Whilst Environmental Cross Compliance may be one way of reducing environmental disbenefits or negative externalities, it is argued that a better way of providing environmental benefits or positive externalities is to clarify the objectives of environmental policy and to link payments more directly to the achievement of those objectives. Experience at Elmley shows how this has been achieved in the UK. The 1200 ha Elmley Estate is managed both as a working farm and for wildlife as the Elmley National Nature Reserve. The whole estate falls within the North Kent Marshes Environmentally Sensitive Area. The Estate now supports a greater number of breeding waders than any other lowland wet grassland site in England. This growth in wildlife has been achieved through the positive management of water levels and the grazing of sheep and cattle together with other land management techniques. It provides a successful example of practical and integrated farm management producing prime quality store livestock and greatly increased wildlife.