Property rights allocation directly affects the way of functioning and the economic results from the activity of the organizational forms. Different types of cooperative forms of organization are distinguished in theory and practice, based on the specifics of property rights allocation. Based on the analysis of property rights allocation, the purpose of this article is to bring forth the main problems of the functioning and opportunities for overcoming them in modern Bulgarian agricultural cooperatives. The realization of this purpose is achieved through the following: clarification of the nature and characteristics of property rights from a theoretical point of view; presentation of the existing in theory and practice main cooperative models, based on the allocation of property rights; analyzing the allocation of these rights in present-day Bulgarian agricultural cooperatives with the ensuing problems of their functioning; laying down some guidelines and recommendations to optimize this allocation. The necessary empirical information was collected through a questionnaire survey of 21 agricultural cooperatives in the region of Plovdiv in 2008-2010.