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Whilst Environmental Cross Compliance may be one way of reducing environmentaldisbenefits or negative externalities, it is argued that a better way of providingenvironmental benefits or positive externalities is to clarify the objectives ofenvironmental policy and to link payments more directly to the achievement of thoseobjectives. Experience at Elmley shows how this has been achieved in the UK. The1200 ha Elmley Estate is managed both as a working farm and for wildlife as the ElmleyNational Nature Reserve. The whole estate falls within the North Kent MarshesEnvironmentally Sensitive Area. The Estate now supports a greater number of breedingwaders than any other lowland wet grassland site in England. This growth in wildlifehas been achieved through the positive management of water levels and the grazing ofsheep and cattle together with other land management techniques. It provides asuccessful example of practical and integrated farm management producing primequality store livestock and greatly increased wildlife.