diff --git a/command/apply.go b/command/apply.go
index 36a8d5cae8..1437dc1aba 100644
--- a/command/apply.go
+++ b/command/apply.go
@@ -179,6 +179,15 @@ func (c *ApplyCommand) Run(args []string) int {
 		c.showDiagnostics(err)
 		return 1
 	}
+	{
+		var moreDiags tfdiags.Diagnostics
+		opReq.Variables, moreDiags = c.collectVariableValues()
+		diags = diags.Append(moreDiags)
+		if moreDiags.HasErrors() {
+			c.showDiagnostics(diags)
+			return 1
+		}
+	}
 
 	op, err := c.RunOperation(be, opReq)
 	if err != nil {
diff --git a/command/meta_config.go b/command/meta_config.go
index 5a7385a311..fb3491b6c1 100644
--- a/command/meta_config.go
+++ b/command/meta_config.go
@@ -210,27 +210,6 @@ func (m *Meta) initDirFromModule(targetDir string, addr string, hooks configload
 	return diags
 }
 
-// loadVarsFile reads a file from the given path and interprets it as a
-// "vars file", returning the contained values as a map.
-//
-// The file is read using the parser associated with the receiver's
-// configuration loader, which means that the file's contents will be added
-// to the source cache that is used for config snippets in diagnostic messages.
-func (m *Meta) loadVarsFile(filename string) (map[string]cty.Value, tfdiags.Diagnostics) {
-	var diags tfdiags.Diagnostics
-
-	loader, err := m.initConfigLoader()
-	if err != nil {
-		diags = diags.Append(err)
-		return nil, diags
-	}
-
-	parser := loader.Parser()
-	ret, hclDiags := parser.LoadValuesFile(filename)
-	diags = diags.Append(hclDiags)
-	return ret, diags
-}
-
 // inputForSchema uses interactive prompts to try to populate any
 // not-yet-populated required attributes in the given object value to
 // comply with the given schema.
diff --git a/command/meta_vars.go b/command/meta_vars.go
new file mode 100644
index 0000000000..ff68d50e43
--- /dev/null
+++ b/command/meta_vars.go
@@ -0,0 +1,219 @@
+package command
+
+import (
+	"fmt"
+	"io/ioutil"
+	"os"
+	"strings"
+
+	"github.com/hashicorp/hcl2/hcl"
+	"github.com/hashicorp/hcl2/hcl/hclsyntax"
+	hcljson "github.com/hashicorp/hcl2/hcl/json"
+
+	"github.com/hashicorp/terraform/backend"
+	"github.com/hashicorp/terraform/configs"
+	"github.com/hashicorp/terraform/terraform"
+	"github.com/hashicorp/terraform/tfdiags"
+)
+
+// collectVariableValues inspects the various places that root module input variable
+// values can come from and constructs a map ready to be passed to the
+// backend as part of a backend.Operation.
+//
+// This method returns diagnostics relating to the collection of the values,
+// but the values themselves may produce additional diagnostics when finally
+// parsed.
+func (m *Meta) collectVariableValues() (map[string]backend.UnparsedVariableValue, tfdiags.Diagnostics) {
+	var diags tfdiags.Diagnostics
+	ret := map[string]backend.UnparsedVariableValue{}
+
+	// First we'll deal with environment variables, since they have the lowest
+	// precedence.
+	{
+		env := os.Environ()
+		for _, raw := range env {
+			if !strings.HasPrefix(raw, terraform.VarEnvPrefix) {
+				continue
+			}
+			raw = raw[len(terraform.VarEnvPrefix):] // trim the prefix
+
+			eq := strings.Index(raw, "=")
+			if eq == -1 {
+				// Seems invalid, so we'll ignore it.
+				continue
+			}
+
+			name := raw[:eq]
+			rawVal := raw[eq+1:]
+
+			ret[name] = unparsedVariableValueString{
+				str:        rawVal,
+				name:       name,
+				sourceType: terraform.ValueFromEnvVar,
+			}
+		}
+	}
+
+	// Next up we have some implicit files that are loaded automatically
+	// if they are present. There's the original terraform.tfvars
+	// (DefaultVarsFilename) along with the later-added search for all files
+	// ending in .auto.tfvars.
+	if _, err := os.Stat(DefaultVarsFilename); err == nil {
+		moreDiags := m.addVarsFromFile(DefaultVarsFilename, terraform.ValueFromFile, ret)
+		diags = diags.Append(moreDiags)
+	}
+	if infos, err := ioutil.ReadDir("."); err == nil {
+		// "infos" is already sorted by name, so we just need to filter it here.
+		for _, info := range infos {
+			name := info.Name()
+			if !isAutoVarFile(name) {
+				continue
+			}
+			moreDiags := m.addVarsFromFile(name, terraform.ValueFromFile, ret)
+			diags = diags.Append(moreDiags)
+		}
+	}
+
+	// Finally we process values given explicitly on the command line, either
+	// as individual literal settings or as additional files to read.
+	for _, rawFlag := range m.variableArgs.AllItems() {
+		switch rawFlag.Name {
+		case "-var":
+			// Value should be in the form "name=value", where value is a
+			// raw string whose interpretation will depend on the variable's
+			// parsing mode.
+			raw := rawFlag.Value
+			eq := strings.Index(raw, "=")
+			if eq == -1 {
+				diags = diags.Append(tfdiags.Sourceless(
+					tfdiags.Error,
+					"Invalid -var option",
+					fmt.Sprintf("The given -var option %q is not correctly specified. Must be a variable name and value separated by an equals sign, like -var=\"key=value\".", raw),
+				))
+				continue
+			}
+			name := raw[:eq]
+			rawVal := raw[eq+1:]
+			ret[name] = unparsedVariableValueString{
+				str:        rawVal,
+				name:       name,
+				sourceType: terraform.ValueFromCLIArg,
+			}
+
+		case "-var-file":
+			moreDiags := m.addVarsFromFile(rawFlag.Value, terraform.ValueFromFile, ret)
+			diags = diags.Append(moreDiags)
+
+		default:
+			// Should never happen; always a bug in the code that built up
+			// the contents of m.variableArgs.
+			diags = diags.Append(fmt.Errorf("unsupported variable option name %q (this is a bug in Terraform)", rawFlag.Name))
+		}
+	}
+
+	return ret, diags
+}
+
+
+func (m *Meta) addVarsFromFile(filename string, sourceType terraform.ValueSourceType, to map[string]backend.UnparsedVariableValue) tfdiags.Diagnostics {
+	var diags tfdiags.Diagnostics
+
+	src, err := ioutil.ReadFile(filename)
+	if err != nil {
+		if os.IsNotExist(err) {
+			diags = diags.Append(tfdiags.Sourceless(
+				tfdiags.Error,
+				"Failed to read variables file",
+				fmt.Sprintf("Given variables file %s does not exist.", filename),
+			))
+		} else {
+			diags = diags.Append(tfdiags.Sourceless(
+				tfdiags.Error,
+				"Failed to read variables file",
+				fmt.Sprintf("Error while reading %s: %s.", filename, err),
+			))
+		}
+		return diags
+	}
+
+	loader, err := m.initConfigLoader()
+	if err != nil {
+		diags = diags.Append(err)
+		return diags
+	}
+
+	// Record the file source code for snippets in diagnostic messages.
+	loader.Parser().ForceFileSource(filename, src)
+
+	var f *hcl.File
+	if strings.HasSuffix(filename, ".json") {
+		var hclDiags hcl.Diagnostics
+		f, hclDiags = hcljson.Parse(src, filename)
+		diags = diags.Append(hclDiags)
+		if f == nil || f.Body == nil {
+			return diags
+		}
+	} else {
+		var hclDiags hcl.Diagnostics
+		f, hclDiags = hclsyntax.ParseConfig(src, filename, hcl.Pos{Line: 1, Column: 1})
+		diags = diags.Append(hclDiags)
+		if f == nil || f.Body == nil {
+			return diags
+		}
+	}
+
+	attrs, hclDiags := f.Body.JustAttributes()
+	diags = diags.Append(hclDiags)
+
+	for name, attr := range attrs {
+		to[name] = unparsedVariableValueExpression{
+			expr:       attr.Expr,
+			sourceType: sourceType,
+		}
+	}
+	return diags
+}
+
+// unparsedVariableValueLiteral is a backend.UnparsedVariableValue
+// implementation that was actually already parsed (!). This is
+// intended to deal with expressions inside "tfvars" files.
+type unparsedVariableValueExpression struct {
+	expr       hcl.Expression
+	sourceType terraform.ValueSourceType
+}
+
+func (v unparsedVariableValueExpression) ParseVariableValue(mode configs.VariableParsingMode) (*terraform.InputValue, tfdiags.Diagnostics) {
+	var diags tfdiags.Diagnostics
+	val, hclDiags := v.expr.Value(nil) // nil because no function calls or variable references are allowed here
+	diags = diags.Append(hclDiags)
+
+	rng := tfdiags.SourceRangeFromHCL(v.expr.Range())
+
+	return &terraform.InputValue{
+		Value:       val,
+		SourceType:  v.sourceType,
+		SourceRange: rng,
+	}, diags
+}
+
+// unparsedVariableValueString is a backend.UnparsedVariableValue
+// implementation that parses its value from a string. This can be used
+// to deal with values given directly on the command line and via environment
+// variables.
+type unparsedVariableValueString struct {
+	str        string
+	name       string
+	sourceType terraform.ValueSourceType
+}
+
+func (v unparsedVariableValueString) ParseVariableValue(mode configs.VariableParsingMode) (*terraform.InputValue, tfdiags.Diagnostics) {
+	var diags tfdiags.Diagnostics
+
+	val, hclDiags := mode.Parse(v.name, v.str)
+	diags = diags.Append(hclDiags)
+
+	return &terraform.InputValue{
+		Value:       val,
+		SourceType:  v.sourceType,
+	}, diags
+}
diff --git a/command/plan.go b/command/plan.go
index 66a961070d..6f45650a8b 100644
--- a/command/plan.go
+++ b/command/plan.go
@@ -108,6 +108,15 @@ func (c *PlanCommand) Run(args []string) int {
 		c.showDiagnostics(err)
 		return 1
 	}
+	{
+		var moreDiags tfdiags.Diagnostics
+		opReq.Variables, moreDiags = c.collectVariableValues()
+		diags = diags.Append(moreDiags)
+		if moreDiags.HasErrors() {
+			c.showDiagnostics(diags)
+			return 1
+		}
+	}
 
 	// c.Backend above has a non-obvious side-effect of also populating
 	// c.backendState, which is the state-shaped formulation of the effective
diff --git a/command/refresh.go b/command/refresh.go
index e3e5c3f90c..d083111c4e 100644
--- a/command/refresh.go
+++ b/command/refresh.go
@@ -78,6 +78,15 @@ func (c *RefreshCommand) Run(args []string) int {
 		c.showDiagnostics(err)
 		return 1
 	}
+	{
+		var moreDiags tfdiags.Diagnostics
+		opReq.Variables, moreDiags = c.collectVariableValues()
+		diags = diags.Append(moreDiags)
+		if moreDiags.HasErrors() {
+			c.showDiagnostics(diags)
+			return 1
+		}
+	}
 
 	op, err := c.RunOperation(b, opReq)
 	if err != nil {