The purpose of this study was to observe the management of a number of herds kept under ordinary farm conditions and to measure the more important factors of cost, with a view to determining the nature and degree of changes in management which may be expected to result in a more favorable relation between income and expense as prices of materials and of products change. Information was gathered through regular reports submitted by the farmers, supplemented by personal observations. The determination of an average cost figure was urgently solicited by farmers, with a view to influencing prices paid by consumers and factories, but for reasons apparent to all who are familiar with cost data, this figure is of only minor significance.