I would take some samples of it (break open a few random bales and bag up a handful from the center of the bales) to your cooperative extension service. Have them test it and ask about the heating and color issue. They provide all of these services for free, and there's a local office in every county.
Here is a list of the MI county offices: http://www.msue.msu.edu/portal/defau...ortal_id=25643
$1.50 is a good price though. What are you used to paying? Right now I'm paying $6.00 a bale for heavy 75-80 lb bales of fertilized bermuda. It's a bit dusty, but otherwise very nice stuff. I get it from my local feed store, so I know it's more expensive than if I bought from the producer, but I don't have anywhere to store large quantities. For pick up, good fertilized horse hay is ranging $3.50-$5 for small square bales here in Arkansas.