China has formed a unique model of policy agricultural insurance in the practice of agricultural insurance. Its essence is an institutional arrangement of "government financial subsidies + business operations of insurance companies + farmers voluntarily insured". Its fundamental attribute is a people-benefit project in order to increase investment in agriculture, reinforce the agricultural industry, and enhance the ability to resist risks. It can be concluded from the current situation and the trend in the future of the agricultural insurance that farmers' adoption of agricultural insurance will constantly be a worthy issue about the three-agriculture issue in the future, and the cognition of restricting factors in farmers' adoption of agricultural insurance will directly influence or even determine the direction of national agricultural insurance policy and the support force. Farms are micro-economic units in Chinese farming areas and behavioral agents who adopt agricultural insurance. Taking 223 households questionnaires of 22 administrative villages in Yangling national modern agricultural demonstration park of Shaanxi province as samples, this paper analyzes the influencing factors of farmers' adoption of agricultural insurance on the basis of the structural equation model, explores the underlying mechanism of decision-making behavior which inducing farmers to adopt agricultural insurance, and provides the basis for urging agricultural insurance to be farmer-demand-driven.