The background of the system of sales diversification activities related by farm households in large-scale upland farming areas in the Tokachi area, Hokkaido, is elucidated and evaluated. The focus is on farm households affiliated with farm management groups that are believed to engage in sales diversification activities, within the Tokachi Branch of Association of Small Business Entrepreneurs in Hokkaido. Farm households engage in sales diversification activities because they cannot expect a further increase in revenue from agricultural cooperatives, and there are no expectations of acquiring more farm land. Consequently, target farmers are those in the age group of 20 to 40 years, who are engaged in sales diversification activities. They mainly ship agricultural products to local farmers' markets and supermarkets in the Tokachi area. They have also made connections with processors and specialized trading companies to secure sales. Some have built processing plants and cafes in residential areas, as part of their sales diversification activities. Such sales diversification activities facilitate higher revenues for farm households. However, securing sales destinations and ensuring their continuity is an unstable factor. For this reason, securing stable earnings while balancing agricultural cooperative shipments and sales diversification activities will become an important subject in the future. Connections made among members, from belonging to a farm management group, are highlighted. Connections made with other industries that contribute toward sales diversification activities are also emphasized.