Nathan Smith, owner of a cattle feedlot near Surrey, ND, says allegations surrounding improper cattle disposal and ongoing investigations into his operation stem from what he describes as mismanagement, theft and misconduct by a former employee and business associate.
Smith recently filed a civil lawsuit in Ward County District Court against former employee Darek Keller, along with Matt Dusek and Nick Peterson, alleging cattle theft, conversion of property, false expense claims, conspiracy and defamation.
The lawsuit follows criminal and regulatory scrutiny tied to Smith’s feedlot operation after authorities investigated the disposal of deceased cattle on the property. According to the Minot Daily News, Smith was charged with 479 infractions related to improper disposal of animal carcasses removed from the site in March. Smith pleaded not guilty to the infractions in April.
Smith, in an interview with WLJ, acknowledged the cattle deaths occurred at the operation but disputed claims they reflected neglect or animal welfare problems. Smith also strongly contended that the situation has been misrepresented publicly.
“There’s so much misinformation and slander that’s going on about what actually happened,” Smith said. “We’re being portrayed in a negative light, and cattle feeders and cattle guys should be gathering around us, not slandering us, because what’s going on could happen to any one of us.”
Questions over deaths, disposal
Smith said the operation handled as many as 14,000 cattle at certain times and maintained that death losses were below industry norms despite harsh winter conditions and management challenges.
“Most of those deaths happened in December under his management,” Smith alleged, referring to Keller, adding that death losses declined significantly after Keller left the operation.
Under North Dakota law, livestock carcasses must generally be burned, buried, composted or taken to a licensed rendering plant within 36 hours unless the state veterinarian approves another method.
Smith disputes claims that cattle were disposed of improperly and said the operation never had an opportunity to work with state animal health experts before enforcement actions were taken.
“We didn’t even ever have a chance to have that conversation or get anyone out there that has that expertise,” Smith said.
The Minot Daily News reported that Smith filed a separate lawsuit alleging that Ward County officials failed to involve the state veterinarian or the Board of Animal Health before removing carcasses and issuing citations. The Ward County Commission later imposed zoning fines against the feedlot and ordered that no additional cattle be brought onto the property until violations were corrected, according to the news outlet.
According to court documents, Keller worked for Smith Farms from 2021 through January 2026 and oversaw the design, construction, management and maintenance of the feedlot northeast of Minot. The complaint alleges Keller had “full authority and responsibility and management of animal disposal” while managing the facility.
The lawsuit alleges Keller failed to secure the permits required for the operation despite assuring ownership the process was underway. The complaint also alleges Keller’s actions contributed to issues now under investigation by the Ward County Planning and Zoning, the North Dakota Department of Environmental Quality and the Ward County Resource Board.
Additional allegations
Beyond the disposal allegations, Smith’s lawsuit alleges Keller and the other defendants were involved in improper cattle sales, false expense claims and removal of business property. According to the complaint, the defendants allegedly falsely reported cattle as dead, removed live cattle from the feedlot and sold them under Keller’s personal name while retaining the proceeds.
Smith said concerns about Keller’s management began surfacing months before the dispute escalated.
“I got really suspicious in August when I found a large check from some eastern South Dakota cattle buyer,” Smith said. “He would not give me a straight answer to it.”
The complaint references a $285,054.25 check allegedly tied to cattle sales involving cattle that Smith claims did not belong to Keller.
According to the complaint, Smith Farms also made more than $340,000 in debt-service payments between 2023 and 2025 to acquire farm equipment Keller previously owned.
The lawsuit lists numerous pieces of equipment allegedly removed from the property after Keller’s employment ended, including loaders, trailers, tractors, feed wagons, water tanks and utility vehicles. The complaint additionally alleges the defendants removed furniture, vaccines, tools and other property from a residence owned and operated by Smith Farms.
Smith said Ward County authorities refused to investigate Keller despite what Smith described as evidence of theft and misconduct.
Controversy impacts
Smith said the controversy has caused major damage to both the operation and his reputation within the cattle industry.
“I have people that won’t work with me anymore,” Smith said. “You can see on Facebook about how terrible I am, and how I’m starving animals. This is not true.”
Despite the controversy, Smith maintained that customers were satisfied with cattle performance and animal care.
“They’ve made it very clear to Ward County (officials) that they’re perfectly satisfied with our work gains and our care of the cattle,” Smith said.
Smith said he intends to continue fighting both the civil and criminal allegations.
“We take care of animals, and we take a lot of pride in what we do,” Smith said. “What’s going on is so grossly unfair and wrong that anyone that starts finding the real story of what’s happening here should honestly be disturbed.” — Charles Wallace, WLJ contributing editor
