The paper analyses the impact of institutional factors on the agricultural sales of the individual farmers in Romania. The analysis relies on the Agricultural Household Survey conducted in 15 villages in 2003 in Romania and on interviews with the agricultural engineers at the village level. The study uses the social analysis framework of WILLIAMSON to structure and analyse the impact of institutional factors on sales. Furthermore a logit regression is employed in order to empirically verify the relation between institutional and other factors and sales. The study finds that high transaction costs on the input and output markets, The transaction costs involved in the establishment and enforcement of property rights negatively impact the decision of sales as well. The results suggest that until these factors are not addressed the Romanian agriculture will continue to serve as a social buffer and not as a commercial sector.