The present invention provides an agricultural film formulation, which comprises about 40 wt% to about 70 wt% inorganic mineral powder, about 15 wt% to about 30 wt% high-density polyethylene, about 8 wt% to about 20 wt% low-density polyethylene, about 5 wt% to about 10 wt% biodegradable plastic, and an optional auxiliary agent, based on total weight of the formulation. The present invention also provides an agricultural mulch film made from the agricultural film formulation and a preparation method thereof.