There is a serious agricultural insurance exclusion in China,which has a certain impact on farmers’ income. Based on crop insurance data from twelve counties of six northern provinces in 2015-2016，we adopted the Propensity Score Matching method to correct the possible sample selectivity bias and systematically examine the impact of agricultural insurance exclusion on farmers’ income. Empirical result shows that agricultural insurance exclusion has a significant negative impact on farmers’ income,and the difference in agricultural income between excluded farmers and non-excluded farmers is 6%. The results of heterogeneity analysis indicate that the increase of agricultural income of non-excluded young farmers and expanded non-excluded farmers is significant. In addition,compared with the farmers with higher risk of disaster,low affected farmers who are not excluded have a low probability of being affected and getting compensation. So agricultural premiums become additional agricultural costs and reduce their income. Therefore,the government should promote policy-based agricultural insurance by increasing compensation level,expanding scope and designing more insurance plans. By reducing the exclusion,agricultural insurance would play more significant role in promoting income of farmers.