Abstract: The current policy of China farmland protection is a kind of principal agent system. It mainly relies on land quota and severe punishment. But this policy ignores the local governments motivation of farmland protection, which results in incentive incompatibility between central and local government. This thesis estimates the farmland protection quantity in and quality, the former is affected by land finance, illegal farmland use; the latter by grain surplus, financial expenditure and sustainable development of agriculture. Based on the estimates above, we divided farmland protection into deficit area, balance area and surplus area. According to the conclusion, a compensation model for China farmland protection named Longitudinal and Horizontal should be used to rectify the unfairness to internalize the externalities, to enhance the inefficiency of farmland protection, which has theoretical and practical feasibility. model