The main purpose of this study was to analyze barriers affecting development of wheat insurance in Asadabad County. This study was an applied research that based on correlation-descriptive methodology. Data were collected by using questionnaire, which its estimated Cranach’ s Alpha was 0. 86. Statistical population of the study consisted all wheat farmers of Asadabad County during 2010-2011 farming year, in which 318 wheat farmer were selected by random sampling method. Data analysis was conducted in two sections: descriptive and inferential analysis, using SPSS software. In this research, personal, professional, administrative, and institutional characteristics affecting on insurance process were analyzed. Data analysis showed 11 effective factors, including: administrative weakness, land-related problems, personal-knowledge barriers, institutional uncoordination, lack of human resources and information, management procurement problems associated with tracking compensation discontent, un-satisfy and the expense of insurance and wrong way of compensation assessment. These factors explained 53. 17 percentages of total variances of barriers.