Abstract: This paper dealt with three main problems in the capital mortgage of forestry and agriculture. The first problem was that small capital loan got the high unit costs; the second was that the cashflow was difficult to trace; the third was the longer forest management-period and higher risk of loan. Based on the reforms of mortgage loan by forest certificate and guarantee of credit in Fujian, the authors showed that the short period of loan could be considered. In order to guide the use of low costs and trace agro-forestry operations, the popularization of forestry science and technology needed to be built. Thus, the overall risk of forest activities would be reduced, and the possibility of small long-term loans to foresters would be raised.