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We are thinking of dumping our home curated news page and going to an embedded Facebook feed instead.

One of the purposes of the news page is to boost SEO. The intention is that keywords will occur in our news in a natural manner and get indexed, plus Google will see it as a site that's regularly updated, plus it may generate backlinks (if the news is interesting enough).

It would seem that if we simply embed a Facebook feed instead none of the above will apply. Is that the case?

This discussion on the Moz website has some info about the SEO usefulness of a feed but says nothing about the potential damage done by removing a home grown news content.

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tl;dr: Yes!

You are going to embed a remote site, this means the SEO points go to the remote site.

If you want to keep the SEO points you need to display the data in pages on your domain, you could try something similar to How to show facebook feed messages from my site?

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    That's correct, but posting the headings as facebook posts with a link to the full post on your own site might help for SEO, just like twitter etc... spread some links to your site. – Louis Somers Aug 29 '13 at 21:35

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