Dairyfarmers throughout New York State submit business records for summarization and analysis through Cooperative Extension's Farm Business Management Program. Each participating farmer receives an individual farm analysis report containing all the management information found in this publication. Averages from a compilation of the individual farm reports are published in several regional summaries and in a statewide summary. The 1983 Southeastern New York regional summary includes 20 Sullivan County dairy farms, seven Orange County dairy farms, and two from Ulster County. The year ahead will bring increased economic pressures on the dairy farming industry. The Dairy Production Stabilization Act of 1983 is expected to reduce milk prices two to three percent while production costs may increase four to six percent. Dairy farmers must continue to place emphasis on operating efficiency and cost control in order to maintain adequate farm incomes. This year, more than ever, improving weak links in the business and projecting cash flows will be critical management steps to enhance business survival probabilities.