Over the past fifteen years, farming systems have changed drastically in the Lao PDR, with swidden systems giving way to more modern agricultural technologies in many areas. In southern Xayabury, agricultural intensification is causing rotational cultivation systems and fallow periods to disappear. These are gradually being replaced by 'resource-mining' agriculture that has serious social and environmental costs, including increased soil erosion (leading to destruction of roads and paddy fields), loss of soil fertility, and chemical pollution of the environment. On elevated plains in the upper part of the Nam Ngum river basin (Xieng Khouang province), large areas of savannah grasslands are under-utilised by smallholders whose main farming systems are based on lowland paddy fields, livestock production with extensive grazing on savannah grasslands, and off-farm activities. Given this situation, the Lao National Agro-Ecology Programme (PRONAE) has implemented an iterative research-development approach based on conservation agriculture. The objectives are to find innovative systems that can revert the present 'resource-mining' practices in southern Xayabury to systems based on conservation agriculture, and to develop alternatives systems for the plains of Xieng Khouang province. Direct seeding mulch-based cropping systems with residue management were evaluated and validated by farmer groups in five villages in southern Xayabury over four seasons. Positive results (increased net income and labour productivity) are evident from these direct seeding systems, and with growing interest observed there is potential for widespread adoption. Results show that the level of dissemination of direct seeding mulch-based cropping systems differs greatly among the villages surveyed depending on their environmental and socio-economic conditions. On the elevated plains of Xieng Khouang province, the economic and technical viability of cattle fattening was analysed. Fattening on improved