SPRINGFIELD — Eastwood Dairy LLC, a large dairy farm in South Charleston, filed for Chapter 11 bankruptcy this month after struggling for more than two years with volatile milk and feed prices and increasing debt.

Under Chapter 11 bankruptcy, the 68-acre farm — one of many struggling farms developed by Vreba Hoff Dairy Development in the last decade — is still operational, but is beholden to the banks and the courts.

“An order was entered (Tuesday) which allows us to use cash for an interim period under the bankruptcy code,” said Daniel Swetnam, a Columbus-based attorney representing Eastwood Dairy.

Dirk Winkel, owner of the 1,230-cow dairy, said he must provide a budget to the bank on a regular basis because the bank has control over revenues and finances.

“The plan is to focus and recapitalize,” Winkel said. “We had big losses in 2009 that lead to problems.”

Eastwood Dairy owes about $6.8 million to at least 20 creditors, the biggest of which is AgStar Financial Services, which is owed more than half the debt.

According to bankruptcy court documents, in 2009 milk prices declined while feed prices were increasing. By the time prices stabilized in 2010 and 2011, the dairy was in debt. Winkel said filing for bankruptcy was the only way to get time to reorganize their debt.

“The farm is running; it has sufficient cash to pay its post- petition bills and obligations, and we’re very hopeful we can put together a plan of reorganization,” Swetnam said.

Eastwood Dairy isn’t alone in its troubles. The dairy is one of many developed by Vreba Hoff Dairy Development starting in the late ’90s. Like many of the Netherland farmers Vreba Hoff targeted, Winkel sold his farm in the Netherlands in 2005 to build Eastwood Dairy for $2.6 million.

Other Vreba Hoff farms with a similar past are struggling. As of 2010, eight Vreba Hoff developed dairies in the U.S. are being foreclosed and 16 farms are idle because there weren’t enough funds to continue construction, according to a Wall Street Journal report.

In Fulton County, home to the Vreba Hoff office, there are six open cases against the corporation from banks and farmers, the latest of which was filed on July 27, court documents.

The company shows up under several different names in court documents and on the Secretary of State registration filings, all with the same address and phone number. However, an employee at the Vreba Hoff office said the company no longer exists or deals with dairies.

Other attempts to reach Vreba Hoff officials were unsuccessful.

Winkel is aware his dairy falls under the trend of failing Vreba Hoff dairies, but he does not blame the institution.

“We didn’t have any problems (with Vreba Hoff),” Winkel said. “Probably we’re one of the lucky ones...obviously something is going on but I don’t feel comfortable commenting about that.”