The paper analyzes the situation in agriculture in the Republic of Croatia, investigates the causes of low competitiveness of agricultural products and seeks solutions to overcome it. It is concluded that the main causes are the large area of uncultivated land, the large fragmentation of cultivated land, the inadequate use of modern techniques and technology in agricultural production and the neglect of rural development. The causes and problems are generated by inadequate agricultural policy. It also seeks to answer the question of whether investments in agriculture are adequate and financially viable, and concludes that agriculture is a specific activity with a large number of producers, none of which can influence the formation of selling prices, so investments in agriculture are generally low profitable and even unprofitable, but also that financial profitability cannot be the main criterion for making investment decisions because agriculture feeds the population, affects the country's balance of payments and as a basic production affects the development of other industries. Finally, measures which should be taken are proposed in order to solve the problems in agriculture in the Republic of Croatia.