Dairy farmers throughout the State have been participating in New York Cooperative Extension's farm business summary and analysis program since the early 1950's. Each participating farmer receives a complete summary and analysis of his or her farm business in addition to this publication. The information in this report is compiled by averaging data submitted from the region described at the bottom of this page. Program Objective The primary objective of the dairy farm business summary, DFBS, is to help farmers improve their management skills through appropriate use of record data and application of modern farm business management decision-making techniques. In short, DFBS identifies the records farmers need and demonstrates how to use them in making business and financial management decisions. Program Improvements The 1985 DFBS report features improved accrual accounting procedures, a new measure of farm profitability, a more indepth balance sheet, an annual cash flow statement, and several major improvements in the business analysis format and the analysis measures used. These and other changes are identified in the body of this report. The revised format provides one full page for the analysis of the farm cropping program and another for complete analysis of the dairy program. Corn and hay crop related expenses are evaluated separately for farmers who submitted the breakdown of expenses by crop. The cost of producing milk per cow and per hundredweight of milk sold has been compiled. An annual cash flow worksheet has been added to the farmer's individual report. The popular Progress of The Farm Business report has been moved to page one of the farmer's report and added to this publication. Micro DFBS, which allows Cooperative Extension agents and specialists to calculate and print individual farm business reports in their offices, is now being used by more than 50 percent of our dairy farm management field staff. This innovative program provides faster processing of farm record data and increased use of DFBS in farm management programs.