For a long time, monitoring hay prices has been a lot like watching a downed tree rot — not much action. In December, the average dry alfalfa hay price was $161 per ton, according to the USDA’s Agricultural Prices report. That value was $2 higher than December and $3 below a year ago.
The average price for grass hay in December fell by $6 per ton for the second month in a row, settling at $128 per ton. That’s a new low watermark for the year and the lowest monthly average price recorded since June 2020.
The price paid for Supreme and Premium alfalfa hay during December dropped from $216 to $211 per ton, which was $19 per ton lower than the previous year.
Eight states had a double-digit month-over-month alfalfa price gain during December. Wisconsin was up by $11 per ton. Arizona, Idaho, Michigan, Montana, Nevada, Pennsylvania, and Utah were all up by $10 per ton.
Three states had a double-digit hay price decline. Oklahoma was down $12 per ton while Colorado and California had a $10 month-over-month price reduction.
The highest average December alfalfa hay price was reported in Pennsylvania at $270 per ton. It was followed by New Mexico and New York at $255 while Kentucky posted a $235 per ton average price.
North Dakota had the lowest average alfalfa price at $93 per ton. It was followed by South Dakota at $99 and Nebraska at $101 per ton.
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. 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, which followed a $7 price drop in November. The December average alfalfa price posted at $211, which was $19 per ton below the average price from a year ago.
Other hay
The December average price of other hay continued its downward spiral, posting at $128 per ton, which was down $6 from the previous month. This was $20 per ton lower than the previous year.
The highest December price for hay other than alfalfa was reported in Pennsylvania, California, Oregon, and Washington at $200 per ton. New Mexico followed at $195, while Kentucky posted a $190 per ton price.
North Dakota had the lowest reported other hay average price at $68 per ton. It was followed by Oklahoma at $75 per ton.








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