The purpose of the article is to prove the need to improve the state agricultural policy in modern conditions, to substantiate the systemic dependence of effectiveness of the agricultural sector functioning, and rural development in terms of the interrelated application of all its basic components, in particular, the state regulation of the development of market land relations. Research methods. In the research process were used general and special methods of scientific cognition; in particular, monographic (for the processing of professional publications on the mentioned problems); logical (for the determination of socioeconomic tendencies); economic-mathematical and statistical and comparative methods (for analytical calculations); systematic approach (for improving situational changes’ regulation). Research results. It has been substantiated that the state agrarian policy at the present stage of development is unbalanced and requires an appropriate systematic updating. There was proved the necessity for ensuring the interconnected and integrated application of all mechanisms of the state regulation of socio-economic relations in conditions of dynamic changes in the development of the agrarian economy and the state of rural territories. It was established that the state should, implement the market circulation of agricultural lands for the benefit of society, peasants and rural communities, taking into account scientifically substantiated proposals as one of the important components of the agrarian policy. Elements of scientific novelty. Defining ways to improve the state agrarian policy, including basic principles of the market regulation of land relations, were further developed. Practical significance. The research results can be used in the drafting of legislative acts on improvement of the state agricultural policy and regulation of the market circulation of agricultural lands, regulation of other socio-economic processes in the agricultural sector of the economy, as well as educational process and deepening scientific research. Tabl.: 6. Refs.: 24