A rural settlement environment improvement programme is a livelihood project involving the vital interests of farmers. However, whether farmers should take the main responsibility for improving the rural settlement environment is an open issue. This study constructs an evaluation index system for farmers’ participation in rural settlement environment improvement on the basis of policy cognition, participation behaviour, and participation awareness. Using survey data from 909 farmers in eight provinces in China, this study empirically analyses farmers’ participation in a rural settlement environment improvement programme. The study’s results indicate that farmers have a high awareness of participation, a low level of policy cognition, and low involvement in the action regarding the rural settlement environment improvement. The participation of farmers in the rural settlement environment improvement is generally low and decreasing in the eastern, western, and central regions, in that order. Farmers’ participation in rural settlement environment improvement decreases in the order of suburban integration villages, characteristic protection villages, agglomeration and upgrading villages, and relocation and evacuation villages. To increase farmers’ participation in rural settlement environment improvement, the government can clarify the tasks in which farmers can participate, and establish an organisation and system to guide farmers’ involvement.