Abstract: Income capitalization approach is a prevalent method of evaluating agricultural land price. But using the approach to value the price by adopting actual net return instead of expected net return leads to the unreasonable agricultural land price. The paper demonstrates that forecasting of the anticipative net return by making use of the Grey Model (GM(1,1)) is feasible and analyses the process of modeling. By application of GM in the evaluation of agricultural land price in Wuxue County, the research results showed that the precision was high. Compared with the conventional approach, adopting the GM to evaluate the agricultural land price is reasonable and applied.