Taking Zhangye City as an example, the thesis analyzes the restricted factors of resources and environment confronted by the agriculture in arid area of Hexi Corridor: the first is the agricultural natural resources. The area of cultivated land decreases year by year, and there are sharp decrease of biological diversity as well as the shortage and waste of water resources; the second is the ecological environment. There are critical soil erosion, frequent natural disaster and outstanding agricultural area source pollution; the third is the rural economy. The agricultural structure still can not meet the need of agricultural development in recent years, and the proportion of agricultural product processing is low. It points out that implementation of agricultural recycle economy is the necessary choice of the agricultural development in Zhangye City. Developing recycle economy is conducive to improving ecological environment and realizing agricultural sustainable development; developing recycle economy can solve the agricultural area source pollution to much extent and protect rural environment; developing recycle economy is conducive to adjusting rural industrial structure, increasing job opportunities and increasing farmers’ income; developing recycle economy is conducive to elevating the international competitiveness of agricultural products. The thesis also has put forward the countermeasures of developing agricultural recycle economy in Zhangye City as follows: firstly, fostering the ambience of the development of agricultural recycle economy; secondly, forming the incentive mechanism of development of agricultural recycle economy; thirdly, broadening the investment channel of development of agricultural recycle economy; fourthly, perfecting socialized service system of agricultural recycle economy.