The development of small and medium-sized businesses in the agricultural sector, increasing their contribution to solving food security problems and improving living standards in rural areas are given much attention both at the state and regional levels. One of the challenges of the modern economy is digital transformation, and small and medium-sized businesses must fully integrate into these processes. In addition, awareness of the importance of these transformations requires building a mechanism for the formation of a digital environment for small and medium-sized businesses, taking into account industry affiliation, which is necessary for the implementation of industry projects initiated today in Russia. The study was based on data from the Federal State Statistics Service, federal laws and programs, scientific works by domestic authors on the development of small and medium-sized businesses and the digital transformation of the economy. The study of problem areas in the formation of a digital environment for small and medium-sized agribusiness was carried out using the methods of analysis, synthesis and deduction. The paper presents the main results of the study, in particular, it outlines the characteristic features inherent in farms, reflects the contribution of small and medium-sized agribusinesses to increasing the volume of agricultural production, indicates some omissions in the current regulatory legal acts governing the activities of small and medium-sized businesses in Russia in terms of regulating digital transformation processes. Despite the initiatives implemented by the government, the analysis of the current situation made it possible to identify a number of factors hindering the formation of a digital environment for agribusiness. The identified trends indicate the need for a detailed elaboration of a mechanism that allows small and medium-sized businesses to fully integrate into digital transformation processes.