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Alfalfa In The Red: Rising Costs, Falling Returns

By Daniel Munch

Key Takeaways

  • A major U.S. field crop without a safety net: Alfalfa is the fourth most valuable field crop in the U.S., generating roughly $8.1 billion in farm-gate value in 2024, yet it remains largely outside core farm safety-net programs.
  • Prices collapsed while costs stayed high: After record prices in 2021–2022, alfalfa prices fell more than 40%, while production costs remained elevated, pushing average returns into negative territory since late 2023.
  • Export demand has weakened sharply: Shipments to key markets, especially China, have fallen amid global dairy market shifts and ongoing trade conflicts, reducing a critical outlet for Western hay producers.
  • Losses are large with limited relief: Estimated 2025 economic losses total roughly $2.9 billion, or about $203 per acre, with no access to commodity support or the Farmer Bridge Assistance Program.

Alfalfa is a core input into U.S. dairy and beef production and one of the country’s most economically significant crops. In 2024, it ranked as the fourth most valuable field crop, generating an estimated $8.1 billion in farm-gate sales, behind only corn, soybeans and wheat.

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Winter Canola Trial in Mississippi | Can It Work for Double Cropping? | Pioneer Agronomy

Video: Winter Canola Trial in Mississippi | Can It Work for Double Cropping? | Pioneer Agronomy

Can winter canola open new opportunities for growers in the Mid-South? In this agronomy update from Noxubee County, Mississippi, Pioneer agronomist Gus Eifling shares an early look at a first-year winter canola trial and what farmers are learning from the field.

Planted in late October on 30-inch rows, the crop is now entering the bloom stage and progressing quickly. In this video, we walk through current field conditions, fertility management, and how timing could make this crop a valuable option for double-cropping soybeans or cotton.

If harvest timing lines up with early May, growers may be able to transition directly into another crop during ideal planting windows. Ongoing field trials will help determine whether canola could become a viable rotational option for the region.

Watch for:

How winter canola is performing in its first season in this Mississippi field

Why growers chose 30-inch rows for this trial

What the crop looks like as it moves from bolting into bloom

Fertility strategy, including nitrogen and sulfur applications

How canola harvest timing could enable double-cropping with soybeans or cotton

Upcoming trials comparing soybeans after canola vs. traditional planting

As more growers look for ways to maximize acres and diversify rotations, experiments like this help determine what new crops might fit into existing systems.