The paper investigates the significance of external and internal transaction costs and risk in agricultural in the Oblast Tartarstan. The analysis is conducted for independent farms and farms which are member of an agroholding. The result provide indication that external transaction costs are more pronounced in independent farms than in agroholding members. However, average prices do not differ among the organisational forms. With regard to internal transaction costs (or inefficiency) the result is revered. Inefficiency in agroholding members is considerably higher than in independent farms. However, the estimation suggests that this result is due to more intense risk management in agroholding members. Thus, members of a business group have a more intense inputs use, however, these are rather allocated to reduce uncertainty of production than to increase production.