Abstract: State-owned forest farms（SFFs） play a vital role in forestry development and national ecological security.Over time,their funding sources have evolved through stages of full budgetary funding,partial budgetary funding,self-financing,return to full budgetary funding,and now classified management.Concurrently,functions of national forest farms have shifted from initial forestation for timber supply to mainly focus on comprehensive ecological function protection.The implementation of reforms for SFFs has made remarkable achievements.However,profound challenges persist in fund management,structural monoculture in funding sources,with over-reliance on fiscal subsidies and underdeveloped diversified financing mechanisms.Gaps in fund management systems leads to misallocation of earmarked funds and suboptimal efficiency.Lagging policy frameworks constrain innovative explorations in expanding funding channels.To address these challenges,we proposes policy recommendations,including expanding the scale and diversifying the forms of fiscal investment,strengthening the management of fund utilization,and expanding investment and financing channels by drawing on domestic and international experience.