Are CAFO's good economic development

Member Number of posts : 21 Registration date : 2008-10-30

In 2008, our state legislators passed SB173. This allowed a corporation to by-pass the restrictions of the Family Farm Act solely for the purpose of operating a dairy. Rick Millner was lobbying to get this passed.

The Senate passed the bill 26 to 8 and the House passed it by 63 to 6.
So in came the mega-dairies all under LLC protection bringing a great "economic boom" to the S. D. communities.

This includes green cards for sale to foreign investors. Who benefits most? The state of S. D. gets the biggest benefit?
A possible 159 foreign investors for a handful of projects? This is $ 79,000,000 million. The investors must prove that after 2 years they have maintained their investment and created or saved 10 jobs before they receive their regular green card.
Who is in charge of verifying this? And how does the state spend this money?

Veblen Dairy has 27 foreign investors. There are 2 Veblen dairies owned
under the Prairie Ridge Management Company, or the Dairy Dozen. They own Excel Dairy in Minnesota, the New Horizon Dairy in Minnesota, and 5 Star Dairy in North Dakota, and at least 1 other dairy. Rick Millner is listed as major stockholder.

Veblen East was new in 2008, a "state of the art dairy". "The most unique dairy built anywhere in the world" notes Millner in the Marshall County Journal June 25, 2008. On June 6, 2008 an Ag United Article in the Marshall County Journal quoted Millner. "We have drawn a box that we think has huge potential for dairy development," said Millner. "It goes from Jamestown to Fargo to Milbank to Aberdeen." "Veblen is a perfect little example on a very small scale of what can happen" stressed Millner. "The addition of livestock helps employ people, and I really think that 10 years from now there will be a half million cows in South and North Dakota compared to 114,000 today. Those half million cows would have a $17.5 billion economic impact." Millner said the potential economic impact of those cows would be greater than the impact on the state of Minnesota today from the combined efforts of Target, Northwest Airlines and 3M.

"How excited would people be to get all 3 of those companies to move to the Dakota's?" asked Millner. "We can do it all by milking a few cows." It also says MCC Dairy, now Veblen west is a $50 million dollar business with a $350 million dollar economic impact on the community of Veblen. The Dairy is the largest in South Dakota.

Now, let's look at headlines mostly since this Dairy was built. This is all public information found on the Internet, and in local papers.

Wall Street Journal Nov. 2, 2007
2 years of green cards in South Dakota has helped fund new dairies worth $90 million and beef processing plants valued at $52 million

Land Journal.com March 3, 2008
Dairy Bill advances to House Floor
Millner testifies," this bill is about economic development," there is a need for cash to invest in dairies he said.
In order to gain construction of a cheese plant in the Veblen area, it would require 70,000 cows. It would cost $500 million for such a large dairy conglomerate. The cheese plant would cost $200 million and could be built with help from outside investors.

Star Tribune June 20, 2008
Stunk out of house and home by a dairy feedlot. Article about Excel Dairy
also states that New Horizon Dairy owned by Prairie Ridge Management was fined $17,400 in 2007 for applying too much manure on fields and other waste handling problems.

Keloland Custom Pages June 24, 2008
IRS files tax lien on South Dakota Ag Producers Ventures LLC of Lennox, SD

Argusleader.com June 27, 2008
Leaders of defunct company, once led by Senate candidate Dykstra, blame agency error
for tax lien

Keloland Custom Pages Oct 7, 2008
Millner - Excel Dairy Defy EPA Violate Clean Water Act

El Dragon's website Oct 10, 2008
Excel Dairy first feedlot in Minnesota declared Public Health Hazard

KSFY Action News Oct 29, 2008
Immigration Raid at Multiple Dairy Operations in Veblen

United States EPA Dec 3 2008
Official notice of Violation Clean Water Act to the Dairy Dozen/Thief River Falls/Excel Dairy

Minnesota Dept. Of Health April 2009
Background and exposure Investigation of Excel Dairy

Dwight Merriam' blog Aug 11, 2009
An Udder Failure
Vendrig Dairy has no permit

South Dakota District Court Aug 20, 2009
Sangman Oh and Dong Bum Song sue Swier Dairy et al
Breach of Contract

AgWeek Oct 19, 2009
Supplier-farmers stung by dairy’s economic woes
MILNOR, N.D. — "I’m tired of being Five Star’s banker," says Dan Mund

Keloland Custom Page Oct 21, 2009
Veblen group not paying Bills
Stiffed farmers speak up

Agnetwork.com Nov 9, 2009
Beef plant has new general partner Oshik Song replaces Dennis Hellwig.
Officials in Brown County say plant owes $128,140 in 2008 property taxes,
and that 24 mechanic's liens totaling more than $15 million have been
filed against the plant

Star Tribune Nov 18, 2009
South Dakota Dairy Producer cited for pollution violation at 2 Veblen Dairies
Manure runs into Big Stone Lake

Keloland Dec 3, 2009
Official says oft-delayed beef plant will be built
Plant was scheduled to open in 2007.
State and local official haven't said when the plant will open.

Agweek Dec 14, 2009
Judgment pays $114,000 to Five Star suppliers
Fargo, ND Two farmers who were owned tens of thousands of dollars by the Dairy Dozen L.L.P., doing business
as Five Star Dairy of Milnor, N.D., recently received full payment in satisfaction of earlier court judgment.
Other farmers owed money from the 2008 crops contacted by Agweek say they have received partial, but not full payment, but still hope to be paid in full.

South Dakota District Court Dec 18, 2009
Yoon Soo Min, Jeong Seon Park, Yong Nan Park and Jae Moon Chung
sue Rodney Winter, Kimberlie Winter, Gerald Winter, E. Darlene Winter, RKW Dairy, LLC
and Winter Dairy Limited Partnership
Breach of Contract

Madville Times Jan 2010
Veblen Cafo wasting our tax dollars with environmental damage.
Veblen dairies undoing over 1 million dollars in
successful environmental work on Little Minnesota River and Big Stone Lake

Aberdeen Farm Forum Jan 29, 2010
MPCA takes steps to close Thief River Falls Dairy
Officials with MPCA are moving towards a shutdown of Excel Dairy managed by Prairie Ridge Management of Veblen, SD Rick Millner CEO

Would anyone like to motor to Veblen SD and enjoy seeing what $350 million does for the community?
Who would permit Veblen east to have 8,176 cows and Veblen West to have 5,500 cows so close to the Little Minnesota River?
Is any of this economic development for South Dakota?

Gail Strobl

Power Poster Number of posts : 721 Registration date : 2008-05-15

As I read your posts the question that comes to mind is who is going to pay for the removal of this mess if Veblon files bankruptcy or closes?

Are there foreign investors? If so, who will be responsible for this fiasco.

Taxpayers will have to pay and the short term winners were the stockholders. I hope the area received a lot of rural development because the taxpayers may be on the ropes.

Power Poster Number of posts : 262 Registration date : 2008-09-21

Hey, this place was supposed to be an economic boon to the area. As I recall, it was supposed to equal 3M, Target and some other large industry combined for economic benefit.
So there should be a ton of money to clean the place up, correct?
I am not sure, but I think they sell to Bongaard's Cheese. Perhaps they would like to help?

Member Number of posts : 21 Registration date : 2008-10-30

http://www.farmforum.net/node/18494
This was posted on line by the Farm Forum

Published: Mar 05, 2010 2:22 pm

Veblen East Dairy has been placed into court-ordered receivership at the request of a lending group led by AgStar Financial Services ACA.
A management team led by Steve Weiss on behalf of Value-Added Science and Technologies LLC will act as receiver. The receiver will be responsible for evaluating the business structure of the operation and developing a transition plan with the goal of re-establishing a viable dairy.
AgStar is the lead lender of a group of five institutions financing the Veblen East operation. The court-appointed receiver will work to minimize disruption during this transition. The receiver’s primary areas of focus are to maintain production, seek resolutions to environmental issues and establish financial arrangements with vendors.
This is one of the dairies Rick Melnor was running, he is the one that convinced our
legislators that they could by-pass the Family Farm Act and let all in to run large dairies. This was his idea of great economic development for rural communities.
I wonder what happens now to all the area farmers that are owed money from the five or six dairies that are now taken over by the lending agency.

Subject: Who will pay for the mess? Wed Mar 10, 2010 4:30 pm

Once again the CAFO in Thief River Falls continues to aid int he controversy of allowing CAFO's in Minnesota.

Another article making it look like the taxpayers will have to pay for the clean-up.

http://minnesota.publicradio.org/display/web/2010/03/04/excel-dairy-hearing/

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