Alfalfa in the Red: Rising Costs, Falling Returns

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.

In recent years, alfalfa producers have faced a sustained deterioration in margins, driven by a combination of weather-related production volatility, persistently high input costs, shifting international livestock feed demand and heightened export uncertainty. Unlike many other major crops, alfalfa has limited options to offset losses when prices fall, as available risk management tools are narrowly focused and do not address broader margin pressures.

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Daniel Munch

Jan 7, 2026