Abundant moisture this year has been a mixed blessing for state hay producers.

On one hand, the moisture represents a big departure from the drought pattern of the last decade, said Scott Keith, livestock and forage program manager for the Wyoming Business Council. As a result, ranchers will put up lots of dryland and irrigated hay.

"They'll put up more hay this year than they have in years," he said, which means they will be in good shape when it comes to hay for their own use.

But the bountiful supply also means those producers won't be in the market for lower quality hay. Accordingly, Keith expects the price will decline substantially by late fall or early winter.

He added grasshoppers are having a devastating impact on rangeland so grazing availability may not be as good as anticipated, and there's a chance more hay will be fed in the fall and winter.

The state's highest quality hay, which typically is bound for the dairy market, took a hit earlier this summer.

The problem is rain fell on some of the crop, "which is great for the country, but pretty hard on the hay laying in the windrow," Keith said.

Other producers couldn't cut until the hay was more mature, which also resulted in lower quality.

Another factor has been the condition of the dairy industry. "Dairy market hay is very dependent on the price of milk," Keith said. "Milk prices right now are at all-time lows, therefore the dairy farmers can't afford to pay that much for hay."

"There's a lot of hay that's been made out there that fits the beef cattle industry locally, but doesn't fit those high-end markets that it used to go to," Keith said.

At the peaks in 2007 and 2008, lower quality hays were selling for $100 to $120 a ton. Now, some prices are $60 to $75 a ton, Keith said.

Some dairy quality hay is still over $100 a ton, but that compares to $130 to $140 a couple years ago.

Horse hay, like alfalfa-orchard grass mix, is still holding its own, Keith said. Much of the crop goes to the Front Range of Colorado and the Southeastern U.S.

On Aug. 7, the USDA quoted eastern Wyoming alfalfa premium small squares for horses at $135 a ton.

Business Editor Tom Mast can be reached at tom.mast@trib.com, or call 307-266-0574. Or check out his "Two Bits Worth" blog at tribtown.trib.com/TomMast/blog.