Financial distribution to compensate grain production reflects governmental macro-control on grain production and supply. With the reference of agricultural basic theory,agricultural multi-function theory,economic externality theory,public finance and other theories,this article points out that direct subsidies for grain production is reasonable and necessary with six main theoretical basis,namely fundamentality,multi-function,positive externality of grain production,particularity of grain supply and demand,grain safety being closely linked with national security and basic function of service-oriented government.