In order to analyze the impacts of financial subsidies on supply and demand of the agricultural machinery mutual insurance, Shaanxi is taken as an example and methods of t‑test and double logarithm linear regression are used to make a vertical comparison. The results show that the premium income, the insurance density, the compensation expenditure and the simple loss ratio are all obviously raised after subsidies are carried out. Every 1% increasing in financial subsidies will increase premium income by 0.98%, the insurance density by 0.78%, the compensation expenditure by 2.08% and the simple loss ratio by 0.96%, respectively. In this paper, one‑way ANOVA is used to make a horizontal comparison. The results show that the premium income of Shaanxi Province is significantly higher than that of Hubei Province while there is not obvious difference compared with Hunan Province. The insurance density, compensation expenditure and simple loss ratio in Shaanxi Province are all significantly higher than those of Hubei and Hunan. In general, financial subsidies have a significant positive impact on supply and demand of the agricultural machinery mutual insurance. The following suggestions are put forward that the central fiscal should provide premium subsidies for the agricultural machinery mutual insurance, expand local fiscal subsidies region scope, step up efforts to subsidize the insurance, reduce the premium rate and improve protection level.