Michigan’s corn farmers are moving to a corn-based food production process that is more efficient, faster and produces a smaller amount of ethanol.
The result: the state’s corn exports are down 40 percent compared to this time last year.
The move is part of an effort to diversify Michigan’s food supply, as well as diversify its food supply and feedlot operation, said Michigan Department of Agriculture spokesman Dan Stoughton.
The department has spent $1.8 million on new equipment, more than doubling the amount spent last year, Stoughson said.
The corn feedlot is being relocated from Detroit to the state-owned Michigan Farm Bureau, a state agency that oversees feedlot operations.
The corn processing facility is a single-level facility with three floors and can handle about 150,000 bushels of corn.
The farm is now owned by the Michigan Farm Credit Union.
Stoughton said Michigan will use some of the money to upgrade the corn processing plant and equipment.
The state also is spending $500,000 to make a new feedlot in Michigan that will produce more feed for the state.
The decision to move the feedlot was made when the state began a multiyear corn price recovery plan.
The program includes buying more corn from producers and increasing production at feedlot farms.
Stout said the feedlots will be moved to a more modern facility and the feed mill will be relocated.
He said the corn mill will remain in Detroit.
The feedlot will be expanded to produce more corn for the grain processor, which will now handle the feed and feed mill operations.
Stainless steel feedlampThe plan will also see the state purchase another feedlot and expand it to a capacity of 1 million bushel per day.
The grain mill is already located in Detroit and Stoughtons said the grain mill will also be relocated to the new feedlott.
Stumpf said the new facility is expected to produce up to 3 million bushets per day and will be ready to harvest in 2019.
Stoughts said the cost of the new plant will be in the neighborhood of $8 million.
Stupendous demand for cornStought said Michigan’s demand for the corn product is expected for the foreseeable future.
It is a major export commodity for the U.S. and the Midwest, with an estimated $1 billion worth of corn exports going to Canada and Mexico last year for export.
Stuff reported from Detroit.