A method for improving the nutritional value of hay used for livestock feed is disclosed. The methods include the application of one or more lipids to the hay prior to feeding to animals. Lipid treatment of hay improves animal nutrition, provides essential fatty acids for health, and ameliorates the mold-dust health problem inherent with hay. The lubrication and fiber softening effect of lipids adhering to the hay-fiber surface area and penetrating into the stems and leaves significantly improves digestibility and reduces animal digestive system irritation and inflammation. Additional components may also be added such as vitamins, minerals, nitrogen, amino acids and the like.