2005 Annual Report 4d.Progress report. This report serves to document research conducted under a memorandum of understanding (MOU) between ARS and the Council on Dairy Cattle Breeding (Reynoldsburg, OH), which is scheduled to terminate on December 31, 2005. This MOU replaced MOU 58-1265-OM-004 "National Dairy Genetic Evaluation Program," which reached its 5-year limitation on December 31, 2004. Additional details of research can be found in the report for the parent project 1265-31000-085-00D "Improving Genetic Prediction of Economic Merit of Dairy Animals"; research conducted under the agreement is related to all of the objectives reported in the parent project. Changes needed for more effective operation of genetic research programs and attainment of expected quality standards in the future are being discussed with the dairy industry so that a long-term MOU can be developed by December 31, 2005.