The relevance of the topic of this article is due to the need to improve the economic mechanism for managing the efficient functioning of all parts of the agricultural sector in the context of global competition on the food market. This is based on additional research into systemic problems in agriculture and the development of practical recommendations for sustainable agricultural development. The purpose of the study is to analyze trends in the development of agriculture and identify areas for improving the efficiency of agricultural business entities. The article is devoted to the study of the current state, problems and challenges of the agricultural sector of the economy, as well as the definition of main directions of its development and the formulation of recommendations for ensuring the effective functioning of this sector in the face of current global challenges. Within the framework of the study, theoretical and practical approaches are proposed to justify priority strategic directions for agriculture development and to improve public administration mechanisms to transition to a doctrine of sustainable development through intensified work on adapting technological processes to climate change, creating and introducing new varieties, developing genetic technologies for animal breeding, using digitalization, and developing industry.