In early August 2025, U.S. hay and forage markets remained under pressure from persistent drought and rising input costs. Rainfall brought modest relief to parts of the Northern Plains, while drought worsened in central South Dakota and northern North Dakota amid above-normal temperatures.

Marian Viney

Managing Editor / Progressive Forage

Marian Viney covers forage topics, serving as a trusted resource for hay, silage and pasture prod...

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Here’s a review of what we do know about hay and forage markets as you continue to look for answers.

U.S. Drought Monitor maps indicate that U.S. drought conditions continue to fluctuate across regions. August unfolds with uneven drought relief across the U.S. Rainfall eased dryness across the Midwest and Central Plains, with states like Michigan, Ohio and Iowa seeing improvement. Even Kansas and Nebraska show signs of recovery.

However, drought worsened in the Pacific Northwest and Intermountain West – Oregon, Idaho and Utah face intensifying dryness driven by heat and wind. The Southeast is slipping too, with expanding abnormally dry zones and emerging moderate drought pockets.

California’s reservoirs remain strong, but wildfire risk is increasing across the Southwest, south Florida and the Northeast due to critically dry vegetation and high evaporative demand.

For forage producers, the map signals cautious optimism. Relief may boost late-season growth in some areas, but others must stay alert to increasing costs and fire threats.

As of Aug. 8, approximately 17% of U.S. hay-producing acreage (Figure 1) was considered under drought conditions, consistent with a month earlier. The estimate of alfalfa hay-producing acreage (Figure 2) under drought conditions decreased slightly to 28%, down 3% from a month earlier.

A snapshot of hay prices

USDA price data for 27 major hay-producing states is mapped in Figure 3, illustrating the most recent monthly average price and one-month change. The lag in USDA price reports and price averaging across several quality grades of hay may not always capture current markets, so check individual market reports elsewhere in Progressive Forage.

Dairy hay

The top milk-producing states reported an average price of $244 per ton for Premium and Supreme alfalfa hay in June 2025, a $33 decrease from May 2025 (Table 1). The average price was $12 lower than May 2024.

Alfalfa

The U.S. average price for all alfalfa hay decreased $14 in June to $177 per ton. Compared to a month earlier, prices were lower in eight of 27 major forage states, with the largest declines in Arizona, Colorado, Illinois, Iowa, Michigan, Minnesota, North Dakota and Utah. Prices were up in 14 states including Idaho, Kansas, Montana, Nebraska, Nevada, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Texas, Wisconsin and Wyoming.

With few exceptions, year-over-year alfalfa hay prices were down substantially, with the U.S. average down $18 compared to June 2024.

Other hay

At $141 per ton, the June 2025 U.S. average price for other hay was down $3 from May. Prices decreased in 14 of 27 major hay-producing states, with the largest month-to-month decrease in Arizona, California, Colorado, Illinois, Iowa, Michigan, Minnesota, Oklahoma, Oregon, South Dakota, Texas, Utah, Wisconsin and Wyoming. Increases were recorded in 10 states: Kansas, Kentucky, Montana, Nebraska, Nevada, New Mexico, New York, Ohio, Pennsylvania and Washington.

Expanding the timeline, the June 2025 U.S. average price for other hay was $8 less than a year earlier.

The gap between average U.S. alfalfa and other hay prices was about $36 per ton in June.

Exports

At deadline, the U.S. saw exports ease with lighter demand signaling a shift in global buyer behaviors. Trade volume surged early in the month. Tariff uncertainty and weather-related quality concerns may be reshaping destination dynamics even as global demand increases.

At 141,323 metric tons (MT), June exports of alfalfa hay increased. China was the top buyer, importing 76,585 MT during the month, about 54% of the total. June shipments to Japan also maintained a somewhat steady eight-month trend, but slight decline at 24,995 MT, 17% of the total for June.

Exports of other hay also decreased, to 73,695 MT in June. As usual, Japan and South Korea led buyers in the other hay category: Japan purchased 41,501 MT during the month, or about 56% of the total, followed by South Korea’s 16,757 MT, 22% of the total.

U.S. exports of most categories of alfalfa cubes and meal were lower in June, totaling about 6,406 MT. Japan imported about 74% of the total.

Regional markets

Regional hay sales and USDA Ag Marketing Service market reports have remained steady, with retail and dairy sectors holding firm. Prices vary widely by quality and region. Export movement is quiet, and weather concerns linger. Producers are watching conditions and weighing fall strategies.

• Midwest: In Iowa, compared to a week ago, all grades of hay are weak. Quality was an issue again. Some hay was carrying extra moisture or was not attractive to buyers. Buyers appear to be waiting for better quality, which hopefully will come. Trade was slow to moderate with light to moderate demand.

In Kansas, demand was light, trade was slow to moderate, and prices were steady. Rain across the state continues to hamper hay harvest, but many are thankful for the rain, as it has saved their corn and sudangrass. Overall, most report that second cut was good to very good and yield was slightly above average. Sentiment remains that there will be plenty of grinding hay available.

In Illinois, comparable hays traded steady.

In Missouri, hay movement has been slow, prices are steady to weak, supplies are heavy, and demand is light.

In Nebraska, comparable offerings of small squares, round bales and delivered hay sold steady. Demand picked up, especially from the large hay grinder operators. A few ranchers in western Nebraska and in Wyoming are buying good-quality squares for winter feeding. Overall, prices are still lackluster and most of the hay quality is the same.

In South Dakota, light demand for all types and qualities of hay, few reported sales as buyers are showing little interest. As there was a good carryover of hay from last year, and difficult haying conditions this year, there is a good supply of rained-on, lower-quality hay. Area hay auctions are seeing plenty of this type of hay on a weekly basis.

• East: In Alabama, hay prices are steady, trade moderate with moderate supply and demand.

In Tennessee, no price trend is available.

In Pennsylvania, showing moderate volume and firm pricing, but still reflective of steady regional movement.

• Southwest: In California, trade activity and demand were moderate to good, retail hay demand was good, dairy hay demand was steady, and export hay demand was light.

In Oklahoma, demand is slow with some movements, but not enough for a trend for all types of hay.

In Texas, hay prices are mostly steady across all regions with light to moderate demand. Moderate supplies were reported in all regions.

• Northwest: In Montana, hay sold generally steady; demand was not as robust. Summer rains in drought-stricken areas have helped soften demand slightly, and demand was still moderate to good, with many producers reporting large sales.

In Utah, demand and movement has been good with some ranchers starting to buy hay, getting ready to feed because of this drought. There haven't been as many contracts being made as farmers would like.

In Idaho, demand for hay is moderate to slow; there isn't a lot of Supreme-quality hay. Some are struggling to find high-testing hay to buy, and others are holding onto their hay waiting for better prices, which have started showing up in some places.

In the Washington-Oregon Columbia Basin, all grades of hay steady with more interest from exporters was noted; dryland timothy for export was firm. Trade moderate with moderate to good demand. In Oregon, movement has increased with mostly new-crop sales. The demand for new-crop hay across the state is slow. Producers are saying it has been quiet and are thinking movement will pick up with hay starting to get tested and stored.

In Wyoming, sales mostly steady, demand light. Many producers focused on second cutting and finished before moving the first-cutting inventory. Old-crop supply dwindling. Dairy-quality hay is low with reports of quality being poor in some regions.

In Colorado, trade activity and demand light. No market trend available, due to a lack of comparable trades.

Other things we’re seeing

• Dairy: Milk production forecasts remain elevated, driven by larger cow inventories and continued gains in milk output per cow. August data shows herd numbers increasing, with per-cow productivity still above year-ago levels despite a slight month-over-month dip. The sustained growth signals strong supply momentum heading into fall, with potential price pressure if demand doesn’t keep pace, based on the latest information published in the NASS Milk Production report.
• Cattle: The 2026 beef production forecast is raised by 2%, or 540 million pounds, from last month to 25.815 billion pounds. This change reflects an increase from the previous month in expected feedlot placements in the second half of 2025 and in early 2026, which are likely to be marketed for slaughter in 2026.
• Fuel: National average fuel prices were slightly higher to start August, according to the U.S. Energy Information Administration (EIA). The U.S. retail price for regular-grade gasoline averaged $3.14 per gallon on Aug. 4, up 1.7 cents from the previous week and 30.8 cents less than the same week a year earlier. The average U.S. on-highway price of diesel was $3 per gallon, down 0.5 cent from the prior week and 4.5 cents more than early July 2024.
• Trucking: Spot flatbed prices were mostly lower to start August, down in the Southeast, Midwest, Northeast and South, only higher in the West, averaging $2.48 per mile nationally, according to DAT Trendlines. Regionally, average spot prices per mile were: Southeast – $2.69, Midwest – $2.53, South – $2.66, Northeast – $2.34 and West – $2.22.
• Other costs: The USDA’s June prices paid index for commodities and services, interest, taxes and farm wage rates is up 0.3% from May 2025 and 7.1% from June 2024. Compared with last month, prices are higher for self-propelled machinery, tractors and other machinery. For fertilizer, the index for June, at 111.3, is up 1.5% from May and 11% from June a year ago. Since May, higher prices for nitrogen, potash and phosphate more than offset lower prices for mixed fertilizer.
• Total June feed prices, the index is 115.2, a decrease of 1.5% from May and 2.2% from last June. Since May, prices are lower for hay and forages, feed grains, complete feeds, concentrates and supplements.
• Interest rates: USDA Farm Service Agency (FSA) interest rates for farm operating loans (5%) remained the same and direct ownership loans (6%) were higher for August.