The aim of the study was to examine the effect of livestock production on the economic efficiency of investments in irrigation projects. The study was based on a model focused on field crop/livestock production using the data of crop yields in field crop production with or without irrigation, financial results of cattle fattening and milk production and the input and output price relationship.

A family farm model was used in order to study the economic importance of pasture utilization in sheep breeding and cattle fattening during the summer period. The model was based on real technological, organizational and economic conditions of a farm in the hill and mountain regions of eastern Serbia. The economic competitiveness of different ways of pasture utilization was studied based on the processing price of green feed obtained from pastures. Under the given economic conditions, a higher processing price of feed may be expected in cattle fattening.

The study demonstrates the methodological approach to the determination of the upper limit of land value and analyzes the influence of the mode of determination of the economic effect of land use and the level of ground waters on its amount. A model was developed based on the business results of an agricultural enterprise involved in a field crop/livestock production over the past few years, which had planned to erect a drainage system in order to manage the excess of water on the available land area.

The objective of the study was to determine the limits of economic justification for irrigation system capacity use. The first step was focused on determining the lower limit of capacity use by comparing the economic effects of irrigation with the costs of the irrigation system use.