Агеева О.Ю.

Subject . Economic science is called upon to offer effective solutions to maintain and increase the well being of society, which cannot be achieved without the effective functioning of the agricultural sector. But problems in this industry still persist. Therefore, it is necessary to search for new, more advanced approaches to the concept of agricultural development. Topic . Modern practice proves that it is not enough to consider economic phenomena using traditional classical aspects. Institutional theories more accurately reflect the content of ongoing processes, since they take into account a greater number of factors and patterns of development of a market economy. Purpose. The objectives of the study are the justification of the applicability of the institutionalism methodology for the implementation of reforms in the region’s agriculture, as well as the development of recommendations for the institutional improvement of the agricultural sector in modern conditions. Methodology. To achieve the goal of the study, the article systematizes the theoretical approaches of institutionalism based on systemic and dialectical methods, which should be used in drawing up an agrarian management program. Results . As a result of the survey, the specifics of transaction and transformation costs in agriculture are considered, the conclusion is substantiated on the practical applicability of the theory of institutionalism in the agricultural policy of the constituent entities of the Russian Federation. Applicationarea . Agricultural sphere at the regional level. Conclusions . The creation and functioning of an effective agrarian policy in modern conditions faces a number of difficulties that can be combined in two directions. The first is due to the lack of interaction between institutions of different spheres of action of the institutional space, which form the proper institutional relations. The second problem is the absenteeism of a renewed, industrially developed industry, competitively harmoniously integrated into the economic space, resistant to external challenges. The institutional space of the agrarian sphere as an independent category within the framework of institutional and spatial research cannot exist autonomously and without due interconnection with the general economic space. Therefore, the state, the interacting industries and the whole society as a whole should be interested in agrarian transformations.