The primary issue of animal waste disposal is one of concentration. Regardless of the form of the waste, it is not being spread in proportion to the cropland that supplies the CAFO.
If the animal waste is spread across the same area as was used to grow the input feed crops, there would be a balanced plant utilization of the nutrient. The result would be that the nutrients would be sequestered again in the feed plants.
The main issue comes down to economics. The cost of returning the wastes in low concentration are significantly higher than for the current concentrated disposal methods. We come up against the difficulty of large scale operations paying for the total costs resulting from the industrial activities. We see this in many manufacturing and mining operations, both in the past and in current situations.