Abstract: In the development of the agricultural cyclic economy, the local government is playing an indispensible role and is facing the challenge from various aspects as well. From the current situation of China, we can find the problems as misunderstanding, lack of strategic planning, inadequate propaganda, unscientific management, poor public service, less fund investment and guarantee from policy and system in the local government actions and the development of agricultural cyclic economy. Accordingly, the government has to improve its conception, make the scientific strategic planning and the full use of the propaganda as the guidance, deepen the reform, strengthen the public service, widen the fund collecting channels for the further investment, and perfect the guarantee system in an attempt to drive our agricultural cyclic economy to develop healthily and quickly.