Subject and purpose of work: We present the results of the research on the impact of the CAP on the development of family farms in the province of Podlasie. Materials and methods: The research covered farms included in the FADN system. The analysis concerns 2005 and 2014 and was carried out in groups separated due to the their condition and development opportunities: progressive farms, potentially progressive and non-progressive ones. The development opportunities were assessed on the basis of the surplus on self-financing, net investments and fixed asset replacement rates. Results: In all groups of farms the value of assets grew, and the growth rate of assets was the highest in the progressive farms. Only the progressive and potentially progressive farms had self-financing options. Conclusions: Budget transfers targeted at farms affected the intensification of activities related to their modernization, which resulted in the diversification of these entities. The most active recreation of fixed assets took place in the progressive farms. The market activity of potentially progressive farms increased and they are likely to become progressive farms in the future. The non-progressive farms are characterized by their permanent inability to develop.