This chapter describes the farm enterprise system. The farm enterprise system involves the consumption, sales, and investment of farm resources, but recognizes the economic, institutional, and cultural environment external to farms still have a large effect on the ability and motivation of farmers to efficiently use resources and use sustainable land management practices. Influences such as family demands, assessment of risk, educational opportunities, innovation, clear land and water rights, and social and religious norms can greatly impact the management decisions and practices of farmers.