Abstract: Precision agriculture is a modern agricultural concept and it is also an important component of and a driving force for modern agriculture. Precision agriculture promotes the development of modern agriculture by improving the refined degree of production input, process and output. Therefore precision agriculture should play a critical role in the development of modern agriculture in China. However, during the development of modern agriculture, there still exist some challenges, such as the distortion and mismatch of production factors in agriculture, the inadequate modern science and technology, the flawed development of the new management subject in rural area, unbalanced development of resource and environment, rising costs of labor, land, and input, and distorted crop structure. These problems forced China to speed up the development of precision agriculture. To promote the development of precision agriculture, this paper suggests: to create some refined agricultural product bases, to establish refined precision production, logistic, and marketing system, to provide more professional training for farmers to create educated rural labor force, and to speed up the development pace of agriculture through science and technology, product quality, and green operations.