Fast, flexible, and internally valid analytical tools are needed to evaluate the effects of management interventions made on dairy farms to support decisions about which interventions to continue or discontinue. The objective of this observational study was to demonstrate the use of state space models (SSM) to monitor and estimate the effect of interventions on 2 specific outcomes: a dynamic linear model (DLM) evaluating herd-level milk yield and a dynamic generalized linear model evaluating treatment risk in a pragmatic pretest/posttest design under field conditions. This demonstration study is part of a Danish common learning project that ran from March 2020 to May 2021 within the framework of veterinary herd health consultancy in relation to reducing antimicrobial use and improving herd health. Specific interventions for 2 commercial herds were suggested by 4 visiting farmers and were implemented during the project period. The intervention for herd 1 was the application of teat sealers, implemented in August 2020. For herd 2, the intervention was an adjustment of cubicles for cows of parity 2 and above, implemented from November 2020. A shift to an automatic milking system in October 2020 was also modeled as an intervention for herd 1 because the 2 interventions coincided. Data available from the Danish Cattle Database on obligatory registrations for individual cow movements and treatments, as well as test day information on milk yield, were used for model building and testing. Data from a 3-yr period before the project were used to calibrate the SSM to herd conditions, and data from the study period (March 2020 to May 2021) were used for monitoring and intervention testing based on application of the SSM. Herd bulk tank milk recordings were added to the data set during the study period to increase the precision of the estimates in the DLM. The developed SSM monitored herd-level milk yield and the overall probability of treatment throughout the study period in both herds. Furthermore, at the time of intervention, the SSM estimated the effect on herd-level milk yield and treatment risk associated with the implemented intervention in each herd. The SSM were used because they can be calibrated to herd conditions and they take into account herd dynamics and autocorrelation and provide standard deviations of estimates. For herd 1, the intervention effect of applying teat sealers was inconclusive with the current SSM application. For herd 2, no statistically significant changes in cow treatment risk or milk production were identified following the adjustment of cubicles. The use of SSM on observational data under field conditions shows that in this case, the interventions had a nonspecific onset of effect, were implemented during unstable times, and had varying coherence with the measured outcomes, making fully automated SSM analysis difficult. However, similar or expanded SSM with both monitoring and effect estimation functions could, if applied under the right conditions, serve as improved data-based decision support tools for farmers (and veterinarians) to minimize the risk of misinterpreting data due to confounding bias related to dynamics in dairy herds.