Sustainable development of agriculture is one of the aims of China’s agricultural and rural development. The key link of realizing the aim is whether the farmers want to adopt Environment-Friendly Technology. This article analyzes two types of institutional arrangement about how to promote the farmers to adopt EFT, one is how to share the expected revenue of EFT and the other is how to reduce the cost and risk of adopting EFT. Based on this, the article discusses the influence of current institutional arrangement on farmers and points out that it doesn’t have invigorative function and needs to be improved.