Complexity of the political system in Bosnia and Herzegovina reflects to entire economy of the country, especially to sensitive sectors as agriculture. Current agricultural BIH policy managed on entity and Brcko District level faces numerous challenges and dilemmas. Apart from insufficiently clear commitment to CAP EU convergence, major dilemmas are those related to further shaping of institutional-regulatory framework as well as selection of strategic course of sector development. Having in mind lack of common BIH agricultural policy and sector institutional weaknesses, our intention is to answer following two questions: (i) does it reflect to direct support of producers and (ii) are BIH farmers in unequal and uncompetitive position? In order to analyze actual situation it was used APM tool (Agri-Policy Measures) developed within FAO-SWG project. Based on outputs of this analysis we made recommendations and suggestions on the way of proceeding in such circumstances.