Mulch film contaminates the environment while increasing agricultural yield. As such, the factors that impact the residual film management capacity of farmers must be identified, which would also be helpful for the sustainable development and security of agriculture. We investigated 10 counties across nine cities (states) by surveying 1284 households. The improved entropy-weighted composite index and the grey correlation analysis model were employed to measure the residual film management capacity from five dimensions: human capital, use behavior, management skills, public policy, and willingness. The entropy-weighted composite index results showed that residual film being harmful to the environment had the highest overall rate of 0.0745, followed by the effectiveness of mulch film, which was 0.0715. The results of the grey correlation analysis model showed that willingness to use biodegradable mulch film had the highest correlation of 0.8960, followed by educational level of the laborers, which was 0.8824. We found that residual film being harmful to the environment, effectiveness of mulch film, willingness to use biodegradable mulch film, and educational level of the laborers were the major factors influencing the residual mulch film pollution knowledge of households. Based on this finding, the government should increase subsidies for promoting biodegradable mulch film and publicize the hazards of residual films using diversified means in multiple channels.