New York State livestock produce over 15 million tons of manure annually. Improper waste management can lead to nutrient runoff, pollution of watersheds, and contamination of groundwater. With new regulations for large concentrated animal feeding operations (CAFOs), farmers are facing increased expenses to properly manage manure and other by-products. Individual farms (mostly larger farms due to economics) and groups of farms are looking at anaerobic digestion as a means of treating manure. The economic viability of anaerobic digestion and its widespread adoption will largely depend on how reliable the system proves to be over time. Reliability of digester systems is of interest not only to dairy producers, but also to buyers of their distributed power and of their solid and liquid byproducts. The goal of NYSERDA’s on-farm distributed generation and composting effort is to help New York State’s dairy industry manage by-products effectively, efficiently, and economically, while producing electricity through distributed biogas resources when possible. This on-farm anaerobic digestion monitoring project is being conducted as a support component of NYSERDA’s Industrial and Agricultural Waste Management Program. The project focus is to monitor, test, and evaluate anaerobic digestion systems, and disseminate the findings to dairy producers and their advisors so they can make efficient use of biogas for production of electricity and heat.