Abstract: Farmland circulation and operation scale management are critical to China’s agricultural modernization and understanding the transfer willingness of farming and grazing households can help to promote farmland circulation. Based on a survey data of farming and grazing households in Inner Mongolia, this paper analyzed the land transfer willingness of farming and grazing households and examined the difference and the influencing factors by the Logistic model. Results show that the willingness rates of farming and grazing households for land transfer-in were 33.04% and 26.40%, respectively, and the rates of land transfer-out were 24.17% and 17.25%, respectively, meaning that the land transfer willingness of farming households was stronger than that of grazing households, while the transfer intentions of both farming and grazing households were relatively low. Influencing factors that affect the transfer willingness of the farming and grazing households were different. Factors affecting the land transfer-in willingness of farming households included the total income, the proportion of non-agricultural income and the subjective evaluation of social security. While factors affecting the land transfer-out willingness of farming households include family size, the distance between house and farmland, and the difficulty level in land transfer. Factors affecting the land transfer-in willingness of grazing households include marital status, family size, and medical expenditure and factors affecting the land transfer-out willingness of the grazing households include the housing expenditure and the subjective evaluation of social security. Therefore, to increase land transfer willingness of farming and grazing households and to speed up farmland circulation, this paper suggests: to strengthen farmers’ non-agricultural skills to guide farmers to non-agricultural industries, to establish land circulation organizations to provide professional services, to standardize land circulation management to reduce of land circulation risks, to eliminate farming and grazing households’ obstacles in land circulation, to promote and to perfect the rural social security system, and to weaken the land safeguard functions to reduce the dependence of farmers on farmland.