Ecosystem degradation has become a significant global environmental issue. Particularly in the south hilly regions, the necessity for ecological restoration is increasingly evident. This study takes Shiyan City in Hubei Province as an example and adopts a combination of extensive questionnaire surveys and field interviews to deeply analyze farmers’ perceptions of the factors influencing ecosystem degradation and restoration. This research fills a gap in current studies at the local level. The results show that (1) farmers generally believe that government policy support and natural resource protection are crucial in ecological restoration, with an average score of 4.4, indicating a strong willingness to participate. (2) There is a significant positive relationship among human consciousness, social governance, and government regulation. Human consciousness not only directly enhances the level of social governance but also promotes the effectiveness of government regulation through social governance. (3) The positive impact between economic benefits and the green economy is confirmed, indicating that ecological restoration is not only an environmental protection requirement but also creates economic development opportunities for farmers. This study emphasizes the importance of constructing a multi-party participation strategy for ecological restoration. Policymakers should focus on the combination of environmental education, policy support, and economic incentives to stimulate farmers’ enthusiasm and achieve sustainable ecosystem management. This research not only provides a theoretical basis for local ecological restoration practices but also offers an important reference for promoting regional sustainable development. By emphasizing the win–win relationship between ecological restoration and economic development, this study provides important new perspectives for the design and implementation of future ecological policies.