The invention discloses precipitation strengthening ferrite steel with yield strength being 1000 MPa. The steel comprises, by weight percent, 0.112 to 0.158% of C, 0.07 to 0.21% of Si, 0.71 to 1.08% of Mn, not larger than 0.008% of P, not larger than 0.003% of S, 0.13 to 0.28% of Cr, 0.21 to 0.34% of V, 0.152 to 0.186% of Ti, 0.413 to 0.527% of Mo and not larger than 0.005% of N. the production method comprises the steps of conventional smelting, casting to form a blank and heating the casting blank; two-segment type hot rolling; laminar cooling; reeling; natural cooling to the room temperature, and acid pickling; warm rolling; annealing; cooling. The yield strength of the steel ranges from 1001 to 1047MPa, the tensile strength ranges from 1053 to 1096 MPa, the ductility is larger than orequal to 19.5%, the average particle size of the ferrite ranges from 1.3 to 1.8 micrometers, the precipitation strengthening contribution ranges from 337 to 379, and excellent plasticity, forming performance and welding performance can be achieved.