This paper takes Huai'an Prefecture in Jiangsu Province as an example, and Stochastic frontier analysis and translog production function have been used to analyse the contributions of forest resources to agricultural development in Huai'an Prefecture.The data gathered from 1978 to 2001 has been used for preparing this paper.Forest resources have made positive contribution to agricultural production from 1978 to 1990, but the trend was reversed from 1991 to 2001.Agro-forestry and small-scale forests should be adjusted in order to gain higher ecological and economic returns and development trends.