The purpose of the article is to justify theoretical and methodological and practical principles, to evaluate aspects of priority directions of institutionalization of farms in the market mechanism taking into account their exclusive role in raising a quality level of food supply and economic welfare of the rural population. Research methods. The research methodology has been based on the theoretical positions of the institutional analysis of economic processes and phenomena, methodological components of the institutional and classical economic theories, in particular such methods as: comparative analysis for the generalization of organizational foundations of the institutionalization of family farms; method of system and structural analysis for analytical assessment and structuring of organizational priorities of institutionalization of family farms in the market system, taking into account trends of the domestic agricultural sector. Research results. Methodical bases of institutional formalization of family farms have been revealed. It has been developed conceptual principles for study of perspective tendencies concerning effects for approval of the economic status of family farms taking into account the national institutional base and foreign experience of establishing a farm structure. Elements of scientific novelty. There have been outlined methodical representation of the institutional basis for formalization of management subjects in the agrarian sector, which includes defining principles, harmonizing criteria, defining status of a family farm, as a form of management, in accordance with the legal norms of the Ukrainian legislation and assessing the foreign experience of establishing a farmer's structure. Practical significance. Theoretical and methodological provisions of the institutionalization of family farming in the organized market mechanism of management and main criteria for their identification allow to further research of efficiency, prospects of development, as well as development of program policy documents for regulation and support of the specified organizational and legal form of management. Tabl.: 3. Figs.: 4. Refs.: 23
institutionalization; family farm; private peasant farms; market mechanism; farmer's way; market mechanism