Little movement in December hay prices

After an $8 per ton fall in November, the average price for December alfalfa hay only retreated $1, settling at $164 per ton, according to data from the USDA’s Agricultural Prices report. This was the lowest average monthly price since December 2020, which also averaged $164.

The grass (other) hay price dropped only $2 per ton in December, averaging $145 per ton.

The average price for Supreme and Premium alfalfa hay declined by $5 per ton during December, finishing at $230.

Three states had a double-digit month-over-month alfalfa price gains during December. Pennsylvania was $30 per ton higher. It was followed by New York with a $20 boost and Montana alfalfa was up by $10.

Only two states had double-digit declines in average alfalfa price. Utah was down $15 per ton while Colorado dropped $10.

The highest average December alfalfa hay price was reported in Pennsylvania and California at $250 per ton; they were followed by New Mexico and New York, both at $235 per ton. Texas posted a $231 price.

Once again, North Dakota had the lowest average alfalfa price at $92 per ton. It was followed by South Dakota at $110 and Minnesota 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 December, the average price of Supreme and Premium alfalfa hay fell by $5 per ton to $230, which was $45 per ton lower than a year ago.

Other hay

The December average price of other hay (mostly grass) dropped by a modest $2 per ton to $145. This was still $29 per ton lower than the previous year.

The highest December price for hay other than alfalfa was reported in Oregon at $215 per ton. California checked in at $210 per ton and was followed by Washington at $205.

Minnesota had the lowest reported other hay average price at $69 per ton. It was followed by North Dakota at $71 per ton.