With some federal reporting still paused or delayed, this report draws on state extension services, private market analysts and industry observations to provide current forage market insights.
Winter has tightened its hold, and hay markets are moving with the same steady, cautious pace. Feeding demand is firm, but prices remain moderate and uneven, shaped by wide quality gaps – especially in grass hay – and a slow export picture. Producers are managing inventories carefully while waiting for clearer signals from weather and trade.
In the Midwest, scattered snow hasn’t eased short‑term drought, leaving Missouri through Ohio dry and frozen. The Northeast remains locked in expanding dryness, with winter precipitation offering little relief. Across the Southeast, missed rains in Alabama and Georgia and fading improvements in Louisiana keep supplemental feeding high.
The West hinges on snowpack. Autumn moisture helped stabilize supplies in parts of Nevada, Utah and Oregon, but early deficits persist in the Pacific Northwest and Great Basin. Stronger accumulations in the Southwest and southern Rockies offer some balance, yet roughly one‑third of hay acreage remains drought affected.
For now, the market feels paused – steady movement, selective buying and a watchful eye on late‑winter storms that will shape early‑spring expectations.
As of Jan. 6, approximately 42% of U.S. hay-producing acreage (Figure 1) was considered under drought conditions, an increase of 5% from a month earlier. The estimate of alfalfa hay-producing acreage (Figure 2) under drought conditions decreased to 29%, 4% less than 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 $216 per ton for Premium and Supreme alfalfa hay in November 2025, a $7 decrease from October 2025 (Table 1). The average price was $19 lower than November 2024.
Alfalfa
The U.S. average price for all alfalfa hay decreased $9 in November to $159 per ton. Compared to a month earlier, prices were lower in eight of 27 major forage states, with the largest declines in Colorado, Idaho, Kansas, Kentucky, Nebraska, New York, Pennsylvania and Washington. Prices were up in 11 states: Arizona, California, Illinois, Iowa, Michigan, Minnesota, North Dakota, South Dakota, Utah, Wisconsin and Wyoming.
With few exceptions, year-over-year alfalfa hay prices were down substantially, with the U.S. average down $5 compared to November 2024.
Other hay
At $134 per ton, the November 2025 U.S. average price for other hay was down $6 from October. Prices decreased in 13 of 27 major hay-producing states, with the largest month-to-month decreases in Arizona, Colorado, Idaho, Kansas, Kentucky, Nebraska, Nevada, New York, Ohio, Oklahoma, Pennsylvania, Texas and Wyoming. Increases were recorded in seven states: California, Iowa, Minnesota, North Dakota, South Dakota, Utah and Wisconsin.
Expanding the timeline, the November 2025 U.S. average price for other hay was $16 less than a year earlier.
The gap between average U.S. alfalfa and other hay prices was about $25 per ton in November.
Exports
With the release of October 2025 trade data on Jan. 8, U.S. hay exports showed a market still marked by selective buying and shifting demand across Asia. Alfalfa movement held steady overall, though individual markets continued to differ: China’s purchases remained uneven as dairy margins stayed tight, while Japan and South Korea maintained consistent month‑to‑month interest. Other‑hay shipments were comparatively stable, supported by reliable demand from long‑standing Pacific Rim buyers.
Exporters continued to navigate familiar headwinds – currency strength, freight costs and quality variability from weather – all of which shaped late‑fall buying behavior. While October didn’t bring major swings, it reinforced the year’s broader pattern: steady baseline demand with buyers remaining cautious and price‑sensitive as they plan for 2026.
Regional markets
Regional hay markets are steady but cautious as 2026 begins. Supplies are generally adequate, though quality varies after a mixed 2025 growing season. Dairy regions continue to pay premiums for top‑end alfalfa, while beef areas are seeing softer demand as winter feeding stretches budgets. Freight, fuel and trucking costs continue to shape delivered prices, and higher interest rates remain a factor in how aggressively buyers contract ahead. Most regions are entering January with stable prices but a close eye on weather, inventories and shifting feed costs.
- Midwest: In Nebraska, all reported hay sales sold steady. Demand was mostly light with instances of moderate demand in some areas for bales of forage. There are reports of quite a lot of 2024 hay sitting around the state.
In Kansas, producers continued to retain hay supplies into the new year in anticipation of improved pricing. Market activity remained limited, as many producers were not motivated sellers and were waiting for colder weather conditions before moving inventory.
In Illinois, hay traded mostly steady as compared to weeks ago. Trade was active, with good demand.
In Iowa, all hay and bedding are weak. On alfalfa, the top five loads were nice hay. The rest of the alfalfa was good. Grass hay was weaker with the quality up and down the scale. Trade was light to moderate with light to moderate demand.
In Missouri, hay movement has been light to moderate. Prices seem to have stabilized and are mostly steady.
In Nebraska, hay sold firmer on few comparable sales. Demand continues to be on the softer side.
In South Dakota, there was light to moderate demand for all types of hay.
- East: In Alabama, hay prices are steady. Trade is moderate with moderate supply and good demand.
In Tennessee, trade for hay was active in November and December, with demand moderate throughout the state for all classes of hay. Dry conditions throughout the state shortened the grazing and growing seasons, increasing demand and trade activity for stored hay, with some cooperators noting they are already sold out for the season.
- Southwest: In California, trade activity and demand is mostly steady.
In Oklahoma, movement is at a standstill to steady.
In Texas, hay prices were steady with good demand.
- Northwest: In Montana, hay sold mostly $10-$20 higher. Hay in northern and western portions of the state have seen supplies tighten during the past few weeks. Many producers in western Montana report they are sold out of hay for the season. Hay in the southern portions of the state have seen increased demand due to tighter supplies. This has caused prices to increase since the last report. Demand for round bales is good as many ranchers report that they are hard to find. Hay in rounds are a $10-$20 premium to hay in squares. This is mostly driven by rancher demand.
In Utah, demand and movement has improved. There has been demand for feeder hay and higher-quality hay throughout state, with people buying before the holidays. A few farms are selling out of hay, while others are getting close to selling out of the 2025 crop. A lot of hay in southern Utah is going to California, and a lot of central Utah hay is going to local operations.
In Idaho, demand for hay is still slow. There has been lots of hay moving down the highways from previous contracts and agreements, but there hasn't been a lot of new sales. Idaho has seen some snow this past week, and colder temperatures are supposed to hit this upcoming week, which could increase straw purchases throughout the state.
In Washington and Oregon, all grades of hay are steady to weak. Trade remains slow to moderate. Demand is light to moderate. High-quality retail hay remains in good demand.
In Wyoming, hay sales reported trading steady. Demand is mostly light with instances of moderate.
In Colorado, trade activity is light on moderate demand. Prices are mostly steady.
Other things we’re seeing
- Dairy: Milk production is beginning to soften as herd numbers edge lower, even as per‑cow efficiency holds steady. Early‑year weakness in cheese and butter prices is pressuring both Class III and Class IV markets, narrowing margins despite some relief in feed costs. Export demand remains supportive, but not enough to offset the slower domestic market as producers continue to weigh culling decisions and cattle values heading into the first quarter.
- Cattle: Cattle supplies remain tight, keeping prices firm even as the market shows signs of leveling. Feedlot placements continue below year‑ago levels, reflecting limited feeder availability and cautious buying. Cow retention persists, but high input costs and uneven moisture are slowing any meaningful herd expansion. Strong cattle values remain a bright spot, though producers continue to navigate narrow margins and a slow path toward rebuilding.
- Fuel: National average fuel prices were slightly lower to start January, according to the U.S. Energy Information Administration. The U.S. retail price for regular-grade gasoline averaged $2.78 per gallon on Jan.12, down 1.7 cents from the previous week and 26.4 cents lower than the same week a year earlier. The average U.S. on-highway price of diesel was $3.46 per gallon, down 1.8 cents from the prior week and 14.3 cents less than early January 2025.
- Trucking: Spot flatbed prices were higher to start January, averaging $2.53 per mile nationally, according to DAT Trendlines. Regionally, average spot prices per mile were: Southeast – $2.69, Midwest – $2.73, South – $2.53, Northeast – $2.43 and West – $2.28.
- Other costs: The December 2025 prices paid index rose 0.7% from November to 141.1, up 1.5% year over year, as higher livestock and feed costs outweighed lower energy and forage prices.
- Total feed prices: Total feed costs ticked higher to open 2026, continuing the late‑year pattern of firmer grain and complete feed markets. December’s Agricultural Prices report shows feed inputs still carrying most of the cost pressure, with feed grains and complete feeds strengthening again, while hay, forages and supplements remain soft. Energy prices continue to ease, but not enough to offset the upward pull from livestock and feed categories. For producers, the year begins much like 2025 ended: ration management and input planning remain front of mind as feed markets stay firm.
- Interest rates: USDA Farm Service Agency interest rates for direct farm operating loans (4.625%) held steady, and direct ownership loans (5.625%) were lower for January.
