From per capita net income of peasants，agricultural deposits and loans as well as loans to township enterprises，rural financial institutions，such as rural credit cooperatives，new-type rural financial institutions，agricultural insurance，etc，this paper analyzes rural finance development of the western 12 provinces during the first decade of the Grand Western Development Program.The analysis shows that：① Per capita net income of peasants has steadily increased and living standards has continuously been improved.② Agricultural deposits and loans increased year by year and township enterprises loans tend to decline.③ Building of rural financial institutions speeded up and financial services are obviously improved.④ Agricultural insurance rapidly developed and rural micro-life-insurance is developing.During the first decade of the Grand Western Development Program，the western rural finance of the 12 provinces has made great progress.However，due to the late start in building China’s rural finance，there are still some tough issues，such as the big income gap between rural and urban residents，the low proportion of agricultural loans，the prominent difficulty of township enterprises in getting loans，the single channel of financing in a agricultural enterprise，and the small coverage of agriculture insurance.This paper gives some suggestions to deal with these problems.