The directions of development of the agricultural sector, farming systems, processes of interaction between rural commodity producers and local self-government in the conditions of the digital economy are considered. Current problems of farming systems arising from the use of digital technologies in the agricultural sector are identified. The article notes that the development of farming systems in the digital economy is beginning to change the role of local government, and the participation of society in production processes is intensifying. The organization of production processes of land use, based on the use of artificial intelligence systems, the use of network technologies in management systems, electronic cadastres, is a factor that ensures increased efficiency of agricultural production and the elimination of corruption in resolving issues of distribution, use and accounting of land. In the digital economy, the formation of an institutional environment is ensured that facilitates the organization of effective interaction between business entities, the reduction of transaction costs, the introduction of innovative technologies, the development of social capital, and ensuring the growth of the economy of rural areas.