Previously published data from Dairy Board surveys reveal declining trends of dairy production, on both a per-cow and a unit area basis, over the past five years, and only a very small 'average increase over the past twenty years. Reasons are advanced for introducing a feed budget approach to farming. This approach has been extremely useful in intensive stocking trials with dairy cows at the Ruakura Nutrition Centre over the past seven years. Experimental evidence is used to demonstrate the feasibility and desirability of using practised eye appraisal to assess pasture dry matter cover and how, on farms stocked to maximize pasture use, this information can then be applied to meeting the changing needs of cattle throughout the year. Acceptance of this approach has led to improved feeding and productivity of livestock, increased total production, and greater economic returns from dairy farms.