Dairy farm numbers are declining in nearly every region and county of New York State but the rate of decline varies between years and counties. Converting inefficient or unprofitable farm resources to nonfarm use is part of the adjustment process. New York dairy counties are at different stages of this process. Increasing dairy farm productivity to remain economically viable and competitive is also part of the adjustment process. Fifteen of New York's 23 largest dairy counties have increased average milk output per farm at rates greater than the State average. The dairy farming industry in these counties is in the most competitive position.