>> THIS LAND IS OF MY FOREBEARERS WHO CONFORMED ITS WILDNESS TO THEIR OWN DESIGNS, WHO PLOWED MEASURED FURROWS ACROSS ITS RANDOM SWALES AND DESCRIBED ITS BOUNDARIES IN ROWS OF STONE, WHO BAPTIZED IT WITH THEIR SWEAT AND THEIR BLOOD AND JOINED IT WITH THEIR BONES.

>> FARMERS HAVE ALWAYS HAD A LOVE AFFAIR WITH MACHINERY BECAUSE IT ALLOWS THEM TO PRODUCE MORE AND HOPEFULLY SAVES THEM WORK.

OF COURSE, SOME SAY THAT FOR EVERY BIT OF WORK IT SAVES, IT ADDS MORE.

JUST ASK THESE GUYS THE NEXT TIME THAT CHOPER BREAKS DOWN.

TECHNOLOGY HAS ALWAYS OFFERED BOTH PROMISE A PERIL TO VERMONT FARMS.

>> TODAY'S TOLS ALLOW VERMONT FARMERS TO DO A LOT MORE WITH A LOT LESS.

200 YEARS AGO 6 MEN COULD HAEST 30 TONS OF HAY IN ABOUT ONE MONTH'S TIME.

100 YEARS LATER WITH THE HELP OF HORSE POWERED MACHINERY, HALF THAT NUMBER OF MEN COULD PUT UP TWICE THE AMOUNT OF HAY.

TODAY WITH A TRACTOR, MOWER AND A ROUND BAILER, ONE MAN CAN PUT UP 30 TONS OF HAY IN ONLY TWO DAYS.

MOST VERMONT FARMERS ARE DAREY FARMERS.

FOR THEM AND VERMONT'S OTHER AGRICULTURAL PRODUCERS, COMPETITION IS THE NAME OF THE GAME.

WHOEVER PRODUCES T MOST PRODUCT MOST EE FISH NTLY WILL PROSPER, OR AT LEAST SURVIVE.

OVER THE YEARS TECHNOLOGY HAS FUELED THIS COMPETITION BRINGING PROS PER THE TO SOME AND FINANCIAL RUIN TO OTHERS.

IN THE 1930S THE FIRST TRABTORS OFFERED THE PROMISE OF GREATER OUTPUT WITH LESS LABOR.

BUT MANY HILL FARMERS WHO COULDN'T USE A TRACTOR ON THEIR STEEP TERRAIN LOST THE COMPETITIVE EDGE AND EVENTUALLY WENT OUT OF BUSINESS.

>> REMEMBER THESE?

THE MILK CAN WAS USED BY VERMONT FARMERS FOR OVER 100 YEARS, BUT IN THE 1960S MILK HANDLERS WANTED A BETTER WAY TO SHIP MILK IN BULK.

THE SOLUTION S TO PUMP MILK DIRECTLY FROM THE COW TO A BULK TANK WHERE A NKER TRUCKOULD NVENIENTLY PICK IT UP AND TAKE IT TO THEREAMERY.

THE PROBLEM WAS THAT MANY SMALL FARMS WEREN'T ACCESSIBLE TO LARGE TRUCKS, AND NOT EVERYONE COULD AFFORD AULK TANK, SO MORE FARMS WENT OF BUSINESS.

VERMONT FARMERS HAVE ALWAYS LIVED IN A WORLD OF CONSTANT CHALLENGES AND CHANGE.

JUST AS IN ANY OTHER INDUSTRY, SOME PEOPLE ADAPT AND SOME PEOPLE DON'T.

THOSE THAT DON'T OFTEN END UP LOSING THEIR FARM, BUT LOSING ANOTHER FARM MEANS MORE TO VERMONTERS THAN LOSING ANY OTHER SMALL BUSINESS.

>> AGRICULTURE IS THE SOUL OF WHAT WE'RE ALL ABOUT IN VERMONT.

THE THING THAT MAKES VERMONT DIFFERENT THAN MOST OTHER STATES IS OUR SENSE OF COMMUNITY, OUR SENSE OF INVOLVEMENT WITH EACH OTHER, OUR BELIEF THAT WE CAN REACH OUT AND TOUCH SOMETHING THAT MAKES A DIFFERENCE IN EACH OF OUR LIVES.

>> YOU HAVE FARMERS WHO ARE KEEPING THE LAND OPEN, WHO ARE DOING HONEST, HARD WORK PRODUCING A REAL PRODUCT THAT PEOPLE NEED.

>> TO MANY PEOPLE, THAT IS VERMONT, IT'S THE COUNTRY, IT'S THE FARM, IT'S THE FARM FAMILY.

OO FARMING IS MORE THAN A BUSINESS, IT'S A WAY OF LIFE, A PEOPLE WHO LIVE AND WORK ON THE LAND IN A TIME WHEN MOST AMERICANS LIVE IN THE SUBURBS AND WORK IN THE CITY.

WHEN A FARM GOES, PART OF VERMONT GOES WITH IT.

>> EVERYONE TODAY IS WORRIED ABOUT LOSING THE FAMILY FARM, BUT THE FACT OF THE MATTER IS THAT THE FAMILY FARM HAS BEEN DYING SINCE THE 1930S.

I SAW A LOT OF THEM GO OUT IN MY YOUTH IN THE 1950S IN VERMONT.

BY THE 1960S THE BULK TANK AND OTHER INNOVATIVE DEVICES PRETTY MUCH PUT AN END TO THE FAMILY FARM AS WE KNOW IT.

THE GAP NOW BETWEEN WHAT THE PUBLIC THINKS OF FARMING AND THE VERMONT DAIRY FARM IS QUITE PROFOUND.

>> THE FAMILY FARM IS T STUFF OF AMERICAN MYTHOLOGY.

MOST OF US HAVE BEEN RAISED TO THINK OF THE FARM WITH A SENSE OF NOSTALGIA.

AN EYE DILL LICK PEACEFUL PLACE WHERE SIMPLE FOLKS CARRY ON THEIR TIMELESS TRADITIONS OF RAISING FOOD FOR THE REST OF US.

THERE'S MYT AND THERE'S REALITY.

LIKE ANY OTHER INDUSTRY, AGRICULTURE IS CONSTANTLY CHANGING WITH THE TIMES.

AT DON SIM FARM IN SUTTON, VERMONT, TWICE A DAY TWO EMPLOYEES MILK 400 COWS.

EACH ANIMAL'S I.D.

NUMBER I AUTOMATICALLY EERED IN CENTRAL COMPUTER AL ARNOLD SUR REJ TO TCK THE PERFORMANCE OF 400 COWS AT A GLANCE.

THE EXACT AMOUNT OF EACH COW'S MILK OUTPUT IS RECORDED TWICE DAILY.

ANYTHING ELSE A FARMER COULD POSSIB NEED TO KNOW, LIKE THE BIRTHDATE OF COW NUMBER 267'S NEXT CALF IS ALL A FINGER AT THIS POINT AWAY THANKS TO THE LEST DAREY FARMING SOFTWARE.

>> FARMING VERY COMPETITIVE TODAY.

IF YOU DON'T HAVE A HALE ON THE LATEST TECHNOLOGY, IT DOESN'T TAKE LONG BEFORE YOU'RE BEHIND THE PROVERBIAL 8 BALL.

>> THE HIGH COST OF KEEPING UP WITH ALLF THAT TECHNOLOGY MAKES FOR SOME DIFFICULT CHOICES.

JIM CRAMER WANTED TO KEEP DARYING ON THE FARM HIS GRANDFATHER BOUGHT BACK IN 1937 FOR JUST $11,000.

THROUGH SOME CREATIVE FINANCING, JIM ANDIS WIFE DEBBY MANAGED TO BUY THE FARM, THE COWS AND ALL THE MACHINERY.

NOW THEY'RE DEEPLY IN DEBT.

ARE THE COSTS OF GETTING INTO FARMING TODAY SO HIGH THAT THEY'RE KEEPING MORE FARMERS OUT THAN IN?

JACK PARENT HAS TO PUT IN A STORAGE SYSTEM TO KEEP NUTRIENTS FROM HIS MANURE OUT OF LAKE CHAMPLAIN.

THE ESTIMATED COST OF THE SYSTEM IS MORE THAN THE AMOUNT PARENT PAID FOR HIS FARM JUST 15 YEARS AGO.

WILL NEW ENVIRONMENTAL REGULATIONS FORCE EVEN MORE VERMONT FARMERS OUT OF BUSINESS?

FRED AND SDRA STONE HAVE SEEN THEIR MILK PRICES DROP AND THEIR COSTS GO UP.

THEY PREDICT THAT THE USE OF B.S.T.

WILL INCREASE THE SUPPLY OF MILK SO MUCH THAT PRICES WILL DROP EVEN FURTHER.

IS IT WORTH IT FOR VERMONT FARMERS TO USE B.S.T.

IN ORDER TO KEEP UP IN AN INCREASINGLY COMPETITIVE DAIRY MARKET?

THESE CHOICES AND MANY LIKE THEM WILL DECIDE THE FUTURE OF VERMONT'S FAMILY FARMS.

>> EVERY SPRING VERMONT FARMERS COME DOWN WITH NEW TRACTOR FEVER, THE IMPULSIVE NEED TO BUY A KNEW PIECE OF MACHINERY.

DAIRYARMER JIM CRAMER GETS IT JUST LIKE ANYBODY ELSE, BUT HE KNOWS HE WON'T BE BUYING A NEW TRACTOR FOR A LONG TIME.

JIM CRAMER RECENTLY BOUGHT A FARM.

>> THE COST OF GETTI INTO FARMING TODAY IS TREMENDOUS.

THE AMOUNT OF CASH YOU HAVE TO HAVE AVAILABLE EVEN TO GET ESTABLISHED IS MIND BOGGLING.

FIRST U HAVE TO HAVE THE LAND AVAILABLE TO RAISE YOUR CROPS, AND THEN THE MACHINERY TO HARVEST IT, AND THE CATTLE.

IT'S JUST A TOUGH SITUATION TO GET INTO.

>> AT THE AGE OF 33, JIM CRAMER IS ONE OF A RARE BREED, THE YOUNG FARMER.

HE AND HIS WIFE DEBBY WANTED TO BUY THE FAMILY FARM FROM JIM'S PARENTS, BUT THE INITIAL COST OF TTING INTO FARMING WAS ALMOST ENOUGH TO KEEP THEM OUT.

FIRST, THERE'S CATTLE.

THE CRAMERS PAID OVER $1,000 A HEAD FOR THEIR HOLSTEINS.

WITH THE BARN AND THE MILKING SYSTEM, THIS ALL COMES IN AT OVER $300,000.

TO FEED ALL THOSE COWS YOU'VE GOT TO GROW CROPS,O YOU NEED LAND, LOTS OF IT.

E CRAMERS' 550 ACRES ARE WORTH AROUND $400,000.

TO PLANT, CULTIVATE AND HARVEST YOUR CROPS YOU NEED MACHINERY.

MOST OF THE CRAMERS' EQUIPMENT IS ABOUT 20 YEARS OLD, RGHLY VUEDT $75,000.

THE GRDOTAL ISLMOST $800,000 JUST FOR THE CRAMERS TO MILK THEIR FIRST COW.

WITH THIS KIND OF EXPENSE, IT'S AMAZING THAT ANYONE GOES INTO FARMING.

THE CRAMERS MANAGED ONLY BY TAPPING INTO SOME LIKELY AND UNLIKELY SOURCES.

>> WE PURCHASED THE FARM REAL ESTATE ITSELF FROM MY DAD.

WE ALSO SOLD THE DEVELOPMENT RIGHTS TO THE VERMONT LAND TRUST.

>> SELLING THE FARM'S DEVELOPMENT RIGHTS HELPED, BUT TO BUY THE FARM THE CRAMERS STILL NEEDED TO BORROW MONEY.

LOAN OFFICER JEFF TEMPLE COORDINATED THE DEAL.

>> IT WOULD BE VERY DIFFICULT FOR A YOUNG COUPLE WITHOUT SUBSTANTIAL CAPITAL OF THEIR OWN TO GET STARTED IN FARMING JUST BECAUSE THE COST OF FARMING HAS RISEN SO MUCH OVER THE LAST 10 OR 15 YEARS.

FARMING IS EXTREMELY COMPETITIVE THESE DAYS GENERALLY BECAUSE OF THE IN THEECENT PAST THE MILK PRICES HAVE NOT BEEN UP TO PREVIOUS LEVELS.

COSTS CONTINUE TO INCREASE, SO THE MARGINS ARE GETTING THINNER AND THINNER.

JIM'S GOING TO HAVE TO REALLY WORK VERY HARD.

>> IN ORDER TO FINANCE MORE CATTLE AND PAY OFF OTHER DEBTS, THE CRAMERS TURNED TO V.E.D.A.. >> THE VERMONT ECONOMIC DEVELOPMENT AUTHORITY AT THIS HAS BEEN MAKING LOANS TO A VARIETY OF COMPANIES SINCE THE EARLY 1970S.

BY THE MID 1980S THERE WAA PERCEPTION AMO GOVT ADERS DS THAT S REO A PART E ECOFERNTND THATHEY NEEDED FINANCIAL ASSISTANCE TOO.

>> V.E.D.A.

CONSOLIDATED MANY OF THE CRAMERS' DEBTS INTO ONE LOAN WITH LOW PAYMENTS, A MOVE WHICH IS PROVING A LIFE SAVER.

>> THIS DEBT IS TYPICAL FOR A FARM FAMILY IN THE AGE CATEGORY AND THE SORT OF STAGE OF THEIR BUSINESS WHERE JIM AND DEBBY ARE, BUT IT'S ALSO A RELATIVELY HIGH DEBT LOAD AND WITHOUT SOME BREAKS ALONG THE WAY, SUCH AS LONGER TERMS ON THEIR LOANS THAN THEY MIGHT BE ABLE TO GET OTHERWISE AND SBHA LOWER INTEREST RATES, THEY PROBABLY WOULD NOT HAVE BEEN ABLE TO TAKE THE FARM OVER FROM THEIR PARENTS.

>> WITH THE AID OF V.E.D.A., FARM CREDIT, THE VERMONT LAND TRUST AND EVEN THE FEDERAL GOVERNMENT WHICH IS COST SHARING THIS POLLUTION CONTROL PROJECT, CRAMER FARMS IS NOW A VIABLE BUSINESS, BUT AT A PRICE.

>> IEBTEDNESS IS DEFINITELY A PART OF FARMING TODAY.

THERE IS DEFINITELY A MAJORITY OF FARMS THAT ARE HEAVILY IN DEBT, AND SEEMS TO BE FEWER AND FEWER YOUNG PEOPLE ABLE TO MAKE THE COMMITMENT.

>> THE FUTURE FOR FARMERS SEEKING OUT FUNDS IN T STATE OF VMONT, IT'S GOING TO BE DIFFICULT AS IT IS IN MOST OF NEW ENGLAND BECAUSE OF IT BECOME SO LONG COMPETITIVE.

>> FARMERS ARE PART OF THE ECONOMY JUST LIKE ANY OTHER BUSINESS, AND THEY HAVE TO COMPETE FOR A LIMITED AMOUNT OF FUNDS, NOT ONLY AGAINST EACH OTHER BUT ALSO AGAINST ALL OF THE OTHER PARTS OF THE ECONOMY, ALL OF THE OTHER BUSINESSES OUT THERE WHO REQUIRE CREDIT.

>> DAIRY FARMERS ARE TENDING TO GET LARGER AND LARGER WHICH MAKES IT MORE AND MORE DIFFICULT FOR PEOPLE TO GET INTO THE BUSINESS, TAND ALSO INCREASES THE RISK INVOLVED IN LENDING AS BUSINESSES GET LARGER.

>> IF THE DAY SHOULD COME WHEN ONE OF THE CRAMER CHILDREN WANTS TO BUY THIS FARM, WILL THE COST BE ONE THEY CAN AFFORD?

>> I HAVE THREE DAUGHTERS AND ONE SON.

WOULD IT BE FEASIBLE FOR THEM TO GET INTO DAIRY FARMING?

I'D BE TICKLED TO DEATH IF ONE OF THEM WERE INTERESTED.

I WOULD DO ANYTHING IN MY POWER TO HELP THEM GET INTO FARMING, BUT IN REALITY, I HOPE THEY'RE INTELLIGENT ENOUGH TO MAKE A WISER DECISION THAN THAT.

>> THERE ARE SOME COSTS THAT FARMERS CAN COUNT ON AND SOME THEY CAN AVOID, BUT THERE'S AN EXPENSE LOOMING IN THE NEAR FUTURE THAT COULD PUT AS MANY AS 300 VERMONT DAIRY FARMS OUT OF BUSINESS.

IS IT AN EXPENSE WE SHOULD ALL BEAR OR SHOULD FARMERS BE SOLELY RESPONSIBLE FOR THE ENVIRONMENTAL IMPACT OF GROWING OUR FOOD?

>> SUMMER, WINTER, SPRING AND FALL SWANTON DAIRY FARMER JACK PARENT SPREADS OVER 6,000 TONS OF MANURE ON 400 ACRES OF FARM LAND.

IT'S ONE OF THE OLDEST JOBS IN DAIRY FARMING.

MANURE IS GREAT FERTILIZER, RICH IN NUTRIENTS LE PHOSPHOROUS AND NITROGEN, BUT THOSE SAME NUTRIENTS THAT KEEP JACK PARENTS' FIELDS GREEN ALSO ENCLOSING LAKE CHAMPLAIN WITH ALGAE AND WEEDS.

AGRICULTURAL RUNOFF IS A PROBLEM THE STATE OF VERMONT WANTS TO CORRECT.

>> VERMONT'S EFFORTS TO CLEAN UP ITS STREAMS REALLY BEGAN IN 1958.

POINT SOURCE POLLUTION COROL WAS TOLEAN UP WHAT WAS COMING FROM TOWNS AND THE SOLUTION THERE WAS BASICALLY TO ENGINEER TREATMENT PLANTS.

MUCH OF THIS WORK HAS KIND OF COME TO AN END IN THE LATE 80S AND ATTENTION IS NOW BEING PAINT TO NONPOINT SOURCE POLLUTION.

NONPOINT SOURCE POLLUTION DEALS WITH RUNOFF FROM LAND SWI A MUCH DIFFERENT SITUATION TO DEAL WITH.

THERE ARE FOR EXAMPLE ABOUT 6,000 FARMS PLUS URBAN AREAS THAT ALL CONTRIBUTE TO NONPOINT SOURCE POLLUTION.

>> AGRICULTURE IS NOT GOING TO CLEAN UP THE LAKES ALONE.

IT'S BEEN FOUND THAT URBAN RUNOFF IS VERY SIGNIFICANT.

WE'RE ALL GOING TO WORK AT THIS TOGETHER.

>> DURING EARLY EFFORTS TO DEAL WITH NONPOINT POLLUTION, SHELBURNE FARMER TOM BUSHEY PARTICIPATED IN ONE OF THE FIRST WATER QUALITY EXPERIMENTS IN THE NATION, THE LAPLATT PROJECT.

>> ONE OF THE MAIN ISSUES THAT'S BEEN AROUND FOR 20 YEARS OR MORE IS THE SPREADING OF MANURE ON FROZEN GROUND, FROZEN SNOW COVERED GROUND IN THE WINTERTIME.

>> IN THE LATE 1970S, LAPLATT PROJECT SCIENTISTS SET OUT TO TEST A THEORY.

IF FARMERS DIDN'T SPREAD MANURE IN WINTERTIME WHEN IT COULD DRAIN INTO WATERWAYS, WOULD THE WATER QUALITY OF LOCAL RIVERS AND LAKE CHAMPLN IMPROVE?

>> KIND OF TO SUM IT UP IN A NUTSHELL, THE LAPLATTE RIVER WAS MUCH NICER AT THE END OF THAT PERIOD OF TIME.

>> THE RESULT OF SFUD YIS LIKE THE LAPLATT PROJECT LED TO A STATE POLICY THAT HAS NOW BECOME LAW.

VERMONT FARMERS WILL NO LONGER BE PERMITTED TO SPREAD WINTER MANURE ON FROZEN GROUND.

>> THEN I'LL HAVE TO GO TO A STORAGE SYSTEM OF SOME KIND.

>> FOR JACK PARENT, THE NEW POLLUTION REGULATION SPELLED BIG PROBLEMS, MONEY PROBLEMS.

>> I'LL BE HAVING TO PUT A PIT IN IN THE NEAR FEW TX AND THIS IS WHAT I HAVE TO WORKITH HERE.

YOU CAN TELL, IT'S REAL SANDY LOAM WHICH DOES NOT HOLD MANURE WELL.

HAVE TO BRING IN CONCRETE BASIN OR ELSE GO WITH A CLAY BASIN WHICH I DON'T HAVE NO CLAY ON MY FARM WHICH WILL HAVE TO BE PLCHED AND TRUCKED IN.

WE'RE TALKING A BIG AUNT OF CLAY FOR THIS SIZE HERI HAVE.

>> PARENT ESTIMATES A MANURE STORAGE SYSTEM WILL COST HIM OVER $150,000.

14 YEARS AGO TOM BUSHEY'S MA PIT COST ONLY $40,000 WITH 75% SUBSIDIZED BY THE FEDERAL GOVERNMENT.

>> THERE WAS NO WAY IN 1980 THAT WE WOULD HAVE EVEN CONSIDERED DOING IT ON OUR N BECAUSE WE COULDN'T AFFORD TO DO A BIG PROJECT LIKE THAT AND THIS IS SOMETHING THAT ONE SINGLE FARMER CAN'T POSSIBLY DO ON HIS OWN WITHOUT SOME SORT OF FINANCIAL ASSISTANCE.

>> THE AMOUNT OF MONEY THAT WE HAD IN THE PAST WILL NOT BE AVAILABLE IN THE FUTURE.

IT IS THAT SIMPLE.

>> JIM MONAHAN IS THE HEAD OF THE AGENCY THAT DOLES OUT FEDERAL DLARS FOR CLEAN WATER PROJECTS ON VERMONT FARMS.

>> IN THE PAST THERE'S BEEN A NUMBER OF COST-SHARING PROGRAMS WHERE A LANDOWNER WOULD BE ELIGIBLE TO RECEIVE UP TO 75% OF THE COST UP TO A MAXIMUM FIGURE.

THOSE FUNDS HAVE REALLY GOTTEN HARD TO COME BY.

>> LAST YEAR WELL OVER $1 MILLION WAS AVAILABLE FOR CONSERVATION PROJ NEKTS VERMONT.

NEXT YEAR THIS NUMBER WILL BE REDUCED BY MORE THAN HALF.

FINANCIALLY STRAPPED FARMERS CAN ILL AFFORD THIS CUT BA.

>> THIS MANURE BUSINESS, YES, IT WILL MAYBE NOT NECESSARILY PUT THEM OUT OF BUSINESS BUT MAKE THEIR DECISION THAT MUCH EASIER TO GO OUT OF BUSINESS.

>> THERE'S DEFINITELY FARMS THAT WILL SAY, IT'S TOO MUCH MONEY, I CAN'T AFFORD IT, AND THAT IT'S TIME TO GET OUT.

AND IN SOME CASES THAT MAY BE TRUE BECAUSE THEY MAY HAVE A VERY DIFFICULT SITE ERE THEY'D HAVE TO HAVE $150,000 SYSTEM ALONE AND THERE MAY BE NO WAY THAT THEY COULD GET THEIR MONEY BACK ON THAT.

>> I WOULD MUCH PREFER HAVING A GOOD PRICE FOR MY MILK.

I COULD HANDLE MY PROBLEMS.

IF MY PRODUCT WOULD HAVE RISEN IN THE SAME PACE AS MY PARTS BILLS, MY ELECTRICITY BILLS, LABOR BILLS, SO FORTH, IT WOULD STILL BE A BIG AMOUNT OF MONEY BUT MY INCOME WOULD BE THAT MUCH GREATER.

I WOULDN'T NEED THE FEDERAL GOVERNMENT OR BOTHER THE TAXPAYERS.

I'D BUILD MY OWN PIT.

>> OOT RISING COST OF KEEPING UP WITH THE TIMES HAS FOCUSED ATTENTION ON FARM INCOMES.

ONE OF THE REASONS DAIRY FARMERS RECEIVE SUCH A LOW PRICE FOR THEIR MILK IS OVERSUPPLY.

PEOPLE THESE DAYS ARE DRINKING LESS MILK, BUT FARMERS ARE PRODUCING MORE AND MORE.

HOW?

WELL, LET ME INTRODUCE YOU TO THE SUPER COW.

(CHATTER) (CHATTER) >> WELCOME TO LYLEHAVEN S, EAST MONTPELIER' GENETIC SUPERMARKET TO THE WORLD.

IT'S A GOOD PLACE TO BEGIN THE SUPER COWTORY.

>> THE NORTH AMERICAN HOLSTEIN IS KNOWN THROUGHOUT THE WORLD AS THE BEST DAIRY ANIMAL IN THE WORLD.

THAT'S CASE CLOSED.

>> AND OUR COWS FOR GENERATION AFTER GENERATION HAVE BEEN BRED TO BE THE TOP END GENETICALLY OF THE NORTH AMERICAN HOLSTEIN.

PEOPLE FROM AROUND THE WORLD COME TO NORTH AMERICA AND THE CONCENTRATION OF GOOD CATTLE IN NEW ENGLAND IS PROBABLY MORE THAN ANYPLACE ELSE IN THE WORLD.

>> AFTER THE WAR IN GERMANY WE DIDN'T HAVE TT HIGH-PRODUCING CS, SO WE LIKED TO GET THOSE GENES TO OUR COUNTRY AND WE WERE PRETTY SUCCESSFUL.

STILL I THINK THAT THERE ARE A LOT OF GOOD GENETICS HERE IN THE UNITED STATES WHICH WE CAN USE AND WOR TOGETHER.

>> JUST WHAT GOES INTO THE CREATION OF A GENETICLY SUPERIOR COW?

WHAT EXACTLY ARE THE QUALITIES THAT A TRABT BUYERS FROM AROUND THE WORLD?

WELL, BASICALLY SHE'S GOT TO GIVE A LOT OF MILK.

ONCE A MONTH KATHY MESSIER SHOWS UP AT DEBORA WICKART'S BARN IN HYDE PARK, VERMONT.

KATHY IS A FIELD TECHNICIAN FOR THE DAIRY HERD IMPROVEMENT ASSOCIATION, OTHERWISE KNOWN AS D.H.I.A.. >> IN THE EARLY 1900S FARMERS WERE SELLING BUTTER TO PEOPLE, NOT MILK.

THE BUTTER THAT WAS MADE FROM THE MILK WAS WHAT WAS THE IMPORTANT PRODUCT.

THEY NEEDED TO KNOW HOW MUCH BUTTER FAT EACH COW GAVE IN ORDER TO DETERMINE WHICH COWS TO KEEP AND WHICH ONES TO SELL.

SO VERMONT DAIRY HERD IMPROVEMENT ASSOCIATION BEGAN THEN.

>> I NEED TO MAKE ENOUGH MILK TO PAY ALL THE BILLS.

IF A COW IS NOT MAKING A CERTAIN AMOUNT OF MILK, SHE'S GOT TO GO AND I JUST HAVE TO REPLACE HER.

WHY D.H.I.A.

IS IMPORTANT TO ME IS YOU NEED TO KNOW WHAT THEY'RE ALL DOING.

IF YOU DON'T TEST YOUR COWS, ONE COW ISN'T DOING HER PART AND THE OTHER COW IS DOING TWO OR THREE COW'S PARTS, THE INFMATION IS IMPORTANT.

>> ONE WAY FARMERS INCREASE PRODUCTION IS BY GETTING RID OF THE COWS THAT DON'T PRODUCE.

THE AVERAGE AGEF AMERICS DAIRY WS IS ONLY ABOUT 3 YEARS FOR AN ANIMAL THAT CAN LIVE TO A RIPE OLD AGE OF 10.

A QUARTER TO A THIRD OF AMERICA'S DAIRY HERD IS SENT TO THE SLAUGHTERHOUSE EACH YEAR.

IT'S A TOUGH BUSINESS.

TO DETERMINE WHO'S PRODUCING IN DEBORA'S HERD AND WHO'S NOT, THE D.H.I.A.

TECHNICIAN RUNS EACH COW'S MILK THROUGH A METERING DEVICE.

SAMPLES ARE ALSO TAKEN FROM EACH ANIMAL AND ADDED TO THOSE OF THE OTHER COWS IN THE HERD.

DATA ON EACH COW'S MILK PRODUCTION IS IMMEDIATELY DOWN LOADED VIA LAPTOP COMPUTER TO THE D. H. I. A. PROCESSING CENTER AT THE UNIVERSITY OF NORTH CAROLINA IN RALEIGH.

THE NEXT MORNING MILK SAMPLES ARRIVE BY MAIL AT THE D.H.I.A.

LAB IN WHITE RIVER JUNCTION, VERMONT.

HERE THEY' TESTED FOR DISEASE, BUTTERFAT CONTENT AND PROTEIN.

DEBORA WICKART'S HERD IS EVALUATED IN LESS THAN 10 MINUTES.

THIS INFORMATION IS ALSO DOWN LDED TO RALEIGH WHERE DATA IS PROCESSED FOR 15 ATES PLUS PUERTO RICO.

>> WHEN THAT INFORMATION COMES TO OUR CENTER, THAT INFORMATION THEN IS ACCUMULATED FOR EACH COW MONTH BY MONTH TO GET AN EVALUATION OF HER PERFORMANCE FOR HER LIFETIME.

>> THE WICKART HERD IS ONE OF THOUSANDS THE CENTER WILL PROCESS THIS MONTH.

>> TWO DAYS AFTER HER COWS ARE TESTED, DEBORA WICKART HAS HER RESULTS, RESTS THAT FORCE SOME HARD DECISIONS.

>> ONCE A FARMER KNOWS WHO THE BEST PRODUCERS ARE IN THE HERD, IT'S TIME TO USE THEM TO CREATE THE NEXT GENERATION.

THIS IS WHEN A.I.OM ON THE SCENE.

>> ARTIFICIAL INSEMINATION IS HIGHLY SECTED PARENTS FOR THE COWS.

AN A.I.

TECHNICIAN GOES TO THE FARM AND BREEDS A COW, THE DAUGHTER WILL BE A MUCH BETTER ANIMAL THAN THE COW WILL BE.

IT WILL PRODUCE MORE MILK AND WILL LAST LONGER IN THE HERD.

>> SHE'LL BEOMING AROUND SOON FOR YOU TO SERVICE.

>> A.I.

TECHNICIAN SCOTT BEACH VISITS RAYMOND HOWRIGAN BEGAN'S FRANKLIN, VERMONT,ARM UP TO 15 TIMES A MONTH.

>> A.I.

HAS REALLY IMPROVED THE KOURX THE BODIES, THE LEGS, EVERYTHING.

YOU CAN SEE THE WHOLE NINE YARDS RIGHT THERE JUST GLANCING.

>> FOR A FARMER, ARTIFICIAL INSEMINATION IS THE EQUIVALENT OF A COW CATALOG.

WHAT DO YOU WANT FOR A COW'S NEXT GENERATION?

WIDER HIPS FOR BETTER BIRTHING, THAT WOULD BE MASS COULD THE BULL NUMBER 8H25.

WANT A STRONGER PAIR OF LEGS, BULL NUMBER 8H2205 IS JUST THE TICKET.

>> WE HAVE BULL BELTONE THAT HAS A VERY HIGH LIABILITY.

8,000 DAUGHRS WORLDWIDE.

I THINK THAT WILL FIT YOUR GOALS IN YOUR DAIRY HERD.

>> A.I.

BULLS ARE CHOSEN FROM THE OFFSPRING OF THE HIGHEST MILK PRODUCING COWS IN THE COUNTRY.

THERE CAN BE ENOUGH SEMEN IN ONE BULL'S EE JACK CUE LATE TO PROVIDE FOR 300 PREGNANCIES.

>> OUR SEMEN IS FROZEN IN LIQUID NITROGEN.

YOU PULL IT, THAW IT OUT, GO INTO THE BARN AND ARTIFICIALLY INSEMINATE THE COW.

>> WHEN A.I.

FIRST APPEARED ON THE SCENE IN THE 1950S, IT CREATED QUITE AN UPROAR.

PEOPLE DECLARED IT WASN'T NATURAL.

TODAY MOST OF THE CALVES BORN IN VERMONT ARE A PRODUCT OF ARTIFICIAL INSEMINATION.

AN AVERAGE DAIRY COW CAN HAVE 2 TO 6 CALVES IN HER LIFETIME AND WITH EACH NE GENERATION, VERMONT'S COWS HAVE THE POTENTIAL TO PRODE RE MILK THAN EVER BEFORE.

SOME SAY THIS ISN'T GOOD ENOUGH.

>> THE QUEST FOR THE PERFECT COW HAS BEEN TAKEN TO THE VERY BUILDING BLOCKS OF CREATION.

VETERINARY AN RICHARD WHIT WHITAKER IS A SPECIALIST IN THE FIELD OF EMBRYO TRANSFER.

HE PUTS NEARLY 80,000 MILES A YEAR ON HIS VANS DRIVING THROUGHOUT NEW ENGLAND AND PARTS OF CANADA TO HELP FARMERS REFINE THEIR HERDS THROUGH SOME GENETIC MANIPULATION.

>> WE COLLECT EMBRYOS FROM THESE DONE NOR ANIMALS BY WASHING SALINE SOLUTION THROUGH THEIR UTERUS, AND IT'S AS SIMPLE AS IT SOUNDS.

WE WASH FLUID IN AND THEN OUT, IN AND OUT.

AS THE FLUID FLOWS OUT OF THE COW, IT PASSES THROUGH A FILL THER WHICH RETAINS THE EMBRYOS.

>> BECAUSE EACH COW IS GIVEN A SERIES OF INJECTIONS TO MAKE HER OFFIEW LATE MORE THAN ONCE, THIS PROCESS CAN COLLECT NOT JUST ONE EMBRYO BUT UP TO 10.

WHIT'S RECORD IS 45.

>> BEFORE EMBRYO TRANSFER A VERY GOOD DONE NOR COW WOULD BE CAPABLE OF HAVING, ONE, TWO, MAYBE THREE DAUGHTERS IN HER LIFETIME AND NOW WITH EMBRYO TRANSFER WE CAN ALLOW SOME COWS TO HAVE UP TO 10 OR 20 DAUGHTERS IN A YEAR.

QUITE A CHANGE.

>> THROUGH THE COMBINED EFFORTS OF THE DAIRY RECORD CENTERS, ARTIFICIAL INSEMINATION TECHNICIANS AND EMBRYO TRANSFER SPECIALISTS, VERMONT'S DAIRY COWS ARE PRODUCING MORE THAN TWICE AS MUCH MILK TODAY THAN THEY DID JUST 50 YEARS AGO.

THE UNITED STATES CAN BOAST THE HIGHEST RATE OF GENETIC IMPROVEMENT FOR DAIRY COWS IN THE WORLD, AND TODAY'S TECHNOLOGY IS JUST THE BEGINNING.

>> YOU SEE WRITEUPS IN PAPERS ALL THE TIME ABOUT HUMAN TEST TUBE BABIES MAKING IDENTICAL TWINS AND THINGS LIKE THAT.

ALMOST ANYTHING THAT YOU CAN POSSIBLY IMAGINE HAS BEEN DONE WITH CATTLE.

>> WE IDENTIFY THROUGH D.H.I.A.

THE PERFECT BAITING, IF YOU WILL, AND THEN WE CLEAN THAT INDIVIDUAL AND THEN MAKE NOT ONLY JUST ONE BUT THOUSANDS.

AND THAT TECHNOLOGY'S NOT REALLY READY YET BUT I THINK IT WILL BE COMING.

>> IN THE SEARCH FOR TL TO MAKE OUR FOOD CHEAPLY AND QUICKLY, HOW FAR IS TOO FAR?

IN 1993 THE U.S.

FOOD AND DRUG ADMINISTRATION APPROVED THE USE OF A CONTROVERSIAL NEW BOVINE GROWTH HORMONE KNOWN AS B.G.H., A SYNTHETIC VERSION OF A NATURALLY OCCURRING HORMONE CALLED B.S.T.. THE ACTION BY THE F.D.A.

WAS SIGNIFICANT BECAUSE IT MARKED THE FIRST TIME THE FEDERAL GOVERNMENTAL LOUD A GENETICALLY ENGINEERED SUBSTANCE TO BE USED IN FOOD PRODUCTION.

B.S.T.

HAS THE POWER TO DO TODAY WHAT EXISTING GENETIC TECHNIQUES MIGHT ACHIEVE IN THE NEXT 8 TO 10 YEARS, YET B.S.T.

HAS DIVIDED FARMERS, RETAILERS, CONSUMERS AND JUST ABOUT EVERYBODY ELSE.

>> B.S.T.

IS JUST ONE OF THOSE THINGS THAT HAS COME ALONG AS A TOOL IN THE TOOL BOX FOR THE DAIRY PRODUCER.

>> B.S.T.

IS GOING TO RESULT IN SIGNIFICANT INCREASES OF MILK WHICH WILL ONLY DRIVE ICES DOWN EVEN FURTHER AND RESULT IN THE LOSS OF MORE FAMILY FARMS.

>> IF OUR FARMERS FAIL TO USE IT, THEN THEY WILL BE PUT AT AN ECONOMIC DISADVANTAGE, A DISADVANTAGE THEY ALREADY HAVE IN THE ABILITY TO COMPETE.

>> IF YOU LOOK AT CONSUMER SURVEYS, FARMER SURVEYS, NOBODY WANTS IT.

AS FAR AS I CAN SEE IT'S A DUD.

>> THE HORMONE WAS DEVELOPED BY FOUR MAJOR PHARMACEUTICAL COMPANIES OF WHICH MONSANTO WAS THE FIRST TO ONE GOVERNMENTPPROVAL.

ON AN AVERAGE, THE DRUG CAN INCREASE A COW'S MILK PRODUCTION UP TO A GALLON AND A HALF A DAY.

FOR MANY DAIRY FARMERS CONSTANTLY SEEKING WAYS TO IMPROVE MILK PRODUCTION, B.S.T.

HASN OBVIOUS ECONOMIC APPEAL.

PAUL LET DAIRY FARMERS FRED AND SANDR USING B.S.T.

SINCE IT BECAME AVAILABLEN 1994.

>> I'M USING B.S.T.

FOR ECONOMIC REASONS ONLY.

INCREASE OUR PRODUCTION, INCREASE OUR BOTTOM LINE.

THERE'S A TREMENDOUS AMOUNT OF B.S.T.

BEING USED OUT IN WESTERN NEW YORK STATE, AND IT DOES INFLUENCE OUR MARKET HERE.

WE FULLY EXPECT THAT THE PRICE OF MILK IS GOING TO GO DOWN IN ANOTHER YEAR, AND WE'D LIKE TO GET THAT MONEY PAUT SIDE WHILE THE PRICE IS STILL VERY FAVORABLE AND USE IT GOING THROUGH THE HARD TIMES.

>> WE HAVE SEEN AN INCREASE IN PRODUCTION TO THE POINT THAT WE'RE GOING TO HAVE TO BUY ANOTHER BULK TANK.

>> ALL OF THAT EXTRA MILK IN THE BULK TANK HAS DRAMATICALLY INCREASED THE AMOUNT OF THE STONE'S MILK CHECK, YET FOR EVERY FRED AND SANDRA STONE, THERE IS ANOTHER VERMONT FARMER WHO WILL NOT U B.S.T.. >> LEE AND BOB LIGHT OF PLAINFIELD REFUSE TO USE B.S.T.

ON THEIR HERD.

>> AS AGRICULTURE HAS GONE ON IN THIS COUNTRY, IT'S BECOME MORE AND MORE INDUSTRIALIZED.

NOW WHAT WE'RE SEEING HAPPEN IS THE INDUSTRIAL LIE SAYINGS OF THE DAIRY BUSINESS.

I LOOK AT THE GROWTH HORMONE AS ONE MORE WAY THAT THEY'RE TRYING TO INDUSTRIAL LIES US, AND BASICALLY WHAT HAPPENS WITH A PRODUCT LIKE THIS IS IT SHORTENS THE LIVES OF THE ANIMALS.

THAT THE ANIMALS ARE JUST THERE FOR A SHORT PERIOD OF TIME, THEY GET AS MUCH OUT OF THOSE ANIMALS AS POSSIBLE AND THEN THEY'RE GONE AND THEN THEY BRING IN ANOTHER BATCH.

>> TO ADDRESS T CONCERNS OF FARMERS LIKE THE LIGHTS, MONSANTO TESTED B.S.T.

ON 3,000 COWS IN 85 RESEARCH HERDS AROUND THE WORLD.

ONE OF THOSE HERDS WAS HERE AT THE UNIVERSITY OF VERMONT THE BIG QUESTIONS WERE, WOULD COWS PRODUCE ME MILK D HOWUCH, AND WOULD THERE BE ANY NEGATIVE SIDE EFFECTS.

>> OOT UNIVERSITY RESEARCH PROGRAM ON B.S.T.

TOOK PLACE OVER 4 YEARS, I THINK '86 TO 1990.

THE MAJOR THINGS THAT CAME OUT OF THAT SHOWED, YES, THERE WAS AN INCREASE IN MILK YIELD ASSOCIATED WITH USING B.S.T.

WHICH IS WHAT MANY, MANY OTHER TRIALS HAVE SHOWN.

THE U.V.M.

TRIAL CERTAINLY SHOWED AN INCREASE IN MASTITIS WHICH HAS BEEN ONE OF THE THINGS THAT COME OUT IN SOME OF THE OTHER TRIALS THAT HAVE BEEN DONE, AND THAT'S BECOME ONE OF THE AREAS FOR DEBATE AND CONCERN.

>> MASS TIGHT CITIES AN UDDER IECTION WHICH FARMERS OFTEN TREAT WITH ANBIOTICS.

MANY CONSUMERS A CONCERNED THAT TSE AIN'T BUYT PARTICULS MAKE THEIR WAY INTO OUR FOOD THREATENING BEAM ALLERGIES AND PERHAPS DEVELOPING IN OUR SYSTEMS NEW ANTIBIOTIC RESISTANT STRAINS OF GERMS.

>> I DON'T BELIEVE THAT THE USE OF B.S.T.

WILL INCREASE THE INCIDENCE OF MASTITIS IN MY HERD OR ANYONE ELSE'S HERD THAT'S MANAGED PROPERLY AND, THEREFORE, I DO NOT BELIEVE THAT ANTIBIOTICS WILL BE USED ANYMORE.

IT IS VIRTUALLY IMPOSSIBLE IN OUR MARKET FOR ANTIBIOTICS TO GET INTO THE MITT BEING STREAM ANYWAY BECAUSE IT IS TESTED SO VIGOROUSLY.

>> VETERINARY AN MARK CAT LYNN HAS BEEN OBSERVING THE EFFECTS OF B.S.T.

IN DAIRY HERDS FOR THE PAST 6 YEARS.

>> OVER THE YEARS THERE HAVE BEEN A NUMBER QUESTIONS RAISED ABOUT THE EFFECT OF B.S.T.

ON CATTLE SPECIFICALLY.

THE ISSUE OF MASTITIS IN DAIRY CATTLE.

THE NUMBERS ON THE INITIAL GROUP OF 15 RESEARCH HERDS THAT WERE LOOKED AT SHOWED A SLIGHT INCREASE IN THE B.S.T.

TREATED COWS VERSUS THOSE THAT WERE NOT TREATED; HOWEVER, IF YOU COMPARE IT TO OTHER THINGS IN THE ENVIRONMENT OR THE COW'S ENVIRONMENT THAT ARE ASSOCIATED WITH CAUSING MASTITIS, LIKE CHANGES IN WEATHER, CHANGES IN SEASON, CHANGES IN FEED, THIS IS A MINUSCULE INCREASE IN THE RISK TO MASTITIS WHEN COMPARED TO THOSE THINGS.

>> I DO NOT THINK THAT THE CONSUMER SHOULD BE CONCERNED ABOUT THE USE OF B.S.T.. THE F.D.A., AMERICAN MEDICAL ASSOCIATION HAVE ALL SAID THAT IT'S PERFECTLY SAFE TO USE, AND I THINK IT'S SCIENTIFIC SENSATIONALISM THOSE THAT CLAIM THAT IT'S NOT SAFE.

>> IT IS ULTIMATELY HERE IN THE MARKETPLACE A NOT ON THE FARM THAT B.T.

'S SUCCESS OR FAILURE WILL BE DECIDED.

CONSUMERS WILL VOTE WITH THEIR DOLLARS AS TO WHETHER THEY WISH TO DRINKILL FRK B.S.T.-TREATED COWS IF THEY ARE GIVEN THE OPPORTUNITY.

IN APRIL OF 1994, 3 MONTHS AFTER THE FEDERAL GOVERNMENTAL LOUD B.S.T.

TO BE SOLD, VERMONT BECAME THE FIRST STATE TO APPROVE A LAW REQUIRING THE LABELING OF MILK MADE WITH B.S.T.. >> SOME FARMERS WILL CHOOSE TO TURX SOME WON'T, AND I BELIEVE THE MARKETPLACE OUGHT TO SORT THAT OUT.

I DO THINK IF PEOPLE WANT TO PUT LABELS ON THEIR PRODUCTS THAT SAY THAT B.S.T.

HAS NOT BEEN USED, I THINK THAT'S THEIR RIGHT AND I THINK IT'S CONSUMERS' RIGHT TO KNOW.

>> VERMONT WAS SUED ALMOST OVERNIGHT BY A GROUP OF DAIRY INDUSTRY BUSINESS.

THEY CLAIM THAT VERMONT'S LABELING LAW WAS UNCONSTITUTIONAL AND THAT THE FEDERAL GOVERNMENT HAD FINAL AUTHORITY OVER THE LABEL OF DAIRY PRODUCTS.

IT IS STILL UN UNCERTAIN WHETHER OR WHEN A B.S.T.

LABELING LAW WILL ACTUALLY BE IMPLEMENTED IN THE STA OF VERMONT, BUT AT THE SUPERMARKET CONSUMERS ARE STILL UNCERTAIN ABOUT B.S.T.. >> WHAT'S IT GOING TO DO TO MY KID?

GOING TO BE 9 FETAL?

>> I DON'T THINK THEY'VE CHECKED IT FAR ENOUGH TO KNOW WHETHER THERE'S GOING TO BE ANY HARM TO HUMANS OR NOT.

>> I HAVE TWO SMALL CHILDREN.

MY SON DRINKS A LOT OF MILK, MY DAUGHTER WILL BE, SHE'S ONLY 5 MONTHS OLD NOW, AND I DON'T THINK THAT -- COWS MAKE MILK.

WHY DON'T WE JUST LEAVE IT ALONE.

>> ANY TIME WE'RE SUBSIDIZING FARMERS TO NOT PRODUCE MILK AN THEN AT THE SAME TIME WE'RE TRYING TO DO THINGS TO PRODUCE MORE MILK.

MY LIMITED EXPERTISE, THAT'S NOT MAKING A LOT OF SENSE.

>> PROFESSOR BILL LEAP HEART OF THE UNIVERSITY OF CALIFORNIA SPENT THE FALL OF 1993 TEACHING VERMO EDUCATEORS ABOUT A NEW APPROACH TO FARMING, ONE THAT LOOKS AT AGRICULTURE'S EFFECTS ON ANIMALS, FARMERS, LOCAL COMMUNITIES AND THE ENVIRONMENT.

OF CONCERN TO LEAPHEART IS THE PROPER USE OF NEW BIOTECHNOLOGY.

IN 1990 HE ORGANIZED A MULTIDISCIPLINARY GROUP TO STUDY THE EFFECTS OF B.S.T.. THE GROUP'S CONCLUSIONS BECAME A PART OF THE EVER WIDENING DEBATE OVER THE GROWTH HORMONE.

>> OOT FARMERS ARE GOING TO LOSE ON THIS, MAYBE A THIRD OF THEM WILL GO OUT OF BUSINESS, THAT'S WHAT'S FORECAST.

COWS ARE GOING TO HAVE HEALTH PROBLEMS.

THE RURAL ENVIRONMENT IS NO GOING TO BE HELPED FWI AND I THINK THE OTHER QUESTION Y HA TO ASK IS WHYOULD YOU WANTO PRODUCE 12% MORE MILK WHEN WE ALREADY HAVE A CHRONIC SURPLUS?

IT IS IN A SENSE LIKE SELLING ICE CUBE MACHINES TO THE ESKIMOS.

>> AS A VETERINARIAN AND DAIRY CONSULTANT MY JOB IS TO KEEP MY CARRY PRODUCERS PROFITABLE AND BUSINESS.

B.S.T.

IS TECHNOLOGY THAT CAN BE PROFITABLE FOR FARMS OF ANY SIZE AND OF ALMOST ANY PARTICULAR ORIENTATION.

IT'S ONE OF A LONG LINE I THINK OF PRODUCTS TO COME FROM BIOTECHNOLOGY THAT WILL BE BENEFICIAL TO AGRICULTURE AND THE CONSUMER IN THE FUTURE.

>> I THINK THE GENERAL PUBLIC SHOULD REALIZE THAT FARMERS WHO USE B.S.T.

ARE USING IT AS A MANAGEMENT TOOL.

THE ABILITY TO PRODUCE A LITTLE MORE MILK WITHOUT ADDING ON MORE COWS.

I REALLY FEEL THAT IF WE'RE GOING TO PROGRESS IN THE DAIRY INDUSTRY AND BE HERE 10 YEARS FROM NOW, WE HAVE USE MANAGEMENT TOOLS SUCH AS B.S.T.. >> FARMERS AND CONSUMERS A CHRIK ASSUME THAT B.S.T.

'S ENTRY INTO THE MARKETPLACE IS THE OPENING OF A TOOL BOX FULL OF FUTURE TECHNOLOGYS.

AMERICAN COMPANIES CURRENTLY HAVE HUNDREDS OF MILLIONS OF DOLLARS INVESTED IN GENETICALLY-ENGINEERED PRODUCTS.

B.S.T.

IS BUT THE FIRST IN A LONG LINE OF NEW, POSSIBLY CONTROVERSIAL TOOLS TO COME.

THE PROBLEM WITH NEW TECHNOLOGY IS THAT WHILE IT INCREASES PRODUCTION, IT WILL DRIVE SOME FARMERS OUT OF BUSINESS.

IN THE PAST 15 YEARS ALONE, VERMONT COWS HAVE INCREASED PRODUCTION BY 50%, BUT WITH INCREASING PRODUCTION COMES A DECREASING NUMBER OF FARMS.

>> THE IRONY IN ALL OF THIS IS THAT AS WE'VE BECOME BETTER AT SELECTIVE BREEDING, BETTER AT NUTRITION, BETTER AT MANAGEME, THEN WE'VE PRODUCED COWS WHICH CAN PRODUCE TWICE AS MUCH MILK AS THEY DID 20 YEARS AGO AND OBVIOUSLY IF YOU DO THAT THEN THERE IS A NEED FOR LESS KOURX THERE IS A NEED FOR LESS FARMS AND THAT'S ALL PART OF THE DECLINE OF THE PEOPLE ON THE LAND.

>> THE FARMS THAT REMAIN GET LARGER AND LARGER AS FARME BUY MORE LAND, MORE COWS AND MORE MACHINERY, BUT IS THIS A COST MOST FAMILY FARMS CAN BEAR?

>> FARMERS HAVE BEEN FORCED TO INVEST MORE AND MORE IN MACHINERY.

THEY WERE TOLD THAT THEY NEEDED TO USE STRONGER AND STRONGER PESTICIDES.

THEY WERE TOLD TO INVEST SIGNIFICANT SUMS OF MONEY INTO THEIR FARMS.

>> WE HAVE FARMERS WHO ARE FAR MORE PRODUCTIVE THAN IN HISTORY WITH FAR MORE CAPITAL INVESTMENT PER FARMER THAN ANY OTHER INDUSTRY HAS PER WORKER, AND THE WHOLE STRUCTURE JUST INCREDIBLY IN DEBT TO THE MONEY LENDERS.

>> STARTED MAYBE A COUPLE WEEKS AGO.

>> MOST VMONT FARMERS CAN'T AFFORD TO GO ANY DEEPER IN DEBT, SO INSTEAD OF LOOKING FOR MORE TOOLS, THEY'RE LOOKING FOR LESS, AND FOR WAYS OF DOING THINGS THEY MAY NOT HAVE CONSIDERED BEFORE.

>> I'M JOSHUA SILMAN.

I WORK WITH THE PASTURE PROGRAM AT THE UNIVERSITY OF VERMONT.

WE HAVE THE GRACIOUS HOST HERE TODAY BRIAN STONE.

>> EAST MONTPELIER FARMER BRIAN STONE HAS CHOSEN TO GO AGAINST THE GRAIN OF CONVENTIONAL METHODS OF DAIRY FARMING.

STONE IS AN ADVOCATE OF SOME UNUSUAL METHODS OF FARMING, SOME NEW, SOME OLD.

>> WELL, WE ROTATIONALLY GRAZE WITH OVER 43 COWS.

>> FOR THE PAST 5 YEARS STONE'S JERSEY COWS HAVE BEEN ON A ROTATIONAL GRAZING PROGRAM, MOVING FROM PASTURE TO PASTURE TO FEED ON NUTRITIOUS VERMONT GRASS.

IT'S A METHOD OF FARMING THAT GREATLY REDUCES THE NEED FOR EXPENSIVE EQUIPMENT, TIME AND LABOR.

INSTEADF HARVESTING CROPS AND BRINGING THEM TO THE COWS, YOU BRING THE COWS TO THE CROPS.

>> THE BASIC QUESTION YOU'VE GOT TO ASK YOURSELF IS JUST WHAT DOES IT TAKE TO PRODUCE MILK, AND THE ANSWER TO THE QUESTION IS NOT A HELL OF A LOT.

ROTATIONAL GRAZING IS A VERY ECONOMICAL AND EFFICIENT WAY TO PRODUCE MILK.

IT'S A VERY BIG DIFFERENCE IN LEVEL OF INVESTMENT, AND THAT'S HOW WE GOT INTO IT.

THE BIGGEST THING IS YOU DON'T HAVE TO BUY ANY EQUIPMT.

THE COWS ARE OUT HERE, THEY'RE GRAZING.

THAT'S WHAT THEY WERE BUILT TO DO.

>> HOW MUCH GRAIN ARE YOU GIVING THEM RIGHTOW?

>> THEY'RE GETTING ABOUT A POUND A HEAD PER DAY.

>> ROTATIONAL GRAZE SOMETHG A VERY ENVIRONMENTALLY SOUND WAY OF MANAGING OUR FARM LANDS AND IT'S MUCH MORE ECONOMICALLY VIABLE.

WE'RE PROVING IT LEFT AND RIGHT WITH THE FARMERS THAT WE'RE WORKING IT WITH THAT THEY CAN SAVE MONEY WITH THIS IF THEY DO IT RIGHT.

>> LISA MCCRORY IS A PASTURE MANAGEMENT CONSULTANT WITH THE UNIVERSITY OF VERMONT.

SHE WORKS WITH FARMERS INTERESTED IN ROTATIONAL GRAZING.

SINCE 1992, MORE THAN 100 FARMERS HAVE PARTICIPATED IN THE PASTURE PROGRAM.

IT'S ESTIMATED THAT UP TO 30% OF VERMONT FARMERS ARE ROTATIONAL GRAZING.

IT'S AN IDEA THAT'S CATCHING ON.

>> IT'S A REAL MIND-OPENING EXPERIENCE BECAUSE YOU HAVE TO THROW OUT EVERYTHING YOU THINK YOU KNOW AND RELEARN A WHOLE NEW SET OF RULES.

>> EYE TOOK OVER THE FARM FROM A GUY WHO WAS RETIRING.

HE'D ALWAYS FED IN THE BARN.

HE DIDN'T USE ANY ROTATIONAL GRAZING.

I JUST FOUND IT TO BE MORE EFFICIENT TO LET THE COWS GO OUT AND GRAZE AND THEN COME BACK IN RATHER THAN ME HAVING TO HARVEST THE FEED, BRING IT TO THE COWS HAUL THE MANURE BACK OUT.

TO ME IT WAS A LOT LESS LABOR TO THE COW GO OUT AND DO IT HERSELF.

A LOT CHEAPER TOO.

>> I'M RENTING A FARM, AND THERE'S A YOUNG FELLOW THAT'S FARMING AND HE'S JUST RUNNING HIMSELF RAG GET GET.

>> FREE TIME IS ANOTHER COMMODITY IN SHOR( SUPPLYO FARMERS.

WORKING 7 DAYS A WEEK, 14 HOURS A DAY IS A TOUGH SCHEDULE FOR ANYONE, FARMERS INCLUDED.

IT'S SOMETHING ELSE BRIAN STONE TRYING TO CHANGE.

IT'S HARD TO GET TIME OFF WHEN YOU HAVE TO MILK EVERY DAY UNLESS YOU GIVE THE COWS SOME TIME OFF TOO.

IT'S CALLED SEASONAL DAIRYING.

>> COWS LACTATE FOR ROUGHLY 305 DAYS, 10 MONTHS, AND THEN THEY'RE DRY FOR THOSE 2 MONTHS PRIOR TO CALVING.

>> MOST FARMERS SCHEDULE THEIR CALVES TO ARRIVET DIFFERENT TIMES OF THE YEAR.

THIS MEANS THEY ALWAYS HAVE COWS IN MILK AND ALWAYS HAVE A MILK CHECK.

BRIAN AND LISA STO ARE TRYING TO GET BY WITHOUT A MILK CHECK SEVERAL MONTHS OF THE YEAR.

IT'S NOT ALWAYS EASY, AND SOMETIMES BRIAN HAS TO WORK OFF THE FARM.

THEY DO GET A BREAK FROM THE DEMANDS OF DAIRY FARMING.

>> WHAT SEEMS TO BE THE MOST ATTRACTIVE FOR PEOPLE THAT ARE INTERESTED IN SEASONAL IS THAT THEY GET 2 MONTHS OFF WHERE THEY DON'T HAVE TO GET UP AND MILK TWICE A DAY.

THEY CAN TAKE A VACATION, THEY CAN LEAVE THEIR FARM.

SEASONAL CAN HAPPEN ANY TIME OF THE YEAR.

IT ALL DEPENDS ON WHEN THE PERSON WANTS TO TAKE THAT TIME OFF.

BRIAN LIKES TO SUGAR, SO HE'S GOING TO TRY AND HAVE THOSE MONTHS OFF WHEN HE'S REALLY INTENSE CIVILLY SUGARING HIS MAPLES TO NOT HAVE TO MILK.

>> GIVES YOU A CHANCE TO HAVE SOME TIME OFF, TIME AWAY TO DO OTHER THINGS, FAMILY RECREATION ACTIVITY.

SPEND MORE TIME WITH THE KIDS.

OPPORTUNITY TO DO OTHER THINGS.

>> WE'RE PAYING THE BILLS AND MAKING A LITTLE MONEY.

>> LIKE THEIR ANCESTORS BEFORE THEM, TODAY'S VERMONT FARMERS ARE DISCOVERING THAT CHANGING TIMES CALL FOR CHANGING TECHNIQUES.

>> MAKING MILK ON GRASS WITH REDUCED FEED COSTS AND NOT HAVING A GRAIN BILL EVERY MORNGTS YOU CAN DEAD DID I KATE THOSE FUNDS INTO DEBT REDUCTION.

WHAT GOES AROUND COMES AROUND.

YOU LOOK AT WHAT HAPPENED, TECHNOLOGY EXPLOSION DURING THE 60S WITH LOW-COST ENERGY, AFFORDABLE LABOR.

IT WAS REWARDING, IT WAS PROFITABLE.

YOU'VE GOTTEN 30 SOMETHING YEARS LATER AND THE ECONOMIC SITUATION HAS CHANGED AND YOU HAVE GOT TO ADAPT AND CHANGE WITH IT.

>> IN THE PAST 50 YEARS FARMING HAS SEEN SOME PRETTY DRAMATIC CHANGES.

PRODUCTION HAS SOARED DUE TO MECHANIZATION, INCREASED USE OF SYNTHETIC PESTICIDES AND FERTILIZERS AND GOVERNMENT POLICIES THAT FAVOR LARGER AND LARGER FARMS.

THE CHANGES HAVE BROUGHT MANY BENEFITS TO BOTH FARMERS AND CONSUMERS, LIKE MORE EFFICIENT METHODS OF PRODUCTIONND CHEAPER FOOD, BUT THERE HAVE BEEN COSTS.

THE DEPLETION OF OUR SOIL, GROUNDWATER CONTAMINATION, INCREASED DEBT AND COSTS OF PRODUCTION AND THE DECLINE OF THE FAMILY FARM.

TODAY MANY ARE QUESTIONING THE COSTS OF FARMING AS USUAL AND CONSIDERING A NEW KIND OF AGRICULTURE.

>> IT'S REALLY TRYING TO LOOK AT EVERYTHING AS A WHOLE KNOWING THAT EVERYTHING IS INTERCONNECTED.

>> AGRICULTURE IS MAKING A LIVING IS GETTING ENOUGH MONEY FOR FROM YOUR MILK CHECK TO SUSTAIN YOUR FAMILY AND YOURSELF.

>> MOST PEOPLE DEFINE SUSTAINABLE AGRICULTURE AS AN A AS CULTURE THAT IS ECONOMICALLY SOUND.

>> I THINK SUSTAINABLE AGRICULTURE MEANS LEAVING THE LAND BETTER THAN WE FOUND IT.

>> SUSTAINABLE AGRICULTURE IS A SYSTEMS APPROACH TO FARMING.

IT LOOKS AT THE BIG PICTURE TO ANSWER SOME DIFFICULT QUESTIONS.

ARE FARMERS FARMING IN WAYS THAT WILL PRESERVE THE LAND FOR GENERATIONS TO COME?

DO FARMERS HAVE A STANDARD OF LIVING AND A LIFESTYLE THAT WILL ATTRACT ANOTHER GENERATION TO A LIFE ON THE LAND?

>> PROBABLY NOT EVERYBODY THAT'S FARMING NOW IS GOING TO MAKE IT.

>> THESE ARE QUESTIONS THE UNIVERSITY OF VERMONT IS EXPLORING IN ITS NEW CENTER FOR SUSTAINABLE AGRICULTURE.

>> WE WOULD LIKE AGRICULTURE TO BE ECONOMICALLY VIABLE.

YOU HAVE TO MAKE ENOUGH MONEY TO SURVIVE ON THE FARM AND ME A LIVING F YOU FAMILY.

WE WOULD LE IT TO BE ENVIRONMENTALLY SOUND SO WE DON'T RUIN THE RESOURCE BASE.

WE PRESERVE THE RESOURCE BASE ANDUTURE GENERATIONS HAVEHEAME ADVANTAGES THAT WE DO TODAY, AND, FINALLY, WE WOULD LIKE ITO BE SOCIALLY JUST.

>> THE MOVE TOWARDS SUSTAINABILITY ISN'T FUELED BY FARMERS ALONE.

TODAY'S CONSUMERS ARE MORE COERNED ABOUT THE SAFETY AND QUALITY OF THEIR FOOD.

>> IF WE FOCUS ON SUSTAINALI RATHER THAN ON MORE AND MORE CHEMICALS IN OUR FARMS, THAT THAT IS THE WAY TO GO.

IT'S NOT ONLY CHEAPER, IT'S SOMETHING THAT PEOPLE WANT.

>> IT'S ENVIRONMENTALLY A LOT MORE FRIENDLY BUT IT IS ALSO SOMETHING THAT'S GOING TO APPEAL TO A WHOLE NEW MARKET PEOPLE WHO ARE BEING FAR MORE SELECTIVE, FAR MORE CONCERNED ABOUT WHAT MIGHT BE IN OR ON THE PRODUCE THEY BUY.

>> MOST CONSUMERS NEVER SEE THE THRAND GROWS THEIR FOOD, BUT FARMERS DO.

THEY KNOW WHETHER THEY'RE FARMING IN WAYS THAT WILL ENSURE THE FUTURE PRODUCTIVITY OF THEIR FARMS.

STEWARDSHIP OF THE LAND STARTS WITH SOIL.

WESTFIELD DAIRY FARMER JACK LAZOR IS CRAZY ABOUT HIS.

>> I'M FANATIC AS A MATTER OF FACT.

I DON'T LIKE TO DRIVE ACROSS ANY FIELD UNLESS I HAVE TO.

THIS IS MOUNTAIN LAND, BUT IT'S THIS SOIL HERE IS AS NICE AS ANY VALLEY SOIL.

IT'S A LITTLE ON THE ROCKY SIDE.

YOU CAN JUST FEEL IT.

IT'S GOT HEFT TO IT.

>> JACKND HIS WE ANN ARE ORGANIC DAIRY FARMERS.

THEY MILK 24 HEAD OF JERSEY COWS AND TURN THEIR CREAMY MILK INTO YOGURT THAT'S SOLD ALL OVER THE NORTHEAST.

TO THE LAZORS, STEWARDSHIP MEANS TREATING THEIR LAND AS A LIVING PART OF THE FARM.

>> THE MORE YOU CAN HAVE A LIVING SYSTEM IN YOUR LAND, THE LESS RELIANT YOU HAVE TO BE ON ARTIFICIAL AND COMMERCIAL INPUTS.

YOU PROMOTE LIFE AT ALL LEVELS AND IT'S BACTERIAL LIFE THAT YOU'RE PROMOTING.

YOU'RE PROMOTING IT IN YOUR SOIL.

>> A GOAL OF SUSTAINABLE AGRICULTURE IS TO USELESS SYNTHETIC FERTILIZERS AND PESTICIDES.

THIS SAVES MONEY AND IT ALSO SAVES THE LAND.

>> I THI THERE'S LOTS OF WAYS TO BE SUSTAINABLE.

I DON'T THINK YOU HAVE TO BE ORGANIC TO BE SUSTAINABLE.

I NEVER REALLY LIKED USING POISONS.

I THINK THE MINUTE YOU PUT POISON ON YOUR LAND YOU'RE CHING AWAY AT THAT BACTERIAL BANK ACCOUNT THAT YOU'VE GOT THERE.

WE'VE BEEN ABLE TO GROW GOOD CROPS WITHOUT PESTICIDES AND HERB BY SIDES.

WHAT MAKES ME FEEL THE BEST ABOUT OUR FARM HERE IS WHEN I LOOK AT OUR HERD OF COWS AND I SEE THAT EVERY ONE OF THOSE COWS WAS BORN AND RAISED AND NURTURED ON THIS FARM, AND ALL THAT BROWN, FLESH AND BONE THAT MAKES UP THOSE ANIMALS WAS CREATED FROM THE CROPS THAT WE'VE COAXED FROM OUR SOIL HERE.

>> MOST DAIRY FARMERS GROW CORN AND HAY BUT BUY THEIR GRAIN FROM SOMEPLACE THAT CAN GROW IT INEXPENSIVELY.

THE LAZORS GROWROPS LOTS OF THEM, BARLEY, CORN, OATS, SOY BEANS, AND ALFALFA TO NAME A FEW.

THEY WANT EVERYTHING THAT GOES INTO THEIR COWS TO COME FROM THEIR FARM, A SELF-SUSTAINING SYSTEM.

>> I THINK FOR US THE WHOLE IDEA OF PROCESSES IS ALMOST NEXT TO SPIRITUALISM OR RELIGION FOR US, KNOWING THAT WHAT WE'RE DOING HERE ON OUR FARM COMES AROUND FULL CIRCLE AND EVERYTHING THAT WE SHIP OUT TO THE CUSTOMERAS TOTALLY CREATED HERE.

WE'RE UP ON TOP OF A BIN TH 30 TON OF BARLEY IN IT.

THIS IS THE BARLEY WE GREW THIS YR.

WE HAD ABOUT ANYFWRR A TON AND A HALF TO A TON AND THREE-QUARTERS YIELD.

IT'S A REALLYOOD GRAIN R YOUR MILK COWS.

>> PRESERVING THE LAND FOR FUTURE GENERATIONS WILL ONLY SUCCEED IF THERE ARE FUTURE GENERATIONS TO FARM.

FARMERS NEED THE REASONABLE STANDARD OF LIVING THAT COMES FROMETTING A FAIR PRICE FOR THEIR PRODUCT.

FARMING THAT ISN'T PROFITABLE ISN'T SUSTAINABLE.

>> WE CAN FARM IN THE MANNER THAT WE FARM AND IT COSTS US MORE TO FARM THIS WAY, PROBABLY QUITE A BIT MORE, BECAUSE WE'RE GETTING PAID FAIRLY FOR THE MILK THAT WE'RE PRODUCING.

WE'RE MAKING MAYBE 3 TIMES THE MONEY PER HUNDRED WEIGHT THAT ANY OF OUR NEIGHBORS ARE MAKING BECAUSE WE'RE MARKETING OUR MILK.

IT COMES OUT OF YOUR HIDE, IT REALLY DOES.

HAVING TO WORRY ABOUT NUMBER ONE HEALTH REGULATIONS, NUMBER TWO, A FICKLE MARKET, NUMBER THREE, KEEPING EVERYBODY HAPPY OUT THERE.

IF I COULD GET $30 A HUNDRED FOR JERSEY MK I WOULD N BE MAKING JOE GURT.

I'D LET SOMEBODY ELSE MAKE T. I REALLY ENJOY FARMING BECAUSE TH'S WHAT I REALLY LIKE TO DO, BUT IT JUST DOESN'T WORK THAT WAY IN THIS COUNTRY.

FOOD IS JUST TOO DAMN CHEAP.

>> SUSTAABLEGRICULTURE IS A CLLENGE TO US ALL, A BALANCE BETWEEN THE NEEDS OF FARMERS, THE LAND AND CONSUMERS.

WHAT KIND OF FOOD WE GROW, THE MANNER WHICH IT IS GROWN AND HOW MUCH WE ARE WILLING TOAY FOR IT.

AS UNFAIR AS IT MAY SOMETIMES SEEM, IN FARMING, AS IN ANY BUSINESS, COMPETITION IS THE NAME OF THE GAME.

THE TOOLS OF SCES AND TECHNOLOGY INCREASINGLY OFFER FARMERS NEW MEANS WITH WHICH TO PRODUCE MORE FOR LESS.

THE ABILITY TO ADA TO TS CHANGING TECHNOLOGICAL LANDSCAPE WILL BE A KEY FACTOR IN DECIDING WHO SURVIVES IN VERMONT'S AGRICULTURAL FUTURE.