Abstract: Resettlement compensation was the core issue of land-lost farmers. Through the establishment of index system for the measurement of happiness index and the questionnaire investigation of 100 farmer’s household, this paper used entropy method and synthesis method to calculate the happiness index of Xue Tangbao resettlement place. According to the happiness index, this paper reflected on the issues of resettlement compensation. The results indicated that the general happiness index of Xue Tangbao resettlement place was not high, and in the "not too happy" grade. The main reasons for these results included low standard of housing and monetary compensation, inappropriate training for re-employment, not perfect social security and so on. To settle the issues of land-lost farmers, it was necessary to promote housing and monetary compensation standard, improve employment and social security mechanism, establish appeal channel, so that the issues of land-lost farmers could be settled properly.