Abstract: To advance the reform of the homestead system and improve land use efficiency, this study is based on a survey of farmers in six pilot areas for homestead reform in Jiangsu Province. Using a Logit model, it analyzes the factors influencing farmers’ willingness to exit homesteads and compares differences between southern and northern Jiangsu. The results indicate that farmers’ individual and household endowments (e.g., gender, education, non-agricultural skills training, income, number of homesteads, and urban housing) as well as their perceptions of government actions (particularly policy promotion and government image) significantly affect their exit intentions. Compensation methods also have a positive effect, with most farmers preferring a combination of relocation and financial compensation. Regionally, farmers in northern Jiangsu show stronger exit intentions due to weaker homestead functionality and higher population outflow, whereas southern Jiangsu farmers exhibit lower intentions due to stronger asset attributes and insufficient compensation alignment. Based on these findings, it is recommended to implement differentiated policies, strengthen policy communication and capacity building, and improve diversified compensation mechanisms to enhance farmers’ participation and provide policy guidance for sustainable homestead withdrawal.