Alfalfa In The Red: Rising Costs, Falling Returns

Jan 15, 2026

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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Video: Agriculture Secretary Rollins Speaks at American Farm Bureau Federation Convention in Anaheim

One of the highlights at the 2026 American Farm Bureau Federation Convention in Anaheim, California, was an address by U.S. Secretary of Agriculture Brooke Rollins. During her remarks, she thanked America’s farmers and ranchers and said the Trump Administration is fully aware that food security is national security.

She also acknowledged the challenging times in Farm Country with low commodity prices and high input costs and said that’s why the President stepped in to help with the recent Bridge Assistance Program.

Montana Farm Bureau Federation Executive Vice President Scott Kulbeck says that Farm Bureau members are appreciative of the help and looks forward to working with the American Farm Bureau Federation and its presence in Washington, DC to keep farmers and ranchers in business.

Secretary Rollins said the Trump Administration is also committed to helping ranchers build back America’s cattle herd while also providing more high-quality U.S. beef at the meat case for consumers.

And she also announced more assistance for specialty crop producers who only received a fraction of the $12 billion Farmer Bridge Assistance (FBA).

It’s important to note that producers who qualify for Farmer Bridge Assistance can expect the Farm Service Agency to start issuing payments in late February. For more information, farmers and ranchers are encouraged to contact their local USDA Service Center.