The pace of the price increase will take account of the agricultural sector’s capacity to further increase its already high water use efficiency. The 2006 Farmers’ Agreement commits the agricultural sector to an increase in the price of water to recover the costs of production by 2015. However, the most distorting forms of support (based on commodity output and variable input use) still dominate (96% of PSE in 2006-08). Budgetary expenditure on agri-environmental measures (USD 9 million in 2008)19 is just over 2% of total agricultural budgetary expenditure.