This report identifies trends in land, water, and commercial input use, reports on the condition of natural resources used in the agricultural sector, and describes and assesses public policies that affect conservation and environmental quality in agriculture. Combining data and information, this report examines the complex connections among farming practices, conservation, and the environment, which are increasingly important components in U.S. agriculture and farm policy. The report also examines the economic factors that affect resource use and, when data permit, estimates the costs and benefits (to farmers, consumers, and the government) of meeting conservation and environmental goals. The report takes stock of how natural resources (land and water) and commercial inputs (energy, nutrients, pesticides, and machinery) are used in the agricultural sector; shows how they contribute to environmental quality; and links use and quality to technological change, production practices, and farm programs.