Abstract: In 1999, the Chinese government initiated a "Grain-for-Green Project", aiming to reduce soil erosion and to improve regional environmental quality in the Loess Plateau. This project was firstly started in Gansu, Shaanxi and Sichuan provinces, and then was expanded to 25 provinces of China. As one of the largest ecological rehabilitation projects in the world, the attitudes and perceptions of farmers towards Grain-for-Green Project are significant for the successful implementation. However, it was less known at present.This paper focuses on the environmental awareness and the attitudes towards Grain for Green Project in two kinds of farmer households. The analysis is based on a semi-structured interview of 69 farmer households by means of participatory rural appraisal (PRA). According to the source of income, the farmers were divided into two groups, on-farm-oriented and off-farm-oriented. Although some differences remain, most respondents have positive attitudes towards environmental protection and Grain-for-Green Project. After that, binary logistic regression models were used to identify the major factors that influence the farmer’s responses towards environmental conservation and Grain-for-Green. The results indicated that the main affecting factors are age, education, household size, the number of labor, cropland area per capita, area of grain for green, but the effect is different between on-farm group and off-farm group. According to the results, some suggestions were given in this paper for improving the farmer’s attitude to the project, such as extending the period of subsidence in Grain for Green Project, re-employment of the rural surplus labor, and strengthening education of the local farmers.