Environmentally sustainable farming practices go beyond regulatory compliance. Regulations may emerge either as the result of major incidents or concerns about potential risks as determined by new scientific findings. Regulatory compliance becomes challenging because the rules are constantly changing. Environmental sustainability requires a comprehensive effort to minimize all impacts that are either currently regulated, that may be regulated at some point in the future, or that may never be regulated but are still environmental risks. This is different from just focusing on the latest regulations; rather, it is a holistic approach to agriculture and the environment that seeks to ensure the long-term sustainability of agriculture, both environmentally and economically. This approach builds on ongoing operational assessments. Such assessments need not be formal but can begin with the wisdom and operational experience of the farmer, his or her local colleagues and technical assistance providers, and literature and assessment tools available from other sources. Reducing farm inputs, such as chemical fertilizers and pesticides, is one key aspect of this approach.

Farmers may obtain a competitive advantage by applying principles of sustainable development. For example, USDA-certified organic products will command higher prices. However, other labeling schemes that may emphasize watershed protection are appearing across the nation. Not all of these programs demand that products be certified organic. While a farm operated in an environmentally sustainable manner may include a commitment to organic production, not all organic farms would be considered sustainable. For example, an animal farm may use organically produced feeds to produce organic milk, but the operation may not include measures to control manure runoff to a nearby stream.