Chemical-synthetic pesticides (CSPs) are associated with several negative environmental effects. The European Commission aims to reduce their use by 50% by 2030. This paper looks at the German Eco-Scheme, an agri-environmental payment scheme, for the foregoing of chemical-synthetic pesticides (CSPs) in arable crops for a one-year period. Using Baden-Württemberg in southern Germany as a case study, we investigated the suitability of the Eco-Scheme as a policy tool for CSP reduction. We used a field-based, georeferenced integrated land use model based on linear programming. Different payment levels for the Eco-Scheme were simulated. In addition, we analyzed the effect of labor availability, crop yield requirements, and market prices on Eco-Scheme implementation (uptake).The implementation potentials at €130/ha, the payment level in 2023, were limited and strongly dependent on market prices as well as potential food supply targets. The percentage decline in overall CSP use (measured in active substance mass) was even lower than the implementation in the percentage of acreage attributed to the Eco-Scheme. The implementation potentials were mainly observed on marginal sites. Higher simulated payment levels led to lower cost efficiency and dead weight losses. This trade-off between cost efficiency and effective reduction questions the suitability of the Eco-Scheme, at least for more substantial CSP reductions. To increase economic efficiency, we recommend differentiating payments based on abatement costs, for example on a crop-basis.