Since the 1950s, intensification and scale enlargement of agriculture have changed agricultural landscapes across Europe. The intensification and scale enlargement of farming was initially driven by the large-scale application of synthetic fertilizers, mechanization and subsidies of the European Common Agricultural Policy (CAP). Then, after the 1990s, a further intensification and scale enlargement, and land abandonment in less favored areas was caused by globalization of commodity markets and CAP reforms. The landscape changes during the past six decades have changed the flows and values of ecosystem services. Here, we have reviewed the literature on agricultural policies and management, landscape structure and composition, and the contribution of ecosystem services to regional competitiveness. The objective was to define an analytical framework to determine and assess ecosystem services at the landscape scale. In contrast to natural ecosystems, ecosystem service flows and values in agricultural landscapes are often a result of interactions between agricultural management and ecological structures. We describe how land management by farmers and other land managers relates to landscape structure and composition. We also examine the influence of commodity markets and policies on the behavior of land managers. Additionally, we studied the influence of consumer demand on flows and values of the ecosystem services that originate from the agricultural landscape.

Lower diversity of plant and animal farmland species are usually reported where cropland has been aggregated into larger fields, which raises prospects of curbing declines in European farmland biodiversity and associated ecosystem services by halting trends to field size increases associated to agricultural intensification, without having to set aside arable land for conservation. Here, we consider the factors underlying trade-offs between farmer income and biodiversity as mediated by field size at local and landscape scales, and how these trade-offs may be overcome. Field sizes are still increasing, facilitated by increasing farm sizes and land consolidation. Decreases in working time and fuel expenses when fields are larger, uptake of larger machinery and subsidies favoring larger farms provide incentives to manage land in larger units, putting farmland biodiversity further at risk. Yet, field size-mediated ecological-economic trade-offs are largely ignored in policy and research. We recommend internalizing the ecological effects of changes in landscape-scale field size into land consolidation scheme design, ensuring that EU Common Agricultural Policy post-2020 rewards farmers that maintain and recreate fine-grained landscapes where these are essential for farmland biodiversity targets, and reducing economic-ecological trade-offs by stimulating agricultural research and innovation for economically efficient yet biodiversity-friendly farming in fine-grained landscapes.

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