In the modern conditions of globalisation and transformation, food supply, food safety and development of the agricultural sector are the determining factors of stability. The country's agriculture requires increased competitiveness and the formation of competitive advantages, and agricultural production is one of the risky types of business activity. The insufficient level of development of enterprises in the agricultural sector is due to the need for a system of effective mechanisms for managing the development and competitiveness of agricultural enterprises. The aim of the publication is to study the trends in the development, formation and functioning of agrarian enterprises in the current realities and to develop a mechanism for managing the competitiveness of agrarian enterprises. Results. The paper considers the issues of peculiarities, trends in the development and functioning of agricultural enterprises in modern conditions. The essence of the concept of competitiveness and peculiarities of formation of competitiveness of agricultural enterprises are defined. An assessment of agricultural production is carried out and an analysis by groups of producers is carried out. The dynamics of the number of agricultural enterprises for 2008-2021 was determined. Factors influencing the formation of competitiveness of agricultural enterprises and the place of Ukraine in the world ranking of exporters of agricultural products have been studied. The essence of the mechanism of managing the competitiveness of agricultural formations is substantiated. A model of the mechanism of managing the competitiveness of agricultural enterprises was developed, including economic, organisational and legal subsystems. Conclusions. The existence of competitive advantages is an essential aspect of competitiveness, and increasing the level of competitiveness of agricultural formations and optimising their functioning in conditions of uncertainty is a priority direction of the agricultural sphere of the national economy. Competitive agriculture should ensure the country's food security and contribute to the effective development of rural areas.