Taking Longnan, in the western Qinling Mountains region of Gansu province, China, as our study area, and using the Sixth National Population Census alongside household survey data, we analyze changes in household livelihoods, and consequent regional effects, following the instigation of the "Grain for Green" program in 1999. Our results show rural livelihood changes with respect to natural assets (e.g., reduction of arable land, planting structure changes), human assets (e.g., labor quality improvement, fluidity of population), financial assets (e.g., income channels widening, income increasing), physical assets (e.g., optimized production tools), and social assets (e.g., information network development, increased outreach opportunities). We suggest that increased household livelihoods play an important role in improving land space utilization efficiency, resource conservation and use, and the ecological environment. However, owing to the natural environment, there are also some problems, such as "hollows" in rural production and living spaces, as well as local environmental degradation. To address these issues, regions such as the western, mountainous, impoverished area of our study should establish a policy of using ecosystems, as well as agriculture, for development in order to improve household livelihoods, build an efficient spatial structure, and providing support for the creation of a resource-saving societal system. © 2018 by the authors.