of the farm family earn considerable off-farm income, suggesting a

relatively high level of education and the ability to utilize agri-

cultural research results with a minimum of direct assistance.

 The 500,000 farms in cell "B" account for most of this Nation's

 output of food and fiber. The output of the agricultural research

 community is quickly adopted by this group. The future concentration

 of farming in the U.S. is largely dependent upon the number of farms

 in this cell, and to same extent cell "D", and not by the number of

 farms in cells "A" and "C".

 The 300,000 farms in cell "D" have sales exceeding $20,000 but

have incomes below the median ncnmetropolitan income. Their size

suggests that farm income is important and that they would be large

enough so that improvements in their farming operation could signifi-

cantly improve their family income situation. It is quite likely that

many of the farm families in this group have limited off-farm incomes.

 The one million farms in cell "C" are small in terms of sales,

but more importantly in terms of their needs, they are below the

median ncnmetropolitan income. While the number is not known, many

of these farm families are in poverty.

 Small farm research, extension, and education activities should

be focused toward farm families in cells "A", "C", and most of those

in cell "D"; those currently below the poverty level should receive

first priority. The major focus of farm oriented research and

extension would be on those in cells "C" and "D" who wish to remain

active in farming and have the physical health to do so. For others

in cells "C" and "D", the focus should be on helping them increase