Agriculture’s contribution to the economy is small but its environmental impact significant. Between 1990 and 2004 farming’s contribution to GDP and employment almost halved to 0.8% and 1.8% respectively by 2004 (Figure 3.29.1). Farming generates both environmental costs, calculated at approximately GBP 1 450 (EUR 2 100) million annually (2003 prices), and benefits, estimated at about GBP 1 230 (EUR 1 780) million annually, around 0.13% and 0.11% respectively of GDP in 2003 [1, 2, 3]. The agricultural sector has been contracting. The volume of farm production declined by over 8% during the period 1990-92 to 2002-04, together with a reduction in the volume of purchased farm input use, including –6% for pesticides, –13% for inorganic nitrogen fertilisers, –19% for inorganic phosphate fertilisers, and –24% for direct on-farm energy consumption (Figures 3.29.2 and 3.29.3). Grazing livestock is the dominant sub-sector, with livestock farming accounting for two-thirds of agricultural land use, with much of the rest under arable crops, largely concentrated in Central and Eastern England [4, 5].