A VARmodel authentic analysis of the effects of agricultural loan, financial expenditure, collective investment and household investment on the farmer's income between 1985 and 2005 shows no prominent growth of the farmer's income promoted by agricultural loan and financial expenditure or Granger relation between agricultural loan and financial expenditure and the farmer's income. Since the circulating period of agriculture differs from that of industry, the consumption and serious redistribution in the course of transfer resulted in a low efficiency of using agriculturesupporting funds. In order to better the incomeincreasing effect of agricultural investment, an essential way to follow is to seek a better incorporation between financial policy and policy of agricultural loan so as to maximally resolve agricultural finance and loan in productive investment of agriculture which may effectively increase production.

agricultural loan; financial expenditure of agriculture; efficiency of agricultural investment; the farmer's income; maximum resolvement