According to the latest Acreage Report, hay production is expected to be down again this year. When it comes to alfalfa hay, NASS' Lance Honig said, "16.1 million acres expected to be harvested this year. It's down 0.7% from what was actually harvested last year."

That will still be some of the lowest alfalfa hay acreage since 1948.

"Dry conditions in South Dakota and Wyoming alone accounting for about 360,000 acre decrease year over year. Some of those states out west definitely looking at lower hay acreage."

And while the reduction last year for alfalfa hay is fairly small the acreage  of other hay comes in at 35.4 million acres, which he noted is down 1.6%. And is the lowest acreage since 1994. And Honig pointed out, the drought's just eating away at  potential hay production. 

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