Abstract: As an important form of agricultural industrialization in our country, facility agriculture industry has been greatly developed in recent years, but due to fierce market competition, facility agriculture industry is suffering low effectiveness. Taking Yanqing county, Beijing city as an example, supported by industrial organization theory, this paper attempted to make a thorough analysis of Yanqing爷s facility agriculture industry by using SCP paradigm. Result showed that industry operation was troubled by two dilemmas, scale dilemma and prisoner爷s dilemma, and the solution to free the industry from difficulties was the government policies. Based on the conclusion of analysis, the paper adjusted traditional SCP paradigm, highlighted the importance of government policies, and made some suggestions for the formulating facility agriculture industrial policies.