<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2006-06-08</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000833795</issuerCik>
        <issuerName>HOMEFED CORP</issuerName>
        <issuerTradingSymbol>HOFD</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001213601</rptOwnerCik>
            <rptOwnerName>CUMMING IAN M</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>529 EAST SOUTH TEMPLE</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>SALT LAKE CITY</rptOwnerCity>
            <rptOwnerState>UT</rptOwnerState>
            <rptOwnerZipCode>84102</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock, Par Value $.01</value>
            </securityTitle>
            <transactionDate>
                <value>2006-06-08</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>M</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>100</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>9.30</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>349201</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Stock, Par Value $.01</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>2758384</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See Explanation.</value>
                    <footnoteId id="F1"/>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
    </nonDerivativeTable>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Stock Options (Right to Buy)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>9.30</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2006-06-08</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>M</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>100</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                    <footnoteId id="F3"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F2"/>
            </exerciseDate>
            <expirationDate>
                <value>2006-07-10</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>100</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>0</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Consists of (a) 9,530 shares of HomeFed comon stock beneficially owned by the Reporting Person's wife (directly and through
 trusts for the benefit of his children of which his wife is trustee), (b) 60,000 shares of HomeFed common stock held by a
 corporation which is owned 50% by the Reporting Person and 50% by the Reporting Person's wife, (c) 214,628 shares
 transferred to a grantor retained annuity trust (GRAT) of which the Reporting Person is a beneficiary and (d) 2,474,226
 shares of HomeFed common stock held by Leucadia National Corporation, a public company (&quot;Leucadia&quot;).  The Reporting Person
 is a significant shareholder and Chairman of the Board of Directors of Leucadia.  The reporting
 person disclaims beneficial ownership of the HomeFed common stock owned by Leucadia, except to the extent of his pecuniary
 interest, if any.</footnote>
        <footnote id="F2">The stock options were granted on July 10, 2001.  Pursuant to their terms, these options became exercisable at the rate of
 25% per year commencing one year after the grant date.</footnote>
        <footnote id="F3">The zero (&quot;0&quot;) in this column is a &quot;dummy&quot; amount, solely for the purpose of permitting the use of a descriptive footnote
 stating that the price is not applicable.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Ian M. Cumming</signatureName>
        <signatureDate>2006-06-08</signatureDate>
    </ownerSignature>
</ownershipDocument>
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X0202
4
2006-06-08
0
0000833795
HOMEFED CORP
HOFD
0001213601
CUMMING IAN M
529 EAST SOUTH TEMPLE
SALT LAKE CITY
UT
84102
1
0
1
0
Common Stock, Par Value $.01
2006-06-08
4
M
0
100
9.30
A
349201
D
Common Stock, Par Value $.01
2758384
I
See Explanation.
Stock Options (Right to Buy)
9.30
2006-06-08
4
M
0
100
0
D
2006-07-10
Common Stock
100
0
D
Consists of (a) 9,530 shares of HomeFed comon stock beneficially owned by the Reporting Person's wife (directly and through
 trusts for the benefit of his children of which his wife is trustee), (b) 60,000 shares of HomeFed common stock held by a
 corporation which is owned 50% by the Reporting Person and 50% by the Reporting Person's wife, (c) 214,628 shares
 transferred to a grantor retained annuity trust (GRAT) of which the Reporting Person is a beneficiary and (d) 2,474,226
 shares of HomeFed common stock held by Leucadia National Corporation, a public company ("Leucadia").  The Reporting Person
 is a significant shareholder and Chairman of the Board of Directors of Leucadia.  The reporting
 person disclaims beneficial ownership of the HomeFed common stock owned by Leucadia, except to the extent of his pecuniary
 interest, if any.
The stock options were granted on July 10, 2001.  Pursuant to their terms, these options became exercisable at the rate of
 25% per year commencing one year after the grant date.
The zero ("0") in this column is a "dummy" amount, solely for the purpose of permitting the use of a descriptive footnote
 stating that the price is not applicable.
/s/ Ian M. Cumming
2006-06-08