Hanson and Eidrnan (HE) preface their comment by stating that the basic conclusion of our study is that "a farm with less than the minimum situation (640 acres owned with 100% beginning equity) likely will not survive the next ten years (p. 436)." While the intent of this sentence was to refer to a farm with less than 640 acres and less than 100% equity, we concede that there is a need for clarification. The wording would be more precise if the sentence had read, "A farm with less than the minimum situation (i.e., less than 640 acres and less than 100% equity) likely will not survive the next te? years." We are indebted to HE for challenging this statement and providing the opportunity for clarification.The remainder of HE's comment (a) "contrasts RC results with those of other studies on the same issue in other geographic areas," (b) finds that these studies "stand in marked contrast to the RC findings," and (c) concludes that "the RC results are quite surprising in view of the literature." HE's conclusion simply is not supported by the quoted studies and stems from their failure (a) to consider differences in methodology between our study and those quoted, (b) to interpret accurately the results o~quoted studies, and (c) to note evident regional differences in profitability and economies of size.