A double pipe grain heater using engine exhaust gas as a heat source was developed. The performance of the grain heater was examined with soybeans as a test material experimentally and numerically using a mathematical model constructed. The following conclusions were drawn: 1. The modified screw conveyor used in the grain heater has a characteristic of decreasing capacity with increasing speed at speeds above 60 rpm. Operation with speeds below 60 rpm is recommended. 2. Heating soybeans by the heater at soybean flow rate up to 100 kg/hr, inlet temperature of the exhaust gas to the heater are recommended as above $400^{circ}C$, $300^{circ}C$, and $200^{circ}C$ roughly for a 2, 5, and 10 kW engine, respectively. 3. Temperature increments of soybean by the heater at soybean flow rates ranged from 25 to 100 kg/hr are in the ranges of $6^{circ}C-35^{circ}C$, $15^{circ}C-88^{circ}C$, and $15^{circ}C-140^{circ}C$ with exhaust gas from a 2, 5, and 10 kW engine, respectively, at an exhaust temperature of $500^{circ}C$. 4. Thermal efficiency of the heater at soybean flow rates ranged from 25 to 100 kg/hr are in the ranges of 35-37%, 28-34%, and 20-29% with exhaust gas from a 2, 5, and 10 kW engine, respectively. 5. The grain heater can be used to heat the other grain, also, without any bad effect from the exhaust gas used as a heat source.