ABSTRACT

Introduction Agriculture in the 30 countries that are members of the Organization for Economic Cooperation and Development (OECD) accounts on average for less than 5 percent of employment and GDP, but for around 40 percent of the total area of land and water used. Agriculture therefore has a close and significant relationship with the sustainability of natural resources. While agriculture draws heavily on natural resources and generates pressure on the environment, it also contributes to the provision of land-based environmental services. This chapter focuses on the role that policies can play in providing payments to farmers in return for the delivery of environmental services from farming.