Feed Products Made From Corn

There’s no doubt that corn is one of the world’s most a-maize-ing crops!  It has so many uses that benefit people all around the world.  Over the next few weeks, we will feature a new blog series called, “For the Love of Corn”, where we will look at the six different high-value corn product categories and how they are used.

This week, we will take a look at the high-value corn product category, Feed Products or Co-Products. Corn is a very versatile grain – and when processed in ethanol plants, “wet” mills or “dry” mills, its components can be made into many kinds of feed ingredients for livestock, which the corn and livestock industry call “co-products.” These refined corn feed products provide protein, fiber, minerals and vitamins to feed the cattle, fish, hogs, and poultry that enrich our diets.

Ethanol plants are located across Nebraska, creating a good local market for corn. The plants take that corn and pull out the starch, which is distilled into ethanol for fuel. Some ethanol plants also remove the feed-grade corn oil from the kernel, selling it separately to be used as livestock feed, while others pull out the corn germ, creating corn germ meal. The remainder of the kernel, plus the leftovers from the distilling process, are then mixed together into what is known as distiller’s grains.

Distillers grains are an excellent feed ingredient for livestock – especially cattle – and can be sold dried or “wet” (a mash-like consistency). Dried distillers grains can be stored and shipped around the world, while wet distillers grains are typically used within a short period of time.

In the milling industry, starch is separated from the rest of the kernel (the protein and fiber). The starch component can be left as corn starch, distilled or converted to several kinds of sweeteners, but the other components are used for livestock feed.

The protein portion of starch is typically a golden-colored feed ingredient known as corn gluten meal. Corn gluten meal supplies vitamins, minerals, and energy in poultry feeds; pet food processors value it for its high digestibility and low residue.

The remaining fiber can be combined with with condensed distillery solubles (what’s left over after distilling the starch) to produce corn gluten feed. Corn gluten feed can be dried, made into pellets or sold “wet” (mash-like) for livestock feed—providing a high quality protein and fiber source.

In some cases, the condensed fermented corn extractives, known as steepwater, are marketed for use in liquid feeds. Steepwater is a liquid protein supplement for cattle and is also used as a binder in feed pellets.

Cattle, Corn and Co-Products – Feeding Cattle in Nebraska

Livestock is one of the corn grower’s most important customers, consuming more than 41 percent of all U.S. corn, including the supply of distillers grains, which are produced by corn ethanol plants.

In Nebraska, livestock production is the engine that powers the state’s economy. The multiplied impact of the $6.5 billion in cattle sales each year is $12.1 billion. Cattle-related employment means income for businesses up and down main street in towns and cities across the state. In short, the beef cattle industry has an unmistakable impact on other economies in Nebraska.

About 16 percent of the Nebraska’s corn crop is fed to livestock within Nebraska, with the bulk of that (more than 70 percent) going to beef cattle. See complete breakdown.

In total, though, about 40 percent of the corn grown in Nebraska is fed to livestock somewhere in the United States or around the world.

Another major user of corn is ethanol – but one-third of every bushel used in ethanol production comes back as distillers grain, an outstanding feed ingredient. Nebraska ethanol plants only use the starch portion of the kernel, returning the other components to the livestock industries as a high protein feed ingredient.

Nebraska has more than 5,000 feedyards willing to work with cow-calf producers interested in retaining ownership or partnering on their feeder cattle. They offer competitive feeding rations from the quality feedstuffs available in the state. You can can get an up-close view of the cattle feeding industry in Nebraska, thanks to this six minute video, “Consider the Possibilities – Cattle, Corn and Co-Products – Feeding Cattle in Nebraska,” Watch it and share this with your cow/calf friends considering where to send their calves!

Nebraska Corn Farmers Recognize the Importance of the Dairy Industry during Dairy Month

June is diary month, and thanks to Nebraska’s hardworking dairy farmers and families, Nebraskans can celebrate with a tall glass of milk. With a growing number of more than 55,000 dairy cows in the state, Nebraska’s dairy industry produced 139 million gallons of milk last year and was able to provide Nebraska families with a number of nutritious dairy products, including milk, cheese, yogurt and much more.

“On behalf of 23,000 Nebraska corn farmers, we are proud to celebrate Dairy Month and the value added opportunities Nebraska’s dairy industry offers us”, said Debbie Borg, a farmer from Allen, Nebraska and Director on the Nebraska Corn Board. “The dairy industry is a major consumer of corn not only in Nebraska, but also in states such as California.” 

“One single dairy cow has an estimated economic impact of $5,000 per year on Nebraska communities,” Borg added. “When you look at the sector’s total impact, it’s considerably higher because so many dollars circulate several times through the local economy. Everything from a strong tax base, to feed, veterinary care, equipment, trucking, milk processing and more, a strong dairy sector is good for the state.”

Here in Nebraska, there are 195 dairy farms that are producing milk for consumers located in the state, across the U.S., and around the world. On average, a dairy cow can produce 7 gallons of milk a day, which ends up being 2,508 gallons in a typical year.

“There are a lot of things that attribute to this large output of milk, such as Nebraska’s resources of feed, land, water, labor, and most of all, Nebraska’s quality of life,” said Borg. “When looking at feed, Nebraska’s corn industry provides the dairy industry with an abundant and sustainable supply of high quality feed.”

Boone McAfee, Director of Market Development and Research with the Nebraska Corn Board, noted that there is a tremendous synergy between the dairy industry and corn industry, especially when it comes to the corn-ethanol co-product, distillers grains.

“Dairy cattle consume a lot of feed on a daily basis, and corn and distillers grains along with many locally-produced feedstuffs are an important part of their ration,” McAfee said. “Distillers grains are a beneficial high-protein feed ingredient in a dairy cow’s diet and on average they will consume five or more pounds of dried distillers grains a day.”

McAfee also noted that one benefit of distillers grains is that it provides dairy cows the necessary fiber. This fiber helps the cows have a better digestive system, which in turn helps keep the animal healthy.

Using Distillers Grains on the Ranch

In recent months distillers grain price has declined while beef cattle prices have reached historic highs. In many situations distillers grains may be a good option to increase weight of calves and yearlings or for use as a winter protein supplement for cows. Distillers grains are well suited to forage-based beef production operations because they are a good source of energy, protein and phosphorus. All three can be limiting in forages.

Recently, manufactured cubes (or cake) comprised solely of distillers grains have become available. The quality of these cubes is excellent resulting in few fines and good consumption. However, to capture the full economic benefit of low-priced distillers grains producers should consider purchasing distillers directly from the ethanol plant and feeding it as a commodity.

Recent work at UNL has addressed the question of which is more economical — feeding distillers grains in a bunk or on the ground. Research with weaned calves indicated about 16% of wet distillers grains and 40% of dry distillers grains are lost when fed on the ground.

Calculating the cost of the lost distillers grains is straight forward. Simply calculate the amount lost using the percentages above and multiply by the unit cost of distillers grains. Calculating other costs is relatively simple as well. We calculated the cost of purchasing bunks (including delivery, tax, depreciation, and set up) at $0.16 per day. At today's prices the lost distillers grains would be much less than the cost of the bunk.

However, feeding on the ground may not always be the most profitable. In our studies the calves fed in a bunk gained between 0.20 and 0.26 lbs more per day. Because the value of the additional weight gained by calves fed in a bunk is worth more than the additional cost to achieve that weight gain, feeding in a bunk was the most profitable even though it cost more.

There are situations were feeding on the ground may be the most profitable, such as when the least cost of gain to achieve a programed rate of gain is the goal. However, if the goal is to market the weight gain at the end of the feeding period, feeding in a bunk would be the most profitable with today's price relationships.

A webinar titled "Feeding Distillers Grains on the Ground to Cows and Calves" further explains the research.

Find sources and more information here.

Nebraska's Golden Triangle Benefits Renewable Fuels

September is Renewable Fuels Month!
Part Two of a Four-Part Series for Renewable Fuels Month

Nebraska’s economic prosperity is deeply rooted in agriculture. Very few states can stake claim to the high rankings and diverse production that Nebraska consistently maintains year after year. Besides taking the top ranking in cattle on feed, in 2013 Nebraska also ranked first in popcorn and Great Northern dry edible bean production.

Last year, Nebraska ranked third in corn production and fifth in soybean production, accounting for nearly 12 percent of the nation’s corn bushels and almost 8 percent of the nation’s soybean bushels. Nebraska’s centralized location, access to water, and fertile soils make it a natural hub for crop, livestock and even biofuels production – all of which make up Nebraska’s Golden Triangle.

“The ability to grow a large corn crop, year after year, makes Nebraska a prime location to produce ethanol,” said Kim Clark, director of biofuels development for the Nebraska Corn Board. “Nebraska’s ranked second nationally in ethanol production and distillers grains in 2013. These production numbers clearly illustrate the interdependent nature of the biofuels and feed industries.”

Farmers have solid, established markets for corn – ethanol and livestock – while the two-dozen ethanol plants across state then provide renewable fuel and a feed ingredient for the livestock industry, giving cattle feeders in Nebraska more feed options and an advantage over feeders in other states.

Soybean acres in Nebraska are up nearly 13 percent from last year. Not only do soybean farmers expect a large crop, but they also expect to find a market for that large crop as well. Roughly 97 percent of domestic soybean meal goes to feeding poultry, hogs and other livestock.

The majority of the oil from soybeans continues to be used for human consumption, but biodiesel production has increased significantly over the last few years, helping to alleviate a glut of soybean oil that remained on the market. According to a study conducted by the USDA, the increased usage of biodiesel has returned nearly $0.74 per bushel to soybean farmers.

Terry Horky, a soybean farmer from Sargent and chairman of the Domestic Marketing Committee for the Nebraska Soybean Board, thinks Nebraska’s Golden Triangle makes perfect sense. “Agricultural production in Nebraska is part of a very dynamic system, a system in which soybeans, corn, and biofuels production can fit in perfectly with livestock production. We can market our crops locally, create jobs locally and keep some of these tax dollars in our communities.”

Governor Heineman proclaims September as Renewable Fuels Month in Nebraska

The month of September has been declared as Renewable Fuels Awareness month in Nebraska by Governor Dave Heineman. Renewable Fuels Month aims to celebrate Nebraska’s renewable fuels industry and its positive contributions to Nebraska and our citizens.

The proclamation was coordinated through the Nebraska Corn Board and Nebraska Soybean Board. The two organizations will celebrate the proclamation with a campaign geared at educating Nebraskans about renewable fuels through a four-part series of news releases to be published during September.

“Nebraska is the Golden Triangle.  We grow the corn and soybeans, raise the livestock and produce the renewable fuels,” said Gov. Heineman. “Renewable fuels provide many benefits to our state including developing rural communities, creating jobs, providing a locally produced homegrown fuel for consumers, and more.”

In Nebraska, ethanol is blended with nearly 90% of all fuel and this number continues to increase each year.  There are over 180,000 flex fuel vehicles in the state and one in ten Nebraska motorists drives a flex fuel vehicle.  

Last year, renewable fuels reduced the nation’s need for imported oil by over 462 million barrels of crude oil - and 1.1 billion gallons of imported petroleum diesel. Biodiesel was named America’s first Advanced Biofuel and has continuously exceeded the production benchmarks set forth by the EPA.

One of the co-products from ethanol production is distillers grains, which plays a key role in the Nebraska agricultural economy.  “We are fortunate in Nebraska that livestock producers can use distillers grains co-products from ethanol production as a high-value feed,” said Tim Scheer, a farmer from St. Paul and chair of the Nebraska Corn Board. “Only the starch portion of the kernel is used to make ethanol. The protein, fiber, and fat portions still remain for the livestock.”

Terry Horky, a farmer from Sargent, Nebraska and chair of the Domestic Marketing committee for the Nebraska Soybean Board said as Nebraska farmers head out to harvest this year’s crops, over half will be fueling their equipment with a soy biodiesel blend.

“Farmers use renewable fuels like soy biodiesel because of the many benefits it has for engines,” said Horky. “But also because soy biodiesel is a renewable fuel produced by farmers right here in America.”

The four-part series to be released by the Corn and Soybean Boards during September will focus on: renewable, homegrown energy that can be used in food, fuel and feed; providing a consumer choice that is better for your engines and the environment; the “Golden Triangle”; and blend choices and where consumers can fill up with renewable fuels.

U.S. Grains meets in Nebraska this week; still covering issues with China, DDGS

This week, the U.S. Grains Council members are meeting for the 54th Annual Board of Delegates meeting in Omaha. The Council is a cooperative partner of the Nebraska Corn Board.

In Omaha, attendees will focus on emerging opportunities, competitive challenges, and the Council's work to increase U.S. market share. The Advisory Teams will review new developments that affect the Council's strategies and priorities around the world. Top speakers and insight from the Council's global program staff will keep you ahead of the curve on factors affecting export growth. Last but not least, the Council is a member-led organization, and this is the Council's annual business meeting, at which delegates will elect officers and board members, and adopt the budget for FY 2015.

But just because Council staff and Board are in Omaha for meetings, they are still working around the globe on opening up market barriers. One of those issues is China’s approval of new biotech certification requirements for distiller’s grains with solubles (DDGS) by the Chinese import inspection authority.

The new requirements effectively call for a certificate from the point of origin - in the case of U.S. shipments, from the U.S. Department of Agriculture (USDA) - guaranteeing that the shipment is free of the biotech trait.

The mandate was made effective immediately, causing serious disruptions with existing DDGS trade and making future DDGS trade hard to achieve.

“China is asking for something that cannot be done. This certificate they’re asking for does not exist,” said Tom Sleight, USGC’s president and CEO.

“It’s time for China to look at and approve this trait,” Sleight said. “It’s been approved for commercialization in the United States since 2010, and it’s been approved by all importing countries, including the European Union, for quite some time. We think that the lack of approval of MIR 162 is becoming an undue impediment on trade.”

Yesterday, Chairman Schaaf sent a letter to Secretary of Agriculture Vilsack, urging efforts of the U.S. government to intervene with China to halt this current regulatory sabotage of the DDGS trade with China. Approval has been pending in China for more than four years.

This matter is urgent for U.S. corn producers, DDGS exporters, and the ethanol industry as a whole, which is threatened with severe harm due to China’s action. Until this action, China was importing DDGS at a rate of 20,000 MT per day, which is the equivalent of 750 standard containers. The value of DDGS exports to China exceeded $1.6 billion in 2013 and this year was running well ahead of that pace prior to the current interruption.

The Council is doing all they can to work through this issue with China, and others around the world, to provide more markets for Nebraska and U.S. corn producers.

‘Now is the time to act’ for Nebraska’s livestock industry

Nebraska Aims to Expand Livestock Industry after “Golden Triangle” Study

A recent study conducted by the University of Nebraska-Lincoln showcases that Nebraska farmers and ranchers may not be operating to their full potential. Although agriculture is still the primary driver of the state’s economy, the study shows that there is room for growth.

The study, which was headed by Bruce Johnson, professor emeritus in UNL's Department of Agricultural Economics, and Eric Thompson, UNL economics professor, aimed to get a current baseline for the state’s agriculture economy as well as provide several scenarios for expansion. The study, titled “Nebraska Animal Agriculture: Economic Impacts of Cattle, Hog, Dairy, and Poultry Industry Changes,” was jointly funded by the Nebraska corn and soybean checkoffs.

Kelly Brunkhorst, transitioning executive director for the Nebraska Corn Board said the idea for this project stemmed from concerns about Nebraska’s livestock industry. “As we spoke with our counterparts in surrounding states, we realized that outside of our beef industry, we were not witnessing the expansion of livestock they were developing. We felt we need to detail the advantages that Nebraskans could be enjoying if they understood the economics.”

The study, nicknamed the “Golden Triangle Study,” highlights the fact that Nebraska is well positioned for growth due to the strong interactive nature of its crop, livestock and biofuels industries, which each make up points of the Golden Triangle.

Now is the time to act

The results of the report were highlighted with pungent potential, but clearly presented the reality that now is the time for Nebraska to act. However, expansion doesn’t rest solely on the shoulders of those in the agriculture industry. Livestock expansion in the state will depend heavily on community stakeholders at the local levels. The scenarios depicted in the report have the potential to affect jobs, earnings, communities and households, as well as an enhanced quality of life for all Nebraskans with the value-added economic activity.

The authors of the study note that this report analyzes livestock expansion scenarios, providing a set of economic performance measures to sub-state regions and county-level economies. These measures will allow economic considerations to be incorporated into stakeholders' decision-making processes. 

A need to capture more added-value in state

While nearby states have seen significant growth in livestock production in the last 10 years, Nebraska has not kept pace, particularly in the cases of hog and dairy production. One of the key insights of the study lies in the fact that Nebraska still exports a high percentage of its crops – more than one-third of its corn crop, more than 80 percent of its soybean crop, and more than one-half its distiller’s grains production. More value for these products would be captured if they flowed into in-state, value-added processing.

In light of these trends, Johnson's team analyzed several livestock-expansion scenarios that industry leaders consider quite possible, taking into account the economic multiplier effects that ripple through the state's economy from agriculture, especially in rural areas.

Expansion scenarios

The report envisions the following expansion scenarios and estimates both direct and indirect economic impacts.

• A 25 percent expansion of hog finishing volume in Nebraska; scattered across three regions of the state and 15 counties. About 270 on-farm units, each with a 2,400-head capacity and a twice-per-year turnover rate added.
• Total economic impact: 2,676 new jobs; $6.1 million in local tax revenue.
• More than a doubling of the state's current dairy herd numbers of 60,000, divided across three regions of the state and 18 counties. A total of 24 new dairy operations, each with a 2,500-head capacity and two new milk processing plants added.
• Total economic impact: 3,128 new jobs; nearly $6.2 million in local tax revenue.
• A 10 percent increase in fed cattle production in the state, with expansion distributed geographically in similar proportion to current patterns of production.
• Economic impact: 11,661 new jobs; $16 million in local tax revenue
• A tripling of poultry (egg-laying) production in the state.
• Economic impact: 1,640 new jobs; $9.8 million in local tax revenue.

The authors summarized the report by saying, "In closing, the economic challenges posed, as well as the associated economic opportunities afforded, are simply too weighty in Nebraska's economic future to ignore. It is time to act."

The full report can be found at here.

10 reasons to use ethanol-blended fuel this summer

The choice at the gas pump is easier for Nebraskans in their summer travel and recreational plans this year. And that choice is renewable, cost-effective and builds a strong economy. Here are ten reasons to use ethanol-blended fuel this summer.

1. The most affordable fuel.
The drastic rise of gas prices in the busy summer months hurts our pocketbooks. The U.S. Energy Information Administration’s (EIA) projection for the April-through-September summer driving season year is on average $3.61/gallon, 3 cents higher than last year. This year’s Memorial Day holiday saw drivers paying slightly more for gasoline than the previous two years, according to AAA. Thankfully, ethanol-blended fuel lowers gas prices up to $1.09 per gallon on average and saves the average American household $1,200 on their gas bill annually.

2. It’s renewable.
It’s no secret that Nebraska is the “Cornhusker” state and is notably the third largest corn producing state and second largest ethanol producing state in the nation. By growing 14 billion bushels of corn in the U.S. in 2013, corn is a renewable crop that provides for a reliable fuel source year after year. A recent poll by Fuels America found that 92% of U.S. adults support having renewable fuel at their local gas station, specifically E15 fuel – renewable fuel made of 15 percent ethanol and 85 percent gasoline.

3. Ethanol plants create food, feed and fuel.
An ethanol plant doesn’t just make fuel. When a bushel of corn travels to the plant to make fuel, it also makes food and other co-products in the process. Co-products include livestock feed called distillers grains, corn oil and other products that add to the food supply. In other words, we’re making food, feed and fuel. From one bushel of corn comes 2.8 gallons of ethanol in addition to 17 pounds of distillers grains. The strong ethanol industry in Nebraska is one of the main factors for the state’s recent status move into the number one cattle feeding state because of the availability of the high-protein, value-added distillers grains feedstuff.

4. Has not driven up food prices.
The price of corn is the lowest it’s been in three years, yet food prices have not come down. USDA’s Economic Research Service (ERS) change in food prices index shows that food prices are going to continue to rise. So what is driving up food prices? Researchers at the World Bank identified crude oil as the number one determinant of global food prices; as the price of oil increases, food prices follow closely behind.

5. Builds up our state economy and growth of jobs.
Just in Nebraska alone, over 1,200 direct jobs are attributed to the ethanol industry, not to mention the hundreds of thousands indirect jobs across the country. Ethanol supports rural America, generating a $500 billion increase to communities’ farm assets around the country. When agriculture is healthy, the state economy is healthy.

6. Gives consumers a choice.
Ethanol, a renewable fuel, gives Nebraskans a choice when they go to fill up with gas. Those choices aren’t limited to the lower price of their gas bill, but also the chance to choose a domestic, clean-burning fuel that fuels our state’s economy as well. Those drivers with a flex fuel vehicle (FFV) have the choice to use any ethanol fuel blend up to 85 percent ethanol (E85).

7. Reduces greenhouse-gas (GHG) emissions.
Compared with oil, ethanol-blended fuel burns cleaner and reduces harmful GHG emissions. Ethanol lowers the level of toxic, cancer-causing emissions in vehicle exhaust—reducing air pollution, improving human health, and reducing greenhouse gas emissions.

8. Ethanol is homegrown.
Ethanol has dramatically reduced the size of the checks America writes to foreign oil suppliers to the tune of $44 billion dollars saved last year. The U.S. reduced oil imports by 476 million barrels in 2013—the equivalent of about 12% of total U.S. crude oil imports, thanks to this renewable resource.

9. Use in boats and mowers.
With the summer months comes fun in the sun and in the yard. Ethanol-blended fuels up to 10 percent (E10) can be used successfully in marine watercraft and small engines, such as lawn mowers. Small engine owners should know that EPA has approved E15 only for automobiles manufactured in model year 2001 and newer, and it is not approved for any other engine use.

10. E15: tested and safe.
E15, fuel blended that is 15 percent ethanol and 85 percent gasoline, has been the most aggressively and comprehensively tested fuel in the history of the EPA, which has been approved for its use in vehicles starting with the 2001 model year and newer. E15 saves more money at the pump, burns cleaner and supports our economy. NASCAR race cars have run more than 5 million miles on E15, starting with the 2011 racing season, and its drivers and mechanics give the fuel high marks for power and durability.

Corn crop quality during drought

Mycotoxin, aflatoxin, ear and stalk rots, Goss's Wilt and drought were the main discussion points given by Dr. Tamra Jackson-Ziems at the October Nebraska Agribusiness Club meeting on Monday.  Dr. Jackson-Ziems is the corn and sorghum specialist with the Extension Plant Pathology Team and the Department of Plant Pathology at the University of Nebraska-Lincoln.

This discussion was especially timely as the heat and drought of the growing season this year, that spurred the growth of many mycotoxins which affect corn in Nebraska. However, Dr. Jackson-Ziems assured the club that we have mycotoxins every year, but the talk of aflatoxin has gotten many people worried.

The concentration of mycotoxin in grain is influenced by fungal infection, growing conditions and plant stress. Mycotoxins can still survive in distillers grains after corn has gone through the distillation process as they are heat stable - however their concentration increases 3 times by volume in the distillers grains.

One major point to remember when talking about aflatoxin and that is the FDA Action Levels for corn intended for livestock or human use. The following picture shows the parts per billion (ppb).

Dr. Jackson-Ziems worked with a colleague who collected samples of corn in a 100 mile radius of Lincoln and found that 42% of those samples had no detectable aflatoxin at all. In 80% of the samples, the corn showed less than 20 ppb of aflatoxin - which according to the chart above, is completely safe levels.

In 99% of the samples, aflatoxin was less than 100 ppb which is perfectly safe for livestock feeding. So even though there are rumors and concerns about aflatoxin in this drought year, this study has confirmed the safety of the Nebraska corn crop.

You can catch Dr. Jackson-Ziems' presentation on YouTube.

First Trip to an Ethanol Plant!

So I tagged along with Kelsey on Monday to the Nebraska AgriBusiness Club’s June Tour. The first stop was E Energy in Adams, NE which is an Ethanol Plant, (I did not know this until we got there). But I was pretty excited because I’ve never been to an Ethanol Plant. Although I did feel I missed out on the authentic Ethanol production experience because I didn’t get a hard-hat, at least I got super cool safety glasses!

 We started by walking through where the trucks dump the corn and also where they pick up Dried Distillers Grains (DDG’s). There was only one truck unloading while we were there but a line of about 10 waiting to pick up DDG’s. They said the plant will empty about 200 trucks a day during harvest, with it taking about three minutes for a truck to get weighed and unloaded, that’s freaky fast.



The left two doors are for unloading corn while the right
door is for loading trucks with DDG's



The piles of DDG's produced in 2 day, they are
ready to be loaded onto a truck



 We then made our way to where the DDG’s and Modified Distillers Grains (MDG’s) come out of the plant. This plant makes a lot more DDG’s than MDG’s because they are easier to ship, cheaper to ship, and have a longer shelf life. They do produce about five or six truck fulls of MDG’s per week, which are shipped to livestock producers in an 80 -mile radius! But because MDG’s have a much higher moisture percentage (50 percent) they can only stay at the plant for five or six days before they go bad.



The pile of MDG's coming out of the plant



A closer look at MDG's



 As a dairy farmer and an avid meat lover, I have to say that learning how they make the distillers and see the vast quantity they make really was probably my favorite part. But of course as a college kid, I’m real glad to see that so much ethanol is produced, because without ethanol I know I would be a much MORE broke student! I learned that E Energy was designed to produce 50 million gallons of ethanol but right now is actually producing 62 million gallons per year. Also that 90% of their ethanol is sent out by rail to places like California and Colorado to be used. I only wish I understood more of what they were talking about when they were explaining the whole process of making ethanol! There are just so many words I’ve never heard and so many pipes and such going so many places. But I learned a lot, so hopefully next time I go to one I will understand even more!

To see more pictures from our tour visit our Flickr page or check out the Nebraska Agribusiness Club’s blog about the trip.

Fun Facts!

 -One important thing I did learn was DO NOT drink the ethanol when it’s in its alcohol stage (190 proof). A man in Iowa did and when they found him they thought he was dead, turns out he wasn’t but his blood-alcohol level was .7 , talk about a rough next couple weeks!

-They actually sell CO2 from this plant to a local company, for $6 or $7 per ton to be used in beverages. I don’t know how one would measure a gas but these are very smart people so I’ll leave that to them to figure out!

Smart, sustainable science

Can sustainable and science exist in the same sentence? With corn farming, yes.

Farmers are being more sustainable than ever through responsible stewardship, new genetics and improved management practices, Nebraska corn farmers are growing more corn with less – less fertilizer, less chemicals, less water, less land and less of an impact on the environment. And they use science to achieve all of this.

Through smart, sustainable science, farmers and researchers in agriculture have been able to reduce their usage of energy that it takes to grow a bushel of corn by 37% over the past 30 years.

Through smart, sustainable science, new, innovative fertilization methods have allowed today’s American corn farmers to produce 87% more corn per ounce of fertilizer.
Through smart, sustainable science, monitoring soil moisture levels and measuring the amount of water corn plants lose each day is helping Nebraska corn farmers significantly reduce irrigation and water demand.

Through smart, sustainable science, corn farmers have been able to produce a sustainable, corn-based fuel that is freeing our dependence from foreign oil and is better for the environment: ethanol. When corn farmers take their corn to the ethanol plant, they are producing two products: ethanol – a sustainable fuel for their vehicles, but also a high-quality protein feed for livestock – distillers grains. Two products from one – one more way farmers are growing more on less.

There is no question: Corn farmers can do what America and the world is asking of them: Grow more corn for feed, food, fiber and fuel – and do it in a way that protects the environment and provides economic benefits all along the value chain. That’s smart, sustainable science.

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Read some more posts on Sustainability:

Video: This Land is Your Land

Can Nebraska corn farmers continue to grow more with less?

Growing more with less, someone else sharing your story

Finding the solutions to feed, fuel the world

Does Ethanol Really Have a Future? Why yes it does!

Low-oil distillers grains becoming increasingly available

U.S. ethanol plants, which produce the feed ingredient distillers grains (DDGS), continue upgrading equipment to extract non-food grade corn oil during the ethanol production process.

While regular DDGS may contain 10-15 percent oil, the low-oil variety contains much less and has different characteristics and feeding values than regular DDGS, as noted in a report from the U.S. Grains Council.

On the left is a non-food grade corn oil immediately
after extraction. On the right is the oil after it settles,
with only the upper portion being sold as oil.
This non-food grade corn oil goes to
biodiesel production or feed.

Of the roughly 200 corn dry mills that produce ethanol, about 90 have oil extraction capabilities, and 105 plants will by this summer.

"On a production basis, about 40 percent of U.S. DDGS produced today is low-oil, and 58 percent will be low-oil by this summer," said Randy Ives of Gavilon, LLC. Ives is value-added advisory team leader for the Council.

Ives explained that low-oil DDGS has higher crude protein and higher levels of amino acids. The concentrated amino acid profile is positive for monogastric animals like poultry and swine, while dairy animals may be able to utilize more product thanks to the lower level of fat in low-oil DDGS.

While its appearance is the same as regular DDGS, the dried, low-oil product has improved flowability.

The Council noted research is underway to help quantify the characteristics of low-oil DDGS. Results will become available later this year.

While buyers and sellers often add the protein and fat numbers together as part of a sales contract, that may need to change going forward.

"This makes asking questions and communicating important," Ives said. "What we really need to do is go back to requesting specific protein and fat levels and then build in a discount schedule to make up for slight differences in the final shipment."

Low-oil DDGS is a great product that has different values for different buyers, depending on the end use, he said. "It’s important for buyers to ask questions and hold suppliers accountable," he added.

Why extract oil?
Just five years ago, few ethanol plants had the ability to extract non-food grade corn oil because the equipment was expensive, and the oil had little value. Now, however, the value of non-food grade corn oil has increased, and plants can extract the oil more efficiently due to improved emulsifiers and centrifuge technology, lowering the payback on oil extraction equipment to as little as six months.

For example, an ethanol plant using 16 million bushels of corn to produce 40 million gallons of ethanol can also produce 135,000 tons of low-oil DDGS and 8 to 12 million pounds of oil.

"With such a positive return, the adoption rate has been incredible," Ives said.

Ethanol fueling Nebraska’s economy, nation’s energy future

Our nation’s dangerous and expensive dependence on imported oil is at the root of many challenges such as national security, economic distress and environmental concerns, said David Nielsen, a farmer from Lincoln and member of the Nebraska Corn Board.

“On top of that, America spends more than $1 billion each and every day on imported oil,” Nielsen said. “That’s money headed out of this country that could be invested right here at home. We need a solution, and ethanol is playing an important role.”

Ethanol provides a domestic, renewable source of clean-burning fuel that provides a market for Nebraska corn, creates local jobs and generates millions in tax revenues.

Of course, ethanol plants aren’t using corn niblets to make ethanol.

More than 99 percent of the corn grown in the U.S. is field corn, not the sweet corn humans eat. Field corn is typically fed to livestock or transformed into ethanol and its co-products such as animal feed and food ingredients. “We’re not turning food into fuel,” Nielsen said. “We’re actually turning corn into fuel, feed and food.”

He explained that ethanol production uses only the starch in the corn kernel. The rest of the kernel, including fiber and protein, then becomes a high value livestock feed called distillers grains, which is widely used in livestock production.

Corn used to be fed in its raw form to livestock, and it still is in many cases.

Over time, however, livestock producers have increased the ratio of distillers grains in rations with significant positive results. “Distillers grains have become a preferred feed across the U.S.,” Nielsen said. “It helps create delicious red meat, poultry and dairy products enjoyed all over the world.”

Strong ag economy brings jobs, opportunity to rural Nebraska

In an article in the Omaha World Herald last Sunday, reporter Henry J. Cordes explored the economic strength of the rural economy today. He talked about the demand for grain and how market fundamentals may have shifted.

Included was a reference to ethanol and distillers grains, the feed ingredient ethanol plants produce, giving livestock producers in the state a nice advantage. 

Cordes visited Central City for the story, pulling together some good information on how everything comes together to benefit rural communities: corn, ethanol, distillers grains and livestock.

He reported that over the course of the recession, Central City actually added jobs every year – overall employment this year is up 2.6 percent – about 50 jobs – from three years ago. (He also pointed out that half of Nebraska's rural counties added jobs over that time.)

From the article:

On main street, one Central City family put up a new Dairy Queen building a year ago and has been so busy they haven't had time to tear down the old one. A new computer repair shop opened up, adding four jobs to town, there's a new bank building, and the Subway sandwich shop has a new building going up. Two small new housing subdivisions have been built in town the last few years, something not often seen in small towns.

Kent Grosshans is the manager of Grosshans Inc., a fifth-generation, family-owned implement dealership in Central City that traces its roots to 1877. But in all those years, the business has seen few times like this.

Grosshans said sales have been about double what they were four years ago, and he's added three new workers in the last year. He'd hire another technician and salesman right now if he could find them.

Click here to read the full story, which takes a much broader look at the rural economy than the few highlights here.

In 2007, the Nebraska Corn Board's Cornstalk newsletter focused on the economic opportunities created by ethanol – from new markets to corn, to jobs to livestock producers taking advantage of distillers grains.

The newsletter centered on one town, Central City, which was an example of how ethanol plants were positively impacting communities all across the state and rural America. It highlighted rural development at its best.

You can download the newsletter here (.pdf).

Distillers grains research initiative yields more know-how more quickly

A three-year initiative that created a beef cattle advisory committee to oversee a research partnership between the Nebraska Corn Board and University of Nebraska resulted in a number of important breakthroughs when it comes to feeding distillers grains to cattle.

The initiative, which wrapped up this year, allowed an advisory committee to work with university researchers to more quickly identify research projects that would benefit cattle producers. The Nebraska Corn Board then provided funding for the projects. This reduced the lag time between research projects and doubled the amount of research conducted during the initiative.

"We were very pleased with how everything came together, as it allowed the corn checkoff to fund key research and more quickly advance the understanding of feeding distillers grains to cattle," Kelly Brunkhorst, director of research for the Nebraska Corn Board, said in a news release.

While the initiative ended, the Nebraska Corn Board continues to fund research and further expand the knowledge and understanding of feeding distillers grains to cattle. "We believe distillers grains, which are produced by ethanol plants, give Nebraska cattle producers a tremendous advantage in the marketplace, so the more we know the better," Brunkhorst said.

The Corn Board has published several feeding guides the focus on distillers grains and other co-products. The most recent one came out last fall and focuses on beef cattle.

(USDA recently issued a report on distillers grains - and noted that its feeding value is higher than original thought. Click here.)

Now that the three-year initiative is over, the researchers compiled a list, some highlights, of what was accomplished.

They include, for cattle in feedlots:

• Drying distillers grains increases production cost, greenhouse gas emissions and does not have as positive an impact on cattle performance compared to using wet distillers grains. Modified distillers grains, meanwhile, is intermediate to wet and dry distillers grains. Understanding this has huge implications for Nebraska as Nebraska cattle producers can utilize wet distillers grains due to the proximity of corn, cattle and ethanol plants. “The research provided excellent results on comparing these types of distillers grains,” said Galen Erickson, a beef feedlot specialist with the University of Nebraska.
• A rumen degradable sulfur concept was established and better explains hydrogen sulfide production, which can cause the polio observed with high sulfur diets from distillers grains feeding. “Based on metabolism work on sulfur funded through the research initiative, we have degradabilities for different distillers grains, and hydrogen sulfide production in different feedlot diets containing distillers,” said Erickson. “Likewise, we have recommendations on polio incidence as dietary sulfur and rumen degradable sulfur increase in feedlot diets.”

Some of the key results for cattle on forage include:

• The energy value of distillers grains in forage based-diets was relatively unknown and a major need by the industry. “Thanks to research conducted through the initiative, this is now known and is well established,” said Aaron Stalker, a beef range specialist with the university. The comparison was also made to other major energy supplements in forage diets, such as corn.
• Research also found that replacing nitrogen fertilizer by supplementing distillers grains to grazing cattle will have major implications and has been effective in intensely grazed pastures. “Plus, supplemented cattle have greater removal of nitrogen, from supplement compared to fertilizer, and perform better,” Terry Klopfenstein, professor of animal science added.

While many important strides were made over the last three years, the Corn Board said it recognizes that additional research needs remain when it comes to distillers grains.

“Ethanol production technology continues to advance,” Brunkhorst said.

For example, some ethanol plants are extracting corn oil for other uses and that changes the distillers grains. “We need to understand that and devote resources to additional research,” Brunkhorst said, “but we have limitations simply because our budget is limited by what is available via the corn checkoff, which is the lowest of all leading corn states.”

OWH: Corn. Ethanol. Livestock. A prosperous farming combination

An editorial in the Omaha World Herald earlier this week did a great job of pointing out the incredible synergy between corn, ethanol and livestock production.

The basis for the editorial was a report from the Nebraska Business Forecast Council that said farm income in the state may reach a record this year and remain strong.

The World Herald's editorial goes on to talk about the ethanol industry and the role it plays in the state, particularly the production of distillers grains by ethanol plants and the opportunity that provides for cattle producers and the state as a whole:

In 2007, an article in the Sunday World-Herald suggested a possible shift in cattle feeding from Texas to the Midlands. That now may be coming to pass, and the availability of distillers grains for cattle feed could be a factor.

Nebraska already ranks second in cash receipts for cattle and calves and is moving up fast on top-ranked Texas. According to U.S. Department of Agriculture statistics for 2010, third-place Kansas had $6.5 billion in receipts. Second-place Nebraska had $7.2 billion, while Texas took in $7.7 billion.

The benefits to ethanol plants from selling byproducts are clear, but there are other advantages that spread throughout Nebraska. Farming communities and their ag-related businesses prosper when corn is high and ethanol plants are busy and profitable. So do other businesses in small-town Nebraska.

And that means jobs in many sectors of the economy – jobs that breathe life into rural communities.

As the editorial concludes:

Nebraska doesn't lead the nation in either ethanol, cattle or corn. But the way the three work together can mean greater national prominence and more prosperity for the entire state.

Distillers grains is a great value in livestock, poultry feed

One of several distillers grains feeding guides
produced by the Nebraska Corn Board.

Research conducted at the University of Nebraska and supported by the Nebraska Corn Board has often demonstrated the high value of feeding distillers grains to cattle.

The board has published several feeding guides, including one focusing on beef cattle that came out last fall. In that corn co-product manual, the researchers noted distillers grains (produced by ethanol plants) have a feeding value at an optimum inclusion level in the ration that is 13-50 percent greater than that of corn alone.

The highest feeding values were for the wet and modified (partially dried) distillers grains, while the fully dried distillers grains were on the lower end. Click here to view and download the beef and other guides.

A new report from the USDA (.pdf) looked at the feeding value of distillers grains for all animals. It found that distillers grains has a tremendous feed value and is replacing more corn and soybean meal in livestock and poultry rations than previously thought.

According to the report, 1 metric ton of distillers grains can replace, on average, 1.22 metric tons of other feed consisting of corn and soybean meal. That's because distillers grains essentially concentrates the protein and other key nutrients found in every kernel.

Every 56-pound bushel of corn processed by a dry mill ethanol plant generates 2.8 gallons of ethanol plus 17.5 pounds of animal feed – but that animal feed has a greater value than that number indicates. USDA said the amount of feed replaced by distillers grains represents nearly 40 percent (on a weight basis) of the corn used in the ethanol production process.

According to the Renewable Fuels Association, the report dispels the conventional assumption that every bushel of corn processed by an ethanol plant generates an amount of feed equivalent to just one-third of the original corn bushel.

Distillers grains, shown here, are more
valuable in a livestock ration than corn alone.

"The value of the animal feed produced by the ethanol industry has long been misunderstood, understated and misrepresented," said Geoff Cooper, RFA vice president of research and analysis. "Distillers grains continue to be the industry’s best kept secret, despite the fact that we are producing tremendous volumes of this high-value feed product today. Distillers grains and other ethanol feed products significantly reduce the need for corn and soybean meal in animal feed rations. Over the past several years, distillers’ grains have been one of the most economically competitive sources of energy and protein available on the world feed market."

Feed product volumes from ethanol plants approached 39 million metric tons in the 2010-11 marketing year.

RFA also pointed out that the USDA study should alter the view on land use change and greenhouse gas emissions theorized with the ethanol process. It said most existing biofuel regulations, including California’s Low Carbon Fuels Standard, significantly undervalue the contribution of distillers grains when assessing the net greenhouse gas impacts of corn ethanol. For more, click here.

FREEDOM film promotes ethanol

Last week, the screening of the documentary film, FREEDOM, was in Lincoln, sponsored by Green Plains Energy and The Joslyn Institute for Sustainable Communities.

The film focused on the use of ethanol as the most sustainable fuel for transportation –the energy that is in the biggest demand. These important points were covered in the film:

• Ethanol does not require more energy to make than it yields.

Argonne National Laboratory research has shown that corn ethanol delivers a positive energy balance of 8.8 megajoules per liter. The energy balance from second-generation biofuels using cellulosic sources is up to six times better, according to a study published in Biomass and Bioenergy Journal.

• Ethanol does not take food away from humans.

Only 1 percent of all corn grown in this country is eaten by humans as sweet corn. The rest is No. 2 yellow field corn, which is used in animal feed, food supplements and ethanol.

• Ethanol does not emit more greenhouse gases than gasoline.

A 1996 EPA study analyzing sources of air pollution confirmed that gasoline vehicles and non-road equipment are the largest contributors to vehicular gaseous hazardous air pollutants. However, another study showed ethanol reduces tailpipe carbon monoxide as much as 30 percent and tailpipe particulate matter emissions by 50 percent. Also, the Journal of Industrial Ecology at Yale University published a study in 2009 that found that greenhouse gas emissions are reduced by up to 38-59% when using ethanol as a transportation fuel.

• Ethanol can be made from waste.

Cellulosic ethanol can be made from agricultural waste and biomass such as corn cobs and stover, wheat straw, wood, energy crops & even municipal waste.

• Ethanol is cleaner burning.

Compared to gasoline, ethanol reduces every single tailpipe emission (CO; CO₂; smog; particulates; NOx and SOx) because ethanol contains 35% oxygen and results in a higher temperature burn.

• 12 billion gallons of ethanol were produced in Canada and the US in 2010.

This will grow to 36 billon gallons by 2020. Currently, the ethanol industry replaces 364 million barrels of imported oil each and every year in the USA and Canada.

• There are 8 million flex fuel vehicles already on the road, which is 3% of US vehicles.

We’re adding 800,000 to 1 million new flex fuel vehicles each year. There are already over 2,200 E85 and ethanol blender stations with over 60 E85/blender stations per month being installed.

• Ethanol creates jobs and is good for the economy.

A major study by the Windmill Group identifies 645,000 jobs created by ethanol in the USA and $92 billion.
After the film, they had a three-member panel including:

• Todd Becker, CEO of Green Plains
• Cecil Steward, Pres/CEO of The Joslyn Institute
• Lt. Gov Rick Sheehy

There was good discussion and interaction from the attendees. Lt. Gov. Sheehy was first to boast on Nebraska’s great position being the best situated for corn, ethanol and livestock production. The ethanol industry in Nebraska produces 2 billion gallons per year, which escalates into job creation, new technology and co-products to be used by livestock.

The discussion of first-, second- and third-generation biofuels was an important topic and Todd Becker explained how corn’s role is so important in that. In corn-ethanol production, one-third of the kernel is the starch used to make ethanol fuel, one-third is protein that is passed through to use in distillers grains to feed livestock, and the last one-third goes into CO₂. The role of second-generation biofuels comes into play in using the CO₂ to grow algae, for example, which is then able to make food, feed and fuel again.

For more on the film, watch the teaser below or go to www.thefreedomfilm.com.

Nebraska Corn Board Hosts Southeast Asia Trade Team

On June 30, the Nebraska Corn Board along with the U.S. Grains Council hosted a trade team from the countries of Indonesia, Malaysia, and Vietnam.

During the trade team’s visit to Nebraska, they toured the E Energy Adams ethanol plant located outside of Adams. The trade team also visited a dryland grain farm that is owned and operated by Dave Nielsen, who serves as a board member for the Nebraska Corn Board.

While at the E Energy Adams ethanol plant, the trade team members were able to see how we process corn into an alternative fuel. They learned about the methods we use and also learned about two products that come from ethanol production, ethanol and distillers grains (DG). After touring the plant, the trade team members were able to tour the scale house and see how the corn was tested before it could be unloaded at the plant. Many of the of the trade team members were fascinated by the technology that the grain testers used when checking a load of corn to see if it was high enough quality to be used for ethanol production.

Next, the trade team had the opportunity to visit with one of E Energy Adams commodity managers, who spoke about the financials of an ethanol plant. He also answered any questions that the trade team members had about the ethanol market or industry.

After visiting the E Energy Adams plant, the trade team headed to Dave Nielsen’s farm. Dave talked about his multi-generational farm operation and discussed some of the challenges that U.S. farmers are facing. Some of those challenges include more regulations and increasing land values. He also mentioned some of the strengths that U.S. farmers have, such as increasing production with less. Dave reassured the trade team representatives that U.S. farmers want to provide other countries with the highest quality product.

To finish the evening off, trade team members were able to attend a dinner at Misty’s in Lincoln and enjoy some of Nebraska’s Corn Fed beef! The trade team met with Greg Ibach, who is the Nebraska Department of Agriculture’s Director; Steve Nelson, who is the Vice President of the Nebraska Farm Bureau; and Burdette Piening, with the Nebraska Sorghum Board.

Overall it was a great visit and many of the trade team representatives said that they were more interested in U.S. grains after seeing grain production first hand.

You can see more pictures of the Southeast Asia Trade Team at flickr!