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Carrying capacity models and financial data from study group farmers were used to derive attainable net revenue per ha on veld in good, moderate and poor condition. From these data, minimum farm sizes required for a reasonable standard of living (R20 000 net personal income per annum) were estimated for each veld condition class. These minimum sizes were compared with actual farming unit sizes determined from a farm survey. Most farming units are large enough to provide a reasonable standard of living, on condition that the farmer has little debt and does not have to incur costs of land development. However, most farmers cannot afford to implement the development required for currently recommended conservation practices. If conservation is required by society, subsidization of conservation practices should be considered.