The Grain for Green Project( GGP) is a very importantprogram to convertthe slope farmland to forestor grassland,which is the bestapproach to reduce soil erosion. The farmers’living security is a key issue in the project. A rural household survey was made for 59 families in Wuqi County,Shaanxi Province,where the GGP was started in 1999. Results showed thatthe GGP had a little effecton improving farmers’ economic income structure and the subsidy from GGP was an importantsource for the families’income. The tuition and medical fees were the main payouts of the family,which led to 2/3 of the families in debt. As a result,local governments have to pay much attention to maintain the farmers’living when the subsidy from GGP will be terminated 8 years after the projectstarted. Suggestions should be focused on how to raise the incomes and reduce the payouts of family as the subsidy continues. On the other hand,governments should implementthe eco-compensation policy to facilitate the farmers in the GGP area.