2006 Annual Report 4d.Progress report. This report serves to document research conducted under a reimbursable agreement between USDA-ARS and the University of Maine. Additional details of research can be found in the report for parent Project 1915-12630-001-00D (Nutrient Cycling and Utilization on Organic Dairy Farms). Northern New England is a leader in the certification of organic dairy farms, with 20% of the dairy farms in Maine currently certified as organic. Feed is the single largest expense for these farmers. This dependence on imported feed also complicates nutrient management, making it a challenge to balance fertility needs with available manure. The USDA Organic Research and Education Initiative (OREI) provided $827,000 for a project entitled “Reducing Off-Farm Grain Inputs on Northeast Organic Dairy Farms" (FY2005-2009), for research and outreach conducted cooperatively by the University of Maine, University of New Hampshire, Maine Organic Milk Producers, and USDA-ARS New England Plant, Soil and Water Laboratory. The goal of this project is to maximize on-farm production of energy and protein. In 2006, a cropping systems experiment was initiated in Orono (Maine) to evaluate production systems that include grain and silage production options appropriate for Northeast organic dairy farms. USDA-ARS is coordinating nutrient cycling evaluations in these experiments and collecting additional information to formulate economic comparisons between different production systems. Cooperating organic dairy farms in Maine are evaluating grain production, processing and feeding options. USDA-ARS is also conducting an intensive evaluation of nutrient distribution at field and landscape scales on the organic dairy farm being developed at the University of New Hampshire. Research information from this project will be transferred directly to organic dairy farmers in New England to help them develop economically viable production systems.