Agricultural development in both the United States and Australia has led to suboptimal levels of environmental degradation. While both countries face similar forms of agricultural environmental degradation, the different resource endowment and population distributions have resulted in a different incidence of the costs of these problems. Increasing demand for environmental services and better information on off-site damages have led to increasing demand for reform of agricultural, rural development, and environmental programs to eliminate biases against practices viewed as more environmentally compatible.