The purpose of this research is to document the findings of the recent field trials in Oklahoma that tested the effect of phytase enhanced diets on reducing phosphorus emission. An economic simulation model (SIMETAR) was constructed to investigate whether reduced nitrogen and phytase enhanced diets had a significant effect on reducing feed cost. In particular, the effect of future corn price on cost of control vs Phytase enhanced diet of hog will be documented. It is found that the lower excretion diet will be less costly than the control diet during this unprecedented level of soaring corn prices. Also, previous researchers have found that the control diet is not environmental friendly diet. . A key issue that has emerged is the role of animal waste products. During the “cheap energy” era of the 1990’s animal waste products were internalized by hog producers as costs. Given the rise in energy prices and its commensurate effects on fertilizer prices, it’s possible that animal waste products have crossed the threshold from an internalized cost to an external benefit. Swine effluent is rich in nitrogen and phosphorous and can be a substitute for inorganic sources of nutrients if economic conditions are sufficiently favorable. It is necessary to assess economic profitability under high energy and feedstock prices.