Abstract: The eleventh five-year plan on national economy and social development that is passed by the Fourth Session of the Tenth National People’s Congress put forward building a new socialist rural areas. For realizing the objectives, increasing farmers’ income will be the main task on the agriculture and rural work, and step to well-off society for farmers will be accelerated. The paper explains the present situation of increasing farmers’ income from five aspects including multi-resources of increasing farmers’ income, policy failure of increasing farmers’ income and so on. And combining with the facts of unsuitable agricultural structure and hard transfer employment for surplus-labor, the paper analyzes the main reason why increasing farmers’ income becomes slow. Then the paper gives some policy suggestions such as making agricultural strategic adjustment and accelerating rural urbanization through constructing small town to increase the farmers’ income.