarComputer technology.

Owner Larry McNeff worked for Cargill Animal Nutrition for 13 years before branching out to start SarTec. The company has grown to employ a total of 35 people that includes sale representatives located throughout the United States.

The patent pending SarTec Anti-Protozoa Treatment (APT) program is specifically designed for dairy cattle beginning with starter calves to fresh dairy cows. Studies show that yucca, when added to a cow’s ration, decreases the number of rumen protozoa in the animal. Yucca contains saponin compounds which lyse and kill certain protozoa. Rumen protozoa are harmful because they ingest and digest bacteria in the rumen. Protozoa are associated with bacteria called methanogens that rob energy available to the cow for milk production.

Protozoans are best described as single-celled organisms of which their cells characteristically contain a cell-bound nucleus or nuclei. They are the most abundant animals in the world in terms of number and biomass. Methanogens are bacteria in the rumen that produce methane through a symbiotic association with protozoa. Livestock methanogens are thought to produce around 17% of the methane in the atmosphere which is a greenhouse gas thought to be associated with global warming.

When rumen protozoa (organisms) ingest and digest bacteria (methanogens), the results have an adverse effect on dairy cows. It decreases the flow of microbial protein from the rumen and inserts an energy-wasting step in the net synthesis of bacterial protein in the rumen. Rumen protozoa also reduce the efficiency of fermentation in the rumen.

Yucca saponins effectively suppress rumen protozoa and methanogens. New studies by USDA researchers have led to a deeper understanding of the surprising ability of pathogenic bacteria to thrive within protozoa and through adaptation, become more virulent and invasive. SarTec products are known to kill protozoa and reduce the amount of methane produced in the rumen which results in improved feed efficiency, better weight gain, and more milk production.

In Texas, New Mexico and Oklahoma, SarTec is represented by Jerry Johnson, Chris Christy, Rick Williams, Ike Cunningham and Larry Franks.  Kansas and Oklahoma are represented by Don Taylor, Jr., Kim Trahan, Jarrod Taylor, Robert Bewley, Wade Sanders, Johnny Howard and Lee Taylor.  More information is available at www.sartec.com or call 1-800-472-7832.

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The Texas Dairy Review
1521 C Lingleville Road, Stephenville, Texas 76401
800-344-4901 — 254-965-2255 — Fax 254-965-6202 — Cell 254-967-2190
Sherry Webb, Editor

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