Abstract: From the perspective of peasant household' satisfaction and on the basis of theoretical analysis, we put forward a hypothesis. Based on the field survey data of Chengdu which takes the lead in exploring the cultivated land protection fund, we used the ordered probit model to test how the subsidy flow impacts the farmers' satisfaction about the economic compensation for farmland protection policy (ECFP). The results indicate that:(1) The farmers who transferred outward their farmland have higher satisfaction than those who transferred inward their farmland and those who didn't transfer their farmland. If the farmers transfer outward their farmland, the probability of "very dissatisfied", "not satisfied" and "general" that the farmers evaluate about the compensation policy fell by 0.3%, 4.8% and 11%, respectively, and the probability of "satisfaction" and "very satisfied" the farmers evaluate about the compensation policy increased by 14.4% and 1.7%, respectively. (2) If the farmers transfer inward their farmland, the probability of "very dissatisfied", "not satisfied" and "general" that the farmers evaluate about the compensation policy increased by 9.3%, 35.4% and 0.7%, respectively, and the probability of "satisfaction" and "very satisfied" the farmers evaluate about the compensation policy fell by 42.9% and 2.6%, respectively. To improve the farmers' satisfaction performance about the ECFP policy, the government should allocate the limited arable land protection subsidies reasonably. So, subsidies should be given priority to the farmers who transfer inward their farmland and take the responsibility of protecting the arable land actually to improve their motivation about cultivated land protection.

Key words: subsidy flow, economic compensation for farmland protection policy, farmers' satisfaction, cultivated land protection fund in chengdu