Purchased feed is the largest cash expense item on a dairy farm, more than three times greater than the next highest item, Feed costs result, however, not only from purchased but also from farm grown feeds. On most farms, the total cost of purchased and farm grown feeds is 50 to 60 percent of cash expenses and resources required to grow and store crops accbunt for 40 to 70 percent of total farm investment, Formulating dairy rations, therefore, has a tremendous impact on farm costs and resulting profitability and a manager should consider both costs of farm produced and purchased feeds. To provide, an educational tool for cooperative extension agents and specialists and others interested in nutrition and dairy cattle feeding management, the authors have developed an up-to-date least-cost balanced dairy ration program. This program, aS was its predecessor, determines a nutritionally balanced least-cost ration composed of the feed ingredients available to the dairymen and considering the restrictions on availability of feeds and prespecified milk production.