Corn: Do we feed it or do we burn it? That question is being raised more frequently as the nation becomes concerned that ethanol’s demand for corn will outstrip the availability of corn for food, but more particularly for livestock feed. Iowa is the center of gravity for both ethanol plants and a diverse livestock feeding infrastructure. Outward from Iowa, like ripples on water, the impact will be felt in neighboring states.

Although ethanol is the new kid on the block, the livestock industry is still the heavyweight, consuming about half of our annual corn crop. But with the 10% extra corn acres this year, and the slowdown in livestock feeding due to higher corn prices, that ratio will change in 2007. And that trend will possibly see ethanol and livestock trade places in the next ten years. Iowa State livestock economist John Lawrence says corn typically represents half or more of the feed cost for most meat, milk and egg-producing animals. Rising corn prices are expected to result in reduced supplies and rising prices of all commercial animal agriculture in the United States. There also may be some shifting of meat supplies as cattle are better able to utilize distillers’ grains and solubles (DGS) than hogs or poultry and can gain more weight on pasture to reduce total concentrate feeding.”

With the current feed demand for Iowa livestock, Lawrence says there will be a market for 2.3 million tons of distillers’ grains from 270 million bushels of corn, plus an additional 500 million bushels of corn. But he is quick to temper that estimate, by saying, “These DGS and corn demand estimates will change with inclusion rate in the diet and adoption rates by producers. These decisions will be driven by economics of substitution technology of corn processing that may make the co-product more or less valuable in diets, and management skills of producers.” As every livestock producer knows, DDGS cannot be fed exclusively to any animal, but depending upon price and supply they can be incorporated at optimum levels.

Lawrence urges livestock producers to work with professional nutritionists to balance a ration, looking at the economics of the feeding alternatives, and even the rate of gain for various rations. But most importantly, consider the serious health issues that exist with the use of DDGS:
1) Mycotoxin concentrations can reach problem levels for some livestock — for instance, dairy has zero tolerance for aflaxtoxin.
2) There may be concern in gestation diets. DGS can have high concentration of sulfur and when fed at high inclusion rates may cause problems in cattle rations.
3) Sulfur levels may differ by plant or even batch and some feedlots have high sulfur content in well water resulting in high sulfur intake.
4) Phosphorous is concentrated in DGS and manure and may require more land for manure application if phosphorus is applied at the crop uptake rate.

Feed recommendations for DDGS have been developed in a variety of Land Grant Universities overtime, and with the increased supply and high costs of corn, many feeding trials are still being conducted to refine the rations.

Hogs: University of Minnesota recommendations for maximum inclusion rates for grow-finish and lactation diets are 20%. Kansas State University research showed no change in grow-finish performance fed 10% DDGS in the ration compared to a corn-SBM diet. Lawrence says the currently the more common substitution rate is 10% in a ton of feed or 200 pounds of DDGS and 3 pounds of limestone will replace 160 pounds of corn, 38 pounds of SBM and 5 pounds of DiCal Phosphate. Lawrence says the downside to DDGS in hogs is the potential impact on pork fat quality, making it softer. And he says essential amino acids must be rebalanced in a DDGS ration. Those may be the recommended limits of feeding, but it is not worthwhile to approach those limits pending the cost of distillers’ grains and the cost of corn. Pork producers can utilize a web-based calculator at Iowa State University to evaluate the economics involved.

Beef: In a beef ration, with wet distillers grain (WDG) becomes a more useful product according to Lawrence. WDGS has higher feed value than DDGS in beef rations and higher feed value than corn up to 40-50% of dry matter in the ration. WDGS substitutes for corn and protein supplement. Vitamin and mineral supplementation still is needed, but it already is excess in phosphorus. Maximum inclusion rates are being tested. Iowa State University research found no performance difference at 40% of ration, but may result in reduced marbling and quality grade. Current research is looking at 60% inclusion rate particularly for growing diets. Regarding the economics, Lawrence says, “This example considers a 650 lb. steer calf finished to 1,300 lbs. At current prices of $3/bu corn, $200/ton supplement and $35/ton modified DGS (approximately 50% dry matter), the cost savings per head is $40 and $68 per head when fed at 20% and 40% of the diet, respectively. On the 650 pounds of gain, this is $6.41/cwt and $10.41/cwt reduction in cost of gain. If the corn price increased $.65/bu for the 20% DGS and $1.50/bu for the 40% DGS rations, the resulting rations would have the same feed cost as a ration with no DGS and $3/bu corn.”

Dairy: Lawrence says the dairy operation can use either dry or wet distillers’ grain products. South Dakota State University recommends a maximum of 20% of dry matter in lactating rations. Higher levels may suppress feed intake. DGS can replace most protein supplement if alfalfa and corn silage are both used. Over feeding protein if all forage is alfalfa, under feeding protein if all forage is corn silage. There is potential for use in growing replacement heifers and feeding dry cows.

Poultry: University of Minnesota reports layers and turkeys can be fed diets with 10% DDGS without impacting performance. Higher inclusion rates can be fed if additional energy is provided.

Summary:
While the future of the Cornbelt may be ethanol, the future will also be focused on innovations with livestock feed rations resulting from the availability of distillers’ grains. They may make 10% of the ratio less expensive, but the other 90% may be more expensive. At the same time, livestock producers will have to become more adept at balancing rations to adjust for different qualities of the distillers’ grains.