Abstract: The relationship between forestry resources assetiz ation management (FRAM) and system innovation of forestry resources cultivation fund (FRCF) is stated, indicating that FRCF, forest price and the fee of forest cultivation all are characterized as compensation to the cost of forest management, and that FRCF is actually the reproduction fund of forestry resources. In the end of this paper the problems and the train of thought for the system innov ation of FRCF are stated when the FARM is actualised.