The invention provides a method for locally culturing and producing arbuscular mycorrhiza fungus biological agent fertilizer in farmlands. The method is characterized by comprising the following steps of: 1, preparing a farmland culturing pond and a culture medium; 2, transplanting and culturing arbuscular mycorrhiza fungi; 3, absorbing and converting biological fertilizer; and 4, collecting biological fertilizer. Compared with the prior art, the technique adopted in the method has the advantages that: 1, the raw materials are readily available, the culture of the raw materials is easy, and the cost is low; 2, the culture technique and the production technique are conveniently popularized in rural areas; and 3, the production technique is green and environment friendly, which facilitates the development of modern agriculture. In addition, by using the fertilizer of the invention, the used amount of the quick-acting fertilizer is reduced and the used amount of partial fertilizer is reduced, so that the pollution to soil, water resources and air is lowered, and the fertilizer is particularly suitable to be used for planting seedlings of farm crops and medicinal plants. Tests show that the yield of the farm crops cultured by using the fertilizer of the method is improved by over 50 percent compared with that of the farm crops cultured by using the common fertilizer.