The trade-off between agricultural production stability and environmental sustainability is a growing concern. The two major Canadian farm income stabilization programs of 1991, GRIP (Gross Revenue Insurance Plan) and NISA (Net Income Stabilization Account), are being considered for their resource neutrality impacts. This report presents a conceptual framework designed to evaluate the environmental impacts of GRIP and NISA, focusing on land use, technology, and soil degradation shifts. The approach involves a multidisciplinary effort to create a system that permits evaluation of important relationships between policy, agricultural production and the environment. The focus is on development of an integrated agro-ecological economic system built around Agriculture Canada's Regional Agricultural Model (CRAM) and the Erosion Productivity Impact Calculator (EPIC) model.