Abstract: In order to improve the subsidy policy for livestock and poultry manure resource utilization, improve the performance of the use of early subsidy funds, and promote the long-term operation of livestock and poultry manure resource utilization, in this study, according to the Pigou theory and the business cessation theory, the operation subsidy standards of biogas project with long-term incentive effect were discussed from the perspective of the government and the farms（households） by taking scale pig breeding in Hunan Province as an example. Firstly, the market value method and the treatment cost method were used to estimate the ecological value of the whole process of biogas project from manure treatment to by-product utilization, and the government payment capacity index and regional social development coefficient were introduced to revise it. Then, combined with the operation cost benefit of typical small and medium-scale pig breeding biogas projects and the willingness of farms（households） to be compensated, the theoretical value of the operation subsidy of biogas project of small and medium-scale farms（households） was determined. The results showed that if the scale pig farms（households） in Hunan Province used the biogas project to treat manure, it could bring 840 387.54 million Yuan of ecological value per year. Based on the payment capacity and social development level of the Hunan provincial government, the upper limit of the operation subsidy for pig breeding biogas project could be set at 139.56 yuan/（head · year）. Considering the operational cost and benefit of biogas project and the willingness of farms（households） to be compensated, the lower limits of the operation subsidy for small and medium-scale pig breeding biogas project were 4.58 Yuan/（head·year） and 6.06 Yuan/（head·year）, The study suggested that the determination of the amount of subsidy for resource utilization should not only take into account the ecological value of resource utilization, but also consider the government’s financial resources and the willingness of the compensated; at the same time, subsidy funds should be reasonably allocated; support for the operation stage of resource utilization projects should be improved; policies should be systematic; policy inducements should be enhanced, and the efficiency of government funds should be improved.