Abstract: Implementation of the new agricultural insurance depends on an appropriate institutional environment. In order to form a comprehensive and in-depth understanding about the system of this policy, this article uses the new institutionalism of sociology for reference, from the regulative, the normative and the cultural-cognitive system to do normative analysis. At the same time, this article also investigates the cognitive legitimacy of the policy at the grassroots by means of questionnaire. As the results, this policy is in the lack of cognitive legitimacy, which reflects that foundation of the policy implementation is not perfect. In this regard, it should take three ways action to optimize the system of this policy implementation. Firstly, it is necessary to strengthen the regulative system construction that matches the new agricultural insurance. Secondly,it is necessary to enhance the policy's implementation transparently and formally. Thirdly, it is necessary to propagandize the new pension culture actively.