| Abstract: | Portuguese policy-makers assumed an active interest in agricultural sector development after the 1974 Revolution. However, the policy instruments used-output price supports, input subsidies, land market regulations, and agricultural credit programmes-have done little to facilitate technical or structural change in much of the sector. This pattern of development may have adverse medium-term impacts on agriculture, because for most commodities, accession to the CAP will substantially reduce farm profitability. If Portugal is to avoid sharp declines in income for a sector that is already relatively low in income terms, reform of factor market policies and investment in research and development are essential. |
