A process is provided for creating feed pellets from agricultural residue material having substantially no food value, such as corn stover. The agricultural residue material is harvested and baled for transport to a storage and processing site. The baled agricultural residue material is then shredded and ground, and one or more chemical agents are added to depolymerize the fiber (lignin-carbohydrate) matrix of the agricultural residue material. Agricultural processing byproducts such as distiller's solubles and dried distillers grains with solubles (DDGS) are added to the agricultural residue material, either before or after the chemical agents are added, to form a combined material. The combined material is then pelletized into feed pellets, which may be transported and stored for later consumption by animals. The process produces a nutritionally enhanced material which is more easily digested than existing feed rations.