This study, conducted by the Farm Management Department, Lincoln College, investigated, solely on a financial basis, the place of irrigated lucerne production for dehydration in farming systems of Mid-Canterbury. The results, covering a wide range of farm types in the Ashburton-Hinds area, and including properties on a variety of soil types, show that under present conditions, this type of production can be as profitable as the conventional farming system, and in some cases, more so. If the advantages of reasonably guaranteed steady income, and lowered labour input with lucerne production for dehydration are considered at the individual farm level, this type of production may well be advantageous on many properties.