Flush Your Profits Down the Drain? How Manure Millionaires Are Cashing In

While you’re paying to haul away manure, smart farmers are turning the same “waste” into serious cash. Are you flushing money down the drain?

EXECUTIVE SUMMARY: Forward-thinking dairy farmers across America are revolutionizing the industry by transforming manure management from a costly necessity into a lucrative profit center through technologies like biogas production, nutrient recovery, and specialized field application. As evidenced by the EPA AgSTAR program’s data showing 400 operational anaerobic digesters nationwide, this trend has tripled its environmental impact since 2018 while simultaneously creating new revenue streams for producers. Remarkably, smaller operations (100-499 cows) are joining the revolution through community digester models, with real-world success stories like Iowa farmer Bryan Sievers achieving a 43% increase in soil organic matter while eliminating fertilizer costs across 2,000 acres. The growing divide between innovative “manure millionaires” and traditionalists demonstrates that today’s waste management decisions will determine which dairy operations thrive economically in tomorrow’s market.

KEY TAKEAWAYS

• Community digesters make “manure millionaires” possible at any scale – While only 0.3% of small farms (100-499 cows) have on-farm digesters, thousands are participating in community models that allow them to “rent” their manure while receiving digestate back for field application.
• Digestate delivers double benefits – Beyond generating energy revenue, farmers like Bryan Sievers have documented a 43% increase in soil organic matter (from 3.5% to 5%) over a decade while completely eliminating the need for purchased fertilizers on thousands of acres.
• In-season application is revolutionizing nutrient delivery – Progressive farmers implementing in-season manure application systems are seeing superior results, with industry leaders predicting this approach will become the norm within a decade despite initial resistance.
• Environmental metrics translate to economic opportunity – Manure-based digesters have more than doubled their greenhouse gas reduction impact since 2020, creating potential for additional revenue through carbon credits and sustainable agriculture premiums.
• The technology adoption gap is widening – With 25.3% of large operations (2,500+ cows) already operating digesters compared to just 0.3% of smaller farms, early adopters are positioning themselves to outcompete traditionalists in both environmental stewardship and financial performance.

While dairy’s old guard continues treating manure as a worthless headache, a new breed of innovative farmers is laughing all the way to the bank by transforming the same “waste” into serious cash flow.

February’s Midwest Manure Summit revealed how progressive producers are raking in multiple revenue streams from what was once considered just an environmental problem—leaving their stubborn neighbors quite literally “in the dumps.”

With biogas systems exploding across the country and even small farms finally getting a piece of the action, the manure revolution is creating a clear divide: those building wealth from waste and those who might as well be flushing dollar bills down the toilet.

THE BIOGAS BOOM: HARD NUMBERS THAT DEMAND ATTENTION

Let’s cut through the crap and get straight to the facts: as of June 2024, there are 400 manure-based anaerobic digestion systems operating in the United States, according to the EPA’s AgSTAR program.

While conventional dairy wisdom obsesses over milk production, forward-thinking producers discovered that the real gold mine might be at the other end of the cow.

“The biogas industry keeps hitting new growth records every year because, as an energy source, biogas just makes sense. It provides much-needed clean electricity, cuts pollution and emissions from transportation and provides heat-producing fuel for industries, all while managing millions of tons of waste from farms and cities alike.” — Patrick Serfass, Executive Director, American Biogas Council

“It’s a growing industry, especially the ag sector,” confirms Serfass. “Last year, agriculture became No. 2 for the number of operational projects. Agriculture is growing faster than any of the other sectors in terms of total biogas production, and that’s the growth we like to see.”

What’s driving this manure rush? Look at the meteoric rise in environmental impact: in 2023 alone, these systems reduced greenhouse gas emissions by an astounding 14.84 million metric tons of CO2 equivalent.

That’s up from just 4.19 million metric tons in 2018 – more than tripling their impact in just five years. The energy generation from these systems reached approximately 3.29 million megawatt-hours in 2023.

This isn’t just feel-good environmentalism – it’s a rapidly expanding profit opportunity that smart dairy producers are milking for all it’s worth.

SMALL FARMS: STOP MAKING EXCUSES AND START MAKING MONEY

Here’s where it gets really interesting for the thousands of mid-sized operations feeling squeezed by industry consolidation: contrary to popular belief, the biogas revolution isn’t just for mega-dairies.

In fact, Serfass dropped a bombshell at the summit that should wake up every 200-cow operation in America: “The biggest opportunity, really, is on the smaller farms.”

The American Biogas Council’s 2024 database reveals an astounding reality: 7,818 dairy farms with 100-499 cows are involved with biogas systems. Yet here’s the mind-blowing part—only 25 of these operations have on-farm digesters.

The vast majority are participating in community digester models, essentially “renting” their manure and getting paid while still receiving their digestate (the nutrient-rich leftovers) back for field application.

That 84-fold difference in adoption rates isn’t just a statistic—it’s a glaring indicator of which operations are positioned to thrive in dairy’s future economy.

Meanwhile, of the 834 farms with herds exceeding 2,500 cows, 211 are already operating on-site digesters. The message couldn’t be clearer: the big boys are already cashing in while most small operators are still treating manure as a disposal problem rather than a profit center.

BEYOND BIOGAS: MULTIPLE WAYS TO CASH IN ON CRAP

Innovative producers aren’t stopping at biogas. At the Midwest Manure Summit, dairy farms showcased multiple ways to turn manure into money:

Fancy Filters That Pull Cash From Manure

University of Wisconsin-Madison researchers are developing systems that extract valuable nutrients straight from manure.

Dr. Mohan Qin from UW-Madison explained it in practical terms: “The big picture is that farms, especially in California and Wisconsin, operate like cities with a large population. Just like a city with wastewater treatment, we want to do what’s best to keep the farm running and not harming the environment.”

In plain English: these systems pull out nitrogen and other nutrients that you’d otherwise pay top dollar for at the fertilizer dealer. Why buy what you could extract from what you already have?

In-Season Application: Turning Field Fertility into Farm Profits

Producer John Schwahn boldly predicted at the summit: “Ten years down the road, I think we’re going to see in-season application the norm. Sure, there’ll be maintenance application during the spring and fall, but a majority of it will happen with that growing plant.”

Randy Ebert, owner of Ebert Enterprises, shared his 17-year journey implementing these systems despite significant community pushback: “I’m glad we stuck with it, even with the pushback.”

Those who persevered are now reaping the benefits while their close-minded neighbors are still playing catch-up.

SOIL HEALTH GOLDMINE: THE DIRT ON DIGESTATE DOLLARS

Iowa dairy farmer Bryan Sievers has been operating digesters that produce electricity since 2013. His testimony is a wake-up call for anyone still doubting the transformative power of this technology.

“We focus on a circular approach to our farming operation,” Sievers explains. “A waste product of one end of our business becomes a feedstock for the next stage.”

The results? In just one decade since implementing digesters, the soil organic matter on Sievers’ farm jumped from 3.5% to 5%. That’s a 43% increase in one of the most critical indicators of soil health and productivity.

“When you start to realize the impact that using digestate can have on your soil health… that’s a game changer.” — Bryan Sievers, Iowa Dairy Farmer

He uses this nutrient-rich byproduct as fertilizer on over 2,000 acres, completely displacing the need for synthetic fertilizers. With commercial fertilizer prices bouncing around like a cow with a new fly tag, this independence represents yet another financial advantage for digester adopters.

ENVIRONMENTAL IMPACT: NUMBERS THAT SHOULD MAKE YOU RETHINK EVERYTHING

If you’re still dismissing digesters as an environmental fad, the hard numbers should change your mind. From 2000 through 2023, manure-based anaerobic digesters have reduced direct and indirect emissions by an astounding 95.7 million metric tons of CO2 equivalent.

The acceleration is even more impressive: annual reductions have more than doubled just since 2020:

Source: EPA AgSTAR Data and Trends

This explosive growth creates unprecedented opportunities for dairy producers to position themselves as environmental leaders while simultaneously boosting their bottom line.

THE PROFIT LOOP: PAY IT FORWARD WHILE GETTING PAID

“We’re trying to improve the quality of life not only for our families, but for the people that work for us, the people that live in our communities, but also the soil, the air, and the water.” — Bryan Sievers, Iowa Dairy Farmer

This isn’t just about profit – though the profit potential is enormous. It’s about creating a truly sustainable business model where environmental stewardship and economic success go hand in hand.

Steve Shehady, a third-generation dairy farmer from Bar20 Dairy in California, represents another success story in this rapidly evolving space. These pioneering producers are demonstrating that the path forward combines traditional dairy expertise with cutting-edge waste management technologies.

While old-school farmers keep complaining about the cost of fertilizer, these visionaries are creating their own from what others throw away.

THE BOTTOM LINE: ACT NOW OR GET LEFT BEHIND

The EPA’s AgSTAR program confirms approximately 400 anaerobic digesters are currently operating at commercial livestock farms across the United States. This number continues to grow rapidly as more farmers recognize the multiple revenue streams available from what was once considered merely a waste disposal challenge.

For dairy producers still on the fence, the message couldn’t be clearer: manure management is rapidly transforming from cost center to profit center. Those who adapt quickly stand to thrive, while those who cling to outdated practices risk getting flushed away by more innovative competitors.

The question isn’t whether your farm can afford to invest in advanced manure management—it’s whether you can afford not to. The manure millionaires are already banking their profits.

Will your farm join the manure millionaires club—or stay stuck in the past? Let us know in the comments.

Learn more

• FOLLOW THE MONEY: TOP 5 FINANCING OPTIONS FOR YOUR DAIRY MANURE SYSTEM Discover which banks are dairy-friendly, what grants are available right now, and how to structure your financing to maximize ROI from manure management investments.
• DIGESTERS AREN’T JUST FOR THE BIG BOYS: HOW THREE 200-COW DAIRIES JOINED THE BIOGAS REVOLUTION These innovative producers prove that small operations can cash in on manure management through strategic partnerships and community digester models.
• CARBON CREDIT CASH: HOW PROGRESSIVE DAIRY FARMERS ARE DOUBLE-DIPPING ON MANURE PROFITS Beyond biogas and fertilizer savings, learn how forward-thinking producers are tapping into lucrative carbon markets for an additional revenue stream.

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