Since there is no economic incentive for the producers to produce forage, domestic forage supply would be very limited without government’s support. This paper develops a simulation model for assessing the policy effects on the self-sufficiency rate of forage. Forage supply and demand equations are estimated based on the theoretical discussion and the estimated parameters from these equations are applied to the developed simulation model. Analytical results suggest that government’s support policies have positive impacts on increasing the self-sufficiency rate. Without the policies, forage self-sufficiency rate would be decreased by 32 percent. This implies that forage self-sufficiency rate would remain at 55.7 percent with no government’s support.