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[Objective] In-depth research on the impact of farming household differentiation on the non-grain conversion of cultivated land helps, optimize policy interventions, and more effectively control the trend of cultivated land non-grain conversion. [Methods] Based on the data from 1995 farming households collected in the 2020 China Rural Revitalization Comprehensive Survey, this study employed the METE model to empirically analyze the impact of farming household differentiation on the non-grain conversion of cultivated land. [Results] (1) Compared to subsistence-oriented small farmers, livelihood-oriented small farmers did not show a significant tendency toward non-grain conversion of cultivated land, whereas production-oriented and function-oriented small farmers exhibited a significant non-grain conversion tendency. (2) The impact of the three major factor markets on farming households’ non-grain conversion of cultivated land varied. In regions where the labor market was well-developed, production-oriented and function-oriented small farmers showed a higher degree of non-grain conversion. Conversely, in regions where the land transfer market and socialized service market were well-developed, the non-grain conversion degree of production-oriented small farmers decreased, while that of function-oriented small farmers increased. (3) Compared to non-plain areas and suburban areas, production-oriented and function-oriented small farmers in plain areas and non-suburban areas showed a lower degree of non-grain conversion. [Conclusion] Overall, farming household differentiation intensified the non-grain conversion of cultivated land, especially among production-oriented and function-oriented small farmers. The government can address the issue of non-grain conversion by optimizing farmers’ cropping structures, reasonably guiding the development of the three major factor markets, and implementing tailored measures according to local conditions to effectively solve the problem of non-grain conversion of cultivated land.