Kewaunee County Clean Groundwater

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1 Kewaunee County Clean Groundwater A PROPOSAL FOR SUSTAINABLE TREATMENT OF MANURE JANUARY 20, 2015

2 Market Perspective 2

3 These are Family Owned Businesses 3

4 4 We are part of an important industry w/ global reach This industry is not going away We must find a sustainable way to balance economic and environmental concerns This is an opportunity to show leadership and bridge the divides in our community

5 KEWAUNEE CO. LEADS WISCONSIN IN DAIRY HERD GROWTH 38.6% increase in cows since 1983 Important Note 1 out of 5 Jobs in Kewaunee County are Ag related

6 County Facts ABOUT 30% OF THE LAND IN KEWAUNEE COUNTY HAS THIN SOILS OVER CRACKED KARST BEDROCK THAT MAKES GROUNDWATER HIGHLY VULNERABLE TO CONTAMINATION. IN THESE AREAS LIQUID MANURE APPLIED TO THE SURFACE SEEPS THROUGH TOP SOIL TO FAST TO BE FILTERED BEFORE IT REACHES THE AQUIFER. KEWAUNEE COUNTY HAS *265 DAIRIES AND HAS EXPERIENCED THE HIGHEST GROWTH RATE IN CATTLE OF ANY COUNTY IN THE STATE SINCE 1983 WITH A 38.6% GROWTH THE COUNTY PRODUCES APPROX. 138 MILLION GALLONS OF MILK EACH YEAR GENERATING OVER $220 MILLION PER YEAR AND EMPLOYS HUNDREDS OF COUNTY RESIDENTS AN ESTIMATED 590,000 MILLION GALLONS OF LIQUID MANURE ARE SPREAD ON KEWAUNEE FIELDS EACH YEAR (SOME MANURE GOES ACROSS COUNTY LINES. 58% OF THE TOTAL MANURE VOLUME IN KEWAUNEE COMES FROM CAFO S 342M GALLONS/YEAR AGRICULTURAL WASTE CONTRIBUTES APPROX. 96% OF ALL THE NITRATES CONTAMINATING THE GROUNDWATER * In 2014, 265 Farms filed Nutrient Management Plans, 59 are daily haulers, balance 207 store manure in lagoons.

7 Liquid Manure Handling AVERAGE ON FARM STORAGE CAPACITY IN WI IS BETWEEN 220 AND 280 DAYS FOR THOSE HAVING LAGOONS. Even if lagoon capacity reached 365 days, variable weather patterns still create application challenges which can shorten the application window by 50% or more in a given year creating a need to apply during winter or frozen ground out of necessity. MOST FARMS NEED TO EMPTY STORAGE LAGOONS DURING A VERY TIGHT WINDOW IN SPRING AND FALL WHEN TIMING OF APPLICATION IS NOT OPTIMUM FOR PLANT UPTAKE OF NUTRIENTS INCREASING THE LIKELIHOOD OF ENVIRONMENTAL IMPACT. MOST MANURE (NUTRIENTS) ARE APPLIED AT NON-PEAK NUTRIENT UPTAKE BY CROPS. OFTEN, THE RATIO OF CROP NUTRIENTS IN MANURE (NITROGEN-PHOSPHORUS-POTASSIUM (N-P-K) DOES NOT MATCH THE UPTAKE NEEDS OF CROPS. WHEN MANURE IS APPLIED TO MEET THE CROP S NEED, THE RESULT IS A PHOSPHOROUS APPLICATION THAT EXCEEDS CROP NEED. CONVERSELY, MATCHING THE CROP S PHOSPHOROUS NEED RESULTS IN AN UNDER-APPLICATION OF N, AND REQUIRES THE FARMER TO USE COMMERCIAL FERTILIZER TO FILL THE SHORTFALL.

8 Liquid Manure Handling -Continued RESEARCH COMPLETED BY DR. FERMANICH OF UWGB HAS SHOWN THAT THERE ARE APPROXIMATELY 14 DAYS IN PERIOD MARCH-MAY THAT CONTRIBUTES ALMOST 80% OF THE ANNUAL LOADING OF NUTRIENTS TO THE SURFACE WATERS THE MANURE WASTE STREAM IS 90 95% WATER WHICH CREATES SIGNIFICANT IMPACTS ON FARM BUDGETS (HAULING IS $0.015/GAL), WEIGHT ISSUES ON ROADS AND BRIDGES, AND COMPACTION PROBLEMS ON FARM FIELDS LEADING TO REDUCED INFILTRATION AND INCREASED RUNOFF. THE COST OF HAULING MANURE IS A PRIMARY FACTOR THAT HAS INCREASED BOTH LAND PRICES AND LAND RENTAL RATES IN THE AREA. THE HIGH COST OF TRANSPORTATION AND APPLICATION (BETWEEN $150 AND $250 PER COW) MEANS THAT LIVESTOCK PRODUCERS ARE WILLING TO PAY A HIGHER UP FRONT RENTAL COST TO AVOID THE EXPENSE OF HAULING FEED AND MANURE LONGER DISTANCES. ANNUAL CROPLAND RENTAL RATES HAVE REACHED AS HIGH AS $300 (+) PER ACRE. ACCORDING TO UWEX ANALYSIS, THE BREAK EVEN DISTANCE TO HAUL MANURE IS 4 8 MILES, DEPENDING ON NUTRIENT CONTENT AND FERTILIZER PRICES.

9 LIQUID MANURE IS THE PROBLEM County Manure Production (2014 Data) Kewaunee County Cattle Numbers ,000 (lactating includes Parlor Water-27 gal p/cow/p/day) 443 M gallons 5,250 (wet calves) 5 M gallons 27,000 (open heifers) 97 M gallons 1,151 (Beef Cattle) 4 M gallons 74,250 Total p/year *549M gallons * About 58% of this manure volume comes from 15 CAFO s (14 Dairy and 1 Beef) DNR used for # of cattle - UW, Extension & U of M data to calculate gallons of manure including parlor water.

10 The Challenge! ON AVERAGE 30% OF THOSE WELLS TESTED IN KEWAUNEE COUNTY HAVE UNSAFE DRINKING WATER. KEWAUNEE COUNTY NEEDS A PROACTIVE STRATEGY TO: STOP THE CONTAMINATION OF WELLS FROM MANURE AND OTHER SOURCES OF POLLUTION MAKE THE GROUNDWATER SAFE TO DRINK FOR ALL RESIDENTS PROTECT SURFACE WATER

11 Our Options DO NOTHING! (NOT ACCEPTABLE TO ANYONE) RESTRICT HERD GROWTH (NO AUTHORITY / UNLAWFUL) WORK WITH DNR/DATCP TO IMPLEMENT A KEWAUNEE COUNTY INITIATIVE REQUIRING ALL FARMS WITH MANURE LAGOONS TO TREAT MANURE ON FARMS BEFORE APPLICATION TO LAND OR --- BETTER IDEA(S)----LET S DISCUSS!

12 Strategy Establish a county initiative that would aggressively install on-farm manure treatment technology on all farms that are in excess of 200 animal units or are operating liquid manure operations NLT EOY 2020

13 Phase I Goals - EOY 2017 Treat the manure (digester and RO/UF) from 20,000 cows Focus - install manure treatment systems on those farms located in the most highly impacted townships of Lincoln, Red River, Luxemburg and Casco and to those farms who are operating substantial land in those townships over the next three years. Install minimum of 5 CAFO and 5 non-cafo in time for Farm Tech Days August 2017 Reduce the number of manure spreading vehicles on the road by 40% Enable low-cost funding/loans for farmers to participate in the program Enable the dairy business to continue to grow and thrive in the County Improve the County s image and business friendly environment

14 Phase II Goals By Year End , have all farms in Kewaunee County with over 200 animal units or operating liquid manure operations having on-farm treatment of manure.

15 Phase III Goals Work towards a private or coop manure transformation solution that would process any excess nutrients into viable pelletized slow release fertilizer product that could be marketed (FEECO International) Timing on Phase III - TBD and driven by nutrient value of treated manure What does this mean to County virtually no limit to dairy growth CAFO or otherwise

16 Illustration of impact of treating liquid Action manure on herd of 4,000 Animal Count Annual TTL Gallons Liquid manure Ave Loads p/acre Gallons p/acre # of Truck Loads No Treatment 4,000 31,465, Loads 18K 24K 5,224 After Digester and (1)UF/RO Treatment 4,000 9,439,500 (2)1 Load 6,000 1,573 (1)After the UF/RO treatment, 70% of the water in the manure is converted to Potable water that can be center pivot irrigated on to the land adjacent to the farm. (THIS IS NOT RAW MANURE) (2) Removal of 70% of the water, increases the remaining nutrient value of the manure and 1 load per acre will meet the nutrient value required for crops

17 VIABLE SOLUTION With Workable ROI 17 Dairy without existing digester years ROI Retrofit of existing digester at dairy years Dairy without existing digester and planning an expansion years (no new land purchased + increased milk revenues Retrofit of existing digester with planned expansion years (no new land purchased + milk revenues) * Individual results will vary based on size of dairy and on final options selected ranges above are representative only and based on average pricing in WI for end products like electricity, natural gas equivalent biogas (mmbtu s), CNG (GGE), compost material, etc.

18 Potential Funding & Incentives (Preliminary) Kewaunee County County currently has a ~$400,000 revolving loan fund that could be used to incent early adopters of this program USDA (NRCS) NRCS EQIP funds available for qualifying farmers Wisconsin s Clean Energy Manufacturing Revolving Loan Fund (CERLF) Jointly managed by the Wisconsin Economic Development Corporation (WEDC) and the Wisconsin Department of Administration (DOA), CERLF makes low interest financing available to companies to invest in energy efficiency and waste reduction projects. Grow Wisconsin Dairy Producer (Grants & Loans) The Grow Wisconsin Dairy Producer Grants and Loans are made possible by ATCP emergency rule. As part of the Grow Wisconsin Dairy 30x20 Initiative, the Grow Wisconsin Dairy Producer grant aligns to the goal to improve the long-term viability of Wisconsin s dairy industry through services to achieve an annual milk production of 30 billion pounds by 2020 to meet the demand of the marketplace.

19 Potential Obstacles (perceived or otherwise) DNR /DATCP STATE RULES (one-size fits all) COOPERATION AND BUY-IN OF DAIRY INDUSTRY & DBA BUY-IN OF LOCAL FARMERS ABILITY OF TECHNOLOGY PROVIDERS TO PROVIDE SYSTEMS IN A TIMELY MANNER CONTINUED FOCUS AND ENFORCEMENT OF MANAGEMENT PLANS

20 NEXT STEPS CONTINUE MONITORING DATA COMING FROM TEST SYSTEMS CONTINUE LOBBYING FOR STATE FUNDS AND SUPPORT AT ALL LEVELS OF GOVERNMENT CONTINUE TO PUSH STATE AND DNR TO ACKNOWLEDGE OUR UNIQUINESS AND THE IDEA THAT ONE-SIZE DOES NOT FIT ALL CONTINUE TO REACH OUT TO ALL PARTIES FOR INPUT AND REALISTIC SOLUTIONS TO OUR PROBLEM

21 COMPANIES THAT PROVIDE MANURE PROCESSING TECHNOLOGIES DIGESTED ORGANICS LIVESTOCK WATERING RECYCLING (LWR) MCCLANAHAN DVO INC. FEECO INTERNATIONAL AND OTHERS

22 FIVE MOST IMPORTANT ISSUES FACING KEWAUNEE COUNTY IN 2015 GROUNDWATER DOMINION DEAL LANDFILL DECISION TOURISM PVG (PROPERTY VALUE GUARANTEE ORDINANCE)