All Markets are Local

What’s the price of hay? An adage that I often hear is that all markets are local. This is especially true for the hay market.  Numerous factors influence the local price of hay including but not limited to supply and demand, weather, quality, storage, age, variety, and delivery costs. In other words, the answer to what’s the price of hay is “it depends!”

Figure 1, Monthly Hay Price Received (excluding Alfalfa) from January 2021 through July of 2023 shows the average price of hay for selected states and the U.S. average. Hay prices for the states of Kentucky, Missouri, Oklahoma, and Texas are included. These are the states that have monthly hay prices reported by USDA NASS Quick Stats. 

Keep in mind the adage that all markets are local, especially the hay market.  Hay is trucked from where it is plentiful and cheaper to where it’s in short supply.  Shipping and arbitrage makes hay prices move together.  The Missouri and Oklahoma hay prices, on average, are 40% and 46% respectively, lower than the U.S. average hay price. The Kentucky and Texas prices trend very close to the U.S. average price.  The effect of summer drought in Texas and the Southwestern areas of the U.S. is reflected by the increased hay prices across all the states and the U.S. at the beginning of the summer of 2022.

These monthly prices from USDA NASS can be useful in looking at season and/or long-term trends. For more timely prices check weekly hay prices at:

Runge, Max. “All Markets are Local.Southern Ag Today 3(39.2). September 26, 2023. Permalink