Abstract: Under the dual pressure of agricultural production increase and ecological protection, it is fundamental to investigate whether agricultural production agglomeration improves environmental efficiency. The establishment of major grain producing areas is regarded as a quasi natural experiment to improve the degree of agricultural production agglomeration in some provinces. Taking major grain producing areas as the experimental group and non major grain producing areas as the control group, the PSM-DID model was constructed to investigate the impact of agricultural production agglomeration on environmental efficiency, and the specific impact path was tested. The results showed that compared with the non main producing areas, the coefficient of the establishment of the main grain producing areas affecting the environmental efficiency was 0.031 1, which is significant at the 1% significance level, that is, agricultural production agglomeration improved the environmental efficiency. Only the interaction between agricultural production agglomeration and fertilizer consumption was significantly positive, with a coefficient of 0.004 9, which was the main path of agricultural production agglomeration to improve the environmental efficiency. Due to the reduction of negative externalities of chemical fertilizer application, the lack of seed quality, the aging of agricultural labor force, and the lack of effective utilization of agricultural machinery were not conducive to the improvement of environmental efficiency caused by agricultural production agglomeration. This conclusion meant that agricultural production agglomeration could promote the coordinated development of economic benefits and environmental benefits, which made the realization of“green development”and“two mountain theory”possible. In the future, the potential of agricultural mechanization to improve environmental efficiency should be further stimulated in the process of agricultural production agglomeration.