OECD countries have started to reform their agricultural policies in the last decade. Many countries have also implemented agri-environmental measures that are directly aimed at improving the environment. What are the changes in land use, farming practices and input use resulting from these reforms? What have been the effects on the environment: soils, water, air, biodiversity, wildlife habitat and landscape? How have regional and local conditions influenced the environmental outcomes? To what extent have agri-environmental measures contributed to achieving sustainable agriculture? And how could such measures be made more effective and cost-efficient? Through examining concrete policy experiences from OECD countries, this study concludes that agricultural policy reforms can improve the environment, provided they are accompanied by appropriate environmental measures.