Cooperation of small horticultural producers and the effectiveness of this cooperation is a very important issue for the development of the agricultural sector in Ukraine. Therefore, the goals of this study are analysis of existing models of cooperation, and identification of cooperation models which show promise for effective application among small agricultural producers, within the current legal framework, in Ukraine. Additionally this study aims to identify the factors which act as obstacles to the effective development of cooperation among rural citizens. In the process of conducting the study, the following methods were used: dialectical reasoning, abstract logical reasoning and systematic analysis, theoretical and methodological generalization of cooperation theory, definition of the essence of cooperation and its organizational forms. For identification of the main factors inhibiting cooperation, a survey methodology was used. Surveys were conducted among small-scale and large-scale horticultural producers. This research is based on the fundamental provisions of economic theory, legal documents (e.g. laws, bylaws and regulations), academic publications of Ukrainian and international scholars in the area of cooperation, Ukrainian government statistics, and data from international development projects in Ukraine. As a result of the study of the main models of cooperation, and in light of socio-economic conditions and legal environment, the agricultural service cooperative was identified as the most applicable model. The main social, economic and legal road-blocks to the successful development of cooperation among agricultural producers were determined. Among the main economic barriers is poor access to financial resources for small producers, as available credit options have high interest rates.