WEBVTT 00:00:14.189 --> 00:00:20.969 Creeping over fields of green Remembering the 00:00:20.969 --> 00:00:27.269 faces The moments unseen The hands that built 00:00:27.269 --> 00:00:33.590 a dynasty The vision in their eyes Echoes in 00:00:33.590 --> 00:00:38.810 the auction bar Beneath an endless sky This is 00:00:38.810 --> 00:01:04.200 the bull buy Turn the bar Hey there, dairy enthusiasts. 00:01:04.719 --> 00:01:07.700 Welcome back to the Bullvine Podcast. I'm your 00:01:07.700 --> 00:01:09.819 host, and today I've got an absolutely incredible 00:01:09.819 --> 00:01:13.260 story for you. We're going back to what I call 00:01:13.260 --> 00:01:16.519 dairy's wildest gold rush, a time when Manhattan 00:01:16.519 --> 00:01:18.640 millionaires were bidding quarter million dollars 00:01:18.640 --> 00:01:21.760 for cows, when farmers became overnight millionaires, 00:01:21.859 --> 00:01:24.579 and when a single line of tax code accidentally 00:01:24.579 --> 00:01:27.480 triggered the most explosive era in Holstein 00:01:27.480 --> 00:01:30.879 history. Now, I know what you're thinking. Come 00:01:30.879 --> 00:01:33.670 on. How could tax code possibly make for an exciting 00:01:33.670 --> 00:01:37.310 story? But trust me on this one. This is a tale 00:01:37.310 --> 00:01:40.189 that's got everything. Financial thriller meets 00:01:40.189 --> 00:01:44.109 rural America. Dreams, fortunes, betrayals, and 00:01:44.109 --> 00:01:47.450 even a beetle buying Holstein cattle. Yes, you 00:01:47.450 --> 00:01:49.629 heard that right. John Lennon of the Beatles 00:01:49.629 --> 00:01:53.030 was investing in dairy cows. So grab your coffee, 00:01:53.129 --> 00:01:55.530 settle in, and let me tell you about the investor 00:01:55.530 --> 00:01:59.370 herd era of the 1970s and 80s. A period that 00:01:59.370 --> 00:02:01.870 fundamentally changed our industry. and offers 00:02:01.870 --> 00:02:04.250 some pretty sobering lessons for today's dairy 00:02:04.250 --> 00:02:09.590 operators. Picture this. It's 1968. Lyndon Johnson 00:02:09.590 --> 00:02:11.849 is in his final year as president, and buried 00:02:11.849 --> 00:02:14.710 deep in the Internal Revenue Code, Section 46 00:02:14.710 --> 00:02:17.729 slips into law as quietly as a barn cat stalking 00:02:17.729 --> 00:02:21.189 mice. The agricultural press barely noticed it. 00:02:21.590 --> 00:02:24.750 Urban dwellers knew nothing about it. Even most 00:02:24.750 --> 00:02:26.770 dairy farmers just shrugged their shoulders. 00:02:27.090 --> 00:02:29.840 But here's the thing about legislation. Sometimes 00:02:29.840 --> 00:02:32.599 the most innocent -looking provisions can have 00:02:32.599 --> 00:02:36.400 the most explosive consequences. What Johnson's 00:02:36.400 --> 00:02:39.120 government intended as a modest tax shelter for 00:02:39.120 --> 00:02:42.180 wealthy taxpayers accidentally unleashed something 00:02:42.180 --> 00:02:45.259 unprecedented, the investment purchase credit. 00:02:45.879 --> 00:02:48.780 Now, let me break this down for you because the 00:02:48.780 --> 00:02:50.900 mechanics were brilliant in their simplicity. 00:02:51.180 --> 00:02:53.659 The wealthy could purchase a dairy cow with just 00:02:53.659 --> 00:02:55.979 a nominal down payment and a promissory note. 00:02:56.240 --> 00:02:59.659 But here's the kicker. The tax credits they received 00:02:59.659 --> 00:03:02.080 during the payment period would actually cover 00:03:02.080 --> 00:03:04.740 the cost of the animal. It was like getting a 00:03:04.740 --> 00:03:07.000 free cow if you knew how to work the system. 00:03:08.199 --> 00:03:11.479 Our first protagonist is John Sullivan, a guy 00:03:11.479 --> 00:03:14.340 who embodied the American dream wrapped in coveralls 00:03:14.340 --> 00:03:17.719 and ambition. Picture a Cornell -trained farm 00:03:17.719 --> 00:03:20.759 boy, eldest of nine kids from a Guernsey farm 00:03:20.759 --> 00:03:23.729 in Holcomb, New York. This guy worked his way 00:03:23.729 --> 00:03:26.449 through college milking cows at dawn and studying 00:03:26.449 --> 00:03:29.830 animal husbandry until midnight. By the early 00:03:29.830 --> 00:03:32.849 1970s, Sullivan was killing it selling Harvest 00:03:32.849 --> 00:03:36.409 Store silos across New York State. Four national 00:03:36.409 --> 00:03:39.229 awards, recognition as one of America's outstanding 00:03:39.229 --> 00:03:42.930 young men, the guy was successful. But then he 00:03:42.930 --> 00:03:45.270 partnered with Glenn Tripp to form Leadfield 00:03:45.270 --> 00:03:47.509 Associates, and that's when things got really 00:03:47.509 --> 00:03:50.710 interesting. These guys became known as the Big 00:03:50.710 --> 00:03:54.629 Buyers. By 1974, they were sweeping across the 00:03:54.629 --> 00:03:57.270 United States and Canada like art collectors 00:03:57.270 --> 00:04:00.210 acquiring masterpieces, assembling an incredible 00:04:00.210 --> 00:04:04.210 constellation of genetic excellence. But here's 00:04:04.210 --> 00:04:06.889 what made Sullivan revolutionary. He had one 00:04:06.889 --> 00:04:10.110 simple rule that changed everything. Never buy 00:04:10.110 --> 00:04:13.050 a show cow without a complete pedigree. Now this 00:04:13.050 --> 00:04:15.509 might sound obvious to us today, but back then, 00:04:15.569 --> 00:04:19.069 it was radical thinking. Sullivan figured out 00:04:19.069 --> 00:04:21.920 that The most expensive cows were those in the 00:04:21.920 --> 00:04:25.360 $2 ,000 price range, animals that looked impressive 00:04:25.360 --> 00:04:27.720 but lacked the genetic foundation to justify 00:04:27.720 --> 00:04:30.860 their cost. He demanded that every purchase have 00:04:30.860 --> 00:04:33.600 an excellent dam or several generations of very 00:04:33.600 --> 00:04:37.120 good classifications behind her. And boy, did 00:04:37.120 --> 00:04:41.060 this strategy pay off. At the 1972 Wintercrest 00:04:41.060 --> 00:04:43.959 Invitational Sale, Sullivan partnered with Stuart 00:04:43.959 --> 00:04:47.019 Hutchins to buy Wintercrest Sunlee for $20 ,000. 00:04:47.980 --> 00:04:50.259 a sum that made headlines but would soon seem 00:04:50.259 --> 00:04:53.899 quaint. A year later, they acquired five members 00:04:53.899 --> 00:04:56.379 of the legendary Crago family from Washington 00:04:56.379 --> 00:05:00.120 State, including Crago Telstar Bonaventure, who 00:05:00.120 --> 00:05:03.180 became part of the first 95 -point damn -daughter 00:05:03.180 --> 00:05:06.420 combination in breed history. But their crown 00:05:06.420 --> 00:05:11.019 jewel? Indeed Maple Lawn Marquis Glamour, the 00:05:11.019 --> 00:05:14.060 1971 All -American four -year -old that commanded 00:05:14.060 --> 00:05:18.560 $74 ,000. When she walked into their barn, heavy 00:05:18.560 --> 00:05:21.259 with a calf by the legendary Osburndale Ivanhoe, 00:05:21.360 --> 00:05:24.019 they weren't just buying a cow, they were purchasing 00:05:24.019 --> 00:05:28.300 a piece of Holstein immortality. Now while Sullivan 00:05:28.300 --> 00:05:30.399 was building his empire in upstate New York, 00:05:30.560 --> 00:05:34.379 about 150 miles south in Walton, a failed real 00:05:34.379 --> 00:05:37.540 estate broker named George Morgan was about to 00:05:37.540 --> 00:05:40.240 stumble upon the opportunity of several lifetimes. 00:05:40.639 --> 00:05:43.759 And folks, Morgan's story reads like a financial 00:05:43.759 --> 00:05:46.740 thriller. Born in Scotch Plains, New Jersey, 00:05:46.920 --> 00:05:49.480 Morgan had fallen in love with Holsteins as a 00:05:49.480 --> 00:05:53.220 boy on his uncle's farm. This guy was so obsessed, 00:05:53.420 --> 00:05:55.839 he covered the walls of an unheated room in his 00:05:55.839 --> 00:05:58.600 childhood home with Holstein pedigrees, most 00:05:58.600 --> 00:06:01.000 of them Dunlagan bloodlines. He'd read the Diamond 00:06:01.000 --> 00:06:03.560 Jubilee edition of Holstein History cover to 00:06:03.560 --> 00:06:07.699 cover, then read it again. By 1965, Morgan was 00:06:07.699 --> 00:06:10.000 living his dream on a farm in Walton, New York, 00:06:10.139 --> 00:06:13.339 milking a modest herd. But here's the harsh reality. 00:06:13.899 --> 00:06:16.740 he was drowning in debt the relentless daily 00:06:16.740 --> 00:06:19.920 grind thin margins constant worry about making 00:06:19.920 --> 00:06:23.379 ends meet it was wearing him down with five bright 00:06:23.379 --> 00:06:26.040 children to educate he made a pragmatic decision 00:06:26.040 --> 00:06:29.339 enter real estate and timing couldn't have been 00:06:29.339 --> 00:06:33.420 better from 1969 to 1973 morgan earned over 1 00:06:33.420 --> 00:06:35.980 million dollars in commissions selling rural 00:06:35.980 --> 00:06:38.459 properties to new york city businessmen seeking 00:06:38.459 --> 00:06:42.660 weekend retreats the guy was crushing it But 00:06:42.660 --> 00:06:46.740 then came the 1973 oil crisis. Overnight, his 00:06:46.740 --> 00:06:49.379 real estate empire crumbled when gasoline prices 00:06:49.379 --> 00:06:51.740 made the drive from Manhattan to the countryside 00:06:51.740 --> 00:06:55.500 prohibitively expensive. Suddenly, Morgan had 00:06:55.500 --> 00:06:58.160 time on his hands and a burning question. How 00:06:58.160 --> 00:07:00.759 could anyone justify paying astronomical prices 00:07:00.759 --> 00:07:04.360 for Holstein cattle? So he did what any good 00:07:04.360 --> 00:07:06.620 entrepreneur would do. He studied the system. 00:07:07.269 --> 00:07:10.129 Months of diving into the U .S. tax code, understanding 00:07:10.129 --> 00:07:12.850 the investment purchase credit and rapid depreciation 00:07:12.850 --> 00:07:15.730 systems. Here's how elegant the mechanics were. 00:07:16.449 --> 00:07:19.750 An entrepreneur could purchase a cow for $2 ,000, 00:07:20.050 --> 00:07:24.050 charge an investor $3 ,000, and guarantee replacement 00:07:24.050 --> 00:07:27.290 if the animal died. The investor would pay $300 00:07:27.290 --> 00:07:30.529 down and receive an immediate $300 tax rebate 00:07:30.529 --> 00:07:33.829 from the government. They could then depreciate 00:07:33.829 --> 00:07:38.319 the cow by 22 % in the first year. The entrepreneur 00:07:38.319 --> 00:07:40.860 held the investor's note while owing a similar 00:07:40.860 --> 00:07:44.439 note to the original farmer. In 1972, Morgan 00:07:44.439 --> 00:07:47.240 organized his first investor group, six New York 00:07:47.240 --> 00:07:49.699 businessmen he'd met during his real estate days. 00:07:50.660 --> 00:07:53.540 When he announced he was open for business, it 00:07:53.540 --> 00:07:55.439 marked the beginning of what would become the 00:07:55.439 --> 00:07:57.839 largest and most influential cattle investment 00:07:57.839 --> 00:08:01.180 operation in history. Partnering with certified 00:08:01.180 --> 00:08:04.439 public accountant George Teichner, Morgan launched 00:08:04.439 --> 00:08:08.100 Dream Street Holsteins, Inc. And folks, the results 00:08:08.100 --> 00:08:12.259 were nothing short of spectacular. By 1979, they 00:08:12.259 --> 00:08:15.660 were managing 1 ,200 cows across 18 farms organized 00:08:15.660 --> 00:08:19.360 into six farm satellites, each with its own manager. 00:08:19.779 --> 00:08:22.660 The Holstein -Friesian world captured the phenomenon 00:08:22.660 --> 00:08:26.600 in a 1975 article titled Who is George Morgan? 00:08:27.019 --> 00:08:29.720 The publication marveled at a man who'd purchased 00:08:29.720 --> 00:08:31.920 over half a million dollars worth of registered 00:08:31.920 --> 00:08:35.700 Holsteins in just two years. This guy paid $16 00:08:35.700 --> 00:08:39.039 ,000 for the top lot at the Vermont state sale 00:08:39.039 --> 00:08:43.059 and spent $104 ,800 for seven head at the Royal 00:08:43.059 --> 00:08:46.620 Erinwood sale. Morgan's success came from his 00:08:46.620 --> 00:08:49.519 deep understanding of both genetics and marketing. 00:08:49.879 --> 00:08:52.460 He was particularly successful with daughters 00:08:52.460 --> 00:08:55.659 of Round Oak Rag Apple Elevation, breeding more 00:08:55.659 --> 00:08:58.399 than 40 excellent scoring offspring, more than 00:08:58.399 --> 00:09:01.120 any other breeder, according to Select Sire's 00:09:01.120 --> 00:09:04.120 George Miller. Now here's where the story gets 00:09:04.120 --> 00:09:07.440 absolutely wild. Are you ready for this? John 00:09:07.440 --> 00:09:09.860 Lennon of the Beatles. Yes, that John Lennon 00:09:09.860 --> 00:09:12.700 decided to stake his fortune on Holstein genetics. 00:09:13.379 --> 00:09:15.919 According to Edward Young Morwick's historical 00:09:15.919 --> 00:09:18.740 account, Lennon threw so much money in the pot 00:09:18.740 --> 00:09:21.679 that they had to get rid of some of it very quickly. 00:09:23.240 --> 00:09:25.559 So Morgan and Teichner used Lennon's investment 00:09:25.559 --> 00:09:28.700 to purchase Spring Farm Fond Rose for $56 ,000, 00:09:29.059 --> 00:09:32.080 a heifer calf by Matt out of Spring Farm Citation 00:09:32.080 --> 00:09:35.600 Rosetta. The investment proved as golden as Lennon's 00:09:35.600 --> 00:09:38.519 musical touch. When they sold Rose in the Summer 00:09:38.519 --> 00:09:41.340 Dreams by Dream Street Sale of 1980, she commanded 00:09:41.340 --> 00:09:46.440 $250 ,000, representing a 347 % return in just 00:09:46.440 --> 00:09:50.159 a few years. Think about that for a moment. The 00:09:50.159 --> 00:09:52.159 sight of a beetle's money flowing into Holstein 00:09:52.159 --> 00:09:55.360 breeding programs wasn't just a curiosity, it 00:09:55.360 --> 00:09:58.360 was validation that these tax shelters had transcended 00:09:58.360 --> 00:10:01.220 agricultural circles to capture the imagination 00:10:01.220 --> 00:10:04.580 of global celebrities. When the man who wrote 00:10:04.580 --> 00:10:07.860 Imagine was imagining Holstein profits, you knew 00:10:07.860 --> 00:10:10.240 something extraordinary was happening in American 00:10:10.240 --> 00:10:14.159 agriculture. But perhaps the most unlikely chapter 00:10:14.159 --> 00:10:17.039 unfolded at Hilltop Hanover Farm in Yorktown 00:10:17.039 --> 00:10:20.470 Heights, New York. where five stockbrokers from 00:10:20.470 --> 00:10:22.990 the same Wall Street office decided to take their 00:10:22.990 --> 00:10:26.549 Holstein investments to the next level. Stanley 00:10:26.549 --> 00:10:30.529 Cheslock, Bee, Giles Brophy, John Knight, Frank 00:10:30.529 --> 00:10:33.029 Sands, and John Seitz had all purchased cattle 00:10:33.029 --> 00:10:35.470 through Dream Street's investment programs, but 00:10:35.470 --> 00:10:38.350 they wanted something more tangible. They convinced 00:10:38.350 --> 00:10:41.710 Dave Younger, this legendary manager who'd spent 00:10:41.710 --> 00:10:44.269 decades perfecting his craft with Guernseys and 00:10:44.269 --> 00:10:47.250 draft horses, to help them purchase the former 00:10:47.250 --> 00:10:49.690 Crystal estate and develop an elite Holstein 00:10:49.690 --> 00:10:53.450 operation. The vision was audacious. Wall Street 00:10:53.450 --> 00:10:55.750 money would create a showcase herd combining 00:10:55.750 --> 00:10:58.289 the best genetics with the finest management. 00:10:58.850 --> 00:11:03.350 And it worked. A 1977 classification found 41 00:11:03.350 --> 00:11:07.029 head averaging 88 .7 points, with 20 excellent 00:11:07.029 --> 00:11:10.909 and 20 very good animals. By the early 1990s, 00:11:10.909 --> 00:11:13.669 they'd bred and developed over 50 excellent cows. 00:11:14.639 --> 00:11:17.039 Younger's management philosophy was beautifully 00:11:17.039 --> 00:11:20.480 simple. First, you have to take good care of 00:11:20.480 --> 00:11:23.659 the cattle. Especially important is taking extremely 00:11:23.659 --> 00:11:26.500 good care of every calf that's born. The calves 00:11:26.500 --> 00:11:29.860 are the payback. Next, you have to promote the 00:11:29.860 --> 00:11:32.340 investors' cattle, and most importantly, you 00:11:32.340 --> 00:11:34.600 have to show them a little income from time to 00:11:34.600 --> 00:11:38.200 time. Their 1990 partial dispersal totaled $1 00:11:38.200 --> 00:11:42.720 .79 million on 180 head, the highest -grossing 00:11:42.720 --> 00:11:45.559 Holstein sale of the year. But no story from 00:11:45.559 --> 00:11:48.340 this era is more emblematic of both its promise 00:11:48.340 --> 00:11:52.100 and perils than Jack Stuckey's. Jack was the 00:11:52.100 --> 00:11:54.279 youngest of three sons from Leesburg, Indiana, 00:11:54.580 --> 00:11:56.899 possessed of what his mother Mary believed was 00:11:56.899 --> 00:12:00.580 a golden touch that could do no wrong. His older 00:12:00.580 --> 00:12:03.100 brother George had discovered floristin, the 00:12:03.100 --> 00:12:05.360 substance in toothpaste that prevents cavities, 00:12:05.559 --> 00:12:08.399 and sold his patent to Procter & Gamble for a 00:12:08.399 --> 00:12:11.899 fortune. Jack's early life read like an all -American 00:12:11.899 --> 00:12:15.279 success story. Track and field star, scholarship 00:12:15.279 --> 00:12:17.879 to Wayland Baptist University, where he set state 00:12:17.879 --> 00:12:20.720 records. But when he returned to Leesburg in 00:12:20.720 --> 00:12:24.279 1968, he initially got into automobile racing, 00:12:24.580 --> 00:12:27.120 designing and building his own cars from scratch. 00:12:27.600 --> 00:12:30.679 His mother protested, his wife Darla put her 00:12:30.679 --> 00:12:33.379 foot down about the dangers, so Jack redirected 00:12:33.379 --> 00:12:35.919 his competitive drive toward the family Holstein 00:12:35.919 --> 00:12:40.019 herd. By 1980, the Stuckey herd had reached its 00:12:40.019 --> 00:12:44.440 peak. 30 Excellent and 33 very good females on 00:12:44.440 --> 00:12:48.500 a 1 ,500 -acre showplace. But Jack's vision extended 00:12:48.500 --> 00:12:52.100 far beyond the family farm. He would create an 00:12:52.100 --> 00:12:54.559 investor herd that assembled the best Holsteins 00:12:54.559 --> 00:12:58.159 North America had to offer. The investment purchase 00:12:58.159 --> 00:13:01.200 credit attracted individuals earning $500 ,000 00:13:01.200 --> 00:13:04.620 annually and upward, and Indianapolis had plenty 00:13:04.620 --> 00:13:08.039 of people in that category. Soon, money was flowing 00:13:08.039 --> 00:13:10.740 to Stuckey from California, Florida, Georgia, 00:13:10.899 --> 00:13:14.379 from all over the country. His best year was 00:13:14.379 --> 00:13:17.659 1983, when he took home the premier exhibitor 00:13:17.659 --> 00:13:20.519 banner at Central National Show and came within 00:13:20.519 --> 00:13:22.659 a whisker of repeating at Eastern and Western 00:13:22.659 --> 00:13:25.700 Nationals. He owned three All -Americans, or 00:13:25.700 --> 00:13:29.220 reserves, that year alone. But the Internal Revenue 00:13:29.220 --> 00:13:31.320 Service had been watching these livestock investment 00:13:31.320 --> 00:13:35.779 shelters with growing suspicion. In the early 00:13:35.779 --> 00:13:38.279 1980s, they began challenging many of them through 00:13:38.279 --> 00:13:41.299 audits. Jack Stuckey found himself squarely in 00:13:41.299 --> 00:13:43.919 their crosshairs when they disallowed many of 00:13:43.919 --> 00:13:46.600 his tax loss claims and demanded payment of back 00:13:46.600 --> 00:13:49.940 taxes in six figures. The financial pressure 00:13:49.940 --> 00:13:53.200 manifested in heartbreaking ways. On a Saturday 00:13:53.200 --> 00:13:56.820 afternoon in winter 1985, Stuckey couldn't pay 00:13:56.820 --> 00:13:59.480 his hired help, so he instructed them to load 00:13:59.480 --> 00:14:01.720 a trailer with bull calves destined for slaughter. 00:14:02.269 --> 00:14:04.809 animals he'd previously planned to sell for breeding 00:14:04.809 --> 00:14:08.450 purposes. Among them were three sons of continental 00:14:08.450 --> 00:14:12.750 scarlet by Roybrook Telstar. An AI stud had already 00:14:12.750 --> 00:14:15.610 spoken for one of the red and white bulls, but 00:14:15.610 --> 00:14:19.149 Jack couldn't wait. And then nature added cruel 00:14:19.149 --> 00:14:22.629 irony to financial disaster. A devastating blizzard 00:14:22.629 --> 00:14:25.970 buried 100 calf hutches in snow. They didn't 00:14:25.970 --> 00:14:28.230 get the calves dug out in time, and they all 00:14:28.230 --> 00:14:31.370 suffocated, including 18 calves by enhancer out 00:14:31.370 --> 00:14:34.039 of scarlet. The image of those buried hutches 00:14:34.039 --> 00:14:36.860 became a metaphor for dreams smothered by circumstances 00:14:36.860 --> 00:14:40.840 beyond anyone's control. Rumors began circulating, 00:14:41.200 --> 00:14:44.320 checks bouncing at the Canadian border, a disgruntled 00:14:44.320 --> 00:14:46.940 investor allegedly dynamiting the porch off his 00:14:46.940 --> 00:14:50.460 house. Whether true or false, the stories transformed 00:14:50.460 --> 00:14:53.580 Stuckey from a local legend into a pariah in 00:14:53.580 --> 00:14:56.820 the larger Holstein world. When the IRS filed 00:14:56.820 --> 00:14:59.679 a lien for back taxes, Stuckey filed for bankruptcy. 00:15:00.779 --> 00:15:03.700 The proceedings created legal chaos as breeders 00:15:03.700 --> 00:15:05.940 who'd sold him cattle with only partial payment 00:15:05.940 --> 00:15:10.080 argued they still owned the animals. The end 00:15:10.080 --> 00:15:13.980 came swiftly and brutally for many. Dream Street's 00:15:13.980 --> 00:15:16.080 Frank Wood initially prospered through the early 00:15:16.080 --> 00:15:19.980 1980s. In 1983, their peak year, Dream Street 00:15:19.980 --> 00:15:22.700 presented both the Grand and Reserve Grand Champion 00:15:22.700 --> 00:15:25.600 females at Central National Show, an accomplishment 00:15:25.600 --> 00:15:29.509 achieved only once before in breed history. But 00:15:29.509 --> 00:15:31.870 changing tax laws and market conditions eventually 00:15:31.870 --> 00:15:34.669 caught up with them. The stock market crash of 00:15:34.669 --> 00:15:38.649 October 1987 sent their joint venture into receivership. 00:15:38.850 --> 00:15:42.830 By 1990, 4 ,000 head of the former Dream Street 00:15:42.830 --> 00:15:46.169 herd were sold to Mass Talk Montezuma, effectively 00:15:46.169 --> 00:15:48.809 ending one of the most ambitious cattle operations 00:15:48.809 --> 00:15:52.169 in history. For Jack Stuckey, the denouement 00:15:52.169 --> 00:15:56.070 was even more tragic. After his bankruptcy, he 00:15:56.070 --> 00:15:58.700 moved to Tulsa, Oklahoma. joining a firm selling 00:15:58.700 --> 00:16:01.940 U .S. currency to foreign investors. But the 00:16:01.940 --> 00:16:05.960 IRS never lost interest. In 2007, they came back 00:16:05.960 --> 00:16:08.620 with a tax arrears claim totaling $1 .5 million. 00:16:09.460 --> 00:16:12.179 Unable to face another prosecution, Jack drove 00:16:12.179 --> 00:16:14.940 down a back road and ended his life. The investment 00:16:14.940 --> 00:16:17.080 credit provision was repealed by the Tax Reform 00:16:17.080 --> 00:16:21.340 Act of 1986, officially ending the era. Now you 00:16:21.340 --> 00:16:24.059 might be thinking, great story, but what does 00:16:24.059 --> 00:16:26.539 this have to do with my operation today? Well, 00:16:26.620 --> 00:16:29.580 everything. The investor era offers profound 00:16:29.580 --> 00:16:31.919 lessons for modern dairy operations navigating 00:16:31.919 --> 00:16:35.320 our own period of rapid change. Today's producers 00:16:35.320 --> 00:16:38.179 face external forces just as disruptive as Section 00:16:38.179 --> 00:16:41.379 46. Environmental regulations, carbon credit 00:16:41.379 --> 00:16:43.799 markets, consolidation pressures, technological 00:16:43.799 --> 00:16:48.139 disruption. First, document everything ruthlessly. 00:16:48.399 --> 00:16:51.340 Sullivan's insistence on complete pedigrees and 00:16:51.340 --> 00:16:54.620 genetic documentation proved prescient. Today's 00:16:54.620 --> 00:16:57.509 equivalent? Comprehensive genomic testing. health 00:16:57.509 --> 00:17:00.929 records production data the farms that survive 00:17:00.929 --> 00:17:03.309 market volatility are those with bulletproof 00:17:03.309 --> 00:17:07.150 documentation second understand your capital 00:17:07.150 --> 00:17:09.970 structure the investor era collapsed when highly 00:17:09.970 --> 00:17:12.190 leveraged operations couldn't service debt during 00:17:12.190 --> 00:17:15.589 market downturns build equity reserves maintain 00:17:15.589 --> 00:17:18.430 diverse revenue streams today's most successful 00:17:18.430 --> 00:17:21.190 dairies aren't just milk producers they're energy 00:17:21.190 --> 00:17:24.130 generators carbon credit earners genetic suppliers 00:17:24.799 --> 00:17:28.380 Third, time market cycles strategically. Morgan's 00:17:28.380 --> 00:17:30.960 God Makes Cows everyday philosophy applies to 00:17:30.960 --> 00:17:33.920 today's genetic markets. Know when to sell embryos, 00:17:33.960 --> 00:17:37.720 semen rights, equity positions. Fourth, build 00:17:37.720 --> 00:17:40.640 sustainable management systems. Younger's focus 00:17:40.640 --> 00:17:43.119 on calf care and investor relations translates 00:17:43.119 --> 00:17:46.039 directly to modern stakeholder management. Whether 00:17:46.039 --> 00:17:48.619 dealing with lenders, investors, or family members, 00:17:48.839 --> 00:17:51.500 consistent communication and demonstrable results 00:17:51.500 --> 00:17:54.940 are essential. Finally, prepare for regulatory 00:17:54.940 --> 00:17:58.740 disruption. The Tax Reform Act of 1986 ended 00:17:58.740 --> 00:18:01.799 the investor era overnight. Today's equivalent 00:18:01.799 --> 00:18:04.900 disruptions could include carbon taxation, methane 00:18:04.900 --> 00:18:09.380 regulations, animal welfare mandates. Successful 00:18:09.380 --> 00:18:13.319 operations plan for multiple scenarios. The investor 00:18:13.319 --> 00:18:15.819 herd era stands as perhaps the most dramatic 00:18:15.819 --> 00:18:19.079 chapter in Holstein history. a time when government 00:18:19.079 --> 00:18:21.900 tax policy inadvertently created a perfect storm 00:18:21.900 --> 00:18:24.839 of Wall Street money and genetic ambition. The 00:18:24.839 --> 00:18:27.940 results were spectacular. Record -breaking prices, 00:18:28.240 --> 00:18:30.940 revolutionary breeding programs, genetic advances 00:18:30.940 --> 00:18:34.119 that continue influencing the breed today. Yet 00:18:34.119 --> 00:18:36.579 the human cost was equally dramatic. For every 00:18:36.579 --> 00:18:38.940 George Morgan who navigated the era successfully, 00:18:39.359 --> 00:18:41.859 there was a Jack Stuckey whose dreams turned 00:18:41.859 --> 00:18:44.960 to nightmares. The lesson for today's dairy industry 00:18:44.960 --> 00:18:48.440 is sobering. External forces can reshape everything 00:18:48.440 --> 00:18:51.519 overnight. The survivors weren't necessarily 00:18:51.519 --> 00:18:54.119 the smartest or most ambitious. They were those 00:18:54.119 --> 00:18:56.500 who understood that in agriculture, as in life, 00:18:56.619 --> 00:19:00.259 the only constant is change. As we face our own 00:19:00.259 --> 00:19:03.440 era of transformation, with technology, sustainability 00:19:03.440 --> 00:19:07.240 demands, and global markets reshaping dairy farming, 00:19:07.480 --> 00:19:10.019 the investor herd story reminds us that fortune 00:19:10.019 --> 00:19:13.519 favors not just the bold, but the prepared. Edward 00:19:13.519 --> 00:19:16.200 Young Morwick said it best in his original account, 00:19:16.799 --> 00:19:20.279 If such times do come again, rejoice and be exceedingly 00:19:20.279 --> 00:19:23.279 glad. As a Holstein breeder, you've been handed 00:19:23.279 --> 00:19:26.759 the keys to the kingdom. The question isn't whether 00:19:26.759 --> 00:19:29.259 such times will come again, it's whether we'll 00:19:29.259 --> 00:19:32.099 be ready when they do. What does this mean for 00:19:32.099 --> 00:19:34.960 your operation? Start building the documentation. 00:19:35.880 --> 00:19:38.299 capital reserves, and strategic relationships 00:19:38.299 --> 00:19:41.440 you'll need to capitalize on the next wave of 00:19:41.440 --> 00:19:45.420 industry transformation. Because trust me, it's 00:19:45.420 --> 00:19:48.519 coming sooner than you think. That's our story 00:19:48.519 --> 00:19:51.059 for today, folks. The wild tale of when Wall 00:19:51.059 --> 00:19:53.599 Street invaded the barn and the lessons it holds 00:19:53.599 --> 00:19:56.059 for all of us in today's rapidly changing dairy 00:19:56.059 --> 00:19:58.880 industry. Thanks for joining me on the Bullvine 00:19:58.880 --> 00:20:02.410 Podcast. If you enjoyed this deep dive into dairy 00:20:02.410 --> 00:20:04.730 history, make sure to subscribe and share it 00:20:04.730 --> 00:20:06.769 with fellow producers who might find these lessons 00:20:06.769 --> 00:20:10.230 valuable. Until next time, keep breeding better, 00:20:10.349 --> 00:20:13.589 keep thinking strategically, and remember, in 00:20:13.589 --> 00:20:17.490 this industry, the only constant is change. This 00:20:17.490 --> 00:20:19.890 has been the Bullvine Podcast. I'm your host, 00:20:19.970 --> 00:20:40.609 and we'll see you next time. We'll be right back.