A couple towns south where I live there are many active small farms. They either specialize in CSAs or have farmstands that sell a mix of their own produce and imported (e.g California) produce. It certainly is possible to farm - but you have to adapt to the times I guess.
My family also has a large commercial dairy farm in upstate NY. Very different farm then when I was growing up. Went from milking 70 cows to 1100+. From what my cousin's say - the only way is to go big or go home.