The purpose of the article is to justify necessity and main directions of state support of the agricultural sector in Ukraine. Research methods. In the research process were used the following scientific methods: monographic method for evaluating the level of state support for agricultural producers in Ukraine; synthesis and analysis for determining characteristics and trends of the agrarian sector of the Ukrainian economy. Research results. Theoretical and methodological principles and features of state support of agricultural economy of Ukraine were determined. Main directions for formation of the state policy of the agrarian sector were analysed. Forms and methods of this support were established. Prospects for increasing competitiveness of agricultural producers were determined. Taking into account globalization of the economy and deepening of the European integration, objective necessity for state support of small and medium-sized agricultural producers was substantiated in order to increase their competitiveness. Elements of scientific novelty. Theoretical positions of state support to the agrarian sector gained further development, and their relevance and orientation were substantiated. Reorientation of state policy in agriculture from business to social and business, through support of small and medium-sized producers in the countryside, was substantiated. Practical significance. Researched theoretical and practical positions constitute a methodological basis for formation of state policy in the agricultural sector. Tabl.: 2. Figs.: 1. Refs.: 14