Devastation of the grasslands in the Qinghai-Tibetan plateau is worsening due to overgrazing of livestock and changes in climate. To address this situation, the Qinghai government implemented an "ecological pastoral farming" policy aimed at developing pastoral farming practices that are compatible with the preservation of the natural grassland. However, the policy needs to be assessed both in terms of technical and economical aspects to promote its implementation. In this study, by looking at the case of a village that has actively implemented the policy and has distinct livestock rearing and marketing characteristics, we determined the effects of policy implementation on sales income and costs as well as assessed the status and challenges of policy implementation.