Mike Callicrate | No-Bull Food News

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RE: EPA’s ‘LETHAL’ ACTION THREATENS ALL FAMILY FARM AGRICULTURE — $37,500 per day per violation!

Audio recorded by The Colorado Catholic Herald

September 20, 2011
By Mike Callicrate

The article in Farm Futures, “Region 7 EPA Administrator Sets Record Straight,” needs some clarification.

Author Jason Vance was mistaken in his statement, “Last year the Environmental Protection Agency inspected a feedlot in St. Francis, Kan.” The first EPA (Environmental Protection Agency) inspection of Callicrate Cattle Co. occurred this year, February 2, 2011. He follows that by saying, “The inspector discussed the findings with the operator, Mike Callicrate, and prepared a notice of violation indicating changes that needed to be made.” Again, not true. EPA inspector, Trevor Urban, talked with A.J. Jones, Callicrate Cattle Co. manager, not with me.

The inspector’s report did not mention anything about retaining water runoff from the feed production area. We were informed through the EPA Order, and essentially simultaneously in EPA’s national news release, that EPA found a violation with water runoff from the “feedstock storage area,” the site where our hay is stored.

Mr. Vance quotes Karl Brooks, EPA’s regional administrator, as saying, “The violation [Count 4] was on the basis of uncontrolled, unmanaged feedstocks that included things like distillers grain and other feeds, it did not include hay.” Contrary to the statement, there were no distillers grains in outside storage at the time of the EPA inspection. Hay and a very small pile of silage were the only commodities in the “production area” not stored under roof. There was no differentiation made between hay, which was by far the major commodity in the area, or any other feed ingredient in the production and storage area by anyone from EPA.

Why does the EPA have a problem with the 25-year-old proven design authorized by the Kansas Department of Health and Environment (KDHE) which intentionally diverts precipitation runoff away from and around our feedstocks? KDHE has made many visits to our operation over the last 25 years offering valuable help and advice. EPA shows up for the first time, without coordinating with KDHE, and all of sudden we are bombarded with a stream of vague noncompliance issues and phone calls from news reporters. EPA could have communicated and saved us all a lot of trouble and embarrassment. But, of course, the EPA news release was already written.

Mr. Brooks wrote that, “EPA cited the Callicrate operation for failure to control harmful runoff, maintain adequate manure storage capacity, keep adequate operation records, and meet the state and federal requirements of its nutrient management plan [Count 2].” Mr. Brooks’ statement about the failure to “maintain adequate manure storage capacity” is confusing. The EPA’s order refers to “waste water,” not “manure.” Unlike large industrial hog confinement operations, our cattle waste is spreadable dry manure and precipitation runoff, not liquid manure requiring storage capacity.

It is unfortunate EPA did not communicate prior to issuing the order with KDHE or Callicrate Cattle Co. about their finding that “adequate storage” for wastewater wasn’t being maintained in Retention Structure #2. Then they would have known that Retention Structure #3 is adequate for storing the overflow from #2 (we converted #2 to a presettling basin) and well exceeds the total storage requirement. Perhaps the change was overlooked and should have been recorded somewhere more obvious to EPA. A simple conversation would have resolved the issue, but, what the heck, the EPA news release was already written.

So what are the “serious environmental violations” Mr. Brooks is referring to that required a national news release threatening a $37,500 per day per violation fine, defaming Callicrate Cattle Co. and A.J Jones, and sending such an ominous message to ourselves and small producers everywhere?

Perhaps it was as Mr. Brooks stated, “EPA inspectors [there was only one] also observed slaughter wastes being stored outside in an uncontrolled area.” Again, had EPA made a simple phone call, they would have learned that KDHE worked with Mr. Jones in selecting a site they felt appropriate for our slaughter waste composting, but, why bother, the news release was already written.

Mr. Brooks said in his letter, “We have some indication of how other producers have perceived this fracas in a feedlot. Region 7’s offer to meet with Kansas cattle producers to discuss CAFO enforcement was warmly received and we will be meeting within days… Drover/Cattle Network published an article debunking the ‘hay-as-pollutant’ myth.”

A spokesman from the Region 7 EPA office called in response to my invitation to Mr. Brooks to attend a news conference on this issue at Callicrate Cattle Co. I was informed Mr. Brooks was unable to attend. I asked about Region 7’s offer to meet with Kansas cattle producers and when the opportunity would be available. He confirmed that EPA had already met with the Kansas Livestock Association (KLA) – as opposed to the Kansas Cattlemen’s Association which represents independent cattlemen.

After the news was published around the country, we received a call from a water engineer offering assistance. The engineer advised us that if we had been members of the Kansas Livestock Association, we most likely wouldn’t have seen an EPA inspector.

So after the “fracas,” it really comes down to some failures in record keeping and nutrient analysis, which my attorney quickly acknowledged and promised we would correct. It also boils down to a lack of due process, of communication between EPA, KDHE and Callicrate Cattle Co. Had anyone at EPA picked up the phone and called, the slanderous and defamatory actions against Callicrate Cattle Co. and A.J Jones could have been avoided. Had Mr. Vance with Farm Futures made a phone call to myself or A.J. Jones, he might have avoided misstating the facts. But, you guessed it, the articles were already written…

Correction: Earlier post mistakenly indicated Jason Vance was with Drovers/CattleNetwork. He is with Farm Futures.

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Region 7 EPA Administrator Sets Record Straight
Brooks says feedlot claims of ‘hay as a pollutant’ are false.
Jason Vance
Published: Sep 19, 2011

Last year the Environmental Protection Agency inspected a feedlot in St. Francis, Kan. That inspection disclosed some violations of the feedlot operator’s permit. The inspector discussed the findings with the operator, Mike Callicrate, and prepared a notice of violation indicating changes that needed to be made. This carries no monetary penalties, it’s just an effort to make sure that the operator understands the changes he needs to make to stay consistent with his permit. Shortly after that Callicrate began attacking EPA online, claiming they said hay was a water pollutant. EPA Region 7 Administrator Karl Brooks says it’s important to stick to the facts and they felt like they needed to set the record straight.

“The violation was on the basis of uncontrolled, unmanaged feedstocks that included things like distillers grain and other feeds, it did not include hay,” Brooks said. “Nothing in the notice of violation, nothing in our communications with Callicrate, and nothing in release of the announcement of the violation said he was being notified because he had hay improperly stored. It was distillers grain, silage and other feeds that leech water pollutant.”

Brooks says that while everyone is entitled to their own opinion whether it’s about EPA or anything else, you are not entitled to your own facts.

“We wanted to be sure that we shared with farmers and ranchers the facts about our inspection of the Callicrate feedyard, the facts about the conversations we had with management, the facts about the notice of violation,” Brooks said. “And especially to take on this myth that Mr. Callicrate is promoting that EPA noticed him for violations because of hay. That is not factual, it is wrong, it is incorrect and really it’s kind of inflammatory.”

Brooks says responsible agriculture media and agricultural organizations did the right thing by contacting EPA when Callicrate began spinning this story and asking for the facts. He says by sharing the true facts their perceptions and conclusions about the situation has been very good.

“While EPA is not exactly the most popular federal agency out on the farm and ranch, in this case EPA was doing what the law required us to do,” Brooks said. “And that Mr. Callicrate was engaging in unnecessary and inflammatory misstatements.”

According to Brooks, Callicrate’s legal team recognized immediately that changes needed to be made at the feedlot, contacted EPA and told them that the inspector had found violations that warranted the notice, and that their client would make those changes. He says that was very important to EPA as all they are trying to do is make sure that a permitted operation complies with the permit.

“At a time when it’s even more important for everyone involved in environmental protection, farming and ranching to deal on the basis of facts and law and have our disagreements in a civil, respectful way,” Brooks said. “This was one that we just needed to try to push back on from the start because it was not based on fact, it was argumentative and in a lot of ways incorrect.”

If you would like to read a column Brooks authored on the situation, click HERE.

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EPA Never Said Hay is a Pollutant
By Karl Brooks, EPA Region 7 Administrator

A Kansas feedlot operator is trying to make hay by falsely claiming that EPA defined hay as a water pollutant.

The owner of the Callicrate Feeding Company has been spinning a “hay-as-pollutant” myth through the blogosphere for a couple of weeks now. While the company is certainly entitled to its own opinions about EPA, the company is not entitled to its own set of facts.

Here are the facts. On August 15, EPA’s Region 7, which includes Kansas, Missouri, Iowa, Nebraska and nine tribal nations, took action to correct several serious environmental violations at the Callicrate Feeding Company in St. Francis, Kansas. EPA found water permit violations at Callicrate’s operation that needed to be addressed. The compliance order was not based on hay. Nor would EPA have issued such an action based on hay.

To be clear: The order had nothing to do with hay. At no place in the 11-page order is the word “hay” mentioned. Nor is there mention of alfalfa or grass.

EPA cited the Callicrate operation for failure to control harmful runoff, maintain adequate manure storage capacity, keep adequate operation records, and meet the state and federal requirements of its nutrient management plan. Compliance Order (PDF) (11 pp., 1.5MB, About PDF)

EPA inspectors observed silage, and dried distillers grains within the uncontrolled feedstock storage area.

When stored inappropriately, the silage and grains can turn into a liquid material that contains contaminants detrimental to water quality. EPA inspectors also observed slaughter wastes being stored outside in an uncontrolled area. The EPA order was based on those contaminants and the other violations mentioned above.

The Callicrate facility is permitted by the State of Kansas for a capacity of 12,000 head of beef cattle and had 3,200 head at the time of the inspection. Under EPA definitions, 1,000 head of beef is considered a large Concentrated Animal Feeding Operation (CAFO). This is not a small operation. The permitted capacity puts the company in the top five percent of the largest animal feeding operations in Region 7.

This action by EPA was issued to correct problems. Less than two weeks after the order was issued, Callicrate’s attorney informed us that the company had already taken action to address the problems identified in EPA’s order.

We have some indication of how other producers have perceived this fracas in a feedlot. Region 7’s offer to meet with Kansas cattle producers to discuss CAFO enforcement was warmly received and we will be meeting within days. Drover/Cattle Network published an article debunking the “hay-as-pollutant” myth.

As that article concludes: “But as the industry confronts and negotiates these genuine regulatory issues, R-CALF’s claim that ‘EPA declares hay a pollutant to antagonize small and mid-sized U.S. cattle feeders’ is unnecessary, inflammatory hyperbole.”

Brooks is administrator for U.S. EPA Region 7 that includes Kansas, Missouri, Iowa, Nebraska and nine tribal

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“Fighting for the U.S. Cattle Producer”

For Immediate Release Contact: Bill Bullard, CEO
September 14, 2011 Phone: 406-252-2516; e-mail: r-calfusa@r-calfusa.com
* * MEDIA ADVISORY * *

Group Schedules News Conference in Heartland to Highlight Injustices Against Family Farmers and Ranchers:
“Enough Is Enough” it Says of Obama Administration’s Agriculture Policies

Billings, Mont. – R-CALF USA has scheduled a news conference for 1:00 p.m. CDT on Sept. 20, 2011, at the Callicrate Cattle Company feedlot located at 940 County Road 12, St. Francis, Kansas. Prior to the news conference, beginning at noon, a free lunch consisting of Callicrate beef burgers will be served to the public and media.

The news conference will highlight efforts by the Obama Administration’s Environmental Protection Agency (EPA) and U.S. Department of Agriculture (USDA) to not only ignore the unique needs and interests of family-sized cattle operations; but worse, to help big agribusinesses rapidly concentrate and consolidate the U.S. live cattle industry.

Mike Callicrate, owner of Callicrate Cattle Company, is under fire from EPA for not maintaining EPA-required paperwork and not constructing a pollution containment perimeter around his hay stacks and other livestock feed. “EPA now considers hay a pollutant,” he said.

“My feedlot operates in accordance to and with the advice from the Kansas Department of Health and Environment. There have been no discharges of any pollutants from my feedlot operation. There have been no problems at my feedlot until the Obama Administration’s EPA stepped in,” Callicrate said.

Callicrate said EPA has partnered with big agribusinesses to accelerate the exodus of family farmers and ranchers.

“Even though I don’t pollute, and the chances of a discharge into a waterway is essentially impossible, EPA is forcing unnecessary and burdensome costs on me. Big agribusiness, proven to be major polluter, has been at the rule-making table for the past several administrations ensuring operations like mine bear unnecessary construction costs and the costs of labor-intensive paperwork and meaningless record keeping – costs they either don’t incur or can easily afford.

“EPA is effectively advantaging big agribusinesses. By forcing unnecessary costs on my smaller operation, and on smaller operations like mine, EPA is facilitating big agribusiness’ desire to force me and other family-sized operations out of business so they can capture control over the entire live cattle supply chain away from sustainable, family-sized ranchers,” Callicrate added.

R-CALF USA CEO Bill Bullard said he agrees and believes EPA is following USDA’s model: “The reason we now have a meatpacking monopoly and so few independent meatpackers operating in our communities is because USDA already accomplished in the meatpacking industry what EPA is now trying to accomplish in the cattle feeding industry – USDA forced smaller meatpackers to incur the same costs as were necessary to protect consumers from unsanitary conditions found in big agribusiness-owned meatpacking operations and those unnecessary costs forced hundreds of smaller packers out of business, thus facilitating the monopolization of the meatpacking industry in the United States.”

Bullard said nothing has changed and it’s only getting worse.

Bullard said also the partnership between the Obama Administration’s federal agencies and big agribusiness is inseparable: “We need only look at who the Administration invites to the cattle-industry policy table, and the only time R-CALF USA is invited is when we are the intended meal.”

Bullard said in terms of membership size, R-CALF USA is the second-largest U.S. trade association representing the U.S. cattle industry, which he says is the single largest segment of American agriculture. However, he continues, R-CALF USA most likely is the nation’s largest trade association in terms of voluntary members, “and we’re definitely the largest U.S. trade association that exclusively represents the interests of independent farmers and ranchers who raise and sell live cattle into the multi-segmented beef supply chain.

“Despite our industry prominence, the Obama Administration appoints cattle-industry representatives to serve on various policy advisory committees only from big agribusiness firms and organizations that serve big agribusinesses – by virtue of providing big agribusinesses seats on their governing boards.

“R-CALF USA is not invited to these policy discussions because we’re trying to prevent big agribusiness from taking over our U.S. cattle industry and that flies in the face of this Administration’s grand plan,” he commented.

Bullard continued, “From its animal health policies that expose our U.S. cattle herd to a heightened risk of foreign animal diseases to its efforts to control U.S. cattle producers through mandatory animal identification, the Obama Administration is catering only to big agribusiness. From its refusal to initiate antitrust enforcement action against monopolistic meatpackers and failure to finalize its fundamental competition rule, the Obama Administration is catering only to big agribusiness. And, from its trade policies that encourage price-depressing and more unsafe imports to its environmental policies that disadvantage family-scale farming and ranching operations, the Obama Administration is catering only to big agribusiness. Even after big agribusiness-controlled trade groups are caught misappropriating hundreds of thousands of family farmer and rancher checkoff dollars, the Obama Administration does nothing, thus catering again to big agribusiness.

Enough is enough,” Bullard said adding, “This Administration doesn’t care what happens to family-scale cattle operations, big agribusiness certainly doesn’t care what happens to family-scale cattle operations, and industry trade groups controlled by big agribusinesses don’t care what happens to family-scale cattle operations.

“It’s up to us – actual farmers and ranchers and organizations that exclusively represent their interests – to change the course of our industry, and the news conference at Callicrate Cattle Company will represent the first meaningful step to begin initiating that change,” Bullard concluded.

Callicrate said the public is both invited and encouraged to attend the free noon lunch and 1:00 p.m. CDT news conference on September 20 to learn first-hand the challenges faced by independently-owned cattle operations that are being squeezed out and replaced by government-favored big agribusinesses.

# # #

R-CALF USA (Ranchers-Cattlemen Action Legal Fund, United Stockgrowers of America) is a national, nonprofit organization dedicated to ensuring the continued profitability and viability of the U.S. cattle industry. R-CALF USA represents thousands of U.S. cattle producers on trade and marketing issues. Members are located across 46 states and are primarily cow/calf operators, cattle backgrounders, and/or feedlot owners. For more information, visit www.r-calfusa.com or, call 406-252-2516.

“Fighting for the U.S. Cattle Producer”

For Immediate Release Contact: Bill Bullard, CEO
September 13, 2011 Phone: 406-252-2516; e-mail: r-calfusa@r-calfusa.com
* * MEDIA ADVISORY * *

News Conference

What: R-CALF USA news conference to address the EPA’s enforcement action to pressure small- and mid-sized cattle feeders out of business by declaring hay a pollutant

The news conference will highlight ongoing efforts by the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Agriculture (USDA) to not only ignore the unique needs and interests of small- to mid-sized cattle feedlots and other cattle operation; but worse, to exact intense, unreasonable and unwarranted regulatory enforcement actions against those smaller operations to facilitate big agribusinesses’ desire to rapidly concentrate and consolidate the entire U.S. live cattle industry.

When: 1 p.m. CDT on Tuesday, September 20, 2011

Where: Hay corral at Callicrate Cattle Company located at 940 County Road 12, St. Francis, Kansas.

Who: Callicrate Cattle Company owner, Mike Callicrate
R-CALF USA Region VI Director Nominee Mike Schultz
Kansas Cattlemen’s Association Executive Director/CEO Brandy Carter
Kansas Farmers Union President Donn Teske
Cheyenne County, Kansas, Commissioner Dale Patton
R-CALF USA CEO Bill Bullard, who will moderate the panel.

Background: Mike Callicrate, owner of Callicrate Cattle Company, R-CALF USA member and an outspoken advocate against big agribusiness’s ongoing plans to concentrate and consolidate the U.S. live cattle supply chain, was blackballed by the nation’s monopolistic beef packers in 1998 – the monopolistic beef packers refused to purchase his cattle after Callicrate criticized the packers for engaging in unfair, deceptive and discriminatory cattle-buying practices. Without a market for his fed cattle, Callicrate was forced to close his feedlot.

Undeterred, Callicrate fought back to remain in the cattle business and in 2000, he bypassed the packer-controlled fed cattle market by opening Ranch Foods Direct, a local, high quality meat processing and distribution company in Colorado Springs, Colorado, and began marketing Callicrate beef from his cattle operation directly to consumers.

Callicrate’s entrepreneurial spirit is exemplified not only by his establishment of Ranch Foods Direct, but also by his successful invention, the Callicrate Bander, a unique and humane castration tool now used by ranchers around the world. In addition, Callicrate has been featured by USDA for his leadership and innovation in promoting mobile livestock slaughtering facilities that enable smaller cattle operators to slaughter cattle right on the farm or ranch, thus encouraging more local production and processing for the benefit of Rural America and urban consumers.

Less than a month ago, on August 15, 2011, the Environment Protection Agency (EPA) issued a formal Notice of Administrative Compliance Order against Callicrate Feed Yard that threatens to impose civil penalties against Callicrate in an amount up to $37,500 per day for each violation alleged by EPA.

Among the violations cited by EPA is that Callicrate failed to store his hay in a pollution containment zone, which indicates EPA now considers hay a pollutant.

According to Callicrate, “Now that EPA appears to have declared hay a pollutant, every farmer and rancher that stores hay, or that leaves a broken hay bale in the field is potentially violating EPA rules and subject to an EPA enforcement action.”

Callicrate is permitted to handle 12,000 cattle at a time in his feedlot, which is considered a small to mid-sized feedlot in an industry now dominated by mega-feedlots. For example, the world’s largest beef packer – JBS-Brazil – owns feedlots with a total one-time capacity of over 900,000 cattle. Cargill, the nation’s second largest beef packer, likewise owns mega-feedlots that feed hundreds of thousands of cattle at a time. Other packer-partnered, mega-feedlots with capacities of hundreds of thousands of cattle include those owned by Cactus Feeders, Inc. and Friona Industries.

In comments submitted to the U.S. Department of Justice, R-CALF USA estimated the above named mega-feedlots feed 18 percent of the nation’s fed cattle each year while one-fourth of the nation’s cattle are fed in feedlots with a one time capacity of 50,000 head or more. The largest of feedlots are getting larger and Callicrate’s feedlot is among the group of small to mid-sized feedlots that are being pressured to exit the industry so beef packers and corporate feedlot owners can increase their respective capacities and market control. Data from the U.S. Department of Agriculture (USDA) show that 45 feedlots with one-time capacities of 1,000 to 16,000 head have exited the industry from 2008 to 2010.

R-CALF USA contends beef packers are deliberately forcing small- to mid-sized feedlots out of business through unfair and abusive cattle-buying practices that effectively restrict market access for all but the largest of feedlots. “The proposed GIPSA rule (USDA Grain Inspection, Packers and Stockyards Administration rule) will put a stop to such unfair and abusive practices, but only if USDA issues a final rule,” said Callicrate.

“I believe the EPA’s enforcement action is a premeditated effort by EPA to partner with the beef packers, who hold a seat of honor at the EPA rule-making table, to finish the job the beef packer’s couldn’t do alone,” said Callicrate, adding, “Along with my feedlot, the EPA has filed enforcement actions against five other smaller feedlots, including one with only 400 cattle.

Callicrate said the EPA does not appear to be going after the bigger, corporate feedlots. “EPA is turning a blind eye toward the mega-feedlots that are a real risk for pollution and, instead, is antagonizing small to mid-sized family operations in an effort to help their packer-partners capture the entire live cattle supply chain away from family farm and ranch operations.”

“We thought the Obama Administration was going to bring about a change to the ongoing corporate control and corporate dominance that has been decimating the U.S. cattle industry. I guess we’re seeing that change right now. Rather than reduce corporate control and dominance, the EPA is overtly partnering with the corporate beef packers to accelerate the exodus of sustainable, independent family operations. This really smells,” Callicrate concluded.

Anyone who wishes to support R-CALF USA’s efforts to end the injustices against U.S. cattle producers by putting a stop to the Administration’s unreasonable and unwarranted enforcement practices and its refusal to enforce U.S. antitrust laws and laws prohibiting unfair trade practices against monopolistic packers can send their donations to:

R-CALF USA Legal Fund
P.O. Box 30715
Billings, MT 59107

# # #

R-CALF USA (Ranchers-Cattlemen Action Legal Fund, United Stockgrowers of America) is a national, non-profit organization dedicated to ensuring the continued profitability and viability of the U.S. cattle industry. R-CALF USA represents thousands of U.S. cattle producers on trade and marketing issues. Members are located across 46 states and are primarily cow/calf operators, cattle backgrounders, and/or feedlot owners. R-CALF USA directors and committee chairs are extremely active unpaid volunteers. R-CALF USA has dozens of affiliate organizations and various main-street businesses are associate members. For more information, visit www.r-calfusa.com or, call 406-252-2516.
R-CALF USA is supported by membership dues and donations. Please consider donating today!