Land degradation is a consequence stemming from both natural processes and social economic activities.On the bases of analyzing general situation of agricultural land degradation in China, the monetary estimatingmethods such as market value method and shadow engineering method were used to quantitatively assess theeconomic loss resulting from land deterioration. Results showed that the economic loss in 1999 was 326.81 billionRMB Yuan, which accounted for 4. t % of GDP in the same year of China. If taking five items namely farmlandconversion, soil erosion, salinization, decline in reservoir functions, and siltation in waterways and, comparing withthat in 1992, the percentage of economic loss to GDP has increased by 1.5 in the only 7 years.