The Ministry of Agriculture and Forestry has operated the system to evaluate the performance of local governments' agricultural policies since 1994. The purposes of the performance evaluation system are to enhance effectiveness of agricultural development projects and to vitalize local government's agricultural policies. The rapidly changing circumstances surrounding Korean agriculture require the transformation of this evaluation system. This paper investigates the current situation of the performance evaluation system of local governments agricultural policies and suggests ways to improve the performance evaluation system. AHP(Analytical Hierarchy Process) method is also applied to derive good performance indicators and appropriate weights of performance indicators.