Based on FADN data the output and economic results from EU with LFA countries were compared with the results of those farms located in favourable environment. In 2004-2009 farmers from unfavourable environment received lower crop output per land unit (by 55%) with lower crop protection (by 4%) and higher fertilizers costs (by 12%). Unfavourable environment lowered also livestock output by 25%. The influence of the environment is accumulated in economic results per ha of agricultural unit: net value added was lower by 35% and family farm income was lower only by 3%. It appeared that whole system of subsidies and taxes (not only subsidies for unfavourable environment) levelled land productivity for areas with favourable and unfavourable environment. The presented results concerned EU average, while particular countries may differ significantly.