Several southeast and other regional representative farm situations were simulated from 1980 to 1986 to show likely effects of alternative agricultural policy and economic environments on the micro-economic wellbeing of the farm sector. The results indicated that farms with a higher initial degree of asset ownership and percent equity had greater survivability, net cash income, and ability to maintain or increase net worth. Macroeconomic policy, (i.e., control of inflation) increases the performance of farms for these same variables. Suspension of direct commodity programs would severely reduce net cash incomes and abilities to maintain net worths, but survivability would still remain high.