On the background of agricultural tax exemption and reduction implemented in China,this paper analyzes the markets for general farm products and agricultural means of production defines the "nominal tax burden" and "real tax burden" for the farmers in China and compares the "nominal tax burden" and "real tax burden" according to the transferred theorem of tax revenue of the market.

The rising prices of agricultural means of production makes farmers take measures on agricultural production resources allocation,crops structure and investment structure in order to optimize the production process which will affect all related invested agricultural production.

This paper portrays the dynamic relationship between price of agriculture production materials and income growth of rural residents from 1978 on the basis of vector autoregression model, impulse response function and variance decomposition approach.

According to recent research on agriculture production decision, the method of Game Theory is adopted in this article to analyze quantitatively the course of farmers’individual decision and united .

Through relevant analysis of agricultural subsidy and productive investment in agriculture,the relationship between agricultural subsidy and productive investment in agriculture of farmers can be found.