Abstract: Grain for Green Project began in 1999 is a major ecological projects implemented by the Chinese government for the ecologically fragile areas of the Western China. Implementation of the project on local grain production and the resulting policy effect is a problem worthy of study. This paper analyzed temporal and spatial variation of grain production in the eco-fragile area of the Loess Plateau of China before and after the implementation of the Grain for Green Project using county-level statistics in 1996, 2003 and 2007. The results showed that from 1996 to 2003, the sown area of grain of the study area declined sharply, and then began to rise gradually. Downward trends of grain sown area had been checked for most counties until 2007. From 1996 to 2007, the study area’s total grain output declined, but the level of grain yield per unit area increased. The grain yield per unit area of the study area was far lower than the national average, while per capita grain production in the study area was slightly lower than the national average, but both showed great inter-annual fluctuations. The lower the level of grain production, the greater the inter-annual fluctuations could be observed. Unstable grain production will strengthen the farmers' motivation, which goes against the consolidation of the results of Grain fro Green. Grain for Green project should be implemented step by step according to the local condition with an appropriate scale in study area. Further more, the livelihood of farmers should be conducted and protected in terms of policy to consolidate the project effects.