One would expect to find differences in total factor productivity (TFP) associated with factor allocation, given the technological change m the dairy sector over time and the regional disparity of regulations affecting production The authors use a National Income and Product Accounting procedure to calculate total income and product, TFP, and sources of growth for seven dairy States m different regions The average TFP growth for the seven States was 2 5 percent per year Florida and California had higher TFP growth rates, but interspatial TFP estimates indicated Wisconsin and New York had greater relative TFP levels in both 1978 and 1982