.The following example is based on an application discussed in Isaacson and Madsen (1976). Farms are divided into four categories: very small (sj, very large (5 2 ), large (5 3 ) and small (S4 ). Farms grow or shrink as land is bought or sold. It is assumed that once a farm is very small or very large it stays as such. Small and large farms increase in size each year into the next category with probability 5 , remain the same size with probability ^ and decrease in size to the category below with probability Find the transition matrix and the expected time for a small farm to become either very small or very large.