It is difficult to discern what direction, if any, hay prices are headed based on data from USDA’s Agricultural Prices report for March. The average price of alfalfa hay jumped by $8 per ton compared to the previous month and settled at $167, which was $29 per ton lower than March 2024. In contrast, grass hay dropped by $4 per ton to $139. That value was the lowest monthly average since January 2021.

The price paid for Supreme and Premium alfalfa hay during March dipped by a modest $1 per ton to $242, which was $29 below March 2024.

Six states had a double-digit month-over-month alfalfa price gain during March. Arizona was $20 per ton higher and was followed by Colorado, Montana, New Mexico, Ohio, and Utah, which were all up by $10 per ton.

Two states had double-digit declines in average alfalfa price. Pennsylvania was down $19 per ton and New York’s price dropped by $15.

The highest average March alfalfa hay price was reported in California at $245 per ton. It was followed by Pennsylvania, posting a price of $239, while Texas followed closely behind at $238.

South Dakota had the lowest average alfalfa price at $93 per ton. It was followed by North Dakota at $95 and Nebraska at $105.

Keep in mind that USDA average prices account for all qualities and bale types of hay sold. Also, the final U.S. estimate is a volume-weighted average rather than a simple average of state values. Those states with the most volume sales will impact the final U.S. dollar value more than those states with fewer sales.

Supreme and Premium

The USDA also tracks the prices of Supreme and Premium quality alfalfa in the major dairy states and determines an average price from the five top milk-producing states (California, Idaho, New York, Texas, and Wisconsin). This data is used to determine feed prices in the Dairy Margin Coverage (DMC) program.

For March, the average price of Supreme and Premium alfalfa hay rose by $1 per ton to $242, which was still $29 per ton lower than a year ago.

Other hay

The March average price of other hay dropped by $4 per ton to $139. This was $27 per ton lower than the previous year.

The highest March price for hay other than alfalfa was reported in Oregon at $210 per ton. California and Washington checked in at $200 per ton and were followed by New York, Arizona, and Kentucky at $175.

Minnesota had the lowest reported other hay average price at $73 per ton. It was followed by North Dakota at $75 per ton.