In this study, we examined the effect of public subsidies on the intra- and inter-regional income inequality of farm households during the period of 2003-2007 by using Gini coefficient as a measure of income inequality. We used a decomposition method to investigate intra- and inter-regional income inequality and the effects of income sources on income inequality. Our results show that the structure and the pattern of farm household income distribution are different among regions. We also found that public subsidy, in particular agricultural support such as direct payment, lessened the income inequality of farm households during the study period. And the income inequality can be mostly attributable to the inter-regional inequality rather than intra-regional inequality. While household income from farming is major sources of income inequality rather than off-farm income or transfer income, the contribution of non-farm income to income inequality has been increasing.