The transfer of surplus labor force in rural areas is an issue that hasan impact on rural econimic development and farmers' income and in the long run the growth of national economy is also dependent on rural surplus labor's fundamental transfer. As a result the transfer of rural surplus labor is a necessary step for a country to approach a well-off society and a necessary process to realize rural urbanization and modernization. This paper analyzes the key issues that restricts the rural surplus labor transfer. It argues that only by strengthening labor capital investment and turning population stress into talent advantage can rural surplus labor be transferred smoothly and farmers' income get raised.