Paper presents a model for the optimization of primary milk production in the hillymountainous regions of the Republic of Serbia. The goal of creating the model is to demonstrate and analyze the conditions and outcomes of production at the farm, while to find the optimal production structure, considering the organizational, economic, technical, and technological circumstances in which the farm performs its agricultural activities. The model is based on the linear programming optimization method. A mathematical model, or objective function, was established, and constraints were identified. A logical model was created for optimization. The main goal of solving the linear programming problem is to find the maximum or minimum of the objective function. In presented model, the task is to maximize the objective function, what is represented by the farm’s net income. By using the linear programming, it is possible to determine the optimal quantities of resources and products to maximize net income, while adhering to resource constraints and other relevant factors.