The Michigan Impact Plot System was established during 1978 and 1979 to obtain a data base for quantifying the impact of the spruce budworm in the Ottawa and Hiawatha National Forests. The formulae used to estimate the mean, total, and associated standard errors of the various parameters at the national forest and forest district levels are presented. We present the 1978, 1979, and 1980 impact data for the following parameters; percent mortality, total dead volume. dead volume per ha, live volume per ha, defoliation ranking, frequency and extent of top-kill, and incidence of spruce budworm feeding on saplings and regenera- tion. Statistics from an annual inventory of 108 composite ground sampling units (CGSU) in 1978, and 136 CGSU\u27s in 1979 and 1980 provide a more precise estimate ofthe impact of the spruce budworm in Michigan\u27s Upper Peninsula than ha~ been available to date