This paper introduces current situations of agricultural insurance market in Shaanxi Province. It is indicated that development of Shaanxi's agricultural insurance industry is faced with following difficulties. First, risks of agricultural production are various, occurrence frequency is high and losses are great. Second, effective supply of commercial insurance companies for agriculture is seriously inadequate. Third, farmers' demand for agricultural insurance is restricted by many factors. Fourth, government support for agricultural insurance is not generous. Then, it puts forward strategies for development of agricultural insurance in Shaanxi Province. These include: encourage commercial insurance companies to actively enter agricultural insurance market; establish perfect agricultural reinsurance system; strengthen propaganda of agricultural insurance and speed up agricultural industrialization; enhance policy support for agricultural insurance to promote its development.