Agriculture in the Netherlands is a critical industry, in terms of both its share of available land and its importance to the Dutch economy. Cultural-technical improvements and intensification of land use have resulted in increased productivity, but have also threatened vulnerable and valuable natural habitats and landscapes. TheRelatienota, a government report issued in 1975, introduced an environmental policy implemented by regulation in 1983 and 1988. Under this policy,Relatienota areas (management areas and reserves) are established. Farmers in management areas voluntarily enter (...) private contracts (management agreements) with the government, in which they promise to tailor agricultural production to nature and landscape conservation. By compensating farmers for activities that maintain existing natural conditions, management agreements provide the incentive for extraordinary efforts to protect agricultural environments for valuable plant and animal species. Particularly sensitive natural areas, where environmental values are incompatible with economic farming, are identified as reserves, and the land is purchased for specialized management.AlthoughRelatienota policy has been implemented on a limited number of hectares, it is an important component of the efforts in the Netherlands to protect and preserve vulnerable natural areas. As a model of negotiated cooperation between government, farmers, and nature protection interests, its success may encourage other nations in the Economic Community to use private contracts to further societal goals. (shrink)