AbstractThis article reports the principal findings from a study of agricultural‐income efficiency in the North Central states conducted under NC‐53. Estimates and projections are presented of (1) the income efficiency of the 1959 observed organization, (2) the characteristics of income‐maximizing organizations in 1959 and 1980, (3) the size of the adjustments that would be needed to meet income‐efficiency criteria, and (4) the potential real national income gain associated with an income‐efficient organization. If the number of entrants into commercial agriculture in the North Central region does not exceed the number who quit farming to take nonfarm jobs, normal mortality and retirement will reduce the number of commercial farmers in the North Central Region to about 418,000 by 1980, or 36 percent of the number in 1959. Although this is still about 23 percent more than the projected number of farmers under the 1980 income‐efficient organization, this reduction would be a long step toward achieving an income‐efficient commercial‐farm sector. An approximation to an income‐efficient farm sector by 1980 could probably be achieved at relatively low cost.