Serbian agricultural producers are currently facing a large number of challenges which have a significant influence on their business activities. Continuous monitoring and evaluation of existing family farms business activities is the only way to improve their profitability and enhance competitiveness in such conditions. Bearing this in mind, the objective of this research is to emphasise an importance of the economic analysis of wheat production on family farms and to contribute successfully to the formulation of the answers to questions if and under which conditions the wheat production is profitable. In order to have a complete insight into investigated problem subject, investigations were carried out on selected family farms. Collected data were processed using calculation procedure for the purpose of determination of main economical indicators of the success of wheat production. Based on realised financial results it can be concluded that with the selling price of 10,000.00 dinars per ton, only family farms which have achieved 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 in 2009 was 3.58 t/ha and level of investment necessary for realisation of this yield, it is clear that the majority of family farms had loss in wheat production. The results of this study suggest that the economic status of the wheat production depends on the yield and achieved sales price, as well as on the amount of applied production factors and price level for their purchasing.