This report presents State-level barley production cost and return estimates for 1986-88. Barley ranks sixth among U.S. grain commodities in total planted acreage. Per-planted-acre yield of barley in 1987, at 47.9 bushels, was average for barley during the 1980's. Barley production was highly localized in 1987, with 60 percent of national production occurring in the Northern Plains region, while 20 percent was produced in the Northwest region. Per-acre costs among farmers are highly variable due to differences in production practices, inputs, and type and size of machinery use. Barley yields and per-bushel costs varied significantly among years and among regions and States within a given year.