Farmers' income is a key problem of agricultural economy, which is related with rural society stability and national economy's development. The annual growth of farmers' income slows down recently after the big flood happened in the Yangtze River in 1998. It is the key factor strengthens the primary position of agriculture in the whole Poyang Lake region that linking the current condition analyses how to improve the situation which farmers' income is decreasing, while the NO.1 document of the State Council is issued.Based on the background which carried on returning land to lake after the big flood happened in the Yangtze River in 1998, this paper advance positive analysis about the influence which the project presented to farmers' income and probe into the deep reason and put forward some suggestion about it.The main conclusion of article is: in the short term, returning land to lake produced some negative effects with farmers. However, in the long term, it is the economical and feasible way to flood-control measures and sustains development. It also is the inevitable choice to promote urban and rural construction in Poyang Lake region in the long run.In the end the paper provides corresponding countermeasures in view of the problems. It is essential to explore new ways to take advantage of wetland resource; speed up the upgrading of industrial structure; transfer more surplus labor to urban.
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