Adopting the field survey data of 1223 farmer households in concentrated contiguous destitute areas of Liupan Shan, this paper discusses the influencing mechanism of farmland transfer and sidelining on poverty alleviation from the two perspectives of income growth and income distribution. Then it empirically analyzes the income boosting effect and income distribution effect of those two influencing factors, which lay the foundation for further discussion of their relationship to poverty alleviation. The results shows that: firstly, the effect of inward farmland transfer is not significant on income growth and income distribution; secondly, outward farmland transfer and sidelining can increase the net income and narrow the income gap among farmer households; thirdly, labor force, household burden and non-farming employment also significantly affect the household income boosting effect and income distribution effect.