The human–elephant conflict is a current issue that receives global attention and occurs in all elephant-distribution countries. This paper focuses on Pu′er and Xishuangbanna cities in the distribution area of Asian elephants in Yunnan Province. Based on two case studies, we collect basic information from local farmers regarding the severity of the damage caused by Asian elephants and the impact this has on their psychology. Based on the Logit model and modulation effect, we analyze the impact farmers’ livelihood capital on how they choose livelihood strategies in the distribution area and whether damage caused by Asian elephants and general conflict conditions can regulate this impact. The results show that the damage caused by Asian elephants and general conflict conditions is serious in the distribution area, but the number of farmers who choose to change their livelihood strategies is small. The damage caused by Asian elephants has a different modulation effect on farmers’ livelihood capital. In the future, we should be more considerate of the livelihood capital accumulation of local farmers in the process of protecting Asian elephants, with a view towards maintaining and improving the livelihoods of farmers.