In recent years,the policy of balancing between the increase and decrease of urban and rural construction land was released to break the bottle of rural-urban construction land use.Based on the analysis on the forming path of incremental benefit of rural residential land in the balancing between the increase and decrease of urban and rural construction land,this paper concludes that conversion of the agricultural land use is the critical factor for the incremental benefit.Meanwhile,the methods of estimating incremental benefit is constructed and the empirical study on the “Exchange Isolated Farmers’ Residential Land with Well-planned House” in Huaming Town,Dongli District of Tianjin is also made.The result shows that when the “No Net Loss of Cultivated Land” policy was implemented,the incremental benefit of the surplus land drafted out for residential sites can be as high as 86700 yuan per hectare.In accordance with the above result,this paper proposes several policy suggestions,such as completely disclosing the relevant information about the balancing between the increase and decrease of construction program,establishing the mechanism in which farmers could participate in incremental benefit distribution,cautiously promoting the balancing measures between increase and decrease to prevent “enclosure through demolishing the house”.