Alfalfa price takes a polar plunge

The month-over-month average price of alfalfa tumbled $8 per ton in November and settled at $165, according to data from the USDA’s Agricultural Prices report. This was the lowest average monthly price since November 2020.

The average grass (other) hay price held steady at $147 per ton. Combined, the relatively slim $18 gap between the average alfalfa and grass price was the smallest such difference since March 2017. In April 2023, the price spread was $117 per ton. The times have changed.

The price for Supreme and Premium alfalfa hay declined a modest $1 per ton during November, averaging $235.

Only two states had double-digit month-over-month alfalfa price gains during November. Minnesota posted a $12 per ton improvement while Wisconsin was up $10.

Five states had a double-digit decline in average alfalfa price. Pennsylvania led this group with a drop of $20 per ton. It was followed by New York (down $15) and Texas (down $13). Both New Mexico and Colorado were down $10 per ton.

The highest average November alfalfa hay price was reported in California at $245 per ton, and it was followed by New Mexico at $240 and Texas at $235.

North Dakota posted the lowest average alfalfa price at $93 per ton. It was followed by South Dakota at $115 and Iowa at $117.

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 November, the average price of Supreme and Premium alfalfa hay fell by $1 per ton to $235. One year ago, the average price of Supreme and Premium alfalfa hay was $271 per ton.

Other hay

The November average price of other hay (mostly grass) remained at $147 per ton but was still $27 per ton lower than the previous year.

The highest November price for hay other than alfalfa was reported in Oregon at $215 per ton. Washington and California had the next highest price at $205.

North Dakota had the lowest reported other hay average price at $75 per ton. It was followed by Minnesota at $78 per ton.