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The objective of this study was to evaluate the effect of feeding pelleted or mash ergot contaminated grain continuously or intermittently on performance and blood parameters of backgrounding steers. Sixty black angus steers (300 ± 29.4 kg) were used in a complete randomized backgrounding (60% barley silage:40% concentrate DM basis) 84 d study. Steers were randomly assigned to 4 different treatments and housed individually. Treatments included: 1) control ration (CON; no added ergot), 2) continuous ergot mash (CEM; fed continuously at 2 ppm), 3) intermittent ergot mash (IEM; fed at 2 ppm on the first wk of each 21 d period and control diet for the remaining 2 wk), and 4) intermittent ergot pellet (IEP; fed at 2 ppm during the first wk of each 21 d period and control diet for the other 2 wk). Calves were weighed every 21 days and blood samples were collected on d 0, 42, and 84. No treatment effects (P>0.05) were observed for complete blood count. Steer DMI was reduced for all ergot diets compared to the CON diet (P< 0.01, 7.45 vs. 8.05 kg/d). Steer ADG was reduced for all ergot diets compared to the CON diet (P< 0.01). CEM fed steers had lower ADG (P< 0.01, 0.980 vs. 0.735 kg) and shrunk final weight (P< 0.01, 366 vs. 350 kg) than CON calves, but CEM and IEM were no different. CEM fed steers had lower Gain:Feed (P< 0.07, 0.130 vs. 0.142) than CON calves. Pelleting ergot contaminated grain did not reduce the impact of ergot alkaloids on any of the measured parameters. Results suggest that continuously or intermittently feeding an ergot contaminated TMR (2 ppm) can significantly reduce the growth performance of backgrounded feedlot steers but no effects were observed for blood parameters. Pelleting was not an effective method of reducing ergot toxicity. [ABSTRACT FROM AUTHOR]