This study aims to analyze the effectiveness of fertilizer subsidy policies and their impact on rice farmers’ income in Grobogan Regency. The scope includes evaluating policy effectiveness based on the seven right indicators (7R) and examining production factors influencing farmers’ income. A quantitative descriptive approach was employed using a survey method involving 80 fertilizer subsidy recipient farmers, combined with multiple linear regression analysis in natural logarithm form. The results show that the effectiveness level of the fertilizer subsidy policy reached 85%, categorized as effective, although weaknesses remain in the accuracy of quantity. Simultaneously, all independent variables significantly affect farmers’ income. Partially, urea fertilizer price, NPK fertilizer price, land area, and rice production significantly influence income, whereas the effectiveness of fertilizer subsidies does not have a significant effect. These findings indicate that fertilizer subsidies function primarily serve as a production support mechanism rather than as a direct determinant of income improvement. The study highlights the importance of improving input efficiency and refining subsidy distribution systems to enhance farmers’ welfare.