[Objective] Liugou watershed in Maiji District of Tianshui City was taken as a case to study the impacts of comprehensive soil and water measures practiced mainly by economic forest plantation on the input-output efficiency and the change of internal structure of agricultural industry in order to provide a theoretical support for agriculture efficient and sustainable development.[Methods] Based on the data collected from Maiji District and Liugou watershed during 2002-2011

analysis approaches of the rural economic structure effect and static shift-share were used.[Results] From conservation practices on

the watershed economic increase rate achieved 103.63%

in which

land use restructure contributed 42.86% for the total output increment.[Conclusion] Watershed agricultural economic growth was relatively higher on an average than the one of Maiji district and displayed an increasing trend. However

a fact should be noted the escalation gap of economic forest might eventually narrow down as the watershed begins to be fully developed and the economy levels up. Hence

in the future

the cash forest for soil and water conservation should be kept a steady development; Beside

an overall improvement of watershed agricultural production technology should be stressed.