The Native Vegetation Conservation Act was introduced on January 1st 1998 to protect native grassland and woodland in New South Wales. The Act has limited clearing of native vegetation and development to crops and pasture, has protected biodiversity, and may have enhanced soil and water conservation. But an analysis of variations in the prices paid for farm land in Moree Plains Shire, with the complementary hedonic and bargaining methods, shows how buyers, sellers, and the market as a whole, value the characteristics of the land. It shows that the Act has led to substantial losses in land values for the farmers. The Act has imposed higher costs on those who had kept most vegetation, and on those who most need to retain their options to clear and develop. Stewardship payments will alleviate the financial situation for some and property plans will provide long-term security for both farmer and vegetation. But the magnitudes of the losses suggest that introduction of individual policies like these must be preceded by a review of the whole strategy of vegetation protection in New South Wales. We must first decide how much to protect and how to allocate the losses in an equitable manner.