Hay updates
Slightly lower hay prices mark the start of the 2025 season.
Monthly hay prices continue to trend lower in early 2025. Alfalfa prices for the current crop have fallen from around $200 per ton to just above $160 per ton in recent months. All other hay prices have remained stable so far in 2025, although still lower from the previous year. Projected Western hay acreage is slightly down, with modest reductions in California, Idaho, Oregon, and Washington. Montana, however, stands out as an exception, with acreage expected to increase by 5% compared to the previous year.
Arizona - Hay markets in Arizona remain steady as producers begin the first cutting of the 2025 season. Late March precipitation in parts of the state has provided some relief for growing conditions, with most of the crop rated in good-to-excellent condition. Dairy buyers remain active at current prices, driving solid demand. Meanwhile, discussions about new crop are ongoing as some growers hold off planting until they gain price clarity.
California - Hay trade has been steady in California with strong domestic retail demand, but less export demand. Old crop supplies are being cleaned up, and most expect normal hay carryover this year compared to last year’s surplus. Some growers in the southern San Joaquin Valley have started first cutting. Significant March rainfall improved livestock feed conditions.
Idaho, Oregon and Washington - Hay movement in the Northwest has slowed slightly as more producers sell out of hay and gear up for the 2025 season. In Idaho, eastern Oregon, and Washington, feeder hay remains in high demand but is becoming harder to find, leading some buyers to turn to higher-quality options. Within the Columbia Basin region of Washington, growers have been selling more hay and are likely to generate more income before the 2025 plantings. Across the region, normal soil moisture, steady precipitation, and strong snowpack levels are expected to support hay production this season.
Montana - Hay sales in Montana have remained steady, with producers actively working through two years of large supplies. Some ranchers hesitate to buy due to their own abundant reserves. Reduced asking prices have sparked some demand (hay prices are down $20 per ton from the previous year), especially from buyers purchasing as insurance against a potentially dry summer. Despite a mild winter, 35% of the state remains in moderate drought or worse. Cattle retention is increasing, which could benefit Montana hay producers in the future.
Profitability
March 12, 2025
Hay (Alfalfa): Slightly unprofitable - Neutral 12-month outlook
Hay (Timothy): Slightly profitable - Neutral 12-month outlook
Sluggish demand has kept alfalfa prices low. While potential improvements in milk prices and weather conditions could offer some relief, prices remain below breakeven levels.
Timothy producers will benefit from increased export demand.