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The major factors affecting productivity on daily farms in Queensland, Australia, were determined using the stepwise linear regression approach. The data were obtained from a survey conducted on the total population of daily farms in Queensland in 1987. These data were divided into six major dailying regions. The technique was applied using 12 independent variables believed by a panel of experienced research and extension personnel to exert the most influence on milk production. The regression equations were all significant (p < 0.001) with the percentage coefficients of determination ranging from 62 to 76% for equations developed using' total farm milk: production as the dependent variable. Three of the variables affecting total farm milk: production were found to be common to all six regions. These were; the amount of supplementary energy fed, the area set aside to irrigate winter feed and the size of the area used for dailying. Higher production farms appeared to be more efficient in that they consistently produced milk production levels higher than those estimated from the regression equation for their region. Other methods of analysis including robust regression and non linear regression techniques were unsuccessful in overcoming this problem and allowing development of a model appropriate for farms at all levels of production.