ECONOMIC ANALYSIS OF WHEAT PRODUCTIONON FAMILY FARMS

Serbian agricultural producers are currently facing a large numberof challenges which have a significant influence on their business activities.Continuous monitoring and evaluation of existing family farms business activitiesis the only way to improve their profitability and enhance competitiveness in suchconditions. Bearing this in mind, the objective of this research is to emphasise animportance of the economic analysis of wheat production on family farms and tocontribute successfully to the formulation of the answers to questions if and underwhich conditions the wheat production is profitable. In order to have a completeinsight into investigated problem subject, investigations were carried out onselected family farms. Collected data were processed using calculation procedurefor the purpose of determination of main economical indicators of the success ofwheat production. Based on realised financial results it can be concluded that withthe selling price of 10,000.00 dinars per ton, only family farms which haveachieved yield of over 7.5 t/ha with adequate level of investments are profitable.Since realised average yield of wheat on family farms in the Republic of Serbia in2009 was 3.58 t/ha and level of investment necessary for realisation of this yield, itis clear that the majority of family farms had loss in wheat production. The resultsof this study suggest that the economic status of the wheat production depends onthe yield and achieved sales price, as well as on the amount of applied productionfactors and price level for their purchasing.