Abstract: To advance the reform of the homestead system and improve land use efficiency, based on a survey of farmers in six pilot areas for homestead reform in Jiangsu Province, this study using a Logit model to analyze the factors influencing farmers’ willingness to exit homesteads and compares differences between southern and northern Jiangsu. The results indicated 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 affected their exit intentions. Compensation methods also had a positive effect, with most farmers preferring a combination of relocation and financial compensation. Regionally, farmers in northern Jiangsu exhibit a relatively strong willingness to exit from homesteads due to the weakening of homestead functions and severe population outflows. In contrast, farmers in southern Jiangsu show a relatively low willingness to exit, as a result of the strong asset attributes of homesteads and insufficient compensation compatibility. 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.