This paper reviews the environmental effects of organic farming, with particular reference to Australia but using some international experience as well as findings from other ‘alternative’ farming systems where appropriate. Beneficial environmental effects include positive changes to soil physical, biological and chemical properties in comparison with some adverse effects associated with conventional agriculture. Other benefits are linked to the opportunities provided to recycle organic wastes, the reduced use of synthetic chemicals, improvements to plant and animal quality, reductions in erosion and runoff, and potential improvements to the serious problems of soil and water salinity and the loss and deterioration of ecosystems.