A carbon tax on emissions from agriculture, as well as land use, land use change and forestry (LULUCF), is widely regarded as a necessary tool if Denmark is to achieve its greenhouse gas reduction obligations. In assessing the impact of levying such a tax, the present study finds that the combination of a carbon tax of €50 per tCO2e, combined with subsidies for emission-reducing technologies, would provide roughly three-quarters of the remaining national reduction required by 2030. These results are based on the GreenREFORM model: a dynamic multisector model focused on the interactions between economic and environmental policies. Crucially, given a significant portion of emission reductions are achieved through drops in agricultural and food processing production, the results are reliant on assumptions made about the market structures of these sectors, especially regarding export elasticities and expectations around future prices. The study investigates, through a series of sensitivity analyses, how altering these assumptions impacts emission reductions. The drop in production is expected to have different impacts on e.g. employment and production in different regions of Denmark, as some regions have a larger share of production within the agriculture and food processing sectors than others.