Abstract: Using a small hilly watershed in south China as a model, an agricultural recycling system was studied.Emergy analysis was applied to evaluate the system's sustainability and economic impacts on the region.The planting and utilization of forage were conducted in Beifeng area near Fuzhou.The recycling system exhibited a potential in maximizing the utilization of the natural resources.Its self-providing rate of emergy was 11.23%;the system produced 34.25% of the total invested emergy;and, the emergy feedback rate was 62.83%.In other words, the system was highly self-sufficient.The net producing rate of emergy was 1.49 and the sustainable development index as high as 3.06, while the environment loading rate merely 0.49.The emergy analysis suggested that this recycling system could be used as a demonstration model to promote the highly efficient, resource-saving and environment-friendly application on similar hilly lands in south China.