Agricultural policies are dominated by broad measures such as market price support and general payments to all land, animals or farmers. As a result, it is often difficult to associate a particular policy with any specific objective and yet targeting policies to meet such objectives is necessary for improving the efficiency of government intervention. Recognising the challenge facing policy makers who wish to design more precisely targeted policies, this study defines the operational characteristics of targeted policies and illustrates best practice with concrete examples . The relationship between target variables and objectives is explored and practical ways to define targets or actions are also examined. Implementation issues such as choice of instruments and support level, delivery mechanisms and levels of administration at which policies are implemented are discussed, based on examples of targeted policies implemented in OECD countries.