Abstract: This paper investigates and calculates farmers’ willingness to pay for policy forest insurance in Anhua County, Hunan Province. Multiple linear regression model is used to verify factors which significantly impact farmers’ willingness of paying. Results show that family incomes, recognition degree of forest insurance, forestry mortgages, stable degree of forestry production have significant positive impact. Understandings of forest insurance and forestry mortgages application have negative impact. Based on the analysis result, this paper provides policy suggestions including stressing construction and propaganda of forest insurance law, strengthening supervision of forest insurance market, improving farmers’ antirisk abilities, etc.