With the decline of local agriculture in Japan, community farm is set to play a central role in the future, especially in disadvantaged regions such as hilly and mountainous areas. Community farms are also expected to play key roles as main entities for the conservation and management of local resources, as well as the maintenance of local communities. In this study, we clarify the social, economic, and regional conditions for the formation of community farm in Hyogo Prefecture, which has the highest proportion of community farm in Japan. We assumed that the development of a community farm encompasses three stages, and analyzed the factors affecting the development of community farm using the ordered probit model. Our results revealed that the development of community farm requires consideration of local socio-economic conditions, such as the appropriate size of the community, young farmers and successors, local social capital, cooperation with non-farmers, and farmland liquidity.