Agri News, MN
01-30-07
Ethanol production could provide feed alternatives
By Renae B. Vander Schaaf
news@agrinews.com
SIOUX CENTER, Iowa -- Feeding cattle has always been risky, but it has
become even more volatile due to increased feed costs, DNR regulations and the
number of cattle on feed.
These were just some of the topics discussed by cattlemen at a recent meeting
in Sioux Center. Participants came from 11 counties in Iowa and from Minnesota
and Nebraska.
The meeting was organized by Iowa State University Extension and Iowa,
Sioux and Lyon Cattlemen's Associations.
Ron Hook, ISU Extension farm management field specialist based in
Osceola County, said the 2006 corn crop had the second highest yield on
record, but is expected to fall short of the rising demand for corn due to ethanol
production and feed use.
The plus side of the growing ethanol industry is the readily available distillers
grain .
The theme was continued by Dan Loy, an ISU Extension beef feedlot
specialist.
Since the ethanol industry is always changing, Loy will keep producers updated
with a newsletter. To subscribe, contact him at dloy@iastate.edu or call (515)
294-BEEF.
Allen Trenkle, ISU professor of animal science, discussed the economics of
feeding co-products. Profitability changes with the levels of co-products fed.
Nutrition values change with the product used. Added costs include
transportation, storage and cost of the co-product. Distiller's grain replaces dry
rolled corn in the ration. Marbling and carcass value doesn't change when
feeding distillers grains if it is fed correctly.
"Iowa can remain competitive in the beef business with the availability of coproducts," Trenkle said. "In fact the beef industry in Iowa may grow as the
abundance of DGs replaces corn in rations."
Chad Gent of Farm Credit Services of America explained some of the risks of
investing in the ethanol industry. As long as ethanol sells in the $2 per gallon
range it can handle higher corn prices. He suggests not investing more than you
are willing to lose. He also recommended reading the prospectus and asking
questions. Invest in plants that are at 50 percent equity, Gent said.
More farmers are considering growing corn on corn.
Steve Barnhard, a crop specialist for Agriliance, said continuous corn requires
more management and long-term studies show that yields may decrease.
Adding more nitrogen might not correct that problem. Barnhard suggested that
corn growers use starter, fungicide and stacked hybrids. Also plant corn-on-corn
in fields where soybeans don't produce well or where an early variety of corn was
planted the year before, he said.
Beth Doran, ISU Extension beef specialist from Orange City, reviewed
progress made in instruments that grade beef carcasses. The machines that are
being tested in some plants can measure ribeye, yield grade and marbling. While
it will probably identify more yield Grade 4 carcasses that would receive a pay
discount, the grading will also identify more carcasses that are on the lower end
of a particular grade for quality that were previously rated a quality grade lower.