Economic effects of winter wheat production on farms in the Republic of Serbia in 2006 and 2011

Based on the comparative analysis of gross margins in 2006 and 2011, the economic impact of winter wheat production on farms in the Republic of Serbia was estimated. The subject of the analysis was variable costs for purchased seed, fertilizers, pesticides, and contract harvesting services. Based on the analysis of the gross margin for winter wheat, it was noted that the value of production (VP), total variable costs (TVC) and gross margin (GM) were significantly higher in 2011 than in 2006. In 2011, VP was higher due to a significantly higher yield and the higher price of winter wheat grain. In addition to higher prices of all inputs, the increase in variable costs was mostly influenced by the higher price of fertilizer. Comparing the two time periods in winter wheat production, it was concluded that the value of GM in 2011 increased by 30%.