Abstract: This study aimed to analyze correlation of varies decision on household economy of catfish (Pangasianodon hypophthalmus) farmer, and formulate alternatives policies to increase production and improved household welfare of farmers. Total of 83 household sample of catfish farmer in 6 villages of 2 subdistricts in Minapolitan Area, Banjar Regency was simple randomly selected. The household’s economic model of catfish farmer is built of 22 simultaneous equations by develop theory of Agricultural Household Models. We used regression analysis of two stage least square (2SLS) and simulation models. The results show that linkage of varies decisions impact on household economic improvement of catfish farmers, except for an increase in stocking density that will be followed by the increase in the number and cost of feed. Consequently, household income is becoming lower. Selected alternative policies for increasing production and improved farmer’s welfare is a combination of pond extension, application of improved farming technologies, subsidizing the price of pellet feed, and education subsidies. Key words: catfish (Pangasianodon hypophthalmus), economy model, farmer, household