Abstract: This paper analyzes the impact of rural financial development on the increase of farmer’s income. On this basis, it does the evidential research between the two items according to the data of 1978 to 2004. The results show that in the years from 1978 to 2004, the change of rural employment structure, the purchasing price index of agriculture products and the rural financial development are positively related to the increase of farmer’s income. The Granger test results show that the rural financial development is the Granger cause of the increase of farmer’s income.