Stop treating manure as waste disposal. Three producers just turned $2.5M in annual costs into million-dollar revenue streams. Here’s their blueprint.

EXECUTIVE SUMMARY: The dairy industry’s biggest lie? That manure is an expensive disposal problem instead of your most valuable untapped revenue stream. Three pioneering producers at the 2025 Midwest Manure Summit just proved this conventional wisdom dead wrong, transforming what costs most farmers 6 per cow annually into integrated systems generating up to ,912 per ton in revenue. Scott Hynds’ membrane technology creates precision fertilizer blends from liquid manure, John Rosenow’s 25-year compost operation ships 42 semi-loads annually to premium markets, and Brent Cousin’s 8,500-cow biorefinery produces renewable natural gas while reducing bedding costs by -75 per cow. With biochar production alone valued at ,828-,912 per ton and one operation saving .5 million compared to conventional methods, these aren’t isolated success stories—they’re proof that manure valorization can fundamentally transform your farm‘s economic model. While milk prices face volatility, these producers built diversified income streams that generate revenue regardless of commodity fluctuations. The question isn’t whether manure monetization works—it’s how much longer you can afford to literally dump money in your lagoons while competitors capture value from the same resource you’re paying to dispose of.

KEY TAKEAWAYS

• Transform $100,000-$400,000 annual disposal costs into revenue streams: Traditional manure management bleeds $306 per cow annually through storage, hauling, and application, but integrated valorization systems like anaerobic digestion with RNG production create multiple income sources while reducing bedding costs by $50-75 per cow.
• Membrane technology delivers precision nutrition worth premium prices: Instead of spreading liquid manure that’s 90% water, Scott Hynds’ membrane separation creates custom-tailored fertilizer blends for specific crop applications, transforming inefficient bulk hauling into precision agriculture solutions that neighboring farmers actively seek.
• Biochar production generates $1,828-$1,912 per ton while sequestering carbon: Dairy manure biochar contains twice the nutrient content of original manure by mass and three times by volume, with nutrient value reaching $240-$340 per ton plus carbon value of $1,580 per ton—creating markets that reward both productivity and sustainability.
• Scale-appropriate solutions exist for every operation size: From 200-cow dairies using co-digestion with food waste (viable at $20/ton tip fees) to 2,500+ cow operations running integrated biorefineries, the Summit data proves profitable pathways exist across all herd sizes with proper technology matching.
• Strategic monitoring drives $2.5 million savings potential: Brent Cousin’s approach of taking 60-100 annual manure samples to guarantee exact nutrient content builds customer trust while optimizing application strategies—one dairy saved $20,000 per 200 cows compared to conventional methods, scaling to $2.5 million savings for larger operations.

At the 2025 Midwest Manure Summit, three pioneering producers proved that what most farmers see as their biggest liability can become their most profitable enterprise. Their integrated systems are generating revenue streams worth up to $1,912 per ton while solving environmental headaches – and their blueprints could revolutionize your operation’s bottom line.

Look, I’ll be straight with you. If you’re still treating manure as a disposal problem, you’re literally flushing money down the drain. The producers who spoke at Green Bay’s Midwest Manure Summit this year aren’t just managing waste – they’re running sophisticated bio-refineries that would make any CFO jealous.

The numbers don’t lie. Your average Holstein dumps 150 pounds of manure daily. For a 1,000-cow herd, traditional manure management costs can range from $100,000 to $400,000 annually – costs that escalate from $399 for small herds to over $1.9 million for operations with 5,000+ cows. That’s not management – that’s financial hemorrhaging.

Why Your Current Manure Strategy Is Bleeding Money – And Why Most Farmers Are Getting This Dead Wrong

Here’s the uncomfortable truth: the dairy industry has been conditioned to accept manure as a necessary evil for decades. But what if this entire paradigm is fundamentally flawed?

Think about it like this: you’re essentially paying premium prices to haul away what could be your most valuable crop. It’s like a corn farmer paying someone to remove grain from his bins while neighbors build ethanol plants. When did you last calculate the true opportunity cost of your current manure management system?

Research shows the average farm spends 6.13 per cow annually just on storing, hauling, and applying manure – that’s .33 per hundredweight of milk produced. For a 500-cow operation, that’s over $153,000 annually just to get rid of what these Summit producers are turning into gold.

But here’s what really gets me fired up: while you’re paying to haul away this “waste,” your neighbors are starting to see dollar signs. The paradigm shift is happening whether you’re on board or not.

The wake-up call? Three producers at the Summit proved that manure valorization isn’t some pie-in-the-sky concept. It’s happening right now, generating serious revenue while solving environmental challenges.

The Membrane Revolution: Scott Hynds’ Clean Water Cash Machine

Scott Hynds from Aqua Innovations LLC is rewriting the rules of liquid manure management. His membrane technology doesn’t just clean up discharge water – it creates two distinct, valuable revenue streams that traditional systems completely miss.

“We know how to make water. We don’t know crap about crap,” Hynds joked at the Summit, but his results are dead serious. By partitioning nutrients like phosphorus and nitrogen into separate streams, producers can create custom-tailored fertilizer blends for specific land applications.

Here’s the genius: Instead of hauling diluted, inconsistent manure with 90% water content across your fields, you deliver precision nutrition exactly where crops need it. Think of it like switching from feeding a total mixed ration to precision feeding based on individual cow requirements – the efficiency gains are massive.

“When you have two unique nutrient streams that you can commingle and custom-tailor your nutrient blend per land application, it creates flexibility that wasn’t there previously,” Hynds explained.

Challenge the conventional wisdom: Why are we still spreading liquid manure that’s 90% water when membrane technology can separate valuable nutrients from discharge water? The traditional approach is like shipping ice cubes to Alaska – you’re paying premium freight costs to move mostly water.

The 25-Year Proof: John Rosenow’s Compost Cash Cow

Here’s a story that should make every 600-cow dairy producer pay attention. John Rosenow’s Rosenow Dairy and Cowsmo Compost operation has been quietly printing money for 25 years by processing manure from his farm plus a neighboring 150-cow operation.

“We don’t compost our manure for fun. We do it for money,” Rosenow stated bluntly at the Summit. “Now, let’s say it’s a nice income source when milk prices are lousy, and we count on it quite a bit.”

The numbers tell the whole story: Rosenow ships compost by semi-loads to the Twin Cities area – 42 loads to one account alone last year. Diversified income streams like compost become critical profit centers with volatile milk prices.

The marketing evolution reveals everything. Rosenow initially avoided using “manure” on product labels because consumers shied away. Now? “We have it on our label because the word has become very popular. When we’re selling to gardeners and people like that, they want to know if it’s from dairy manure. And then it’s a positive, and their eyes light up”.

But here’s the reality check: Rosenow faces three major challenges that every producer considering manure monetization should understand:

• Regulatory compliance: His 1997-designed facility now violates current DNR rules
• Marketing evolution: Traditional trade shows are dead; digital marketing is essential
• Labor retention: Current political rhetoric makes keeping good employees increasingly difficult

Are you ready to confront the uncomfortable truth? Most of us are still thinking like waste managers instead of resource processors. Rosenow’s success proves that consumer perception has already shifted – the question is whether your business model has kept pace.

The RNG Revenue Revolution: Brent Cousin’s $8,500-Cow Empire

Brent Cousin’s Holsum Dairies showcases how scale changes everything. Managing 8,500 cows across two sites, Cousin has built an integrated manure-to-energy-to-fertilizer system that maximizes every molecule.

The anaerobic digesters producing renewable natural gas (RNG) hit the jackpot when California fuel credits and federal renewable fuel standards created premium markets. “There were times and years when electrical generation did very well. That fell off, but at no point did it ever become a cost,” Cousin explained. “But then, with California fuel credits and RNG, it has really become a great diversity of our overall income.”

Here’s the cascade approach genius: biogas for energy, solid separation for bedding, and strategic nutrient application based on precise composition analysis. Cousin’s team takes 60 to 100 manure samples annually to guarantee exact nutrient content to crop growers.

Think of it like precision feeding for your crops – instead of applying a generic TMR equivalent to your fields, you deliver exactly what each field needs based on soil tests and crop requirements.

Here’s where most producers miss the boat: They think anaerobic digestion is just about biogas production. Cousin’s operation proves it’s about creating multiple revenue streams from the same feedstock while reducing input costs across the entire operation.

The Technology Stack That’s Changing Everything – Beyond the Hype

The most successful operations aren’t betting on single technologies – they’re building integrated systems. Consider these verified performance metrics:

Biochar Production: Dairy manure biochar possesses approximately twice the nutrient content of the original manure by mass and more than three times by volume. The nutrient value alone reaches $240-$340 per ton, while the carbon value hits $1,580 per ton. Combined? You’re looking at $1,828 to $1,912 per ton.

Struvite Recovery: Pilot-scale studies show 30% to 32% phosphorus recovery rates, with production costs ranging from $613-$1,500 per tonne versus $320 for conventional MAP fertilizers.

Energy Integration: Energy production from anaerobic digestion increases by 42% when coupled with pyrolysis, creating efficient closed-loop systems.

The Uncomfortable Reality: Why 87% of Farm Digesters Struggle

Here’s the controversial reality nobody discusses: research indicates that a significant percentage of farm methane digesters haven’t been profitable without grants. However, that’s changing as innovation and multinational energy companies pump dollars into farm projects.

The economic viability of anaerobic digestion, particularly for small and medium-sized dairy farms, hinges on a multi-revenue stacking strategy. For example, a 300-cow dairy can achieve economic feasibility for its AD system only when food waste is co-digested in an equal volume with manure, alongside tip fees reaching $20 per ton and biomethane valued at $25 per million BTU.

Critical question for every producer: Are you still considering manure management as a single-solution problem, or are you ready to embrace the biorefinery concept that maximizes value at every step?

Market Forces Driving the Transformation – The Money Trail

The economic drivers extend far beyond farm gates. Aemetis Biogas completed $1.6 million in LCFS credit sales in April 2024 alone, with federal Section 45Z production tax credits for dairy RNG beginning in January 2025. Programs like Carbon by Indigo return 75% of carbon credit purchase prices directly to farmers.

Government support is accelerating adoption. The USDA’s Transform F2C project includes a $70 million Dairy Manure Management Incentive Program, offering up to $1 million per farm entity with potential 100% project budget coverage.

Implementation Realities: What Success Actually Looks Like

Based on verified performance data from the Summit producers, here’s what actually works:

Cousin’s monitoring approach: “For manure generation, we look at how much manure we apply yearly. We only get that number once a year. We evaluate that on a per-cow basis just to monitor how we’re doing year over year, trying to limit that as much as possible”.

Key performance indicators successful operations track:

• Manure generation per cow annually
• Application methods (hose vs. truck percentages)
• Bedding dryer performance through milk quality metrics (SCC, clinical mastitis)
• Biogas production quality and volume
• Operational performance data with smart sensors

Here’s the hard truth most consultants won’t tell you: Success isn’t just about installing equipment – it’s about fundamentally changing how you think about every molecule that leaves your cows. Are you measuring the right metrics or still focused on outdated disposal-focused KPIs?

The Challenges Nobody Talks About – Confronting the Uncomfortable Realities

Capital costs for advanced systems range significantly. Struvite recovery systems designed for 60,000 gallons of manure daily cost $75 to $125 per cow in capital investment, with operating costs of $80 to $140 per cow annually.

Initial setup costs for algae cultivation can range from $180,000 to over $600,000, depending on scale and location. Biochar production capital costs can vary dramatically, from $1 million for small-scale plants to $90 million for large-scale facilities.

The permitting maze is real. Anaerobic digestion facilities need permits from local administrative bodies for building construction, air pollution control, hazardous waste management, and water discharge.

But, the successful producers understand that these challenges are temporary obstacles, not permanent barriers. The producers who solve them first will dominate the emerging markets.

Why This Matters for Your Operation – The Scale Economics Reality Check

The data from these three operations reveals scalable opportunities across different herd sizes:

For 200-500 Cow Operations: Research shows co-digestion with food waste becomes economically viable when tip fees reach $20 per ton and biomethane values hit $25 per MMBTU. Strategic partnerships with local food processors create dual revenue streams.

For 500-2,500 Cow Operations: Advanced anaerobic digestion with RNG production offers the sweet spot for profitability, especially with California fuel credits generating substantial monthly revenues.

For 2,500+ Cow Operations: Integrated biorefinery approaches maximizing biochar, struvite recovery, and energy production provide the highest returns. One dairy saved approximately $20,000 per 200 cows compared to conventional methods, potentially reaching $2.5 million in savings for a 2,600-cow operation.

But here’s the controversial reality: The dairy industry has been conditioned to believe that only large operations can monetize manure effectively. These Summit producers prove that’s a limiting belief that’s costing smaller operations millions in lost opportunities.

The Critical Question Every Producer Must Answer

Are you willing to challenge the fundamental assumption that manure is waste? The Summit producers didn’t just adopt new technology – they completely reimagined their relationship with every pound of manure their cows produce.

Research demonstrates that with full utilization, organic wastes could generate 2% to 4% of total electricity needs or supply 10% to 15% of statewide gasoline demand in the form of renewable natural gas.

The economic potential is staggering: widespread deployment of anaerobic digestion infrastructure could catalyze over $1.27 billion in capital investments, generate more than 12,000 construction jobs, and sustain over 1,000 long-term operational positions.

The Bottom Line: Your Strategic Decision Point

The three Summit producers demonstrated conclusively that manure transforms from liability to asset when approached strategically. With milk production facing dynamic changes, diversified revenue streams become essential.

Your action plan starts now:

1. Calculate your true manure handling costs – most producers underestimate annual expenses. If you spend more than $306 per cow annually on manure management, you’re bleeding money that could generate revenue.
2. Assess your local market conditions – proximity to crop growers, food processors, and energy infrastructure. With manure nutrient value ranging significantly depending on application rates and fertilizer prices, local markets can dramatically impact your ROI.
3. Evaluate your scale – different technologies optimize at different herd sizes. The Summit data proves that every operation size has viable options, but the approach must match your scale and local conditions.
4. Explore partnerships – third-party build/own/operate models eliminate financial risk while capturing benefits. Strategic alliances with energy companies, waste management firms, and technology developers can accelerate implementation while reducing risk.

The fundamental choice: Will you continue paying to dispose of what could be your most profitable crop, or will you join the producers who are building the future of dairy profitability?

The question isn’t whether manure monetization works – the Summit producers proved that beyond doubt. How much longer can you afford to dump money in your lagoons while your competitors build revenue streams from the same resource you’re paying to dispose of?

The transformation is happening. The only choice you have is whether you’ll lead it or watch from the sidelines while others capture the value you’re currently throwing away.

The window for early adoption advantages is closing fast. As more producers recognize manure’s revenue potential, competition for premium markets will intensify. The farmers establishing these systems now will control the best customer relationships and command premium pricing.

Your move starts today. Because in five years, the question won’t be whether you should have monetized your manure – it’ll be why you waited so long to start.

Learn More:

• Why In-Season Manure Application Will Transform Your Dairy’s Bottom Line – Practical strategies for implementing dragline systems and high-clearance applicators that can increase crop yields by 10-15% while maximizing nutrient timing and reducing fertilizer costs.
• Flush Your Profits Down the Drain? How Manure Millionaires are Cashing In – Reveals market dynamics driving the 400% growth in anaerobic digesters since 2018 and demonstrates how community digester models enable smaller operations to join the manure monetization revolution.
• America’s Largest Manure Digester: How BC Organics is Transforming Dairy Farming and Protecting the Environment – Case study showcasing how collaborative digester projects achieve economies of scale while delivering measurable environmental benefits like reduced phosphorus runoff and cleaner water for entire farming communities.

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