There are a couple of reasons:
Dairy operators often distribute their waste onto land. There is often not enough land to absorb all of the waste, so it runs off into the rivers where it becomes a pollutant. Lagoons are notorious for capturing and holding those wastes, which can become very toxic. The increased levels of nitrogen and phosphorous cause algael blooms which are very bad for that ecosystem.
There are attempts to regulate the waste production by the dairy industry but it is estimated that about 80% of the industry does not comply with the EPA regulations.
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