Abstract::Based on VAR modelꎬ this paper analyzes the dynamic relationship between private finance and farmers′ income in Xuancheng City in order to promote the growth of farmers′ income and speed up the solution of issues in relation to agri ̄ cultureꎬ rural and farmer. Cointegration test shows that private finance and farmers′ income maintain a long-term stable and balanced relationshipꎻ Granger causality test shows that private finance and farmers′ income are cause and effect to each otherꎻ Impulse response function analysis shows that the response of farmers′ income to the impact of private finance is negativeꎬ and the response of private finance to the impact of farmers′ income is positiveꎻ variance decomposition shows that the impact of private finance on farmers′ income is greater than that of farmers′ income on itselfꎬ and the impact of private finance on itself is greater than that of farmers′ income on it. Based on the above conclusionsꎬ the paper puts for ̄ ward some policy suggestionsꎬ such as regularizing rural financial systemꎬ classified management of private financeꎬ and improving the efficiency of rural economy.