Bosnia and Herzegovina has a deficit of most agricultural products, and that is why it is compelled to import significant quantities of food. In order to increase the degree of self sufficiency, particularly for those products that have good potentials for production growth, creators of agrarian policy try to apply different agrarian policy measures for stimulation of agricultural production growth. One production with good potential is cattle production, i.e. production of milk and meat, for which Bosnia and Herzegovina has significant development potentials, and for whose advancement there have been provided different supporting measures. This paper presents the possible application of the cost-benefit analysis in evaluation of efficiency for some supporting agrarian policy measures adopted in order to improve the cattle production in Bosnia and Herzegovina . The cost-benefit analysis was completed for the six year period, taking into account the productive period of bought heifer. The analysis includes economic and financial parameters (inflows and outflows), which annual amounts were discounted to the present values by utilization of the average social discount rate, in order to put all annual amounts at the same trend of calculation and to account for opportunity capital costs as well
