Based on China's realities, this paper analyses the specialty of agriculture insurance market failure, points out that China's agriculture insurance is two weaker industries' combination, information asymmetry is severe for minor scale, and insurability is slim because of produce's low price and so on. Agriculture insurance should be a kind of compulsory insurance run by commercial insurers. Administration should subside premium to peasants, relive insurers' tax burden, and pay some operation fee to insurers, and construct reasonable agricultural insurance system and raise agricultural product price.