Abstract: According to the advanced international idea, we resolve the problem of farmer livelihood is very important in new countryside. This paper made use of sampling investigation data in northwest Shanxi Province and analyze farmer livelihood. We discover some severe and serious problem. It is reason that natural condition leads to rough earning a living way and the population is increased and unreasonable way lead to the degeneration of land and zoology. It is important result to arrest the degeneration of land and zoology in building new countryside and satisfy farmer demand. Three are ways of resolving farmer livelihood. We should give farmer the property of the environment assets; ensure the volume of business between the government and farmer and resolve the problem of the information asymmetry that the government gives farmer compensation.