SOFA 2007:
Paying farmers for environmental services
The State of Food and Agriculture 2007 explores the potential for agriculture to provide enhanced
levels of environmental services alongside the production of food and fi bre. The report concludes
that demand for environmental services from agriculture - including climate change mitigation,
improved watershed management and biodiversity preservation - will increase in the future, but better
incentives to farmers are needed if agriculture is to meet this demand. As one among several other
possible policy tools, payments to farmers for environmental services hold promise as a fl exible
approach to enhancing farmer incentives to sustain and improve the ecosystems on which we all
depend. Nevertheless, challenges must be overcome if the potential of this approach is to be realized,
especially in developing countries. Policy efforts at international and national levels are necessary to
establish the basis for such payments. The design of cost-effective programmes requires careful analysis
of the specifi c biophysical and socio-economic contexts and consideration of the poverty impacts
programmes may have. By clarifying the challenges that need to be addressed in implementing such an
approach, this report is intended to contribute to the realization of its potential.
The State of Food and Agriculture in Asia and the Pacific 2006
This is the first issue of The State of Food and Agriculture in Asia and the Pacific. Its focus on regional dimensions of food and agriculture makes it a complement to The State of Food and Agriculture published at FAO headquarters in Rome, which focuses on specific issues at a more global level.