Improving the “two mechanisms”: the income guarantee mechanism for grain farmers and the compensation mechanism for the main grain production areas is of great significance in mobilizing the “two enthusiasms”: farmers’ enthusiasm for farming and main production areas’ enthusiasm for grain production, which are vital for ensuring national food security. Since China’s reform and opening up, especially the market-oriented reform of grain purchase and sales, the “two mechanisms” and related policies have been gradually improved. The mechanism for farmers is getting more market-oriented, with greater emphasis on the “green-box” subsidy policies and agriculture insurances. The mechanism for main production areas, currently relying on “vertical” compensation from central finance, needs to be completed by more “horizontal” compensations from main consumption areas to production areas, which is of great imperative. It is recommended to intensify efforts to improve policy accuracy, the “trinity” policy system of prices, subsidies, and insurance, and continuously improving the mechanism for ensuring the benefits of grain farmers. Strengthen “vertical” compensation and innovate “horizontal” compensation, improve the comprehensive compensation mechanism of “horizontal” and “vertical”, and continuously improve the compensation mechanism for the interests of the main production areas. Based on domestic and international conditions, we should properly handle relations between national financial resources, industrial development and international rules to ensure the continuous improvement and long-term effectiveness of the “two mechanisms”.