The aim of this project was to identify and explore suitable options for a payment methodology to be used in the new ELM system i.e. the approach to calculating the payment rates offered for environmental outcomes achieved by land managers. The project involved two broad requirements: (1) identifying and developing four potentially suitable payment methodologies that could be used in the new ELM system; and (2) exploring and evaluating these options in a logical, transparent, and rigorous manner in order to understand the implications of each approach. The ultimate aim of the project was to provide a recommendation to Defra as to the most suitable type of payment methodology (or combination of methodologies) to take forward.