Recent decades have witnessed substantial losses in biodiversity in Europe, partly driven by the ecological changes associated with intensification of agricultural production. These changes have particularly affected biodiversity in marginal areas, such as the uplands in UK, since habitat change has been greater than in lowland zones. Livestock farming is the main land use in these areas, and economic viability of farmers substantially relies on income coming from agricultural subsidies and agrienvironmental payments. The production decisions have an effect on biodiversity, although the precise links are subject of much debate. To assess the effects of policy changes on farm incomes and biodiversity, we developed ecological-economic models for three typical farm types in the Peak District National Park in UK. We analyse the effect of decoupling and agri-environment schemes on birds. The results show that the impact of these policies varies across farm types and across biodiversity indicator. This means that from a biodiversity point of view whatever future policy options are chosen will result in winners and losers.