Background——After the main reform task of the collective forest tenure system in Zhejiang in 2016,its forest land management still faces problems such as small and scattered, insufficient vitality, low efficiency, and diseconomies of scale, which are not suitable for the modern development of collective forestry. It needs to be solved by guiding farmers to transfer forest land and promoting appropriate scale management of forest land. Methods——Under the framework of sustainable livelihoods, a subdivision index model and a comprehensive model of outflow (inflow) willingness were constructed, and the entropy method was used to measure the livelihood capital of farmers, then the duality logistic regression was used to analysis the impact of livelihood capital on farmers’ willingness of forestland transfer and circulation. Results——The social capital score of 98.03 is the highest, the physical capital score of 97.65 is second, the human capital score of 88.16 is ranked third, the financial capital score of 48.00 is ranked fourth, sand the natural capital score of 39.71 is the lowest. In addition, livelihood capital has an impact on the willingness of forestland transfer and circulation. Natural capital has a negative impact on the willingness to inflow at a significance level of 5%.Physical capital has a positive impact on the willingness to flow out at a significance level of 5%.Financial capital has a positive effect on the willingness to inflow at a significance level of 1%.Social capital has a negative impact on the willingness to flow out at a significance level of 10%.Human capital has no significant effect on the willingness of farmers to transfer and circulate forest land. Conclusions and Discussions——The abundant social capital and material capital in the study area have successively restrained and promoted farmers’ willingness to flow out of forest land and the richer human capital is underutilized in the field of forestry production. Among them, education investment is the key to human capital to promote farmers’ willingness of forest land inflow. But low level of financial capital inhibits farmers’ willingness to inflow of forest land, and investment in financial capital is the key to promoting the inflow of farmers’ forest land. Low level of natural capital promotes farmers’ willingness to inflow but has little effect. Therefore, the government must increase investment in forest farmers’ financial capital, introduce incentive policies for forest land circulation and increase financial investment in pest control, forest fire prevention, forestry infrastructure construction, etc. It is necessary to improve the forest resource assessment system and the forest rights mortgage loan system. In addition, the financing channels for forestry investment should be broadened, and the forest insurance should be popularized. Finally, government is expected to reduce forestry credit constraints, and strengthen social participation of funds. In order to improve the quality of the forestry labor force, on the one hand, it is necessary for the government to increase investment in education and rely on institutions of higher learning to promote adult education and continuing education. On the other hand, we should guide the return of local talents and attract college students and entrepreneurs to join the forestry industry. The government are supposed to optimize the living environment, to improve the rural social security system, to speed up the orderly relocation of rural households in remote mountainous areas, and to provide more employment opportunities, striving for full coverage of pension and medical insurance. [ABSTRACT FROM AUTHOR]