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Analyses of the status of current livestock production and alternative management practices for livestock production can help farmers improve their farming systems based on their particular local resources and markets. The farm surveys and parameterization of the models were developed by scientists and farmers working together to evaluate the effects of finance s, grassland management, animal management and changes in farm infrastructure. Our study aimed to utilize bioeconomic models to optimize farm and livestock production system s in the agro-pastoral area in northern China. These analyses will hopefully lead to improve d incomes, provide workable options for farmers and policy makers to restore grassland s and result in sustainable utilization of China's grassland resources. To examine possible ways to sustainably manage grassland in the agro-pastoral areas, a formal survey of sheep farmers was conducted, and data from experimental trials were obtained in Hebei Province of northern China. The model of farm management analyzed annual feed supply and demand and showed that the gap in the annual feed supply and demand could be reduced by using improved sheep breeds for meat production instead of current breeds. Economic analysis showed that maximal profits could be achieved by using a combination of seasonal grazing at a grazing intensity of 5.4 –6 sheep haˆ’1 and pen feeding. In addition, changing lambing time to November would reduce grazing pressure during the summer, which will be beneficial for grassland restoration and enhanced ecosystem services. By obtaining accurate on-farm information from pastoralists and using these data to parameterize two models, realistic changes in management strategies were identified that could increase farm income and reduce grassland grazing pressure. This activity increased public awareness of optimized farm management tools and provided a sound basis for identifying management alternatives for the sustainable management of grassland resources.