Hay updates - Western drought deepens

Drought conditions are intensifying across the U.S., with roughly three-quarters of the country classified as drought or abnormally dry, tightening forage supplies. As of May 26, drought remains concentrated in the West and Southern Plains, with 51% of alfalfa acreage and nearly 60% of rangeland affected.

Hay prices have edged slightly higher across the West, supported by solid demand amid drought concerns. Alfalfa prices have improved since the start of the year, but rising fuel costs are adding pressure across the hay supply chain. Many operators have added fuel surcharges, increasing delivered hay costs for livestock producers and end users.

Conditions by state:

Arizona

Drought remains a concern in Arizona, with 96% of alfalfa acres in drought and of 75% pasture and range rated in poor or very poor condition as of June 1. Roughly 74% of the state’s cattle inventory is currently impacted by moderate or greater drought conditions. Prices have strengthened, with all grades averaging roughly $15 per ton higher year-to-date, supported by solid retail demand. Quality challenges in new‑crop hay have weighed on export demand, which has been further pressured by disruptions in the Middle East (a key export destination). Looking ahead, uncertainty around late-season hay availability is increasing as the Drought Irrigation Program begins, with some producers expected to limit additional irrigations and conserve water, potentially tightening supplies further and adding upward pressure on prices.

California

Weather challenges continue to shape California hay markets. In Northern California, persistent rainfall has delayed fieldwork and harvests, while wet conditions in the Central Valley have delayed cuttings, weighing on feed quality. In contrast, hay growers in the Imperial Valley were able to harvest first cutting more than a month earlier than normal due to dry winter conditions. Demand for the new crop has been stable, with high-quality hay prices approximately $10 per ton higher than a year ago.

Idaho

First cutting of new crop has been completed in southern and western Idaho. Hay demand in the state remains steady, with most existing inventories largely sold out. Concerns surrounding drought and reduced irrigation allocations are beginning to intensify following the governor’s statewide drought emergency declaration. These conditions have increased early‑season interest from cattle producers looking to secure forage. Idaho hay prices have risen notably, with USDA reporting average hay prices up $15 per ton year over year, and lower‑quality hay gaining $20 to $30 per ton. Tight remaining hay stocks and a rapidly expanding dairy herd continue to support prices.

Montana

Dry conditions continue to shape Montana’s forage outlook, with 61% of the state’s pastureland rated in poor to very poor condition as of June 1. Recent widespread rainfall brought more than two inches in many areas and provided some near-term relief, supporting seeded dryland hay crops. However, earlier drought impacts are expected to limit recovery in native grass hay, and conditions remain uneven across the state. Hay supplies have tightened, driving stronger demand and higher price expectations. Hay growers have reported increasing inquiries, with some anticipating sales in the $180–$200 per ton range for feeder quality hay. In some cases, bids have already exceeded those expectations, including reported offers of $200 per ton for new crop hay.

Oregon

First cutting has started in eastern Oregon, and other areas report good hay conditions. In southern Oregon, particularly in the Klamath Basin, ongoing dry conditions are beginning to influence acreage decisions. The Drought Response Agency is offering between $250 and $300 per acre for land idling, creating a financial incentive for producers to reduce planted acreage. As a result, total hay and grain production in the region is expected to decline, which could further tighten supply and support prices later in the season. Old crop movement has picked up as barns are cleared for the new crop.

Washington

First cutting has been completed in the Columbia Basin, with prices trending higher year over year. While overall sales activity has been limited so far, early reports suggest $210–$220 per ton for higher-quality hay. Weather conditions have been mixed, with a decent amount of rainfall across the region, though distribution has been highly variable. Demand signals are mixed. Export activity has been relatively slow, and dairy demand has softened compared to earlier periods. Feedlots are showing interest in purchasing hay, but primarily at lower price points, suggesting some price sensitivity remains in the market.

Profitability

Hay (alfalfa): Slightly profitable - Bullish 12-month outlook
Hay (timothy): Slightly profitable - Neutral 12-month outlook

Tightening Western supplies and an expected reduction in hay production are helping rebalance the market, while increasing drought concerns are driving stronger domestic demand and improving alfalfa prices.

Sustained export demand, limited high-quality supply and steady forage demand are supporting timothy hay profitability despite higher production and logistics costs.

USDA Hay Markets – June 9, 2026

Kansas Direct Hay Report

More: Kansas Direct Hay Report

Southwest Missouri Hay Auction - Golden City, MO

Dakota Hay Auction - Corsica, SD (Monday)

Regional Hay Prices

 

State-By-State Hay Markets

New Mexico—In May 8 report, compared to the last report, the hay market appeared steady to firm.

Colorado—In May 21 report, compared to the last report, trade rade activity very light. Demand good to very good on both old crop and new crop hay.  The next available report will be June 4.

Missouri—In the May 21 report, As of early this week hay progress was running slightly head of the average with first cutting of alfalfa at 23 percent complete and other hay at 15 percent.  ASS released the hay stocks reports showing a decrease in stocks nationwide for the first time in three years. Missouri is said to have an increase of 10 percent over this point last year. Hay prices are steady. Demand is light and supplies are moderate. The Missouri Department of Agriculture has a hay directory at https://apps.mda.mo.gov/haydirectory or visit the University of Missouri Extension feed stuff finder at https://feedstufffinder.org.

Nebraska—In the May 22 report, compared to the last report, round bales of alfalfa sold 10.00 to 20.00 higher. Ground and delivered alfalfa in the Platte Valley sold 35.00 higher, ground and delivered cornstalks sold 20.00 higher. Ground and delivered hay in the west sold 20.00 higher. Grass hay sold fully steady. Demand was very good. Dryness continues in a large area and some ranchers are looking for large quantities of hay so they can dry lot cow/calf pairs this summer. Some new crop sales on the report with some large quantities of hay under contract for the 2026 growing season. These contracts are made but the hay has yet to be produced. Upward trend in the hay market and buyers and sellers know it will go higher as the demand picks up and the tonnage could be light this summer due to lack of moisture. Some alfalfa in the central and eastern areas has RFV ranging from 235-260 on first cutting. RFV is testing way better on the first cutting of 2026 than in recent years.

Oklahoma—In the May 28 report, compared to the last report, Movement is still moderate to steady for this time of year. Looking into the new hay crop. Hay growers are trying to find their footing in pricing trends. Due to the carryover hay, it is less than expected. Different parts of the state are in different phases in their hay production. Prices for new crop hay are still to be determined. It is still too early to tell what the new crop of grass hay will be. Drought has increased to 99.61 percent of the state that has some form of drought.. The next report release will be on June 5.

Texas—In the May 29 report, compared to the last report, hay prices remain steady. The next available hay report will be June 12.

Montana— In May 29 report, hay sold mostly 15.00-20.00 higher in a narrow comparison. Hay supplies across the state are very light and continue to lighten as ranchers buy hay to supplement cattle waiting on grass. Demand is very good as a result. Ranchers are watching the forecast closely with much of western, central, and Northern Montana forecasted to receive from half an inch up to three inches over the weekend. However, conditions across much the state remain dry and some producers are selling cattle as they don’t have enough feed or grass. Pairs and replacement heifers have been the first victims of the drought as ranchers have started marketing these offerings over the last few weeks. New crop contracts have been slow but many ranchers have pushed to ensure they have hay for winter needs. This has pushed hay sharply higher for fall delivery. Demand for buyers looking for high quality horse hay is very good as supplies are extremely light, especially in central Montana. Some hay traders are buying fall hay contracts in surrounding state to ensure supplies are covered for their customers. Many worry they will not have enough hay to sustain their current customers. Much of this hay is being delivered into Montana for 245.00-265.00 depending on freight. Producers in Northeastern Montana report large swaths of winter kill due the January ice storm. There is a major concern over how much hay will be produced this summer. Many irrigation districts have already announced they will have a very short irrigation season due to low river and stream flows. This, coupled with drought conditions and heavy winter kill will limit the volume of hay produced. According to the drought monitor 76.00% of the state is in Moderate drought or worse, up 16.42% from 2 weeks ago. 40.83% of the state is in an Severe drought or worse, up 8.19% from 2 weeks ago. 10.36% of the state is in Extreme drought or worse, up 4.28% from 2 weeks ago. 0% of the state is in Expectational drought, unchanged from 2 weeks ago. Notably, 87.28% of the state is abnormally dry, up 0.06% from 2 weeks ago.

South Dakota— In the Apr. 10 report, compared to last report, good interest from beef cattle operations looking to buy grass hay, not near the interest in buying alfalfa currently. Large dairy operations continue to feed haylage, which is keeping the alfalfa market under some pressure. Warmer temps and some rain in the forecast for the weekend and the start of next week. Good demand for cornstalks yet. 

Wyoming— In Apr. 15 report, compared to the last report, bales of alfalfa grass and pellets sold steady. Demand was good. Quite a few people calling and looking for hay to purchase.  Hay contacts are sold out of 2025 hay and are waiting to start the new crop hay probably the last week in May if every works out correctly. Irrigation water is the big topic on the hay calls. Some areas will have normal amounts of water and other districts are limiting the amount of water and the days to use it.  Released on Monday, April 13, the state’s SNOTELs are reading 46% of median with a basin high of 88% and a basin low of 0%. Last year the state was at 91%, and at 97% in 2024. Lack of snow fall this year is what has put the halt on the irrigation water for this growing season. Hopefully good Ole Mother Nature will bring the rains to grow the grass, hay and replenish the water in lakes and reservoirs. Next report will the first part of June