Nutrient management for hay production is changing due to poultry litter use restrictions, decreased NH₄NO₃ availability, and increasing fertilizer costs which demand evaluation of fertilization strategies that maintain soil productivity and minimize N losses. Our research objectives were to i) compare yields of common bermudagrass [Cynodon dactylon] receiving a range of N rates from four N sources and ii) measure potential NH₃-N losses. Experiments were conducted in 2006 and 2007 on a Captina silt loam. Pelleted poultry litter (PPL), NH₄NO₃, urea, and urea plus Agrotain (urease inhibitor) were applied at 0, 100, 200, 300, 400, and 500 kg N/ha/year in split applications. Ammonia volatilization was measured using a semi-closed chamber method in which NH₃-N is trapped by sorbers that were changed 3, 6, 9, 12, and 15 d after fertilization. Bermudagrass receiving no N produced yields of 3,987 and 5,169 kg/ha in 2006 and 2007, respectively. In 2006, yields, averaged across N sources, increased as rate increased and were greatest (8600 kg/ha) with 500 kg N/ha/year. When averaged across rates yields were similar among inorganic-N fertilizers and 12% greater than forage receiving PPL. In 2007, the N rate by source interaction was significant showing a general trend for yields to i) increase as N rate increased and ii) vary among N sources in the order of NH₄NO₃ > urea = urea+Agrotain > PPL. Cumulative NH₃-N losses by 15 d averaged 14% of applied N for urea, declined to 3% for urea+Agrotain, and were <1% of N applied as NH₄NO₃ and PPL. Urea produced similar to slightly lower forage yields as NH₄NO₃ and volatile losses of urea-N can be reduced by using Agrotain. Pelleted litter produced 87% of the yield as inorganic-N fertilizers and surprisingly had very low NH₃ losses suggesting that pelletizing may enhance poultry litter’s N-fertilizer value.