Abstract: Based on the data from 1997 to 2016, the effects of rural investment level index, rural savings rate index and rural financial institution credit index on farmers' income growth in Jiangsu Province were investigated. Results show that the development of rural finance in Jiangsu Province is an important reason for the increase of farmers' income, but the increase of farmers' income has not become the reason for the development of rural finance. Based on this, under the background of China's economy entering a new era, it is necessary to further reform the rural financial system, play the leading role of the rural formal finance, perfect and develop rural informal finance, improve the quality of farmers, and improve the quality of economic growth.

Key words: rural financial development, the increase of farmers' income, Granger causality test, Jiangsu province