On our hills, grazing by sheep and cattle plays an essential role in preserving habitats and biodiversity, and agricultural activity such as crofting helps to support communities in some of the most remote and fragile areas of our country.The relationship between agriculture and the environment is recognised in the current CAP through schemes such as cross-compliance, in which farmers who are in receipt of single farm payments and other forms of direct support are required to demonstrate good agricultural and environmental conditions.The nature of the public goods that are to be supported and the extent to which each receives support are central to reform of the common agricultural policy.