Abstract
Forest resources are an important part of natural resources and terrestrial ecosystems. With the quick economic development and the national power improvement, China has been increasing the investment in forestry, including many key forest projects, natural reserves and forest parks. However, the lack of adequate and reliable capital input has become a major bottleneck to the development of ecological forestry in China. Although the Chinese government has established the policy to encourage mutual investment in forestry by collectives and individuals to solve the problem, farmers, the subjects of forest management haven't the economic competence to invest in forestry. This has reduced the enthusiasm of farmers' forest management and has been an obstacle of forestry development. For this reason, the countermeasures should be implemented as soon as possible in order to improve farmers' income, and make them play important role in the forestry development.
