Purpose: to develop and substantiate a model for the formation of agricultural cooperation system in Russia on the principles of project management. Materials and methods: the methodological research tools are based on general scientific and specific methods, including comparative economic analysis. The results of the development and substantiation of a model of the agricultural cooperation system formation on the principles of project management are based on the best domestic practice of the regions – leaders in this direction. The object of the study was the sector of agricultural cooperation of Lipetsk and Rostov regions, as well as the Republic of Sakha (Yakutia). The developed model is based on a rigidly built vertical of administrative resources at all levels of management: “settlement – district – region”. Results. The development of the small-scale sector of the economy of the EU countries and Russia is examined. Particular attention is paid to the domestic practice of agricultural cooperation to involve households in commercial agricultural production. It is substantiated that the development of agricultural cooperation is a priority direction of the state agrarian policy. Conclusions. It has been proved that the development of cooperation on the principles of project management not only ensures control and coordination of all levels of the system through the provision of grants and tax incentives, but also creates the infrastructure for the sale of cooperative products. The developed model includes an organizational and economic mechanism for the distribution of budgetary funds on the basis of project management, which will contribute to the development of a technological platform that makes it possible to link the areas of interaction not only of agricultural producers and public authorities at all levels, but also of credit and financial organizations, universities, scientific institutions, sectoral unions and associations, transforming the productive-economic relations of business entities with each other that have developed in the market.