•More intensive land use led to higher risk of soil structural degradation (SSD) in NZ.•Pasture production declined by 2.5% for each 1% (0.01 cm3 cm−3) decrease in macroporosity.•Compaction increased N2O emissions by 51–814% (grazing) and 19–1300% (traffic).•Compaction effects on contaminant losses via runoff and drainage were inconsistent.•Estimating costs of SSD is challenging due to the lack of data. Agricultural intensification has enhanced productivity, but has also negatively affected soil structure and environmental outcomes. Agriculture is among New Zealand (NZ)'s largest industries. Like other countries, significant land use intensification over the last 20–30 years has occurred in NZ, resulting in undesirable side-effect of soil structural degradation (SSD) (e.g., soil compaction, aggregate fragmentation). Using NZ as a case study, we reviewed and, where possible, quantified the extent of SSD in NZ and its impacts and implications on production, contaminant losses via drainage and runoff, and N2O emissions. Knowledge gaps were identified that will help guide future research both in NZ and internationally. Our review revealed that SSD is common in many regions and under different land uses in NZ. At the national scale, 44% of sites monitored between 2014 and 2017 were below the national target for macroporosity (pore diameter > 30 μm). The occurrence of SSD was greater under more intensive land uses such as dairying and continuous cropping. Soil structural degradation from compaction is typically associated with reduced pasture and crop production. In NZ, pasture production was estimated to decrease by an average of 2.5% for every 1.0% (0.01 cm3 cm−3) decrease in macroporosity (0–10 cm soil). Compaction from livestock treading and wheel traffic has been shown to increase N2O emissions by 51–814% and 19–1300%, respectively, with no significant evidence that this increase is related to N loading. Effects of compaction on contaminant losses via runoff and drainage, and in particular via preferential flow, are less well researched and findings were less consistent and dependent on many factors including the degree of compaction. Important knowledge gaps include a lack of quantitative relationships between degree of SSD and soil hydraulic properties and processes (e.g., water movement and contaminant losses), and poor knowledge of critical thresholds or optimum ranges of soil physical indicators in relation to critical ecosystem services (e.g., pasture yield, gas and water regulation in soils). We also found few estimates of SSD-induced costs related to production and environmental outcomes (e.g., contaminant losses and N2O emissions) at either farm system, regional or national scales. More data are needed to better determine the true costs and implications for farm production and environmental effects associated with SSD.