Policies to reduce emissions from deforestation and degradation (REDD) are currently being considered as part of the United Nations Framework Convention on Climate Change.  Most of the REDD discussions have focused on some form of payments for environmental services (PES) to small farmers in tropical countries to compensate them for keeping their land in forest rather than clearing it to practice agriculture.  Since farmers would have the option of agreeing to participate in such programs, such policies should both conserve forest and enhance farmer welfare.  In all likelihood, however, PES will also be accompanied by stricter enforcement of land access laws which is likely to have a negative effect on farmer welfare.  In this paper, I present a theoretical model of an agricultural household in a tropical developing country setting to try to disentangle the likely conservation and welfare impacts of such policies under REDD.