South Dakota Alfalfa Hay Supply and Demand Affect Price

South Dakota Alfalfa Hay Production

South Dakota’s annual production of hay from alfalfa varied from slightly more than 5 million tons in 2005 to over 6 million tons in 2011 (Figure 1). Unfavorable weather in 2006 impacted crop growing conditions in South Dakota and contributed to a reduction in the state’s annual alfalfa hay production (< 3 million tons). South Dakota, along with other states in the Midwest and Plains, experienced drought again in 2012 resulting in significantly reduced alfalfa hay production. For example, South Dakota’s hay production from alfalfa was only 2.6 million tons in 2012 – less than the 2.9 million tons produced in 2006.

Figure 1. South Dakota Production of All Alfalfa Forage

Crop Production Summary Reports, January, 2006-2014

South Dakota Alfalfa Hay Prices

South Dakota alfalfa hay average prices in May 2014 were similar to those from May 2012, but substantially below those from May 2013 (Figure 2). As the result of drought, South Dakota alfalfa hay prices increased rapidly beginning June 2012 and stayed elevated until June 2013. For example, alfalfa average prices in August 2012 had risen to $215 per ton – 68% above average prices received in May 2012. From November 2012 to May 2013, alfalfa hay average prices moved from $226 to $251 per ton.

Figure 2. South Dakota Prices Received for Alfalfa Hay



South Dakota also experienced drought in 2006 and this weather event negatively impacted hay production and likely contributed to hay price appreciation. In 2006, South Dakota alfalfa hay prices rose from $66 per ton in June to $84 per ton in December – an increase of 27%. Alfalfa hay average prices remained elevated throughout all of 2007 and exceeded $100 per ton for most of 2008. Alfalfa average prices began 2009 at $97 per ton but had decreased to $85 per ton by December.

South Dakota Alfalfa Acres Harvested

South Dakota harvested acres of alfalfa were approximately 1.9 million acres in 2012 and 1.8 million acres in 2013 (Figure 3). The decrease in harvested acres in 2012 was likely drought related. A further decrease in 2013 harvested acres was unexpected given higher alfalfa hay prices from June 2012 to May 2013. Weather likely played a role in this continued decrease in harvested acres.

Figure 3. South Dakota Harvested Acres of All Alfalfa Forage