Grassland ecological protection measures such as grazing prohibition and livestock changed traditional production mode of the cashmere goat industry, and exerted adverse influence on production of cashmere and income of farmers and herdsmen. On the basis of the survey in Inner Mongolia, Xinjiang, Jilin, Liaoning, Shanxi, and Yunnan, this paper evaluated effect of subsidy policies on cashmere goat industry and present some existing problems in the implementation of these policies. Finally, it came up with following recommendations: strengthening cultivation and protection of cashmere goat varieties, increasing subsidy level of fine varieties and expanding coverage of subsidy policies, formulating cashmere price supportive measures, enhancing construction of cashmere goat sci-tech service system, and promoted standardized production of cashmere goat.