Agricultural production in BiH still has the features of extensive production and is largely dependent on weather conditions. Characteristics of the agricultural sector are low productivity, unfavourable structure and size of the farm, insufficient and poor technological equipment, dependence on imports of mainly all inputs needed for the production of seed material, protective agents and mineral fertilizers as well as equipment and agricultural mechanization. Also, the results of the analysis show that agricultural production in BiH is not, and in the near future, not going to be price-competitive, at least until its productivity is increased. In addition, the agricultural sector in BiH in building sustainable competitive advantages must focus its efforts on improving the quality and production of special (typical and traditional) high value products i.e. value-added products.

The potentials of agricultural production in BiH that are reflected in favourable agro-climatic conditions, a large number of different agricultural crops, preserved agricultural land, products of excellent quality and traditions, a large number of autochthonous and original products, traditions, knowledge and efforts of agricultural producers have not yet been fully utilized.

In the agricultural sector, the Ministry of Foreign Trade and Economic Relations of Bosnia and Herzegovina carries out activities and tasks within the competence of BiH related to the definition of policies, coordination of activities and harmonization of the plans of entity authorities and institutions at an international level.

Administrative organizations within the Ministry of Foreign Trade and Economic Relations of BiH are the Veterinary Office of BiH responsible for animal health and care, Administration Bosnia and Herzegovina for Plant Health Protection responsible for the protection of plant health and the Office for Harmonization and Coordination of the Payment System in Agriculture, Food and Rural Development responsible for harmonizing and coordinating payment systems in agriculture, food and rural development.

In order to ensure an effective development of the food safety policy implementation, the Ministry directs and supervises the work of the Veterinary Office of BiH and the BiH Plant Health Protection Administration, and coordinates activities with the Food Safety Agency of BiH.

Competence and administration of agricultural production in Bosnia and Herzegovina is at the level of Entities and Brcko District, within the institutions responsible for agriculture: the Ministry of Agriculture, Forestry and Water Management of Republika Srpska, the Federal Ministry of Agriculture, Water Management and Forestry and the Department of Agriculture, Forestry and Water Management of the Brčko District of BiH.

In the Federation of Bosnia and Herzegovina, administrations established in all 10 cantons are responsible for agriculture, veterinary, forestry and water management. The responsibilities of the entity ministries are: the implementation of policies and the implementation of laws adopted by the competent authorities of the entities, oversight of regulation enforcement and decision-making, management of natural resources for the development of agriculture, food industry and related activities in the field of plant production, livestock breeding, rural development, fisheries and hunting, protection and use of agricultural land, food industry, animal feed processing, water management, veterinary and phytosanitary protection, public health protection and forestry.

The work of the Department of Agriculture, Forestry and Water Management of Brčko District  is related to the development and improvement of agricultural production and livestock breeding, protection and utilization of agricultural land, veterinary and sanitary control of animal health and public health, application of credit policy, protection and rational use of agricultural land, advisory services in agriculture and livestock breeding, forests restoration, protection against illegal harvesting and maintenance of water management structures.