NorFor Plan has been implemented as the general tool for feed planning in Denmark, Sweden, Norway and Iceland. Feed ration optimization is based on short term cost minimization at a given daily milk yield level. NorFor Plan cannot at herd level optimize t he long term financial optimum feeding level. However, the continuously increasing focus of making the dairy herds more effective as well as the more frequent fluctuations in feed and milk prices make the financial approach of the feed planning, including the feeding level, even more important than ever. The project will develop new general production functions for dairy cows as well as a new model for a financially optimum feeding level for high-yielding dairy cows. On this basis a method will be develo ped to find the relationshipss between feeding level and finances applying to each herd and its optimum feeding level. The project activities will include analysis of feed experiments, test of alternative measurements of yield capacity and feeding level, analysis of the effect of feeding in one period on the production in the following period, development of models combining the biological and financial relationships as well as the implementation in NorFor Plan and test of the relationships found at herd level. The development of models will be targeted for employment with NorFor Plan in Scandinavia. The various feed planning traditions in Norway, Sweden and Denmark with regard to e.g. feeding and planning at individual or group level will be considered b y way of organising the project in a joint part and a national part, respectively. This project will strengthen the Nordic cooperation in the field of animal science and it will build new competence in the interacting fields of animal production and econo my. The use of identical models will make it easier to transfer knowledge between Nordic advisors and dairy farmers.