Abstract: The necessity and feasibility to establish the forestry factor circulation market of Jiangsu province were analyzed based on the background of the reform of collective forest rights in this paper. The market could meet the needs to improve the socialism market system, to achieve forest property rights, to follow the law of forestry production and reduce transaction costs. The demands and the supplies of forestry factor in Jiangsu province was also analyzed. The invisible and visible forestry factor circulation market structures were proposed to establish in Jiangsu province. The basic principles of forestry and specific rules of the market was also brought forword.