In the perspective of local governmental competition, the impact of local governmental competition on farmland conversion is analyzed in terms of political competition, factors competition and products competition, and the empirical analysis is conducted according to the provincial data from 2002 to 2007. The results show that the endowment of land resources correlates negatively with the scale of farmland conversion, and the population, the tendency of exceeding capital investment and the competition of research and development input correlate positively with the scale of farmland conversion. According to these research results, corresponding policies and countermeasures are put forward: we should overhaul the system of performance evaluation of local governmental officials; we should normalize the local governmental competitive behavior.