The new round of collective forest right system reform and the subsequent deepening adjustment affected the structure and realization of collective forest property right of farmers, and ultimately affected the level of forestry income of farmers. Based on the data of 500 households in 10 counties of Yunnan province during 2009-2018, the analysis shows that the improvement of the using rights realization degree of collective forestland can make the farmers reduce the input in productive labor and capital, further lead to the decline of forest income, which reflect that, currently, the comparative income of forest production is low. The improvement of the earnings realization degree of collective forestland can make the farmers’ income increase, but this boosting effect is more directly coming from tax and fees reduction and ecological compensation and is not from the increase of elements input. The improvement of the realization degree of collective forestland treatment rights can boost the farmers to increase the input in labor and capital of forest production and business, and further is conducive to the growth of forest income. Therefore, the pure “three-right” separation of forestland can not be certain to bring the high quality development of forest industry and the growth of the income and input of the farmers, we must use technical innovation and policy support and so on to improve the comparative earnings of forest production so as to make more factors flow to forest production, pay attention to the ecological effect of forest development to promote ecological compensation standards, attract the farmers to continuously invest more factors in forest production and business, further strengthen the farmers’ treatment rights of collective forestland, properly release the ecological control, set up and perfect the value realization mechanism of forest ecological products, excite the farmers’ enthusiasm to develop forest industry, and effectively increase the farmers’ forest income while boosting the high quality development of forest industry.