With drought still impacting much of the forage-producing area of the U.S., high hay prices could continue to impact livestock producers. What direction hay prices go later in the year will depend on how much moisture the plains states receive. With sporadic weather impacting many agricultural areas with flooding, drought persists in key hay-producing areas.

Northwest Iowa, an area previously in extreme drought is now seeing more reasonable hay prices after timely rains and above-normal precipitation hit the area over winter. Hay prices aside, hay supplies will also depend on moisture this year. After depleting stocks in many drought-stricken areas, limited hay supplies could drive hay prices even higher. However, there comes a point where hay buyers cannot afford to purchase hay and find alternatives, even at the expense of their animals.

Read more on hay supplies and costs for 2023 here.