In Europe most conservation values, from biodiversity to scenic sites, are integral parts of agricultural landscapes. When these landscapes change as a result of agricultural policies, natural values - species, habitats, landscapes - are usually affected. Until recently however, these values have not been part of agricultural policies. The impacts of such new policies are difficult to evaluate because landscapes are complex and diverse, and the effects of policy are rarely immediate or causal. This paper evaluates the potential effects of Agri-environmental Regulation EC 2078/92 on European agricultural landscapes through the use of agri-environmental indicators (AEIs) on policy effects. After discussing the general framework of the evaluation methodology through the use of AEIs, we distinguish two types of agri-environmental policy (AEP) effects: policy performances and policy outcomes. The impediments to direct measurement of policy outcomes are stated. The potential for measuring policy performances are checked in two case study areas, one in Spain and one in Denmark, characterized by extensive agricultural land-uses and by the dual process of intensification/abandonment that is threatening their natural values. Both study areas are currently targeted by agri-environmental schemes under Reg. 2078/92. The realisability or availability of suitable statistical data to construct and report each AEI is stated for both types of effects. A problem of scale and content is found in most of the available statistics for assessing policy outcomes and the need for data at farm level is concluded to be indispensable if policy performances are to be measured. Effects of policy performance are measured for key selected AEIs in each study area on the basis of the results of a field survey based on questionnaires of participating and non-participating farmers in the AEP schemes. The main effects may be catalogued as improvement effects or protection effects since they represent a change in participant over non-participant farmers' decisions. Finally, the importance of this type of policy evaluation approach is discussed in the light of the likely future development of AEP in the European Union.
