The main feature of the Swiss reform is to tie environmentally friendly farming to a reduction in price supports. Subsidies are given for environmental farming and not as a function of the quantity produced. We study the impact of these measures within the framework of a single-country, 22-sector computable general equilibrium model, where farm policy instruments are explicitly represented and environmental farming modelled as a public good. For the parameters of our model, the reform increases the consumer welfare because of substantial gains from agricultural trade liberalization. The increase in payments for environmental farming rises the share of the country’s agricultural land farmed in an ecological way.