This paper describes and evaluates the impact of the transition process in the agricultural sector in the Czech Republic; its objective is to analyse and clarify the outcome of transition, and the prospects of the sector. The paper starts with examination of agriculture under the communist regime, continues with the transformation process, in particular changes in total economic output, employment, production and other structural attributes. The qualitative assessment examines the transformation of state and collective farms into other corporate structures, where assets are not based on collective ownership. The paper further questions the reasons for a lack of profit and credit sources. The analysis is concluded with suggestions for further restructuralisation.