Trees, individually protected from herbivore damage using plastic shelters, were planted at two densities (100 and 400 stems/ha) into sheepgrazed pasture in upland and lowland UK grassland sites in 1988. Tree and animal performance were compared with conventional forestry (no sheep) and pasture (no tree) systems. Effects on tree growth and survival are highly species and site dependent although some treatment effects did emerge. Tree shelters encouraged rapid early height growth compared to forestry controls although in some cases tree form was also adversely affected. Generally tree performance within agroforestry treatments was better at the higher planting density. Eight years after planting there has been no reduction in animal production despite interception of up to 10% of total photosynthetically active radiation by the developing tree canopy