New trends in global economy require greater capacity of the agricultural workforce. In order improve agricultural productivity it is needed to increase the level of human capital of the agrarian population. Human capital is accumulated knowledge, created in the long term process of human resources development, which begins in early stages and last all through the life, which is especially true for agricultural business. During transition Serbian economy went through major changes, with agriculture trailing to other sectors of the economy. Each farmer is producing only around 3,000 € gross added value per year, which is substantially lower than in other sectors. This paper will analyze what innovative activities are used worldwide in agriculture and give some possible solutions for investments in human capital and development of human resources in order to increase the level of competitiveness. Finally we analyze Serbian agricultural education system and give some instructions for improvements.


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