The report explains the conceptual and methodological development of the agrienvironmental indicator on landscape state and diversity, calculated in support of COM(2006)508 “Development of agri-environmental indicators for monitoring the integration of environmental concerns into the common agricultural policy”. The indicator is based on three components: the degree of naturalness of the rural-agrarian landscape, intended as the influence exerted by society on the agrarian landscape with its agricultural activities and modifications of the original natural state introduced by farming practices; the physical structure, intended as land cover and its spatial organisation as a product of land management (organisation of different land cover ty...