Summary: This paper analyses the most important production and economic results that are achieved in the production of alfalfa seed on family farms in the Republic of Serbia. Alfalfa seed production is characterized by relatively low investment per unit area (499.83 € ha -1 ), but nevertheless, very good economic indicators are achieved in this production (the gross margin 807.00 € ha -1 ; the cost-effectiveness quotient 2.47; the profit rate 59.56%). The resulting economic parameters represent a good signal for domestic farmers, which in this production can find costeffective alternatives to traditional crops used in crop rotation. Key words: alfalfa, economics, family farms, production costs, seeds Alfalfa is one of the oldest and the most important fodder crops. It is thought that alfalfa started being cultivated 8,000 years ago in Asia, from where it draws its origins (Ivanov, 1980). During the long history of its cultivation, alfalfa production has been transferred to other continents, where it is still being cultivated. Perennial varieties of alfalfa are very wide-spread all over the world, and depending on the climate the most wide-spread varieties are Medicago sativa L. (common purple alfalfa), Medicago media Pers. (hybrid alfalfa), and Medicago falcata L. (yellow alfalfa) (Lukić, 2000). In the Republic of Serbia, the most wide-spread variety is Medicago sativa L. It is a crop with a life-span is 5 to 7 years, and it can be extended with favourable conditions (Đukić, 1995). Two major ways of exploiting this perennial plant are production of fodder and a combined use of alfalfa in the production of seed and fodder. Agrotechnology used in these two types of exploitation is considerably different (Dragovoz et al., 2002). Alfalfa fodder represents the most important food source for certain categories of cattle. Alfalfa contains around 20% of raw proteins, and this number depends on the time of haymaking and preparation Corresponding author: nemanjapajic1989@gmail.com Acknowledgement: This study is a part of the project APV 114-451-2180/2016 "Cultivation of forage crops in crop rotation in order to increase soil fertility and biodiversity in agro-ecological conditions of Vojvodina", funded by the Secretariat for Science and Technological Development of AP Vojvodina. It is also a part of the projects III46006 titled "Sustainable agriculture and rural development in order to achieve strategic goals Republic of Serbia in the Danube region". (Bošnjak & Stjepanović, 1987). Its proteins have high biological value and their amino-acid content is similar to that of animal proteins (Prentović et al., 1997). These characteristics make alfalfa one of the largest protein producers per unit area. In order to cultivate and exploit alfalfa for seed production, the seeds have to be of high purity and germinability and have to have a high genetic value (Đokić et al., 2011). Most of these demands are met by seed processing, or by removing impurities and seeds of lower quality. Alfalfa seeds are small in size and their sep...