Prior to the purchase had you researched crime stats in the city? Are they different now to those before your purchase? As mentioned, the public report will have proximity information to any dairy farms or nuisances in the area. Was your agent familiar with Avondale and did you discuss this with them prior to purchase?
As for recourse, look to an attorney for details on any action you may have against the builder.
Truth be told Cory, this is a legal question and should only be answered by a qualified real estate attorney. Make sure and get all your documents together, especially the Public Report provided by the builder, and get some professional advise.
The good news is that you are now a more knowledgeable buyer. Next time you will probably have your own seasoned real estate agent working on your side. You will be very persistent during the inspection period and perform your own due diligence. A good agent will advise you to review crime stats, hang out in the area during different times of day, talk to neighbors and the police and look at the home and area with a cautious eye.
Sorry for the bad experience. Did you visit the property before your purchased? Did you have a Buyer's agent? Crime stats are readily available online and well the smell, it may get worse the heat. Here is a document that may save you some greif next time http://www.aaronline.com/documents/buy_advis.pdf . Caveat emptor is Latin for "Let the buyer beware".
Did you purchase the home without the help of a "buyer's agent" who could have pointed these items out in the public report. With al due respect to Brad, last time I checked people love milk, cheese and ice cream so I don't think the dairy farms are going away anytime soon.
If anyone else is reading this then please, please, please do not go to a new home subdivision without an agent (REALTOR) who can represent you as a buyer's agent and help you make a good purchase decision.
Below is a link that you need to review.
Unfortunately, legal recourse is not really an option. It's up to the buyer to verify all information. Of course, a builder SHOULD give honest and reliable information but in times where sales may be few an far between, a builder's sales agent may stretch the truth to get the sale. Or, simply be uninformed ... a builder will tell their agents what to say - sometimes in even script form.
A builder only has to disclose certain items and crime and dairy farm smells are not any of those items.
Sorry you've had such a poor experience! Of course, those dairy farms' days are numbered!