The development of Croatian agriculture in the last few years has focused on family farms, which are the basic organizational form of agricultural production in the Republic of Croatia. Family farms are very important because they have a significant impact on the preservation of agricultural biodiversity as well as on the preservation of rural areas and traditional food production. This paper contains information on the specifics of family farms’ business, which includes, first and foremost, the process of establishing a family farm, and then the legally permitted activities, basic and additional, legal regulations of family farms and ways of distributing agricultural products. In order to engage in agricultural activity, every family farm needs a certain amount of capital, both for starting work and for current operations. In addition to financing operations with their own resources, which is the most common way of financing family farms, the possibilities of external financing of agricultural activities are also listed. Like any other business system, family farms are required to duly meet accounting and tax obligations in accordance with the law, which will also be discussed in this paper. In the empirical part of the paper, the results of a survey conducted with holders and members of family farms in the Republic of Croatia are presented. It includes demographic data on holders of family farms, their gender, age and educational structure; basic characteristics of family business operations which means the structure of the number of members, equipment, products and their distribution; the analysis of the financing structure of family farms with an emphasis on the issue of external financing. Finally, according to the times we live in and current events happening in the world, an analysis of the impact of the COVID-19 pandemic on agriculture in general and on the business of family farms in the Republic of Croatia is presented.