in recent years, China's local governments take to supporting the development of family farms as the important work of the local agricultural modernization drive. They work out a number of financial policies to support agricultural development. Building agricultural industry investment fund is one of the policies. Compared with other measures, it has a unique advantage that can combine guiding with supporting to pull the promotion of family farm. Thus it should become a drive in developing the family farm. But some local governments have not realized the role of investment funds in the development of family farms.