The current volume and structure of agricultural production, its high extensiveness and fluctuation and low productivity, together with inefficient organization of production and payment operations and inefficient strategies of all types of agriculture enterprises which insufficiently take market signals into account – are the basic factors that prevent the domestic producers from becoming competitive in the food and agriculture products. Serbia has great potential in farming sector, that is not entirely exploited. With appropriate farming politics, agriculture can contribute significantly to economical progress of the country.