What is "subsistence agriculture"

Subsistence agriculture is self-sufficiency farming in which the farmers focus on growing enough food to feed themselves and their families. The output is mostly for local requirements with little or no surplus for trade. The typical subsistence farm has a range of crops and animals needed by the family to feed and clothe themselves during the year. Planting decisions are made principally with an eye toward what the family will need during the coming year, and secondarily toward market prices. Tony Waters writes: "Subsistence peasants are people who grow what they eat, build their own houses, and live without regularly making purchases in the marketplace."

However, despite the primacy of self-sufficiency in subsistence farming, today most subsistence farmers also participate in trade to some degree, though usually it is for goods that are not necessary for survival, and may include sugar, iron roofing sheets, bicycles, used clothing, and so forth. Most subsistence farmers today reside in developing countries. Although their amount of trade as measured in cash is less than that of consumers in countries with modern complex markets, many have important trade contacts and trade items that they can produce because of their special skills or special access to resources valued in the marketplace.