Introduction. TThe state of the agricultural sector significantly affects the socio-economic development of the state and the welfare of the population, as well as meeting its needs for quality, variety and safe food. To maintain the competitiveness of the agricultural sector and ensure its effective functioning and further development, there is a need to improve the financial mechanism of the industry as an effective tool of state regulation. The urgency of this task is exacerbated by the presence of many unresolved issues in the agricultural sector and the influence of a number of internal and external factors. The purpose of the article is to study the essential aspects of the financial mechanism of the agricultural sector, identify its components, substantiate proposals for improving the financial tools of the state to address the development of the agricultural sector in the face of new risks and threats, and the need for Ukraine’s integration into the world economic space. Results. Theoretical bases of essence and structure of the financial mechanism of agrarian sector are opened, its constituent elements are defined, the offers on perfection of financial tools of influence of the state on the decision of problems of development of agrarian sector are substantiated. The internal and external factors influencing the financial mechanism of the agricultural sector, which should be taken into account in its improvement, are systematized. It is emphasized that improving the financial mechanism to ensure the development of agricultural production should contribute to the formation of high competitiveness of this sector of the economy and increase the effectiveness of its operation in both domestic and international food markets, taking into account the impact of objective laws and societal needs. Perspectives. Further research on the financial mechanism of the agricultural sector should be conducted on the basis of existing domestic and foreign experience in assessing the impact of its components on sustainable economic development, introduction of an effective structure of the financial mechanism and development of practical recommendations to improve financial development of the agricultural sector.