July hay prices continue to slide

The average price of both alfalfa and grass hay continued their free fall. According to data from the USDA’s Agricultural Prices report, the average July price for alfalfa hay dropped to $183 per ton, which was the lowest average price reported since March 2021. Grass (other) hay finished at the lowest price it’s been since May 2022, averaging $145 per ton.

The average price for Supreme and Premium alfalfa hay dropped another $19 per ton in July to $237. This occurred after a $20 per ton price retreat during the previous month.

Only three states posted double-digit month-over-month alfalfa price gains during July. Pennsylvania was up by $31 per ton, while New York gained $29. New Mexico posted a $10 per ton price improvement.

Double-digit declines during July were more numerous with 13 states falling into this category. Wisconsin led the pack with an alfalfa average hay price decline of $36. Iowa dropped $23 per ton while Minnesota was $20 lower. Nebraska, Kansas, Colorado, and Arizona all posted $15 per ton declines. They were followed by Texas with a $13 per ton drop. Montana, Nevada, South Dakota, Washington, and Wyoming were all down by $10 per ton.

The highest average July alfalfa hay price was reported in Texas at $280 per ton and was followed by New Mexico at $260. Pennsylvania posted a $256 price while New York settled at $245 per ton.

North Dakota easily had the lowest average alfalfa price at $104 per ton. It was followed by South Dakota at $120.

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 July, the average price of Supreme and Premium alfalfa hay took another big hit and dropped by $19 per ton to $237. One year ago, the average price of Supreme and Premium alfalfa hay was $288 per ton.

Other hay

The July average price of other hay (mostly grass) declined by $4 from June to $149 per ton, which was $29 per ton lower than a year ago.

The highest July price for hay other than alfalfa was reported in Washington at $225 per ton. Oregon followed at $220 per ton.

North Dakota had the lowest reported other hay average price at $85 per ton. It was followed by Oklahoma at $95 per ton.