Land use right transfer (LURT) has been viewed to have significant potential in advancing farmland management in China. However, the implementation of LURT policy and more specifically its effects on the local society and economy is an under-researched area. This paper provides insights into the implementation of LURT carried out in the City of Zhangye, Gansu Province. Eight villages were visited for this study and data were gathered through key informant interviews, statistical datasets and official legal documents. Our results reveal the socio-economic performance and complicated influence of LURT policy in the region. The promotion of farmers' income was confirmed in some villages and more farmers have been involved into non-agricultural sectors. However, not all farmers were satisfied with their income and contract management was somehow unsatisfying. For future improvement, policy-makers need to better tackle the ambiguous public awareness and poor management of LURT contracts.