Abstract: Environment and Development are the two main subjects in the 21st Century. In the view of existing situation of wood shortage and the Forest Protection Policy has carried on in China, an idea of developing agricultural straw material industry, using rice and wheat straw to substitute for wood, has been advanced in this paper. The possibility of developing agricultural straw material industry has been discussed, including straw storage, straw properties and process technology. Some straw products, such as straw board material, straw construction material, straw packing material and straw mould material, have been introduced, and also, the prospect of developing agricultural straw material industry in the 21st Century has been discussed.