I believe the best landcover policy formulation is to make an economic assessment of how land will be used, in order to make the most efficient use of land resources. This includes an assessment of environmental impact(besides business and labour utility) because that has long term economic consequences
Adding to the previous response, I would recommend to previously build, with all actors involved, a sound development plan (for the correspondent territorial area), with its development model proposal and due consideration of the main territorial limitations, constraints and potentials, which will determine key planning guidelines to be observed during the detailed land use policies identification.
The current ideology for land use worldwide is, almost everywhere, a form of capitalism, i.e., land use is monopolized by the few for increase in their wealth and power.
To suggest an alternative plan is to assume that the capitalist plan can be overcome. This may not be possible.
However, it is possible to speculate what an alternative plan might be assuming democracy and ownership of land through a government which manages it for equitable use by all.
If the government were to manage all land, it could grant land to individual or corporate petitions which satisfied the government's constitution. This management would function dynamically at multiple levels, the result being that individuals and corporations, which would also be granted authority to function by the government, could submit petitions for grants at any level depending on their business scheme.
In a sense, under this plan a population would own and control all use of land through control by their government .
As a result of the holistic view of interactions between nature and humans and ability to address tensions and synergies between environmental and socio-economic goals, ecosystem services are now recognized as an important concept for land use policy and decision making.
The results of ecosystem service mapping and assessment can be used to inform environmental policy by assessing the risks and impacts of various human activities on ecosystems and human health, as well as developing various mitigation and management actions.
Contributing to the discussion and the good points argued by L Kurt Engelhart , "the current ideology for land use worldwide" is effectively quite near to the short description made. However I would say that although it certainly responds to a kind of political influence (capitalist), what prevails most everywhere is a matter of a complex and paramount interests game, which is present in the world, countries and local contexts development. Investments and actions which are "needed" see land use policy formulation, only as malleable instrument to be changed whenever some powerful influences need it.
Citizens are excluded of these particular decision processes, and moreover from the very planning process, which at the end of the day affects the quality, equity and sustainability of their own living environments. If citizens have a role of main stakeholders, they will decide in their territory, the future they really need, getting involved in building, monitoring and evaluating the future model of development they have collectively decided, and change progressively this situation.