in this section. Section IV evaluates the net income potential of dif- 

 ferent resource packages under the three milk prices. The analysis 

 of net incomes points out longer-run adjustments when the quantity 

 of cropland and dairy cows and the milk response may be changed. 

 Section V covers the Valuation of resorces. Methods of finding break- 

 even price differentials between cows of different milk responses are 

 presented as well as a method of determining the optimum ratio of 

 cows to cropland. Section VI presents the summary and conclusions. 



Figure 1. Study Areas 



