The policies for supporting agriculture have a long history in developed countries, keep basically the same changing law as the policies for supporting industry and belong to the basic method of international trade protectionism. “Industrial regurgitating agriculture” is a special economic category under China’s overall urban and rural development strategy and its essence is to promote the income level of agricultural population and to narrow the income gap between urban and rural inhabitants. The contribution rate of China’s land output basically reaches the limit of current technologies permitting, as a result, to raise income level of rural inhabitants and to shrink the income gap between urban and rural areas only by depending on developing agriculture are not an effective path. The main function of modern agricultural subsidy policy aims to guarantee grain safety but is restricted by China’s present economic development level and financial power and can not be taken as the main method of “industrial regurgitating agriculture”. Thus, the chief way for “industrial regurgitating agriculture” is to accelerate the transfer of agricultural labors to non-agricultural sectors.