I went to http://www.rseek.org/ and entered agnes algorithm and found the CLUSTER package on CRAN has the following function details for function AGNES.
Details
agnes is fully described in chapter 5
of Kaufman and Rousseeuw (1990).
Compared to other agglomerative
clustering methods such as hclust,
agnes has the following features: (a)
it yields the agglomerative
coefficient (see agnes.object) which
measures the amount of clustering
structure found; and (b) apart from
the usual tree it also provides the
banner, a novel graphical display (see
plot.agnes).
The agnes-algorithm constructs a
hierarchy of clusterings. At first,
each observation is a small cluster by
itself. Clusters are merged until only
one large cluster remains which
contains all the observations. At each
stage the two nearest clusters are
combined to form one larger cluster.
For method="average", the distance
between two clusters is the average of
the dissimilarities between the points
in one cluster and the points in the
other cluster. In method="single", we
use the smallest dissimilarity between
a point in the first cluster and a
point in the second cluster (nearest
neighbor method). When
method="complete", we use the largest
dissimilarity between a point in the
first cluster and a point in the
second cluster (furthest neighbor
method).
Clustering is a pretty huge topic and you'll find many packages for R that implement some form of it. When you have both attributes and covariates, combining clustering with ordination can sometimes yield more insight.