Addressing the options for domestic sustainable agriculture policies in developing countries, it is generally observed that the world’s agriculture trade system is progressively moving towards an open-market system, a process which is desirable from both a trade as well as a sustainable development point of view. Transforming domestic support regimes towards decoupled and only minimally trade distorting support schemes will have mostly positive effects as it limits distortions, but still provides countries with flexibilities to pursue legitimate agri-environmental and rural development objectives. Nevertheless, while liberalizing national farming sectors it is further imperative that appropriate mechanisms are set up that provide competitively disadvantaged farmers with income and secure food.