OECD countries place a high priority on improving the environmental sustainability of agriculture, especially of land use, soil, water, biodiversity and landscapes. They are committed to trade liberalisation, reducing environmentally harmful agricultural practices, and enhancing the beneficial environmental impacts of agricultural activities.

Farmers do not always pay for the environmental damage they cause or are paid for environmental benefits they provide. The right mix of market and policy signals is needed to ensure sufficient, safe and environmentally sustainable food production. As part of this, agricultural policies are moving away from production linked support and toward policies that encourage environmental improvements.

The work in the OECD is in the forefront in tracking the environmental performance of agriculture across OECD countries through its agri-environmental indicator database, policy inventory and modelling efforts, and analysis of policy measures and market approaches addressing environmental quality.

Reconciling multilateral commitments with diverse environmental and other demands on agriculture across OECD countries is a challenge. Policy-makers are provided with studies that outline the characteristics of best policy practice, which are tested against the mix of policy measures and market approaches implemented in OECD countries.