Hay auctions have generally been understudied due to their unique market structure. Therefore, the factors that influence the price of hay at auction markets are not well-known. The price of hay at auction markets reflects the various characteristics that differentiate each lot of hay sold. This study is aimed at analyzing the determinants of Central Kentucky hay prices. A hedonic price model is estimated using data collected from a Central Kentucky hay auction. Known hay attributes include forage species, form, bale weight, and nutritive value. An important aspect of this analysis is to determine whether the quality measures of the hay are significant factors in determining hay prices in this auction setting. While price discovery of hay is important, it is also important to know about the insurance that is available to producers. Insurance for hay production is very limited with only two insurance programs available to Kentucky producers. An evaluation of the Noninsured Crop Disaster Assistance Program is conducted by simulating yields from an alfalfa producer and alfalfa trials from University of Kentucky Agriculture Research Centers in Princeton and Lexington, Kentucky. This analysis reveals the effectiveness of the coverage levels offered through the program for alfalfa producers in Kentucky.