The transformation of the political and economic systems in Eastern Europe and the Former Soviet Union (FSU) was driven by the desire to combine political freedom with improved living conditions. Market-oriented reform is the essence of transformation for the former socialist planned economies. However, considerable segments of Eastern European and the FSU economies are not moving swiftly toward market integration; instead, barter exchange, home production and subsistence continue to play important roles, especially in low income economies, a decade after the transition process began. This paper addresses the issue of subsistence agriculture, argues that it should be an area of policy attention and discusses policies that may be considered to increase efficiency in this smallest-scale agricultural sector.