Assistant Editor

MADISON, Wis. — Even though many dairy producers are saying this is one of the best times in history to be milking cows, the increased concerns associated with the bioenergy phenomenon are certainly throwing a wrench in their plans.

In a presentation during the World Dairy Expo in Madison, Wis., Neal Martin, director of the U.S. Dairy Forage Research Center, a division of the USDA-Agricultural Research Service, discussed recent trends in the bioenergy industry and its effects on dairy farmers across the country.

“There are really four issues in the bioenergy age: corn ethanol is dominating, cellulosic ethanol will emerge in the future, turning manure into energy is an opportunity and addressing environmental impact is critical,” said Martin.

During Martin’s forage seminar on Oct. 2, he identified the whirlwind excitement surrounding the corn ethanol market adding that the “need for renewable energy has become national priority, brought on by high fuel prices, environmental concerns and goals of reducing our dependence on foreign oil.”

“The current expansion in use of corn is unprecedented in speed and magnitude as well as impacts on the feed grain market,” he said, noting that ethanol production totaled 5 billion gallons last year, up 1 billion from 2005.

He quickly outlined the following market adjustments necessary to compete with the expanding corn ethanol industry: higher corn prices will affect the livestock sector because corn is an important feed; there will be a partial offset to higher feed costs for livestock producers – distillers grains, which is a co-product of dry mill ethanol production, can replace some corn grain and soybean meal in animal rations; and feed costs will rise, red meat production will decline and poultry production will likely slow over the next several years.

Martin said that there are several co-products from corn ethanol that could be used as a supplement to dairy feed rations in the event of a corn shortage for livestock feed. By feeding distillers dried grains, distillers dried grain with solubles, distillers solubles, distillers wet grain, corn gluten meal, producers can find alternatives to feeding corn-heavy rations.

But while the corn ethanol sector is booming business across the Corn Belt, Martin also discussed the emerging interest in cellulosic ethanol.

In fact, he said that the majority of cellulosic ethanol plants are being built in some of the highest producing dairy states in the country such as Wisconsin and Iowa.

“This could have a tremendous impact on the dairy industry, because the operations that grow forages and grains may offer an excellent model for nutrient utilization, energy conservation, and environmental sustainability,” Martin reported.

Types of feedstuffs that could be used to supply a cellulosic ethanol plant include wood chips, biomass-type alfalfa, Martin said that developing an alfalfa plant geared specifically towards cellulosic ethanol production could offer new opportunities for producers, in addition to relieving the strain on the corn feedstuff supply. Cellulosic ethanol production does not come without challenges, he said.

“It is more difficult to break down cellulose production, but making ethanol from cellulose dramatically expands the types and amount of available materials for ethanol production,” he said. “This includes many materials now regarded as wastes requiring disposal, such as landfills – look at what they pay to dispose of all that waste.”

While the effects of corn ethanol growth seem to be growing by the day, the future impact of cellulosic ethanol production on the dairy industry will depend on where the plants will be located, what feedstocks will be used and what systems opportunities could include dairies such as methane digesters.

To investigate the mystery of cellulosic ethanol production, Martin said that there are numerous U.S. Department of Energy grants currently in progress with “Current research projects may develop new crop systems that are economically, environmentally sustainable, feedstock production, harvest and storage of perennials with conversion potential on ethanol platforms in use and in research, utilize dairy farm systems to determine bioenergy production, energy conservation and reduction of greenhouse gas,” he said. “As for producer benefits, research is also being done on crops utilized by dairy for bioenergy could provide dairy operations more yield per acre, reduced harvest costs, new compatible method of removing excess nutrients, new feeds with improved nutritional value and energy conservation and reduced greenhouse gas.”

This farm news was published in the Oct. 10, 2007 issue of Farm World, serving Indiana, Ohio, Illinois, Kentucky, Michigan and Tennessee. For more details, visit www.ethanol rfa.org or www.alalfa.org