ABSTRACT
This chapter describes the subjective equilibrium of family farms under different situations, with special emphasis on subsistence farms. All the farms in the world can be classified by the following two criteria: one is the degree of subsistence production (or commercialization), i.e. the proportion of production consumed; and the other is the degree of being a family farm, i.e. the proportion of family labor (or hired labor) in total labor input on the farm. The chapter calls a farm which is located in the neighborhood of the left-downward corner in the square "subsistence-production family farm"; a farm in the right-upward corner, "commercial nonfamily farm"; and a farm in the right-downward corner, "subsistence-production nonfamily farm." Immediately just after the end of the production period, the farm family may well be regarded as a "consumers' household" having an income in kind of and facing the markets for the two products as well as of other consumer goods.
