ENIn the conditions of the European Union single market of commodities, services, and labour, the matter of production competitiveness on the European scale is very important for the Latvian agriculture. Besides, due to the reform of the Common Agricultural Policy, the question actually is whether to let the market-oriented business of agriculture in Latvia be or not. The objective of the article is to reveal the strengths and weaknesses of the Latvian agriculture, to estimate the efficiency of agricultural production in Latvia. It is done through analysis and comparison of various economic indicators in the farms of Latvia and other EU countries using the data of the Farm Accountancy Data Network. The research was performed with the methods of statistical analysis, comparative analysis, and logical constructive analysis. The article reveals that the comparatively bad economic indicators of farms of Latvia are not mainly the result of the farms being smaller but of a less effective use of resources. The article also identifies the problems most crucial to agricultural policy-making and further studies.