Abstract:By using OLS model, impulse response function and principal component analysis methods comprehensively, an empirical analysis on the relationship among agricultural human capital, agricultural modernization, and finance expenditure support agriculture is made in china during 1995-2011. The research demonstrates that the level of agricultural modernization in China is increased year by year and the peasants' living standard also improved. Meanwhile, rural human capital, as well as finance expenditure support agriculture in the short term inhibits the improvement of rural per capital net income. Only increase the financial support, establish reasonable financial plans, integrate the existing educational resources in rural areas, can we promote the process of agricultural modernization, as well as increase farmers' incomes.