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 measuring the environmental performance of agriculture across OECD countries through establishing an agri-environmental indicator database, and in reviewing and analysing policy measures and market approaches aimed at addressing environmental quality.

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