Abstract: Based on the resource welfare effect and resource curse effect, the theoretical basis of the relationship between government subsidies, rent-seeking and technological innovation of agricultural processing enterprises was constructed. The fixed effect model was used to explore the mechanism of government subsidies on technological innovation of agricultural processing enterprises and the micro reasons for the failure of government subsidies.The results show: (1) Agricultural product processing enterprises can establish government-enterprise relationship and obtain more government subsidies, but rent-seeking activities of have a crowding out effect on technological innovation, There is a “U” -shaped relationship between government subsidies and technological innovation of agricultural product processing enterprises, which firstly inhibits and then promotes, so there are both resource curse effect and resource welfare effect. The rent-seeking activities of enterprises will intensify the resource curse effect of government subsidies, which is not conducive to the development of technological innovation of enterprises. (2) The rent-seeking activities of agricultural products processing enterprises in state-owned and high-risk duty crime areas inhibit the improvement of their technological innovation level, and the rent-seeking activities of non-state-owned agricultural products processing enterprises have a significantly stronger inhibitory effect on the improvement of their technological innovation level, but this is not significant in low-risk duty crime areas. Based on this, this paper puts forward policy suggestions from four aspects: improving the investment scale and intensity of government subsidies for agricultural product processing enterprises, establishing a long-term supervision mechanism before and after government subsidies, continuously promoting the construction of party conduct and clean government and the fight against corruption, improving the management level of enterprises and the economic strength of cities.