Abstract: With the introduction of the "household responsibility system" (HRS) in the large rural area in China since the 1980s, farm-households' land use decision-makings affect sustainable land use. This effect has already been shown after the first run land contract, such as the bare mountainous region and the aggravating soil erosion area which are caused by farm-households' felling forest in volume, and the degradative cultivated land quality which is caused by the fact that the farm households attach importance to chemical fertilizer and pesticide while ignore soil miscellaneous fertilizers and organic fertilizer. In order to test the effects of response of farm-households' behavior to regional agricultural industrial policy reform on effect of soil and water conservation in red soil area of Jiangxi Province, three sample villages in Shangrao County were selected as a case study of massif red soil region in Jiangxi Province, and the field work of questionnaires of 111 farm-households' behavior had been held in the villages. Based on the feedback of the questionnaires, a model was established to analyze effect of agriculatural industrial policy reform of soil and water conservation. It showed that, status of soil and water loss of rural land is affected directly by households' behaviors in course of agricultural industrial structure adjustment in Shangrao County at present, and that its main influence factors include the transformation of agricultural labor, the price of agricultural production means, educated level of farm-households, and the degrees of land scale operation, etc. The authors think that this state is in the universality in red soil area of Jiangxi Province at present. According to these results, some suggestions of sustainable land use are proposed.