The article is focused on concretisation of modern problems and suggestion of possible ways of capitalisation of agrarian sector of Ukraine as a basic constituent of competitive development of agro-industrial production. The paper provides analysis of current state of formation of administrative order of agrarian sector of Ukraine; it shows that considerable volumes of property of agrarian business entities did not provide necessary conditions for agrarian assets to become functional capital able to create new capitals due to the gaps in legislation, unfinished land and infrastructure reforms. The methodologies of evaluation, accounting, characterization and registration system are not adjusted to the European standards; it complicates the use of assets as financial instruments and leads to the development of negative trends in property redistribution, shadow schemes of privatization of state property, disintegration of brunches of agrarian production, ill development of stock market and mortgages. All these factors make it complicated for the agrarian business entities to enter and work in the markets of investments, credits, innovations, insurances; it also complicates the process of search for business partners and cooperation with foreign business enterprises. The most complicated issue of the agrarian sector is introduction of agrarian land market. It makes it impossible to capitalise the most significant agrarian asset - land resources, and use of land as the most efficient globally recognised instrument of attraction of extra financial resources into agrarian sphere, primarily via land credits and mortgage mechanisms. The topicality of solving this matter is based on the considerable cuts of state budget funding, reduction of breaks and special tax treatment for agrarian producers, significant increase of tax volumes for agrarian business entities that leads to great deficit of financial resources and complicates functioning of the brunch. As for the elements of scientific novelty, the authors substantiate the necessity of European standardisation of institution of property, as it will make it possible to provide the assets of agrarian business entities with qualities of functional capitals and create favourable conditions for using them as financial tools for creation and attraction of new capitals. The cornerstone component of capitalisation of agrarian sector is introduction of introduction of agrarian land market that will secure efficient crediting mechanisms. New approaches towards formation of agrarian mortgages are suggested. The suggestions provided in the article could be used for enhancement of organisation of completing the process of property institutionalisation that will turn current agrarian assets into functional capital. There are essential suggestions for measures for formation of system of mortgages. Tabl.: 2. Figs.: 1. Refs.: 11.