Even though Ukrainian economy boast the status of market economy, it remains, in fact, in the transition phase. The situation calls for further study of the market processes, not only in theory, but also in the practice of the functioning of particular branches of economy, including agriculture. Ukraine’s agriculture lacks institutional foundations, while the producers suffer from insufficient capital. In view of that, one of the key tasks for future development of the sector is the selection of an optimal model and direction of its modernization. As the most promising directions, the author proposes the principle of self-organization and external stimulation of the sector’s development. The latter, however, should not be confined to state activities. The key role in providing a solid institutional basis for the agriculture modernization should be played by social organizations and professional associations within the branch.