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.

Using the models of family farms implementing cattle production, it has been analyzed how economic efficiency and financial feasibility of the cattle production investments is influenced by the size of family farms; the type of production; the way of securing of the land for the forage production, both under the safe and risky circumstances. During the analysis of economic efficiency the dynamical methods of investment evaluation have been used, as well as the appropriate method for risk estimation of investments.