State regulation of agricultural production in Ukraine is aimed at increasing production and ensuring food security of the country and its population. However, the low level of social development, as well as social problems, which in rural areas among the population have now become particularly acute, reduce the potential of this area of the national economy. That is why the question arises of finding active incentives, tools and mechanisms that would encourage the rural population to act and create a promising basis for improving its social status. One of the main existing problems of state regulation of agricultural production in Ukraine is the provision of financial incentives to large agricultural producers. And although such a policy has allowed to increase export potential, but has led to the destruction of rural areas and the impoverishment of the rural population. The intensive activities of these producers on the basis of intensive technologies have led to significant imbalances in the development of the industry with the prevalence of crop production and the decline of livestock, reduced soil quality, as well as rising unemployment of the rural population. This has led to an increase in the shadow sector through illegal activities and hidden income.