Ethanol Industry Goes Into Spin Mode On Livestock Feed

The one thing proponents of ethanol have been trying to sweep under the table during their endless drive to cram the fuel down our throats with endless subsidies and mandates is the fact that widespread use of one of our staple crops for fuel is going to make livestock feed more expensive. A cost that will, along with the rising cost of corn due to more of it being diverted to ethanol production, be passed on to those buying foods.
So now the ethanol industry must do something to keep up their ag-friendly appearance and convince us all that the fuel isn’t a pipe dream that will eventually do more to line the products of big-ag and big-biofuel moves-and-shakers than solve our fuel problems. Their answer? They put out propaganda about ethanol byproducts being used as livestock feed.

BISMARCK, N.D. – North Dakota’s booming ethanol industry is providing feed that cattle find tasty and ranchers find affordable _ so far.
“The byproduct was a pretty good buy last year, but I’m not sure where they’re going to price it this year,” said Shawn Arndorfer, who owns a cattle feedlot near Hettinger and manages a second one near Scranton. “There’s enough demand for the byproduct that I think it will probably push prices up a little bit.”
The byproduct of corn ethanol production _ called distillers grains _ can replace some of the grain corn and protein supplements in a cow’s diet. “Typically it’s cheaper than the same amount of corn (and) soybean meal, whatever protein source you’re using,” said Greg Lardy, a beef cattle specialist with the North Dakota State University Extension Service.
“In Nebraska, South Dakota and Iowa, where they’ve got huge amounts of byproduct being produced, (cattle) numbers are really going up,” he said.
Duane Zent, who farms in the Richardton area, said he has had good luck with distillers grains from the Red Trail Energy plant, which produces ethanol in southwestern North Dakota.
“It’s cheaper than buying corn (and) cows really like it,” he said.

The idea that ethanol by-products can provide a cheaper alternative feed to corn or soybeans for ranchers sounds great, until you realize that there is no way for these by-products to replace all of the corn being used up to produce ethanol. Eventually, as more ranchers use the by-products for feed, it’s cost will go up and feed will be more expensive than it was before all these heavily-tax-subsidized ethanol plants were eating up all the corn.
The bottom line is that while ethanol may be getting hype from the media, and while politicians all over the country may be doing everything short of paid commercial product endorsements to make sure ethanol gets made and used (and in John Hoeven’s case, those product endorsements are a real thing given he’s on billboards hawking E85), the truth is that until it’s a marketable alternative to traditional gasoline the only way people will use it on a regular is if they’re forced to by law.
Which is pretty much what these politicians are doing anyway, rising food prices be damned.

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  • http://www.bismarckmandanblog.com/ clintf

    The ethanol craze is driving up the price of corn. As a result, more farmer grow corn. That means fewer acres of other crops are planted, driving the prices of those grains up as well. Not only is the cost of feed increased, so is the cost of other food products. Ranchers and dairy farmers have to raise their prices to make up for their increased production costs. So all our food prices go up.

    I have a hard time believing the farmer or rancher is going to come out successful in the long run, and it’s obvious the consumer is getting cornholed (pun intended). So who’s making money? Simple: the people collecting the government subsidies on ethanol blended fuels.

    That reminds me: in ND, E85 can contain as little as 70% ethanol, by law. That means an E85 producer can hedge 15% of the ethanol in the fuel he makes and collect a 50 cent per gallon subsidy on 15% more product! What a racket, eh?

    Why do you suppose they give it 15% leeway? Perhaps it’s because the ethanol evaporates and/or absorbs water. That’s why they can’t transport it using pipelines. So if it will absorb water in a pipeline, what do you suppose it’s going to do in an underground storage tank?

    What about putting a hygroscopic fuel in your gas tank? Do you feel like replacing a $500 fuel pump in your General Motors Flexfuel vehicle every winter when the water absorbed by the ethanol freezes up and takes out the impellers of your fuel pump? Since 1995, GM has integrated the fuel pump with the sending unit in its vehicles. Trust me, I had to replace one. I couldn’t believe the $670 bill! Look forward to more of those if you’re going to start making ethanol ice cubes in your gas tank.

  • Pilgrim

    Clint F nailed it.

    Food prices have gone up more than 6% and that can be traced directly to ethanol. More corn, fewer other crops. Prices go up. Simple.

    Ethanol ain’t the answer.

  • Fez

    The amount of corn that goes toward ethanol is minuscule compared to the vast majority that goes to feed cattle. I don’t know how many people realize that. If you want to complain about corn shortages, ask whether you’re eating a meat-based diet.

  • robert108

    Ethanol ain’t the answer.

    Actually, Pil, it’s the answer to the question: “How can the Dems raise both food and fuel prices at the same time, while making us more vulnerable to terrorism?”

  • Andy

    gotta keep costs down everywhere nowadays. don’t want any livestock to have infections….best to keep them sprayed with Mist Sprayers.. Not only is corn going up, wheat will be rising too. True ethanol is no the answer..why can’t they just grow sugarcane liek Brazil.. Why mess with something that will screw up the costs elsewhere.

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