The purpose of the article is to investigate the state of economic activity of farms in modern conditions, to find out the reasons for existing problems of functioning of farms, and to propose a concept for the development of these entities. Research methods. Methods of analysis and synthesis were used for a detailed study of preconditions and formalization of family farms. To prove a leading role of family farms in the provision of the world food security, statistical and graphical methods were used. The empirical observation method was used to determine an impact of the international organization of FAO (UN) on creation of family farms in Ukraine. The method of generalizations was used when making conclusions and questions for discussion. Research results. The article examines the situation of family farms in the world, emphasizing their key role in ensuring food security and preserving natural resources. The theoretical basis of the concept of “family farms” was investigated. The prospects for formation of Ukrainian family farms were outlined. Elements of scientific novelty. Formation of family farms of the Transcarpathian region was considered for the first time. A number of measures were proposed for the development of a balanced model of family farms. In particular, measures of state support of family farms in the region. The activities of the Food and Agriculture Organization (FAO) of the United Nations aimed at supporting and developing family farms at the regional, national, and international levels were considered. Measures of the state and society on creation of family farms were analysed. Practical significance. Prospects for the establishment of Ukrainian family farms were outlined and models of family farm management in context of the development of family business in Ukraine were proposed. A number of measures were proposed for the development of a balanced management model of family farm as an individual. It was proved that in practice, farmers in terms of European integration have acquired new qualities and can be considered as a basis for the rural development of and growth of welfare of the rural population. Tabl.: 1. Refs.: 22