China’s benefit compensation mechanism with direct grain subsidies has bigger promoting effect on stabilizing grain production, protecting grain safety and increasing farmers’ income, however, there are still some problems such as smaller subsidy amount, lower grain purchase price, non-uniform subsidy standard, too high administrative cost and so on, furthermore, the governmental initiative and inadequacy of public commodities such as agricultural infrastructure construction in grain production zones are not considered, meanwhile, universal-benefit grain subsidy policy has limitation. China should enlarge grain subsidy, reform subsidy method, integrate subsidy standard, decrease administrative cost, properly raise minimum grain purchase price, enhance financial transfer payment in main grain production zones and increase the subsidy for agricultural infrastructure construction in main grain production zones.