The purpose of the article is to identify the main stages and determine the market transformations effectiveness of the agricultural sector of the economy during the years of Ukraine's independence, substantiate the need to improve state regulation of the agricultural market, in particular, to create equal competitive conditions for the development of all types of business entities, determine the role and place of peasant farms in the food security system of Ukraine.

Research methods. General and special methods of scientific cognition are used: logical - to determine socio-economic trends; economic-mathematical, statistical and comparative - for analytical calculations; a systematic approach to substantiate proposals for improving the situational change regulation in the agricultural economy; monographic - for the processing professional publications on a specified topic.

Research results. The processes and effectiveness of market transformations in the agricultural sector of the Ukrainian economy are summarized, positive and negative trends are identified, the importance of the peasant farms functioning in the system of agro-industrial activity, their role, and place in the food supply and rural development are proved. The ways of creating equal competitive conditions for the effective development of all business forms, the need to change the emphasis of applying market mechanisms for regulating situational changes during current development of the Ukrainian agrarian sphere are justified

Scientific novelty. The improvement of the state agrarian policy was further developed. It was identified the need to increase government attention to supporting the development of small producers, in particular peasant farms, preserving the natural resource of agricultural land, solving socio-economic problems in rural areas, and adjusting structural policies in the system of agroindustrial activity.

Practical significance. The results of the study can be taken into account in the preparation of individual draft laws, in-depth research, in the educational process, in the practice of public administration, self-government and agricultural market participants.