environmental Strategist, between the lines: Studies have stated agriculture accounts for 80% of the worldwide fresh water consumption and contaminates 70% of our waterways. However, each and every one of us depend upon agriculture. Understanding that just by their very existence agricultural operations are polluters, the question becomes how can agricultural operations pollute in a way that has the least amount of impact upon human health and the environment?
The article below highlights a growing trend in the livestock industry. As you go through the article, I have highlighted in red the pollution insurance coverage appropriate for the various environmental exposures.

Dairy Farm Produces Electricity From Manure
FENNVILLE, MI – Brian Geerlings estimates his 2,000 cows produce enough milk (milk has been classified as a pollutant so Environmental Impairment Liability (EIL) site pollution coverage for the dairy farm and transportation pollution insurance to get the milk to the producer / consumer) each day to supply each resident of Grand Rapids with an 8-ounce glass of milk.
But that’s not all his cows produce. Thanks to three “anaerobic digesters” that process the manure on the “back end” of the farm, the Scenic View Dairy also generates enough electricity to power more than 700 homes.
“We’re able to produce our milk with a negative carbon footprint,” says Geerlings, a 36-year-old farmer who moved his Scenic View Dairy to Allegan County from the Zeeland area in 2000 to escape the urban sprawl that inhibited expansion.
The cows are milked three times a day (Before a cow can be milked they must be washed which produces contaminated waste water. Washing consumes approximately 40 gallons per cow per day. Waste water from washing cows accounts for the majority of waste in manure lagoons. EIL coverage will address these exposures) eating from a carefully blended mix of silage designed to give them the optimal amount of protein, fiber and nutrients. “It’s calculated to produce milk,” says Geerlings, who estimates each cow eats about 110 pounds each day.
Housed in open-air barns (Air emissions from cows methane, which makes up 10 – 15% of global methane emissions. EIL coverage for this exposure) designed to keep them comfortable and out of the weather, each cow’s milk output is individually weighed and recorded.
“We have records from the day she’s born until the day she dies,” said Geerlings, who said the herd produces about 18,000 gallons of milk each day – about 75 pounds per cow.
After it leaves the cow, the milk is piped into a chiller (Many agricultural products, like milk, need to be kept cold which involves refrigerant chemicals that can release air emissions or spill fluids. EIL coverage.) and transported within 24 hours by truck to a milk processing plant in Reed City, where it is converted into Yoplait yogurt, or Coopersville, where it dried and used in the food processing industry or sent overseas. (Products pollution exposure. Generally, the environmental liability insurance market does not like to offer this coverage on consumable products.)
That’s on the front end. What makes Geerlings’ farm unusual is his handling of the cows’ manure, which has historically been treated as a smelly nuisance (EIL coverage).
At Scenic View Dairy, the manure is treated like gold. While the cows are in the milking parlor, their manure is scraped into holding tanks and sent to one of three large green silos (EIL coverage for the storage), where it is heated over a 22-day period.
The heating process causes the slurry to emit methane gases that are captured by the large cones. As a bonus, capturing the methane gas also eliminates much of the smell associated with the farm. (EIL coverage for air emissions)
The captured methane is used to fuel two 12-cylinder Caterpillar motors that run round-the-clock (EIL for air emissions) to drive electrical co-generators that supply electricity for the farm and are fed back into the grid operated by Consumers Energy.
Besides eliminating an electrical bill that could reach up to $15,000 a month, Geerlings estimates he sells about two-thirds of the electricity generated by the farm back to Consumers Energy. “We just renewed our 20-year contract with Consumers,” he said.
The farm’s negative carbon footprint also allows Geerlings to sell “carbon credits” to companies who need to offset their carbon consumption. While the market price of carbon credits fluctuates, Geerlings estimated he pockets about $50,000 a year from their sale.
After the methane is extracted, liquid is expelled from the manure and returned to the barns for bedding. Some of the “bio-mulch” also is sold to landscape companies for mulch or soil conditioners. (Depending upon how the bio-mulch is stored you can have a storm water runoff exposure along with the transportation pollution liability exposure to get mulch to landscape companies and consumers. EIL and transportation pollution liability coverage. Potential products pollution exposure.)
The liquid from the manure is stored in lagoons (EIL coverage) and injected back into the 3,200 acres (EIL coverage) which Geerlings owns or rents (Depending upon the rental agreement this could be site pollution coverage or Contractors Pollution Liability (CPL).) in the area to raise corn, soybeans, wheat and rye (EIL coverage for the storage and application of other agricultural chemicals used in order to grow these crops.). Much of those crops are fed back to the herd.
The digesters not only add cash to Geerlings’ bottom line, but also stabilizes his balance sheet when dairy prices fluctuate.
“There are times in the past year when the digester has made more than the cows,” says Geerlings, who employs 35 full-time workers. “It takes dedication and it takes focus to make it pay.”
Jim Harger covers business for Mlive Media Group. Email him at jharger@mlive.com
*Link To The Article and Video*


