Hay Prices and the Drought Factor: What Livestock Producers Need to Know
By AgAlmanac Livestock Desk
Drought has tightened hay supplies across key producing regions. A look at current hay prices by region, quality premiums, and sourcing strategies.
Hay is often the last thing livestock producers want to spend time analyzing — until it's the most expensive line item in their budget. Here's the current market picture.
Regional Price Snapshot
USDA's monthly hay price survey shows significant regional variation. High Plains alfalfa is running $200–$240/ton for premium dairy quality, $160–$190 for good beef quality. Midwest grass hay is $120–$160/ton. Pacific Northwest orchard grass remains elevated at $220–$260/ton due to reduced acreage.
The Drought Overhang
Two consecutive years of drought across the Southern Plains and Rocky Mountain West have drawn down stored hay supplies to below-average levels. This isn't a one-season tightness — rebuilding stocks takes multiple good production years.
Quality Premium Is Real
The spread between good and premium quality hay has widened. Paying $20–$30/ton more for higher RFV hay that allows you to feed less often makes mathematical sense, especially with strong calf prices. Know your forage test numbers before you buy.
Sourcing Strategies
Producers who locked in summer hay early are looking smart right now. For those who didn't, options include: grass hay from the upper Midwest (often underpriced relative to protein content), small grain straw plus a protein supplement as a cost-reduction strategy, or backgrounding fewer head if forage economics don't work.
What to Watch
Winter wheat pasture availability in Oklahoma and Texas will be a key indicator for spring cattle grazing economics. Watch soil moisture maps and follow USDA's weekly crop progress reports.
Put This Into Practice
Track your costs, monitor markets, and know your break-even price — all in one place.
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