Abstract: This paper expounded the concept and theoretical support of the under-forest economy, and takes the state-owned forest farms as an example to analyze the current situation of the development of the under-forest economy. It is believed that when some state-owned forest farms develop the under-forest economy, there are still problems such as insufficient confidence in the income of forest farmers, inadequate implementation of the forest right mortgage loan, low added value of the under-forest products, and short sales radius of the under-forest products. Therefore, in the future work, the forest farm should be problem-oriented and give targeted strategies to achieve the sustainable development of the state-owned forest farm’s understory economy.