The characteristics of business environment are shaped by the applied public policies as well as by private policies within agri-food chain. Consequently, characteristics of business environment define effort necessary to manage farm and to ensure its development. Therefore, the aim of this paper was to identify total impact of public policies implemented to the competitive capacity of the sector in BH. Research was focused to selected productions with high level of export potential and/or to these ones which are extremely important for quality of life in rural areas (plum, apple, paprika, tomato, corn, milk and lamb meet). Impact of implemented public policies has been verified by set of sector protection indicators that are the most commonly used in literature (level of effective and nominal protection – NPR, EPR, and level subventions to producers SPR). The current structure of input market has been identified as one of the main constrains to apply modern technology and to improve productivity ensuring better position at the market and faster development. Impacts of output market structure were discussed as well. The research showed that analyzed productions have potential to grow and develop (DRC<1), that they are competitive, but the quality of business environment is limitation factor which prevents efficient realization of their potential.