
According to the article there are seven pounds of waste byproduct from each gallon of ethanol made, also 46% of the byproduct (they call it waste in the article) goes to dairy cattle and 42% goes to beef cattle. This is just anecdotal, but my uncle told me of his neighbor who only feeds eight bushels of corn in finishing with the rest be dried distillers grain (the byproduct/waste). The article reports that by the end of this year the ethanol byproducts will replace one billion bushels of corn in the livestock industry (they make sure to mention that they are tax-subsidized byproducts).
I guess the ethanol plants are feeling the pinch of high grain prices just like everyone else (even with their subsidies) and so are looking for more ways to make money. The newest thing is to combine feedlots with ethanol plants. A new plant in Nebraska has done just that by adding a 28,000 head feedlot and other new plants are planning on adding even larger feedlots.
If this trend continues the ethanol plants will not only be subsidized to produce gas, but also to finish cattle. This would be a major step in the continued centralization of the agricultural world and could effect generations of farmers to come. On the other hand it just may open up more opportunities for locally finished grass-fed beef...