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The term grain-fed beef refers to beef that comes from cattle raised on a diet of grains such as corn, rather than a natural diet of grasses and vegetation. Some grain-fed cattle are entirely raised on grain, whereas others are grass-fed for much of their lives, but finish on a diet of grain shortly before being sold for beef. Most grain-fed beef cattle are housed and fattened on large factory farm confined feedlots, whereas grass-fed beef cattle are raised in open free-range pastures. Grain-fed beef became popular in the 20th century as large agribusinesses replaced many small family farms, U.S. animal production became increasingly specialized, and consumer demand for beef on the global market grew along with the world's population. Grain-fed beef cattle housed in feedlots grow fatter faster, allowing more beef to reach the market in a shorter period of time. Lower production costs resulting from lower land and herd number requirements have also aided the rise of grain-fed beef production.

The growth of grain-fed beef, coupled with a renewed interest in grass-fed beef, has led to a debate over which method is better in terms of environmental impact, animal welfare, consumer health, and the marketplace. A key environmental concern with grain-fed beef production is the concentrated amount of manure produced by large numbers of cattle in close confinement. The high cost of manure disposal can inhibit feedlot farmers from using proper disposal methods. If not properly disposed of or recycled, this waste could result in soil and water pollution. The United States passed environmental protection laws in the 1970s in response to this hazard. The Environmental Protection Agency (EPA) requires concentrated (confined) animal feeding operations, also known as intensive livestock operations, to obtain permits and develop management plans to prevent the contamination of surface and groundwater. Concentrated (confined) animal feeding operations are defined as operations that feed large numbers of animals in a confined area for 45 days or longer in a 12-month period. Residents who live near feedlots complain of excessive odors, among other issues.

A second environmental concern centers on possible pollutants related to the production of grain-feed beef, including antibiotics, pesticides, pathogens, and nutrients. Antibiotics and pesticides are used to prevent the spread of diseases, which tend to occur more frequently in overcrowded conditions like those found on feedlots. Pathogens contracted by the cattle, including parasites, bacteria, and viruses, can spread to livestock handlers, manure, or the beef itself. Manure can release nutrients into the soil, which can result in lethal algal blooms in nearby waterways or the contamination of drinking water.

Animal rights activists and environmentalists charge that the confined life and unnatural diet of grain-fed beef cattle represent animal cruelty. Close confinement can lead to psychological stress, resulting in problems such as repetitive or injurious behaviors. Critics also note that cud-chewing animals fed an unnatural grain-based diet—most of which are genetically modified—can have adverse health effects. Some cattle develop subacute acidosis, which causes them to kick their stomachs and eat dirt instead of feed. Critics also oppose the common use of single cattle breeds on feedlots for the consistency of the beef produced—a practice that results in low genetic diversity and animals that are not adapted to their local habitats. Feedlot owners and their supporters counter that the larger feedlots that raise grain-fed beef cattle have the financial resources to hire employees to closely monitor the cattle's health and can afford sometimes expensive veterinary care when problems are discovered.

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