The agricultural season in Bosnia andHerzegovina (BH) begins earlier than in most Europeancountries, shipping costs are relatively low, and land andlabor prices are more favorable than in other southernEuropean countries. As a result, the country'sagriculture sector should be well positioned to compete onthe export markets. With 20.6 percent of all employed in BH,agriculture remains an important sector for employment,despite a decline in the working-age population in ruralareas. Additionally, it will be important for BH to developwell-functioning land institutions, so that the land marketcan operate more efficiently and thus enable businessdevelopment. Finally, BH should integrate climate changeadaptation and environmental sustainability intoagricultural policies, programs, and investments. To succeedin agriculture, producers and governments will have toadapt, and the way to start is to focus on reducingagriculture's vulnerability to current climate variability.