Developments in nonsurgical embryo transfer have made commercial application for beef and dairy cows feasible. DHIA records were used to determine milk production variability within dairy herds. The top 10 percent of cows within herds produced 43 percent more milk that the herd average compared with 49 percent below herd average for the bottom 10 percent. The top 10 percent of cows within DHIA herds were assumed to be embryo donors for the remainder of the cows in DHIA herds. Economic implications were assessed for the U.S. dairy industry by region. Feed required to support the higher milk production level increased 296 kg while net income increased 161percowperyear(assumingnoaffectonmilkprice).Aggregatemilkproductionwouldincreaseby6percentifcownumbersremainedthesame.Approximately6percentfewercowswouldberequiredtoproducethepresentlevelofmilkproductioniflessefficientproducerswereforcedtostopproducing(11percentofnon−DHIAherds).Dairymencouldpay533 for each 1000 kg increase in milk production potential for an embryo transplant heifer calf at current milk and feed prices