This paper attempts to set out a model for the analysis of supply response in traditional agriculture. The production of basic grains by small farmers and their ability to develop commercial crops are investigated.
The model is applied to regional data for Guatemala, in the 1973 agricultural period.
The quantitative results agree in general with the conceptual framework. Total income, farm size and farmers' self consumption are the most important variables explaining the behavior of marketed proportion of production, while the price variable seems to be less important.
It is suggested the need for a comprehensive treatment of small farmers problems. It is also suggested the limited effect to be expected from basic grains programs above.