This paper discusses various policies regarding current problems of China's rural development: Firstly, the author put forward the opposing reason in increasing the agriculture subsidy as follows: 1) Current fiscal revenues of the state cannot take on so heavy subsidy. 2) Subsidize to agriculture will lead to farm surplus, thus brings a series of problems. 3) If cancel the subsidy, once we begin subsidize to agriculture, it is apt to cause the political issue. 4) Farm produce subsidy will be very difficult to carry out. Secondly, The article propose the feasible way in which the finance supports the countryside: 1) Cancel agricultural tax and local product tax. 2) Pay for salaries of rural primary and secondary school teachers by state revenue. 3) Strengthen the supporting dynamics to the agricultural research. 4) Set up the integrated national market for farm products is important for narrowing regional income disparities. 5) Provide guidance to ensure a proper and orderly movement of rural labor. Surplus rural labor moving to non- agricultural industries and cities and towns is an inevitable trend in industrialization and modernization.