August alfalfa price plummets

The average price of alfalfa hit its lowest monthly average price since February 2021, according to data from the USDA’s Agricultural Prices report. The average August price for alfalfa hay dropped by $8 per ton to $175 per ton. Grass (other) hay experienced a modest bump in average price to finish at $148 per ton.

The gap between the alfalfa hay price and grass price during August was $27 per ton. This is the smallest price difference since February 2019.

The average price for Supreme and Premium alfalfa hay dropped by $1 per ton in August, finishing at $236.

Only one state, Ohio, posted a double-digit month-over-month alfalfa price gain during August; its price was only up by $10 per ton.

Double-digit declines during August were more numerous with 10 states falling into this category. For the second month in a row, Wisconsin led the pack and had an alfalfa hay price decline of $24. Minnesota was down $20 per ton while Pennsylvania dropped $16. New York, Nevada, and Arizona were all down by $15 per ton. Colorado, Idaho, Illinois, and South Dakota dropped by $10 per ton.

The highest average August alfalfa hay price was reported in Texas at $275 per ton and was followed by New Mexico at $260. Pennsylvania posted a $240 price while California settled at $235 per ton.

North Dakota easily had the lowest average alfalfa price at $100 per ton. It was followed by Minnesota 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 August, the average price of Supreme and Premium alfalfa hay dropped by $1 per ton to $236, which followed substantial price declines the previous two months. One year ago, the average price of Supreme and Premium alfalfa hay was $282 per ton.

Other hay

The August average price of other hay (mostly grass) rose by $3 from July to $148 per ton, which was still $26 per ton lower than a year ago.

The highest August price for hay other than alfalfa was reported in Oregon at $220 per ton. Washington had the next highest price at $215.

North Dakota had the lowest reported other hay average price at $85 per ton. It was followed by Oklahoma at $90 per ton.