Milk production is one of the leading farm enterprises in Utah. In 1992 more than 20 percent of gross receipts from agriculture were from milk production (Utah Agricultural Statistics, 1993). In Cache Valley, milk production is the leading agricultural enterprise. While gross receipts may be high, the net return or profit obtained by a dairy producer may not be high. This publication is designed to illustrate those variables that are closely associated with the profits obtained by a selected set of dairymen.