Substantial initiatives are occurring in developing countries to integrate forage crops into crop–livestock systems to improve farmer livelihoods and reduce soil erosion. In particular, government authorities in western China focus on improving farmer livestock profits through greater forage crop production. We examined the whole-farm profit, downside risk, labour-use efficiency and feed balance effects of forage crop intensification on two simulated crop–livestock farm types in western China. Our methodology combined crop and livestock simulation modelling with whole-farm stochastic budgeting to capture both price and climate variability. We modelled the whole-farm effects of (1) introducing either forage vetch (Vicia sativa), forage oats (Avena sativa), or grain soybean (Glycine max) into current wheat (Triticum aestivum)-maize (Zea mays) systems and (2) replacing maize in current wheat-maize systems with either forage wheat, forage maize, or forage soybean. System intensification through incorporating a forage crop into current grain-cropping systems can increase average simulated profits without increasing downside risk on the simulated farms. As opposed to adding a forage crop into current grain-cropping systems, replacing a grain crop with a forage crop in current grain-cropping systems had a negative effect on profits, downside risk, and labour-use efficiency. Trade-offs existed between labour-use efficiency and profit as forage intensification increased labour demands. These effects were context specific, with greater positive profit effects of forage intensification for the higher-rainfall farm type. Overall, forage intensification in these systems benefited the households, but adoption will depend on household preferences and local agro-ecological and market factors. We demonstrated the importance of exploring proposed intensification options across different locations to capture impacts across diverse contexts. Providing these context-specific insights and exploring trade-offs within systems can help better understand livelihood improvement pathways. In locations with strong competing uses for labour, developing labour-saving practices appears critical.