That feed along with the fresh hay is fed to cows at the end of their life to fatten them up for human consumption. Notice how the article you linked says 200 million acres of cropland used for beef and 325 million overall versus 900 million acres of total farmland? Most of the difference is marginal pasture that can’t grow anything for human consumption. We don’t fertilize or water it, it’s just grassland that grow by itself where we raise cows before sending them to feedlots. Without that cropland going to distillers and cows, over 60% of our farmland would be completely useless. Not only that but most of our cropland isn’t very useful either - 95% of the corn we grow is inedible dent corn. It’s one of the cheapest commodities on the planet that’s only worth growing as a last resort.
We make this tradeoff because those 600 million acres of otherwise unusable farmland are far more resilient than our cropland so we have a huge backup of calories incase of massive crop failure.