The June IA-NE dairy budgets improved slightly but both freestall budgets are in negative territory. Total income rose slightly, $0.16 per day, as did feed costs, $0.011 per day. The 20,000 pound freestall budget was $2.32 per cwt underwater, the 24,000 pound budget was $0.85 per cwt underwater. 85% of gross income was used up in variable costs not including labor costs. Adding in hired labor, $2.53, total costs are above gross income by $0.21 per cwt. Thus dairy farms are having difficulty pay all cash expenses.