The 8 year implementation of the policies of converting cultivated land into forestland/ grassland in Wuqi County has showed considerable effects.The environment of project area is improved,the integration production capacity of agriculture is enhanced,and farmers’income is raised through land subsidy.Furthermore,the practice in the county may be the prelude of a formal system of ecological compensation toward Chinese farmers.However,there are some problems in practice.For instance,the distribution and plant structure of converted lands are not in an optimal state,the efficiency of stock raising sustained by grass resources develops slowly,and the implementation of policies lacks necessary flexibility.This paper suggests that the policies should be further improved though enhancing the guidance of landuse plan,confirming the bound of converted land reasonably,and optimizing the standards of land subsidy according to the principle of ecological compensation.Moreover,boosting reform of landproperty right,promoting reasonable land circulation and its scale management,and developing subsequent agricultural industries are also the urgent affairs.