A cross section sample of 98 rice farm families in the five selected villages of Modhupur Upazila of Tangail District were surveyed in the year, 1983- The :findings are that farmers as a whole in the study area are economically inefficient, but large farmers are relatively more efficient than the small farmers. The production of rice by small farmers is more responsive to changes in the price of rice, fertilizer and land area than in the case of large farmers.