Presents the results of a study to examine the status of small farms in the U.S. and to determine a course of action for USDA to recognize, respect and respond to their needs through changes in policies, practices, and programmatic approaches. These needs include: conservation assistance or risk management, business planning for a farmers market or farmer-owned cop, and market development for new crops or products. In addition to examining the characteristics of a small farm and presenting guiding principles for Federal farm policy, the report discusses in detail eight specific policy goals and recommendations. Charts and tables. Photos.