At present, the agricultural production looks to be in crisis. The most important challenge in Serbian and Hungarian cereal sector is renewal of the cereal cultivation and trade. The new and modern products – like bio-farm cereals - are not only good products, but being a good trade, too. The modern cereal market needs new, high nutritional value (quality) products for different basic human foods and feeds for animals.The envisaged project is based on the cooperation between Serbian (Faculty of Biofarming, Backa Topola, FB) and Hungarian (Cereal Research Nonprofit Co., GK Kft; Institute of Plant Biology, SZBK) partners. The common goal is the improvement of different cereals for important agronomical parameters under traditional and bio-farm cropping systems. On the Hungarian side, the closest well-prepared partner of biofarming is located in Backa Topola (only 80 kms). On the Serbian side, the Hungarian basic research- and practical orientated research backgrounds of partners is primary important, too. The common program is based on the complementary experiences. Achievements: In the improvement of stress tolerance, mapping population (Plainsman v. x Capelle Desprez) was initiated in greenhouse pot experiments. Crossing between tolerant and sensitive wheat genotypes was done creating F0 seeds for the further studies. The adaptation of complex stress diagnostic system for drought tolerance experiment was started, too.The root systems and growth parameters were analyzed (root length and morphology) of 25 barley genotypes, and the time-dependent growth of roots. The barley seedlings were grown in transparent plexi rhizoboxes. The root monitoring was carried out under different soil water capacity providing optimal (60 % soil water capacity) and limiting (20 % soil water capacity) water supply. This experimental system allowed identification of barley genotypes with capability forcontinuation of root elongation in soil having reduced water availability. An experiment was set up to test the changes of variable chlorophyll fluorescence parameters during drought stress of barley. One sensitive and one resistant genotype was grown under different soil water capacity providing optimal (60 % soil water capacity) and limiting (20 %soil water capacity) water supply. The Fv/Fm parameter, which reflects the maximal quantum yield of the Photosystem II complex of the photosynthetic apparatus, showed a decreasing tendencywith decreasing water supply. However, the difference is very small and practically identical between the resistant and sensitive cultures These data indicate that the maximal quantum yield of Photosystem II, which is a usually applied stress parameter, is not very sensitive for drought stress.Genetic diversity Biotic stress experiments (leaf rust, leaf spots of wheat, Triticale) were initiated in greenhouse, laboratory and in nursery experiments. Marker assisted selection was developed earlier and the selection was started for the purpose of this project. In ecological production, the resistance relation is very important, more than in traditionalproduction. After our first term research, the resistant genotypes will be integrated in ecological experiments and later in ecological production in Serbia and Hungary.