To research the influence that Shaanxi’s farm products processing enterprise effect farmer’s income,after the Co-integration Test and Granger Causality Test,this paper analyses the farm products processing enterprise and farmer’s income based the data from 1995 to 2007.It can be concluded that the farm products processing enterprise’s output and farmer’s income have the effect of reciprocal causation.When the farm products processing enterprise’s output value increase 1 unit, the farmer’s income can increase 0.899 7 unit in the long period.The co-integration can pull the fluctuation to the equilibrium state at the power of 7.79% in the short period.The reciprocal causation between farm products procession enterprise’s output and farm’s income can be lagged 1 year.Based on this conclusion,the paper make the proposal of doing good development plan,promoting deep processing and introduction the supportive policy to improve the development of farm product processing industry.