Sustainable agricultural development, in contrast to growth, is not exclusively economic phenomenon, but combines social, political and ecological components. Implementation of the concept of sustainable development of rural areas will contribute to efficient use of economic resources, improve living standards of rural residents, solution the socio-economic and ecological problems of rural areas and ultimately improve the competitiveness of the agricultural sector and theUkraine’s economy as a whole.

The question of integrated and balanced development of rural areas are actual both for foreign and domestic researchers, but many methodological and applied problems of providing balance all functions agrarian, social and ecological relations at the level of rural settlements remain insufficiently studied and require thorough analysis and evaluation.

The article is devoted to actual problems of formation of theoretical and methodological approaches to institutional support development of rural areas and decision of practical problems of implementing in action complex system of stimulation institutional development of rural areas and local communities in Ukraine. The article is noted that development of rural areas received the greatest understanding to modern CAP which depending on level of application (European, national, regional) there are a few different approaches that clearly singles out in concepts and models (sectoral, redistribution, territorial) development of rural areas.

Selected by Ukraine European vector development also should provide similar approaches, strategies and programs of rural development, which should be systematically implemented in practice of domestic agricultural sector reforming. However, existing national and regional programs do not fully cover all variety of social and economic development of rural areas issues, focusing mainly on the economic component thus reflecting a common approach in Ukrainian politics to social issues as secondary.

In the view of the authors modern programs of rural areas development have complex and systematically implemented at all levels (national, regional, local), with application specific to each level models and tools based on the use relative advantages, finding points of growth, identifying and supporting of priority directions of rural areas development. And taking into account peculiarity of rural areas which expressed in the multifunctional combination of economic and social factors, main institutional components of rural areas development are political, industrial, social, ecological, socio-cultural and demographic components. The wide range of institutional components of rural development based on understanding that development of rural areas is not only expansion material and technical basis, housing, social infrastructure in rural areas, but also the growth of living standards associated with the spiritual and social needs of the villager.

In the article is showed that main directions of the integrated system of stimulation institutional development of rural areas and local communities should be directed to: conservation of natural landscapes, ethnic and cultural values and traditions inherent in specific rural areas; clear identification of mechanisms and sources of financing of rural development programs with priority consideration of local initiatives; wide involvement in implementation of projects of socio-economic development of rural areas the local population; increase the efficiency of agricultural advisory services and providing information and management support realization of these projects; formation of a favorable institutional and psychological basis for socio-economic rural development, overcoming destructive effects of opportunistic behavior of certain groups interactions and replace it socially sanctioned norms by reducing the role of informal institutions in decision management solutions in agriculture.

Keywords: agrarian relations, institutions, institutional components, rural areas, sustainable development.