1. What do 'dung's do?
2. What does the recycler do?
1. If you make a fertilizer storage, you can convert the dung into fertilizer. You then use it on ground you have just cleared of a weed, and then plant cereal on it.
2. If you put in a crafted item, it spits out it's constituent parts.
3. You can't; you can just fence them in somewhere near grass, and use them for their dung.