Abstract:Based on the panel data of 29 provinces from 2005 to 2015 in China,this paper uses threshold panel model and spatial econometric models to analyze whether the nonlinear and spatial correlation exist between rural financial development and farmers’ income. The result shows that the influence of rural financial development on farmers’ income is not a simple linear relationship,there is a significant threshold effect,and rural financial development has different promotion or inhibition effect on farmers’ income with the economic development in rural areas. Farmers’ income in space is not a random distribution,and there is a positive spatial agglomeration effect. Rural financial development can significantly promote the increase of farmers’ income under the Durbin econometric model in different weight spaces.