Abstract: A system for evaluating the development of agricultural economy is developed with nine Level III indicators. By cluster analysis,the 11 cities（zone） of Shaanxi province are divided into three classes, including leading areas in agricultural economy, relatively developed areas in agricultural economy, and developing areas in agricultural economy. In combination with correlation analysis, major factors affecting the development of agricultural economy in Shaanxi province are obtained, and some suggestions are provided for improving the development of agricultural economy.

Key words: rural economic development, cluster analysis, correlation analysi, Shaanxi province