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COM (83) 587 
 
 
 
Vol. 1983/0 221 
  
 
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concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the opening to the public of the historical archives of the European Econom ic 
Communit y and the European Atom ic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
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file have been declassified in conformity with Article 5 of the aforementioned regulation.  
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februa r 1983 über die Freigabe der historischen Archive der Europäischen  
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983,  
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. Septem ber 2003  
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COMMISSION  
OF THE
EUROPEAN COMMUNITIES
General SecretariatCOM(83)  587 final 
Brussels, 12 October 1983
FOR OFFICIAL U S E  ONLY
NEGOTIATIONS FOR THE ACCESSION  
OF PORTUGAL TO THE COMMUNITY
DRAFT
COMMISSION COMMUNICATION TO THE COUNCIL
on
FURTHER GUIDELINES AND PROPOSALS CONCERNING  
AGRICULTURAL STRUCTURES IN PORTUGAL
COM(83)  587 final

INTRODUCTION
1. In its Communication to the Council of 27 M arch 1981  and m ore recently in
2its Communication of 22 July 1983,  the Commission pointed out that structural 
policy issues were central to the problem of Portugal's agriculture saying 
that the country's agricultural system w as nowhere near the scale of the 
Com m unity system, and so it would be unable to reap the benefits of the 
Com m unity system for a long time to com e.
T he Portuguese authorities themselves summarized the general characteristics 
of the country's agriculture as follows:
"Portugal's agriculture has a lo w  level of productivity. It uses mainly 
land and labour as factors of production, under poor financial and structural 
conditions, and suffers from a serious lack of capital and technology.
Generally speaking, farmers have adopted a defensive approach to production 
and this results in underutilization of natural resources and the predominance 
of subsistence agriculture."
(Programme of the Second Constitutional Government, 2  January 1978)
T he Commission also points out that the n ew  approach to transition which 
it proposed to the Council (C0M(83)310 of 22 July 1983)  should go hand 
in hand with the application, immediately upon  accession, of the entire 
structural programme proposed.
2. This Communication has four chapters, namely:
I. A  description of agricultural structures in Portugal.
II. O n  the basis of this description, an examination of the possibilities 
of applying Com m unity policy to agricultural structures in Portugal.
III. A  specific programme concerning the agricultural development of certain 
regions in Portugal.
IV. A  financial estimate of the cost for the Com m unity of the measures 
proposed by the Commission.
3. In Chapter II of the Communication the Commission analyses the applicability 
to Portugal of the Community's directives and regulations on agricultural 
structures.
If changes were to be m ade to these directives before Portugal joined,
p C 0 M (8 1  )  158 final, p.17. 
cO M (83)310  final, p. 22.

-  2 -
this would be taken into account so that they could be applied in Portugal.
T he analysis contained in this chapter shows that, in view of the nature of 
Portuguese agriculture, the Com m unity rules on agricultural structures, 
in their present form, will have differing effects in Portugal, owing to 
the special conditions under which these rules should be applied there.
T he directives which will have the greatest effect in Portugal are 
Directive 72/160/EEC (cessation of farming and reallocation of agricultural 
area), Directive 72/161/EEC (socio-economic guidance and acquisition of 
occupational skills) and, to a lesser extent, Directive 75/268/EEC (mountain 
and hill farming and farming in less-favoured areas). Directive 72/159/EEC 
(modernization of farms) will have limited effects as a result of the criteria 
which define its scope. Regulations (EEC)No 355/77 (processing and marketing 
of agricultural products) and (E E C ) N o  1360/78 (producer groups) could 
prove effective in helping the development of facilities for the processing 
and marketing of agricultural products in Portugal.
Certain adjustments should be m ade to these directives and regulations 
so that they have m axim um  effect.
4. T he Commission had already stated in its Communication of 27 April 1981 
that, in order to ensure that the concept of a farming unit as at present 
understood in the Com m unity remains a meaningful one, any relaxation at 
Com m unity level of the criteria governing the application of the directives 
on the social and structural aspects, which would enable a larger num ber 
of Portuguese farmers to benefit from the application of these directives, 
could not go beyond a certain limit. W hat will happen more and m ore in 
the future is that the only farms in the enlarged Com m unity able to adapt 
to economic developments will be those which are run by farmers with sufficient 
skills, have been show n by accounting checks to be viable concerns, and 
can, through the use of rational production methods, guarantee a fair income 
and satisfactory working conditions for those w h o  work on them. There 
are few farms in Portugal which meet all these criteria. T he Commission 
considers that in order to create the conditions which would allow Portuguese

- 3  -
farms to make a start on structural improvements, implementation of the 
Community rules, even if these were modified, would - in the Commission's 
opinion - have to be supplemented by a specific development programme 
adapted to the particular structure of Portuguese agriculture. The pattern 
of this specific programme is set out in Chapter III of this Communication.
The programme must take the following into account:
(i) the fact that farmers have received little training;
(ii) the lack of an effective system to disseminate agricultural methods 
(extension services) and conduct experiments;
(iii) the high percentage of the total working population engaged in agriculture;
(iv) the ageing of the agricultural population;
(v) the lack of mobility of agricultural land;
(vi) inadequacy of vocational training.
The details of this specific programme, covering all the disadvantaged 
regions of Portugal, would be worked out in close conjunction with the 
Portuguese authorities. The pace at which the programme is implemented 
would depend on what human and financial resources and equipment were available.
The Commission considers that in working out this specific programme special 
attention must be focused on training, extension services and experimentation 
in Portugal's agricultural sector. Agricultural extension services are 
not only an essential preliminary to the specific programme but will actually 
determine its success.
The Commission also considers that extension operations should be developed
before accession through the use of part of the sum earmarked for
pre-accession aid for Portugal, which the Commission has in any event proposed
- |should be stepped up.
C 0M C 83)310 final, p. 22.

- 4 -
CHAPTER I:  DESCRIPTION OF AGRICULTURAL STRUCTURES IN PORTUGAL
The principal feature of Portuguese agriculture during the last two decades 
has been its poor growth rate. Between 1960 and 1975, the annual Gross 
Agricultural Product (GAP) growth rate, at 1963 constant factor costs and 
prices, was a mere 1%. Between 1960 and 1975, Portugal's per capita GAP 
dropped from 31% to 27% of the Community average whereas, during the same 
period, Greece's rose from 26% to 43% and Spain's from 31% to 44%.
A number of factors are to blame for widening the gap between Portugal's 
agricultural sector and that of other countries in Western Europe:
(a) the structure of land tenure, featuring a "latifundia"-type system in 
the south and extreme fragmentation in the north;
(b) a poor rate of investment in agriculture caused by the lack of a 
coherent development strategy in this sector;
(c) the ageing of the population engaged in agriculture, mainly as a 
result of the drift to the towns;
(d) poor training of farmers, a high illiteracy rate and the absence of 
effective agricultural extension services;
(e) the nature and inadequacy of the agricultural credit system.
Agriculture has stagnated in virtually all regions of the country. According 
to available data, the average per capita GAP for agricultural workers 
in 1972 was less than 60% of the average per capita Gross Domestic Product
(GDP) for the working population in almost half the regions (see Table 1, 
Annex II).
Most recent agricultural census (1972).

- 5 -
The gap separating the Portuguese and Community agricultural sectors
appears even wider if we consider that, in 1972, GDP per worker was less
1than 40% of the Community average in 14 of Portugal's 18 districts, 
and even less than 30% in nine districts. In the country as a whole, the 
disparity between GAP per agricultural worker and GDP per member of the 
working population was about 52%.
These figures clearly show not only the level of general agricultural 
under-development currently obtaining in Portugal but also the amount of 
ground to be covered if the sector is to be modernized.
Agricultural holdings
2The 1968 survey on the structure of land tenure recorded a total of about 
800 000 holdings, 38.8% of which were less than 1  ha in area. Of the 
495 000 holdings of more than 1 ha of UAA,^ almost two thirds were of 
less than 5 ha and only 5.4% of more than 50 ha (Table 3).
In 1968, some 15% of agricultural land was taken up by 78% of agricultural 
holdings while 0.6% of holdings - those of 100 ha and upwards - took up 
approximately 45% of the land.
Another instance of polarization should be mentioned, this time regarding 
the regional distribution of agricultural holdings. In the north, the land 
is fragmented into very small units whereas in the south (the Algarve 
aside), large holdings predominate. Thus we find the problem of small 
farming units particularly acute in the northern districts of Viana Castel, 
Coimbra, Leira, Aveiro, Viseu, Porto, Braga and Santarem, with an average 
of between 0.6 ha and 4 ha of UAA per agricultural worker, whereas in the 
south holdings of less than 5 ha represent some 50% of the total number and 
take up only about 4% of agricultural land, those of more than 100 ha 
represent 3.4% of the total and take up 63.5% of land. The number of ha 
of UAA per agricultural worker is much higher in the south than in the north, 
reaching between 14 ha and 15 ha in the districts of Portalegre, Beja
and Evora.
_
A "district" in Portugal describes a geographic unit equivalent to a 
pCommunity "region".
^Most recent national Portuguese survey on agricultural levels.
"uAA = Utilized Agricultural Area.

-  6 -
In the north of Portugal, the fragmentation and splitting up of land into 
numerous small units, coupled with the inadequate training of farmers, 
the ageing of the population engaged in agriculture and poor credit 
facilities, has created great problems standing in the way of the 
rationalization, modernization and expansion of production. This has had 
a profound effect on rural life and has, given the lack of alternative 
non-agricultural employment and the budgetary restrictions, tended to 
frustrate all attempts to improve structures.
The situation in the south has undergone considerable change as a result 
of the Agrarian Reform of 1975, prior to which land-tenure structure was 
characterized by a predominance of large latifundia, cultivated extensively, 
frequently under-exploited and employing large numbers of agricultural 
workers, mostly on a seasonal basis.
There was generally no attempt made to develop and modernize these holdings, 
nor to diversify crops on them.
With the Agrarian Reform, initiated in 1975, the original dimensions of 
most of these latifundia were preserved and a large number of them are now 
farmed by cooperatives or by "collective production units" which rent the 
land from the state.
The actual yields from Portuguese agriculture are, in general, very low 
compared with the Community average. The main exceptions to this rule 
are rice and tomatoes, the introduction of irrigation having played an 
important role here. At the moment, 668 000 ha, or 15% of Portugal's 
UAA, are irrigated. This percentage may seem relatively high, especially 
if compared with Spain's 10%, but does not in fact reflect the inadequacies 
of the irrigation network in its present state:

- 7 -
- A mere 10% of the 668 000 ha currently irrigated are serviced by dams, 
canals and so on, the rest being irrigated by more traditional means 
(wells, streams, etc.) which are not always able to meet the needs of 
farmers during periods of drought;
- irrigation is mechanized (sprinkler irrigation, spray bars, etc.) in 
the case of only 5% of irrigated land in Portugal, the rest being 
gravity feed;
- the regional distribution of irrigated UAA is not satisfactory. Of 
total UAA, 15% is irrigated in the country as a whole, but less than 
10% in that part of it situated south of the Tagus (Alentejo) where 
water needs are greatest.
The most important factors, apart from the water shortage problem, 
causing Portuguese agriculture's poor yields, are: under-utilization
of modern production methods (selected seeds, fertilizers, 
mechanization and so on), the structure of land tenure and the age and 
training levels of farmers.
The population engaged in agriculture
The latest general census of the population, conducted in 1970, showed 
that 960 000 people, or 31% of the total labour force, were engaged in 
agriculture. Latest estimates put this at 25%.
In 1968, 22% of farm-owners were 65 years old or more with a further 
26% aged between 55 and 65. The size of holding has little effect on 
figures here (Table 7).
The classification of holdings according to size and according to age 
of farm manager reveals a further problem relating to agricultural 
structures: a large proportion of older farmers are in charge of the
smallest farms. Indeed almost 30% of all farmers are aged over 55 
but run holdings of less than 4 ha (Table 8).
Moreover, approximately 40% of farmers are illiterate.

-  8 -
Furthermore, agricultural extension services, vocational training and 
agricultural research and experimentation are all under-developed in 
Portugal. This is a formidable obstacle to the development of 
Portuguese agriculture.
Markèting structures
The marketing network for agricultural products in Portugal suffers 
from general shortcomings and, in particular, a cumbersome marketing 
system for a variety of products, as witness the existence of state 
monopolies for - to name the most important - cereals, oils and fats, 
dairy products, livestock products, fruit, vegetables and wine.
Present policies are aimed at the twin objectives of:
(a) developing and modernizing the main production and marketing 
infrastructure throughout the country, and
(b) coordinating the various bodies currently supervised by several 
ministries.
The cooperative movement in Portugal is expanding. However, detailed 
information on the exact form and nature of the cooperatives which 
have been set up is not available. It is estimated that there are in 
existence at the moment about 660 agricultural cooperatives of various 
kinds. The movement is being backed by the state and by producers' 
associations. This backing takes the form of official aid and of 
projects run by the regional offices of the Ministry of Agriculture, 
including vocational training schemes and projects aimed at improving 
the efficiency of cooperatives already in existence and at encouraging 
the setting-up of new ones.

- 9 -
The agricultural sector in the autonomous regions of the Azores and Madeira
The archipelagos of the Azores and Madeira comprise an area of nearly 
300 000 hectares, with a population of some 500 000 people. This represents 
3.5% of the total area of Portugal and 5% of its population. A particular 
problem is the present state of transport links (poor and infrequent 
services) connecting the autonomous regions, especially the Azores, with 
the Portuguese mainland.
THE AZORES
The agricultural sector accounts for 35% of the region's total working 
population and provides 37% of its gross domestic product.
Agricultural production in the Azores is primarily centred on livestock 
farming - especially milk production and related industries - and the 
cultivation of the following crops: cereals, potatoes, sugar beet,
pineapple, tea, grapes (for wine) and chicory.
About 14% of Portugal's cattle and 25% of its dairy cows are in the Azores.
The archipelago produces 25% of all milk consumed in Portugal. However, 
only 2% of the Azores' cattle are slaughtered there, the remainder being 
exported live to the mainland. This shows the weakness of local infrastructure 
(slaughterhouses, cold stores, etc.).
The livestock sector also suffers from poor production structures.
Some 52% of farms are of less than 1  hectare, which means that many farmers 
are living at subsistence level. The structural problems affecting 
individual farms are considerable (water, electricity, access roads, etc.). 
Obstacles to the modernization of farms are the structure of land tenure 
and backward technology. Furthermore, the inadequacies of the marketing 
system have resulted in a poorly diversified production structure and a 
volume of production below the region's potential.

-  1 0  -
MADEIRA
Some 33% of Madeira's total working population is engaged in 
agriculture.
Agricultural production in Madeira is centred primarily on 
crop growing and shows a certain degree of specialization.
The main products are: fruit (bananas and other tropical fruits), 
tubers (potatoes), horticultural and viticultural products 
and sugar cane.
Viticultural products, bananas and sugar cane account, respectively, 
for 16%, 9% and 6% of all permanent crops. These, together 
with sweet potatoes, are the main agricultural exports. Their 
importance in relation to Portuguese production as a whole, 
however, is rather limited. Madeira's wine production, for 
example, represents less than 1% of national production.
Agricultural produce is, otherwise, mainly intended for the 
local market but is not sufficient to meet the archipelago's 
requirements. Accordingly a large part of agricultural produce 
consumed in Madeira must be imported.
Smallholdings are the main feature of land tenure structure,
89% of the farms being less than 1 hectare. The development 
of Madeira's agriculture is currently handicapped by: the shortage 
of agricultural land, the high proportion of the population 
engaged in agriculture, the size of the holdings and the high 
percentage of older and illiterate farmers.

-  11  -
CHAPTER II:  APPLICABILITY TO PORTUGAL OF THE COMMUNITY'S SOCIQ-
STRUCTUAL DIRECTIVES AND REGULATIONS IN THE AGRICULTURAL SECTOR
1. This Chapter examines how the Community's socio-structurat directives 
and regulations in the agricultural sector could be applied to Portugal.
2. Directive 72/159/EEC on the modernization of farms
2.1 The aim of this Directive is to introduce a system of selective 
incentives for farms capable of development, so that they can operate and 
develop along rational lines, thus creating the structural framework 
for a substantial improvement in agricultural incomes and working 
conditions.
For the purposes of this Directive, farms are considered suitable for 
development where the farmer:
- practices farming as his main occupation;
- possesses adequate occupational skills and competence;
- undertakes to keep farm accounts as from the start of the development 
plan;
draws up a development plan which shows that, upon its completion, 
the farm will be capable of attaining, in principle for one or two 
MWU, at least a level of earned income comparable to that received 
for non-agrieuItural work in the region in question.
For the purposes of the Directive, a comparable earned income means 
the average gross wage for a non-agricultural worker, account being 
taken where necessary of disparities between the social security 
arrangements for farmers and those for non-agricultural workers.
The incentives for farmers whose development plans have been approved 
include:
MWU = man-work unit.

-  12  -
- aids in the form of interest rate subsidies for the investments  
necessary for carrying out the development plan, excluding certain  
expenditure such as that incurred in buying land, pigs, poultry or  
calves intended for slaughter;
- guarantees for loans contracted and the interest thereon, where the  
security or personal guarantee provided is insufficient;
- priority allocation of land released pursuant to Directive 72/160/EEC.
The Member States may grant the equivalent of the aid, in whole or in  
part7 either in the form of an interest rate subsidy or in the form  
of a capital grant or deferred payments; they may also combine the  
two forms of aid.
It should be pointed out, however, that Regulation (EEC) No 1945/81  
and Regulation (EEC) No 1946/81 place certain restrictions on the  
granting of investment aids to pig-farmers and dairy-farmers  
respectively.
2.2 Portugal recognizes no "comparable income" within the meaning of  
Directive 72/159/EEC. The general level of incomes is shown, however,  
by the GDP per member of the working population, which is consequently  
used as the comparable income in the following analysis. Similarly,  
the GAP per member of the farming population is used for the level  
of earned income in the agricultural sector.
As was mentioned at the beginning of this Chapter, the GDP per member  
of the working population in Portugal, which is estimated at 2 963 ECU  
on the basis of 1972 data (see Table 1), represents only 40% of the  
figure for the EEC; The Portuguese average is exceeded in only  
4 districts, namely Lisboa (4 328), Setubal (4 296), Aveiro (3 233)  
and Coimbra (3 001). Even in the Lisboa and Setubal districts, the  
two regions where non-agricultural acitivités would seem to be  
most developed, the GDP per head is only about 58% of the EEC figure;  
in the 9 poorest districts, namely Viana do Castelo, Vila Real,
Guarda, Faro, Castelo Branco, Beja, Evora, Portalegre and Braga,

- 13 -
it is less than 30% of the EEC figure.
Thus, even if it were possible, within the framework of Directive 72/159/EEC,  
to bridge the gap between agricultural and non-agricultural incomes by  
means of a development plan which aimed to achieve the comparable income  
at regional level, the farms concerned could hardly be described as  
"modernized" on completion of the plan. They would probably still  
be poor in Community terms, given the low level of non-agricultural  
incomes in most of the regions concerned.
2.3 For this important reason, when development plans within the meaning  
of Directive 72/159/EEC are implemented in Portugal, the objective of  
farm modernization in most if not all regions should be the comparable  
income at national rather than regional level. As things stand, in/
16 out of 18 districts the GAP per member of the farming population is  
66% or less of the GDP per member of the working population for the  
country as a whole. In half of these districts, it is 50% or less.
This comparison shows that, given the very low level of the GAP per  
member of the farming population, a farm modernization target based on  
the comparable income at national level is unlikely to be achieved  
by the great majority of Portuguese farmers.

-  H  -
In the Commission's opinion, therefore, the application of  
Directive 72/159/EEC will most probably have very little effect in  
Portugal. Generally speaking, if agricultural structures in Portugal  
are to be genuinely modernized, there will first have to be a  
reduction in the farming population, effective stimulation of land  
mobility in the north of the country and the introduction of proper  
systems of vocational training, agricultural guidance and farm loans.
3. Directive 72/160/EEC concerning measures to encourage the cessation  
of farming and the reallocation of utilized agricultural area for  
the purposes of structural improvement
3.1
For the objective of this Directive to be achieved, it is necessary to  
grant suitable incentives to land mobility: thus, farmers receive a
premium calculated by reference to the area of land released and  
farmers between 55 and 65 years of age receive annuities which enable  
them to leave agriculture.
At least 85% of the farmland released by persons benefiting under these 
measures must either be leased for a minimum period of 12 years  
or conveyed, in absolute ownership or by way of emphyteutic lease,  
to farmers whose farm development plan has been approved pursuant  
to Directive 72/159/EEC or be withdrawn permanently from agricultural  
use, in particular by being reallocated for afforestation, recreational  
activities, public health or other public purposes.
However, if no farmers with an approved development plan can be found,  
the UAA released may be allocated to other farms, subject to conditions  
laid down by the Member States, or may be offered, either on lease  
for at least 12 years or for sale, to land agencies appointed by the  
Member State concerned with a view to its reallocation for one of the 
purposes mentioned above.

- 15 -
As regards Community financing of eligible expenditure, the second  
subparagraph of Article 10(2) of Directive 72/160/EEC provides that  
the EAGGF Guidance Section should refund 65% of such expenditure in  
agricultural regions where unfavourable conditions exist and where,  
at the date on which the Directive took effect, measures to encourage  
the cessation of farming were not yet in operation.
For the purposes of the Directive, "agricultural regions where unfavourable  
conditions exist" are taken to mean regions where the following two  
conditions prevail at the same time:
- the percentage of the working population engaged in agriculture is  
higher than the Community average;
- the gross domestic product per capita at factor cost is lower than the  
Community average.
3.2
In view of the serious problems affecting agricultural structures in  
Portugal, incentives to land mobility are of key importance. Since very  
few farmers have development plans, however, the conditions Laid down  
in Article 5(1)(a) of Directive 72/160/EEC, which relate to the reallocation  
of the farmland released and which determine the eligibility of annuities  
for Community financing, cannot be fulfilled in the great majority of  
cases. Admittedly, the land released could be reallocated to other farms,  
but this would not make the annuities eligible for Community financing.
An increase in the size of farms is imperative, however, and should be  
the main objective of any scheme to encourage land mobility in Portugal  
in the present structural situation.
3.3
For the application of Directive 72/160/EEC in Portugal, bearing in mind  
the particular circumstances outlined above, the Commission proposes:
- that specific measures designed to promote land mobility and providing  
simply for the cessation of farming should be eligible for Community  
financing, without any obligation to reallocate the land thus released  
to farms submitting a development plan, provided that the land mobility  
in question contributes towards a substantial improvement of existing  
structures and provided that proof is furnished that the measures taken  
result in the released land being used for a single purpose;
- that, in the case of Portugal, 65% of the expenditure incurred should be  
reimbursed, as provided for in the second subparagraph of Article 10(2)  
in respect of less-favoured agricultural regions.

- 16 -
4- Directive 72/161/EEC concerning the provision of socio-economic guidance for  
and the acquisition of occupational skills by persons engaged in agriculture
4.1 To enable persons engaged in agriculture to take decisions on their future  
occupations and those of their children with full knowledge of all the relevant  
facts, the Member States are required to introduce schemes designed to provide  
farmers and their labour, both hired and family, with a greater degree of socio­
economic guidance.
These schemes comprise:
the creation and development of services, or of special departments within  
existing services, for the provision of socio-economic guidance;
- the bearing of the cost of training socio-economic counsellors, including where  
necessary grants or allowances to cover attendance at courses of instruction or  
in-service training.
4.2 There can be no reform of agricultural structures in Portugal unless a  
great number of those engaged in agriculture radically change the nature of their  
activities, either by converting to other sectors or by leaving agriculture  
altogether. Whatever choice is made, however, it should be made with full  
knowledge of the existing possibilities and of the consequences. Such choices  
are easier to make if farmers have access to proper facilities providing socio­
economic guidance. No such facilities in the Community sense are at present  
available in Portugal.
Given the low level of agricultural training in Portugal and the lack of any  
effective farm-counselling services, it will also be necessary to introduce an  
appropriate incentive scheme to encourage farmers and their labour, both hired  
and family, to improve their position and develop new occupational skills.
4.3 In view of the importance of socio-economic guidance and vocational  
training for the steady improvement of agricultural structures, effective  
application of Directive 72/161/EEC is an essential condition for the agricultural  
development of Portugal. In the Commission's opinion, therefore, the measures  
provided for in this Directive represent the most urgent and most important

- 17 -
steps which should be taken to accelerate agricultural development in Portugal.
5. Directive 75/268/EEC on mountain and hill farming and farming in certain  
less-favoured areas
5.1 The aim of this Directive is to ensure the continuation of farming in  
certain less-favoured areas, thereby maintaining a minimum population level or  
conserving the countryside, by means of a special system of aids to encourage  
farming and to raise farm incomes in such areas.
The Directive makes a distinction between:
- mountain areas;
- less-favoured areas;
- areas with specific handicaps.
The mountain areas are defined in terms of altitude or slope or a combination of  
these two factors. From the data available, it is estimated that mountain areas  
account for some 10% of the area of Portugal, although the situation varies very  
greatly from one region to another.
The less-favoured areas are defined in the Directive as exhibiting the following  
characteristics:
- infertile land, unsuitable for intensive cultivation;
- low productivity of the natural environment;
- results which are appreciably lower than the average indices characterizing  
the economic situation in agriculture;
- low or dwindling population;
- population predominantly dependent on agricultural activities.
5.2 It is very difficult to estimate the area of Portugal which meets the  
definitions given in Directive 75/268/EEC. This area cannot be accurately  
estimated from the structural data currently available on Portugal.

- 18 -
Substantial areas of land would, however, broadly satisfy the conditions laid  
down in the Directive; this would particularly apply to the regions in the  
North East and the South of Portugal.
Some 2.5% of the national territory may be considered as "areas with specific  
handicaps".
In the case of certain regions of Italy and Greece, the minimum utilized  
agricultural area qualifying for the compensatory allowance is set at 2 ha  
instead of 3 ha. In addition, the restriction which Article 7 places on the  
payment of compensatory allowances in respect of dairy cows does not apply,  
whilst the Community reimburses 50% instead of 20% of eligible expenditure on  
development plans and compensatory allowances.
Lastly, the maximum Community contribution towards eligible expenditure on aids  
to joint investment schemes for fodder production or for the improvement and  
equipment of jointly-farmed pastures and hill-grazing land has been increased to  
48 358 ECU per joint investment and 242 ECU per ha of pasture or hill-grazing  
land which has been improved or equipped.
5.3 For the application of Directive 75/268/EEC in Portugal, bearing in mind  
the special situation in that country as regards mountain areas, less-favoured  
areas and areas with specific handicaps and bearing in mind the similarities  
with the situation in certain regions of the present Community, the Commission  
proposes that the following measures should be adopted:
- the minimum utilized agricultural area qualifying for the compensatory allowance  
provided for in Article 6 of Directive 75/268/EEC would be reduced from 3 ha to  
2 ha;
- the rate of Community reimbursement of eligible expenditure on development  
plans, as provided for in Article 8 of Directive 72/159/EEC and Article 9 of  
Directive 75/268/EEC, on guidance premiums as provided for in Article 10 of  
Directive 72/159/EEC and on compensatory allowances as provided for in  
Article 5 of Directive 75/268/EEC would be increased from 25% to 50%;

- 19 -
- the maximum Community contribution towards chargeable expenditure on
aids to joint investment schemes for fodder production or for the improvement  
of jointly-farmed pasture and hill-grazing land, as referred to in  
Article 15 of Directive 75/268/EEC, would be increased to 48 358 ECU  
per joint investment scheme and 242 ECU per ha of pasture and hill-grazing  
land which has been improved or equipped;
in addition, the restriction which Article 7(a) of Directive 75/268/EEC  
places on the payment of allowances in respect of dairy cows would not  
be applied in the case of Portugal.
6. Regulation (EEC) No 355/77 on common measures to improve the conditions  
under which agricultural products are processed and marketed
6.1 The aim of this Regulation is to develop or rationalize undertakings  
engaged in the treatment, processing or marketing of agricultural products,  
in order to improve market structures.
Under these common measures, financial aid may be granted for projects  
which are included in specific programmes for the development or rationalization  
of the treatment, processing or marketing of one or more agricultural  
products in part of or all of the Community. Projects must contribute  
to improving the situation of the basic agricultural production sector  
in question. In particular they must guarantee the producers of the basic  
agricultural product an adequate and lasting share in the resulting economic  
benefits.
Aid from the EAGGF takes the form of capital grants paid in a lump sum  
or in instalments. For each project, in relation to the investment made,  
the financial contribution of the beneficiary must be not less than 50%;  
the financial contribution of the Member State on whose territory the

“  C. U  ~
project is to be carried out must be not Less than 5%; the aid granted  
by the EAGGF may not exceed 25%. This maximum may be increased to 30%  
in the case of projects implemented in regions experiencing particular  
difficulty in adjusting to the conditions and economic consequences of  
the common agricultural policy or in the case of projects which benefit  
such regions.
Moreover, in the special case of the Mezzogiorno and Greece, and by way  
of derogation from Article 17(2) of the Regulation, the minimum financial  
contribution of the beneficiary may be reduced from 50% to 25%, whilst  
the EAGGF grant may cover up to 50%.
6.2 In view of the serious shortcomings which affect the processing and  
marketing of agricultural products in Portugal, there is very wide scope  
for the application of Regulation (EEC) No 355/77.
Appropriate sectoral development programmes would also have to be drawn  
up.
6.3 For the application of Regulation (EEC) No 355/77 in Portugal, in  
order to remedy the shortcomings which affect the processing and marketing  
of agricultural products in Portugal and bearing in mind that in certain  
regions of the present Community special measures are employed to remedy  
similar shortcomings, the Commission proposes that, by way of derogation  
from Article 17(2) of Regulation (EEC) No 355/77, the minimum financial  
contribution of the beneficiary could be reduced from 50% to 25% whilst  
the maximum EAGGF grant could be increased to 50%.
7. Regulation (EEC) No 1360/78 on producer groups and associations thereof
7.1 This Regulation, applies to certain regions of the Community  
including the whole of Italy, Belgium and Greece and parts of France, it

- 2Ï -
introduces a system to encourage the formation of producer groups and  
associations thereof with a view to remedying the structural deficiencies  
which affect the supply and marketing of agricultural products in such  
regions where there is an insufficient degree of producer organization.  
Producer groups are set up for the purpose of jointly adapting the production  
and output of their members to market requirements.
The Member States concerned grant aid to recognized producer groups and  
associations thereof during the three years following the date of their  
recognition, to encourage their formation and to facilitate their operation.
The aid granted to producer groups for the first, second and third year  
respectively amounts to a maximum of 3%, 2% and 1% of the value of their  
members' products to which recognition relates and which are placed on  
the market; the aid may not, however, exceed 60%, 40% and 20% respectively  
of the actual formation and operating expenses.
The aid granted to associations for the first, second and third year must  
not exceed 60%, 40% and 20% respectively of the actual formation and  
operating expenses, subject to an overall maximum of 60 000 ECU. Higher  
maximum rates may be fixed for a specified period by the Council, acting  
by a qualified majority on a proposal from the Commission, in respect of  
certain regions and certain products encountering special difficulties  
in adapting to the conditions and economic implications of the common  
agricultural policy.

-  22  -
7.2 Application of this Regulation in Portugal should help to concentrate  
supply and help to ensure compliance with Community standards, particularly if  
one bears in mind that the State agencies will be dismantled. The development  
of producer groups should not only facilitate greater rationalization and  
centralization of supplies but should also lead to structural improvements,  
especially in the north of the country.
7.3 If it proves necessary after accession, the Commission will present appropriate  
proposals to the Council so that aid may be granted at higher levels than those  
specified in Regulation (EEC) No 1360/78 in the case of certain regions of  
Portugal and certain products encountering special difficulties in adapting to
the conditions and economic implications of the common agricultural policy.
8. Regulation (EEC) No 1035/72 on the common organization of the market in fruit  
and vegetables
8.1 This is the basic regulation governing the common organization of the market  
in fresh fruit and vegetables.
It covers four main areas:
- compulsory standardization;
- producers' organizations;
- the intervention system;
trade with non-member countries:  
system of reference prices  
export refunds.
The arrangements governing organizations of fruit and vegetable producers include  
a "permanent" system of aid, the amount of which may not exceed, for the first,  
second and third years, 3%, 2% and 1% respectively of the value of production  
marketed under the auspices of the producers' organization.

- 23 -
Such aid is spread over the first three years following the establishment of  
the organization. The priority objective of the organizational measures in  
the fruit and vegetable sectors is to control supply and thus prevent the  
serious disturbances which affect the markets for such products. Regulation  
(EEC) No 1035/72 also provides for another "temporary" system of aid which  
expires at the end of 1983. Thus, producer groups set up between 1977 and  
1983 have the choice between the system described above and the "temporary"  
system. The latter provides for aid spread over the first five years following  
the date of establishment. The aid amounts to 5%, 4%, 3%, 2% and 1%  
respectively of the value of production marketed under the auspices of the  
organization concerned but must not exceed the actual formation and operating  
costs.
The Commission has proposed to the Council, as part of the amendments to the  
Community rules prior to enlargement, that the former system of aid should  
be discontinued and that the latter system should be made permanent. The  
aid should also be increased to 5%, 5%, 4%, 3% and 2% respectively of the  
value of the products marketed.
8.2 The Commission considers that the amendments which it has proposed to the  
Council should improve the applicability of Regulation (EEC) No 1035/72 in  
Portugal, as far as the arrangements for aid to producer groups are concerned.  
If experience shows that this is not the case, the Commission will propose  
to the Council a specific programme taking account of the special circumstances  
relating to such matters in Portugal.
9. Regulation (EEC) No 456/80 on the granting of temporary and permanent  
abandonment premiums in respect of certain areas under vines and of premiums  
for the renunciation of replanting
9.1 The disparity between the production and consumption of wine in the Community  
cannot be attributed merely to cyclical variations.

- 24 -
The intervention measures for stabilizing markets, as provided for in  
Regulation (EEC) No 337/79 on the common organization of the market in wine,  
are essentially intended to deal with short-term imbalances. To reduce  
the structural imbalances, Regulation (EEC) No 456/80 provides for the granting  
of temporary and permanent abandonment premiums in respect of certain areas  
under vines and for the granting of premiums for the renunciation of replanting.
(a) For temporary abandonment (for a period of 8 years), a premium is granted  
at the following rates:
- 1  813 ECU/ha for areas under vines of low productivity;
- 2 418 ECU/ha for areas under vines of average productivity;
- 3 022 ECU/ha for areas under vines of high productivity.
Temporary abandonment premiums will be granted until the end of the 1986/87  
wine-growing year.
(b) For permanent abandonment, a premium is granted at the rate of 2 418 ECU/ha.
The permanent abandonment premium will be granted until the end of the 1994/95  
wine-growing year where the beneficiary has already received the temporary  
abandonment premium and until the end of the 1983/84 wine-growing year in all  
other cases.
Regulation (EEC) No 456/80 stipulates that no temporary abandonment premiums  
may be granted in respect of areas under vines located on the same farm which  
total less than 25 ares.
9.2 For the application of Regulation (EEC) No 456/80 in Portugal, the Commission  
proposes, bearing in mind the special features of wine-growing in that country,  
that the minimum area specified in Article 2(3)(a) should be lowered from 25 ares  
to 10 ares.

- 25 -
10. Regulation (EEC) No 457/80 establishing a system of premiums for the  
cessation of wine-growing in France and Italy
10.1 Substantial surpluses being a feature of the market in wine, the aim of
this Regulation is to give elderly wine-growers a chance of retiring without  
suffering any great financial loss. This can be achieved by granting such
wine-growers an annual premium or, if they do not practise farming as their  
main occupation, a single premium calculated on the basis of the area under  
vines which they cultivate.
In view of the objectives to be obtained within the Community and the probable  
repercussions on the market situation, Regulation (EEC) No 457/80 provides for  
Community financing of 40% of the expenditure incurred in granting the premiums  
for the cessation of wine-growing.
10.2 Since wine-growing structures in Portugal are similar in certain respects  
to those in France and Italy, the Commission proposes that Regulation (EEC) No  
457/80 should also apply to Portugal, in accordance with detailed rules to be  
laid down at a later stage.
11. Regulation (EEC) No 458/80 on collective projects for the restructuring  
of vineyards
11.1 As part of the gradual establishment of balance on the wine market,  
basic wine-growing structures should be improved so as to rationalize work in  
the vineyards and to increase agricultural incomes.
Collective restructuring operations may, depending on the case, involve not  
only the replacement of vines but also road improvements and irrigation works  
or other technical operations necessary for the improvement of basic structures  
at the vineyard in question.

- 26 -
Since the restructuring of vineyards necessitates prior reparcelling operations  
the cost of which is often beyond the means of the growers, the Regulation  
provides that the Member States may grant national aid for the reparcelling of  
vineyards producing quality wines psr or table wines. Regulation (EEC) No 458/80  
provides for EAGGF reimbursement of 30% of the standard premium granted by the  
Member State for each hectare restructured. This represents the Community's  
contribution towards the common measure. In 1981, the Council amended  
Regulation (EEC) No 458/80 to improve the way in which it was applied, by  
providing for the possible inclusion of new plantings and by reducing the  
minimum area to be covered by collective restructuring projects.
11-2 Quite apart from the technical changes to Regulation (EEC) No 458/80  
which will be entailed by Portuguese accession (total Community wine-growing  
area to be restructured, national quotas and shares allocated to quality  
wines psr and table wines), the Commission considers that the amendments made  
in 1981 should improve the applicability of this Regulation in Portugal. If  
experience shows this not to be the case, the Commission will propose to the  
Council a specific programme taking account of the special features of the  
wine-growing sector in Portugal.

- 27 -
CHAPTER III:  SPECIFIC PROGRAMME FOR DEVELOPING AGRICULTURE IN CERTAIN
REGIONS OF PORTUGAL
1. In its communication to the Council on the agricultural proposals
presented in the context of the negotiations for Portugal's accession to  
1the Community the Commission came to the conclusion that:
- the existing structural improvement directives should not be diluted, even  
temporarily, to meet Portugal's farm modernization requirements, and
- on the contrary, it intended to work without delay for the implementation  
of a specific programme to enable the least-favoured regions in Portugal  
to enter into the dynamics of structural improvement without driving  
people off the land more quickly than they can be absorbed into alternative  
employment elsewhere.
2. Chapter II of this communication dealt with the Community rules on  
agricultural structures and the amendments that will be necessary for them  
to be applied as effectively as possible in Portugal.
With regard to the specific programme referred to in this chapter it should  
be borne in mind that, under the common agricultural policy, such  
programmes already exist for the development of agriculture in certain  
less-favoured regions of the Community. Here, mention may be made of the  
following common measures:
(i) Regulation (EEC) No 1820/80 of 24 June 1980 for the stimulation of  
agricultural development in the less-favoured areas of the west of  
Ireland,^
(ii) Regulation (EEC) No 1942/81 of 30 June 1981 for the stimulation of  
agricultural development in the less-favoured areas of Northern  
Ireland,3 and
(iii) Regulation (EEC) No 1975/82 on the acceleration of agricultural
4development in certain regions of Greece.
pC0M(81)  158 final of 27
^OJ No L 180, 14.7.1980.
;?0J No L 1S>7, 20.7.1981.
0J No L 214, 19.7.1982.March 1981, paragraph 42.

- 28 -
3. The Commission considers that similar common measures will be essential
- |upon accession to achieve a satisfactory level of agricultural development  
in Portugal. In this connection:
- measures should be taken to establish an adequate agricultural advisory  
service for all those regions of Portugal where such a service is  
manifestly lacking;
- large-scale structural development schemes should be undertaken in the  
poorer regions of Portugal. Such measures would be of particular  
importance to the Guarda, Castelo Branco, Faro, Coimbra, Viseu, Bragança,  
Vila Real, B-aga et Viana do Castelo districts, where the estimated  
average income per person engaged in agriculture is less than 50% of the  
comparable average income nationally.
4. The existence of effective agricultural advisory and research services  
is a prerequisite for the development of agriculture in all regions of  
Portugal. The absence of advisory services is perhaps the major  
constraint on the development of agriculture throughout the country.  
Similarly, the development of agricultural research, particularly at the  
regional level, in order to contribute towards the expansion of the  
principal agricultural sectors and to give a decisive impetus to that  
expansion is a vitally important factor.
The development of an effective advisory service would mean improving and  
expanding the existing service by organizingi training courses intended to  
impart to the general and specialized advisers the technical know-how  
required at the various levels of agricultural development, by recruiting  
and training additional staff having an appropriate aptitude for advisory  
work, the taking on of skilled teaching staff and the provision of  
training equipment where necessary. At the same time, it is of cardinal  
importance for the success of agricultural advisory services in Portugal  
that an adequate number of demonstration farms be established in which  
the agricultural techniques and practices that are most effective for  
agricultural development in each individual situation may be demonstrated.  
Furthermore, it is necessary to define what exactly is needed in terms of  
agricultural research and experimentation for the whole of the country.
The Commission stresses that specific preparatory measures (study and
approval of projects) should already be able to be taken during the
interim period in order to facilitate to the maximum implementation of
the specific programme upon accession (C0MC83) 310 final, page 22, point 5.3.4.).

- 29 -
To that end, the Commission proposes that:
(i) joint action be taken immediately after Portugal's accession  
to the Community aimed at establishing an effective system of  
advisory services covering the whole of the country;
(ii) in ord^r to guarantee the effectiveness of the advisory service, the  
joint action should also comprise the establishment of an adequate  
number of demonstration farms for all the regions;
(iii) a study should be undertaken right now in order to determine the  
shortcomings of the present system for agricultural research and  
experimentation in Portugal, particularly at the regional level, and  
appropriate measures to remedy those shortcomings should be  
implemented in due course.
5. The large-scale structural development measures would be in three phases  
- short, medium and long term.
The short-term phase would consist in improving the conditions of existing  
farms by means of a better distribution of the available resources, even if  
it were not necessary to modify the size of the farms or embark upon 
major rationalization measures. At the same time a considerable effort  
should be made to improve processing and marketing facilities insofar as  
possible, account being taken of the dominant or anticipated features of  
agricultural production and to improve the existing advisory service.
The medium-term phase should consist of developing a good infrastructure,  
irrigating drytand farming areas, encouraging better use to be made of  
land and establishing and developing effective agricultural advisory,  
teaching and research services. In this phase it would also be possible  
to broach the longer-term aspects of livestock improvement, such as  
monitoring performances and the descendants of male breeding stock.

- 30 -
The Long-term phase should essentially be aimed at reparcelling farms which  
have been split up and increasing the size of those which are not at present  
viable. At the same time it should be concerned with rectifying the imbalance  
in the age structure of the agricultural population by encouraging older farmers to  
retire and, according to the circumstances, taking measures to facilitate  
entry into the profession for young people on terms guaranteeing the long-term  
viability of their farms. Furthermore, if the viability of the region as a  
whole is to be secured, the development of the non-agricultural sectors of  
the economy should be regarded as a major long-term objective.
These different development phases, the details of which are referred to in  
Annex I, with one of the poorer regions - the Beira Interior region - being given  
as an illustration, must be coordinated under a specific development programme  
to be implemented by Portugal immediately after its accession to the Community.
This programme would be aimed at considerably improving the production and  
marketing conditions as well as improving the whole of the structural situation  
of the agricultural sector.
6.
The problems of agricultural structure in Portugal are enormous, even when  
compared with those of the Community's Mediterranean regions. Moreover, the  
financial resources available to the Portuguese Government for.financing its normal  
share of the investment resulting from the specific programme are apparently  
grossly inadequate. Consequently, if the rate of the Community financing does  
not in some cases exceed that currently applied in other poor regions of the  
Community the development programme will not be able to be effectively  
implemented.
In order to ensure that the specific programme in the poorer regions of Portugal  
is implemented as rapidly and effectively as possible the Commission proposes  
that, in order to carry out the various operations envisaged, the rates of  
Community financing of expenditure eligible under the EAGGF should be as follows:

- 31 -
- 50% for investments in farms, including the establishment of young farmers,
50% for forestry development,
- 60% for measures concerned with agricultural processing and marketing,
- 75% for the cessation of any agricultural activity, for vocational training and  
agricultural advisory services and for experimentation and agricultural  
research,
- 75% for performance tests and monitoring the descendants of male breeding stock,
- 75% for developing infrastructure, reparcelling of holdings and irrigation.

- 32 -
CHAPTER IV FINANCIAL IMPLICATIONS
1· Application of Community's socio-structural Directives and Regulations  
(to be read in conjunction with Chapter II of this Communication)
The exact cost of applying the socio-structural directives and regulations  
in Portugal from accession is very difficult to calculate primarily because  
the rules involved are new to Portugal and some of the conditions under which  
they will be implemented will differ from those generally prevailing elsewhere  
in the Community.
However, the financial implications for the Community budget have been assessed  
as comprehensively as possible on the basis of the various economic indicators  
available for Portugal and with reference to comparable situations existing in  
certain Community regions and to experience acquired within the Community.
Directive 72/159/EEC
With regard to the modernization of farms, the annual cost to the EAGGF of  
aids for the measures listed below is estimated as follows:
drawing-up of development plans: 3.40 million ECU/year
management accounts: 0 .1 5 million ECU/year
settlement schemes for young farmers: 0.06 million ECU/year
3.61 million ECU/year
Directive 72/160/EEC
With regard to the cessation of farming, the cost to the EAGGF of the annuities  
for farmers aged between fifty-five and sixty-five leaving agriculture and for  
those over sixty handing over farm management to an heir is estimated at
9.2 million ECU/year.
Directive 72/161/EEC
With regard to socio-economic measures, the annual cost to the EAGGF of the  
operations listed below is estimated as follows:
provision of guidance for farmers,
hired labour and family workers: 11.6 million ECU/year
provision of training for
agricultural advisers: n 7 cm/Umf million ECU/year
Ï2.3 million ECU/year

- 33 -
Directive 75/268/EEC
The annual cost to the EAGGF of the aid for the compensatory allowance in  
mountain and hill regions and in less-favoured areas is estimated at
5.0 million ECU/year.
Regulation (EEC) No 355/77
The annual cost to the EAGGF of the general measure for improving the processing  
and marketing conditions of agricultural products in Portugal is estimated at
28.0 million ECU/year.
Regulation (EEC) No 1360/78
The annual cost to the EAGGF of applying the scheme to promote the formation  
of producer groups and associations thereof in Portugal to offset structural  
deficiencies is estimated at 0.1 million ECU/year.
Regulation (EEC) No 1035/72
The annual cost to the EAGGF of applying the aid measures in respect of the  
formation and operation of producers' organizations in the fruit and  
vegetable sector in Portugal is estimated at 0.2 million ECU/year.
Regulation (EEC) No 456/80
The annual cost to the EAGGF of granting temporary and permanent abandonment  
premiums in respect of certain areas under vines and premiums for the  
renunciation of replanting in Portugal is estimated at 2.7 million ECU/year.
Regulation (EEC) No 457/80
The annual cost to the EAGGF of applying the scheme for the granting of premiums  
for the cessation of wine-growing in Portugal is estimated at 0.2 million ECU/year.

- 34 -
Regulation (EEC) No 458/80
The annual cost to the EAGGF of collective projects for the restructuring of  
Portuguese vineyards is estimated at 3.7 million ECU/year.
2. Specific programme
(to be read in conjunction with Chapter III of this Communication)
The measures incorporated in the specific programme should be applied over a  
ten-year period if the anticipated effects are to be produced. On the basis  
of the refund rates given in Section 6 of Chapter III the total cost to  
the EAGGF Guidance Section of applying the specific programme throughout  
the less-favoured regions in Portugal, including the autonomous regions of  
the Azores and Madeira, is estimated at 524 million ECU over the ten years, or  
52.4 million ECU per year. The estimated cost broken down by specific  
measure and by refund rate is as follows:
A. 50%_refund million ECU
- improvement of grazing and arable land 40.00
- artificial insemination 1.30
- premiums for high-quality seeds 12.30
- premiums for the purchase of high-grade cattle and
the improvement of housing 26.30
- development of demonstration farms 25.00
- forestry development 75.00
B. 75% refund
1- setting-up of vocational training centres 3.83
- provision of training for agricultural advisers 99.99
- setting-up of experimental centres 6.38
- setting-up of a research centre 1.50
- tests on breeding animals 12.00
- improvement of electricity network 12.00
- improvement of drinking water network 45.00
- improvement of farm and local roads 30.00
- development of irrigation system 131.25
promotion of land reparcelling 1.69
TOTAL523.54
This measure also includes additional training for existing agricultural  
advisers (23.76 million ECU).

- 35 -
3. Summary
(a) Application of Directives and Regulations
- modernization of farms
- cessation of farming (including specific programme)
- socio-economic measures
- mountain and hill areas and less-favoured areas  
(compensatory allowance)
- improvement of processing and marketing conditions  
(including specific programme)
- producer groups and associations thereof
- fruit and vegetable producers' organizations
- wine sector (abandonment and restructuring)million ECU/year
3.6 
9.2
12.3
5.0
28.0
0.1
0.2
6.6
65.0
(b) Specific programme 52.4
(c) Total: (a) + (b) (EAGGF Guidance Section) 117.4

- 36 -
ANNEXES
page
I. APPLICATION OF THE SPECIFIC PROGRAMME TO THE
BEIRA INTERIOR REGION 37
A. AGRICULTURAL CHARACTERISTICS OF THE BEIRA INTERIOR
REGION 37
B. DESIGN OF THE SPECIFIC DEVELOPMENT PROGRAMME 39
C. COST OF THE SPECIFIC PROGRAMME 48
II. TABLES AND GRAPHS 49

ANNEX I
- 37 -
I. APPLICATION OF THE SPECIFIC PROGRAMME1 TO THE BEIRA INTERIOR REGION
A. AGRICULTURAL CHARACTERISTICS OF THE BEIRA INTERIOR REGION
The agricultural characteristics of the Beira Interior region, which,  
amongst others, embraces the districts of Guarda and Castelo Branco, can  
be summed up as follows:
2The Beira Interior region has a total area of 13 000 km , accounting  
for roughly 14.4% of mainland Portugal (approx. 90 000 km^).  Roughly  
450 000 people or 34.6% of the total population of some 1.3 million  
inhabitants (9.5 million for mainland Portugal as a whole) are dependent  
on agriculture. The number of people working in agriculture accounts for  
59.4% of the total working population of the Guarda district and 48.3%  
of the working population of the Castelo Branco district. For the country  
as a whole the number of people engaged in agriculture is estimated at  
25% of the total working population.
Between 1970 and 1975, the total population of the Beira Interior region
fell by some 8%. At present the population density varies greatly from
2one area to another - from 25 to 30 inhabitants per km in the Beira Interior
2region to 91 inhabitants per km at national level.
The average gross domestic product per labour unit stands at 1 627 ECU in  
the Guarda district and 1 959 ECU in the Castelo Branco district (national  
average = 2 963). By contrast, the gross agricultural output per person  
employed in agriculture is 1 221 ECU in the Guarda district and 1 167 ECU  
in the Castelo Branco district (national average = 1 526 ECU). It should  
be noted that the gross agricultural output of these districts constitutes  
75% and 60% of their respective GDPs and less than 40% of the corresponding  
national value. The fact that, according to the most recent data available,  
Portugal's gross domestic product amounts to only 40% of the Community average,  
serves to illustrate the degree to which agriculture in the Guarda and Castelo  
Branco districts is underdeveloped.
Specific programme referred to in chapter III of this document

- 38 -
Farms are extremely small in both districts; more than 80% of holdings
of more than one hectare have an area of less than 20 ha and roughly
50% an area of less than 5 ha. The average area of cultivated land per person
employed in agriculture is 5.5 ha in the Guarda district and 7.8 ha in the
Castelo Branco district.
Farming conditions vary greatly in the Beira Interior region. The region
can be divided into five areas defined according to potential for agricultural
production:
1
(a) the mountainous area of Serra da Estrela comprising the concelhos of
Seia, Gouvela, Manteigas, Fornos de Algodres, Celorico da Beira and
Trancoso and Meda. This area is given over almost entirely to extensive
livestock-farming, especially of sheep and goats. The average population
2density is 49 inhabitants per km and livestock productivity is extremely  
low;
(b) a varied agricultural area comprising the concelhos of Guarda, Pinhel,  
Govilhâ and Belmonte and Fundao. This area embraces a large part of  
the best agricultural land. Some 5 000 ha of land are irrigated.
Most of this land is given over to livestock, mainly sheep and goats,  
but also some cattle; cereal production (maize and rye) is also fairly  
well developed in some parts. The average population density is 60  
inhabitants per km .  Yields per hectare are very low for both livestock  
and crop-farming enterprises;
(c) an underdeveloped agricultural area, comprising the concelhos of Figueira,  
Castelo Rodrigo, Almeida, Sabugal, Penamacor and Idanha-a-Nova.
This is a relatively arid area where there are considerable variations  
in temperature. There is a large high plateau in the north and low-lying  
land in the south including part of the valley of the Tagus and its  
tributaries. Livestock (sheep, goats and cattle) and cereals (wheat  
and rye) are the main enterprises in that area. The average population
The Portuguese "concelho" is a geographical entity roughly equivalent to  
a parish.

- 39 -
density is 20 inhabitants per km .  Crop and Livestock yields are  
extremely low;
(d) an area of very poor land varying in relief and taking in the concelhos  
of Castelo Branco, Vila Velha de Rodao, Gaviao and Nisa. Many granite  
outcrops are to be seen in the north between Castelo Branco and the  
Gardunha mountains. Livestock, especially sheep, is the main activity.
Cereal production (mainly wheat and rye) for grain or as green fodder for  
sheep also has an important place. Large areas of land remain fallow  
and are cultivated every other year.
The average population density is 27 inhabitants per km .  Productivity  
in both the crop farming and livestock-farming sectors is very low, a  
situation which is aggravated further by the high proportion of fallow  
land;
(e) a forested area comprising the concelhos of Oleiras, Serta, Proença-a-Nova,  
Vila del Rel and Maçao. Many small valleys are to be found in this area  
where a form of subsistence farming is practised alongside the rivers.
The average population density is 31 inhabitants per km .
B. DESIGN OF THE SPECIFIC DEVELOPMENT PROGRAMME
The aim of achieving substantial and continuous growth in agricultural  
production and productivity is conditional upon the implementation of an  
overall agricultural development programme underpinned by appropriate  
and reliable financial aid. Agricultural development presupposes the  
introduction and application of new techniques. Fundamentally what is needed  
is a process of training (teaching, advice and demonstration). However,  
such a breakthrough cannot be made overnight in low-income areas. Nor can  
it be achieved without considerable effort on the part of the advisory and  
other training services. Time is one of the most important factors in  
areas where the decline of activities has reached a critical point.
Therefore we cannot wait for the training system to be established before  
tackling this problem of development.

- 40 -
As already mentioned , the specific programme would be carried out in
three phases: short-, medium- and long-term.
(a) Short-term measures - Improvement of agricultural productivity
The improvement of agricultural production in the short-term should  
be brought about mainly by applying modern agricultural techniques  
and practices at the level of individual farms. In this respect  
measures to increase fertilizer use and at the same time a large-scale  
land and livestock improvement programme would be highly desirable.
Total fertilizer consumption is extremely low. The production sector  
should be developed by improving permanent pasture instead of adhering  
to the practice of harvesting roughage for trough-feeding. The genetic  
characteristics of the livestock breeds must be improved as must feed  
conversion ratios. High-quality crops must be developed through the  
use of high-yielding seed varieties and greater use of fertilizers.
In order to preserve soil fertility, combat parasites and disease  
and increase the protein content of roughage, there must be rational  
crop rotation involving, in particular, the production of hay and silage.
During this short-term phase, the current practice in some areas of  
allowing a relatively large part of farmland to lie fallow should be  
abandoned. This practice, which aims at restoring part of the natural  
fertility that soil has lost through previous cultivation, is out of  
date. Furthermore, the greater the amount of land left fallow in the  
crop rotation, the smaller the area of land the farmer is effectively  
able to use. This fallow land therefore aggravates the situation of  
smallholdings and cannot be justified in terms of modern farming practices.
Advisory programmes covering the various measures referred to above  
would lead to a substantial improvement in productivity and agricultural  
incomes within a relatively short space of time. However, these programmes  
presuppose the existence of an effective advisory service. Measures  
should therefore be taken as soon as possible to improve the agricultural  
advisory service by providing appropriate on-the-spot training for advisers.
See Chapter III, point 5, p. 29.

- 41 -
Likewise in the short-term a major effort should be made to encourage  
the development of the agri-foodstuffs industry in accordance with the  
basic materials available. The region would derive numerous advantages  
from this. It would benefit from the value added to the raw material.  
Another result would be stable, well-paid jobs and satisfactory working  
conditions in a region that currently suffers from a high level of  
unemployment or chronic under-employment. This industry should make  
it possible to pay farmers the best price for the raw materials they  
produce.
Given the low production levels of these deprived regions, the first  
measures to develop the agri-foodstuffs sector should be confined to  
the rationalization and modernization of existing processing and  
marketing structures.
The creation of surplus processing capacities must be avoided at all cost.  
However, an increase in processing and marketing capacities can be  
considered in the medium term where it can be justified by an increase  
in the output of farms.
Commission proposal
In order to increase agricultural productivity considerably in the short-term,  
the Commission proposes that:
(i) the existing agricultural advisory services be made more effective
by giving advisers appropriate on-the-spot training in technical, socio­
economic and economic subjects;
(ii) within the framework of the advisory programmes, financial incentives  
be provided for:
.  improvement of grassland, pasture and arable land by means of lime  
and fertilizers;
.  developing the artificial insemination of dairy and beef cows by  
using semen from bulls with a high genetic potential;
.  the use of high-yielding seed varieties, particularly for the  
production of fodder;
.  the purchase of breeding stock (sheep and cattle) with a good genetic  
potential and the improvement of livestock housing;

- 42 -
(iii) existing installations for the processing and marketing of
agricultural products be rationalized and modernized, especially  
those using products which could have a lasting beneficial effect  
on the development of the agricultural sector in the region under  
consideration;
(iv) appropriate training courses for farmers and agricultural workers  
be introduced under the existing education and training system.
(b) Medium-term measures - improvement of livestock and development of  
infrastructure
The gradual transformation of the agricultural sector in the short, then  
medium, term implies the implementation of measures to improve livestock  
and develop basic infrastructure, including rural infrastructure, the  
irrigation of arid agricultural areas and the establishment of effective  
advisory, training and agricultural research services.
Livestock improvement should entail performance tests and monitoring of the  
descendants of male breeding stock in order to improve the quality of dairy  
and beef cattle and of sheep.
Improvement of rural infrastructure should entail:
- measures to ensure that farms, villages and hamlets where the main  
activity is agricultural are provided with electricity and water supplies;
- the construction and improvement of farm tracks and rural roads for use  
mainly by the agricultural and/or forestry sector.
The establishment of such infrastructure or improvement of existing  
infrastructure is the prerequisite for genuine reform of the agricultural  
structures of the region under consideration. Moreover, these measures  
would be an effective way of raising the purchasing power of the rural  
communities in question and perhaps a good incentive for farmers to improve  
their farming systems.
The establishment of an adequate irrigation network should be undertaken  
in close coordination with the measures to develop rural infrastructure.  
Therefore the development of irrigation would be based on the speeding up  
of collective work including the associated drainage and be integrated with  
the existing network of reservoirs and principal canals. Furthermore, in  
view of the urgent need to develop agriculture in Portugal, it is also  
necessary to set up mobile irrigation networks at farm level.

- 43 -
In many parts of these deprived regions, the splitting up of farms  
constitutes a real obstacle to irrigation, which, as a result, cannot  
meet present needs. In these areas the planning of irrigation work should  
go hand in hand with reparcelling since land development schemes imply  
the building of drainage infrastructure and other improvements which would  
be impossible in regions where smallholdings predominate.
In the last analysis, the speed of agricultural development in these  
regions will depend on the extent to which farmers, individually or  
collectively, are prepared to make those changes to the organization of  
their activities which the success of the new techniques demands. These  
prerequisites for the development of agriculture highlight the importance  
not only of the search for new know-how and information but also of  
advisory work to ensure the practical dissemination of such new know-how  
and information amongst the agricultural population.
Given the general level of agricultural development in the Beira Interior  
region, established techniques seem in many respects more than enough to  
comply with farmers' immediate requirements. This being so, in the  
extension of the short-term measures, priority should be given to the  
establishment of an effective advisory service rather than to developing  
basic research under the medium-term measures. At the same time special  
importance should be attached to the setting up of an efficient network of  
regional experimental stations commensurate with the requirements of  
agricultural development and to the establishment of an appropriate number  
of demonstration farms throughout the Beira Interior region.
As pointed out in connection with the short-term measures above, the  
first measure to improve the advisory service should be to raise the  
standard of the existing service by providing appropriate on-the-spot  
training programmes.

- 44 -
In the context of the medium-term measures, this service should be  
developed further by recruiting and training new staff. The advisory  
services responsible for irrigated areas, particularly in those areas  
where a fundamental reorganization of agricultural production is planned,  
should receive special attention.
The level of agricultural research, both basic and applied, is inadequate  
throughout Portugal but particularly so at regional level. Most agricultural  
research is carried out by the National Institute for Agricultural Research  
(INIA) while the specific agricultural development problems of the regions  
are practically ignored, all available resources being devoted to the study  
of sectoral problems. In the long term this research will therefore have  
to be considerably increased and gradually extended to encompass the main  
sectors of agricultural activity, particularly with a view to solving the  
major problems raised by the development of agricultural structures in the  
regions concerned.
A major requirement for the development of agriculture is these regions  
is suitable training for the agricultural population, young farmers in  
particular. A special effort is therefore required in this field. In the  
short term, training programmes will be limited by the number and specific  
nature of the available training services. The improvement and development  
of these services must be the focal point of the medium-term development  
programme.
Despite the specific nature of their particular tasks, advisory, research  
and training staff should have two main objectives where the deprived  
regions are concerned, namely to increase agricultural productivity and  
promote the economic and social advancement of the agricultural population.
In practice they will be unable to accomplish these aims unless their  
activities are as closely coordinated and integrated as possible. In their  
efforts to do this they should ensure that all new know-how reaches all  
levels of the farming Community and is not of benefit solely to those who  
are in a position to go actively in search of it.

- 45 -
If the joint efforts of research, advisory and training staff  
are really to bear fruit, new know-how should therefore reach  
not only the most modern farmers who actively seek to acquire  
it but also others including young farmers.
Effective support for these groups of farmers therefore presupposes  
that the three services of research, advice and training will  
show particular imagination in their joint work.
Commission proposal
In order to speed up medium-term development the Commission  
proposes that:
- specialized training services be developed for farmers and  
agricultural workers;
- additional agricultural advisers be trained in technical,  
economic and socio-economic fields until there is one adviser  
for every 200 farmers. The trained advisers would be deployed  
as a matter of priority in sectors with a large number of  
farms whose production activities would be reorganized as
a result of irrigation work;
- an appropriate number of experimental stations be set up  
to test, improve and approve strains of plant and animal  
species meeting the agricultural development requirements  
of the regions under consideration;
- an appropriate number of demonstration farms be set up for  
use by the advisory service as centres for the dissemination  
of new techniques amongst the agricultural population;
- an appropriate number of research stations be set up, which,  
operating under the aegis of the INIA, would chiefly be  
responsible for eliminating major obstacles to the development  
of agriculture in these areas;

- 46 -
- performance tests on male breeding stock be intensified  
so as to allow an initial selection to be made of animals  
suitable for the production of milk and meat;
- monitoring the descendants of male breeding stock be intensified  
so as to arrive at a selection of animals with high genetic  
potential suitable for improving the quality of dairy and
meat cattle and sheep;
- measures be taken to ensure that farms, villages and hamlets  
where the main activity is agricultural are supplied with  
electricity and water;
- farm tracks and country roads used mainly by the agricultural  
and/or forestry sector be extended or improved;
- the collective irrigation work, including connected drainage  
work, be speeded up by using existing reservoirs and canals;
- viable or potentially viable farms be provided with mobile  
irrigation systems;
- additional treatment, processing and marketing capacities for  
agricultural products be established according to need.
(c) Long-term measures - rationalization of production structures
Agricultural problems, especially those relating to agricultural  
incomes in these deprived areas will not find an appropriate  
solution until such time as the agricultural infrastructure  
of these regions is improved. In the short term, increased  
production based on additional investment may make it possible  
to eliminate a considerable number of the difficulties faced  
by farmers, even without any increase in the size of farms,  
but it cannot provide a real solution to the problems of the  
agricultural sector as a whole.

- 47 -
The existence of surpluses in many agricultural sectors at  
Community level will particularly restrict the development  
of agricultural production in Portugal. Therefore, the aim  
of increasing or maintaining agricultural incomes by means  
of a prices policy is subject to certain limits. The long-term  
solution to the problem of agricultural incomes must therefore  
be sought within a complete rationalization of agricultural  
structures in the regions under consideration. Such rationalization  
would entail incentives to elderly farmers to retire, thus  
releasing enough land for young farmers, including heirs, to  
enter the profession on acceptable terms. Reparcelling and,  
if necessary, the enlargement of split holdings are important  
features of this rationalization programme.
Such programmes may not always provide a viable solution to  
the problems of agricultural development in these regions.
However, if they are combined with measures designed to create  
remunerative alternative employment for surplus agricultural  
labour, they could contribute greatly to solving the situation  
created by small-scale farmers. In this connection the implementation  
of an integrated development programme should be considered  
as the final stage in the long-term development of these regions.
Commission proposal
In order to bring about a substantial and lasting improvement  
in Portuguese agricultural structures in the long term, the  
Commission proposes that:
- farmers of more than 55 years of age having no heirs be encouraged  
to give up all farming activities so as to release land on to the  
market thus facilitating the reform of structures;
- farmers of more than 60 years of age with an heir be encouraged  
to transfer the running of the farm to the latter;
measures designed to facilitate the entry of young people into  
farming in circumstances guaranteeing the long-term viability of  
their farms be put into effect;

- 48 -
- appropriate measures be taken to promote reparcelling and,  
where appropriate, the enlargement of split farms, particularly  
in combination with the retirement of elderly farmers;
- the development of forestry be encouraged if possible in  
combination with programmes for the retirement of farmers;
lastly, an integrated development programme of agricultural  
measures be applied together with every possible development  
measure likely to improve the general social and economic  
situation of the region.
C. COST OF THE SPECIFIC PROGRAMME
The cost of the specific development programme for the Beira  
Interior region is put at roughly 15% of the total cost of  
the specific agricultural development programme for all the  
deprived regions of Portugal.

- 49 -
ANNEX II
n .  TABLES AND DIAGRAMS
1. Economic situation and agricultural disparity by district.
2. Utilized agricultural area as % of total land area - by district.
3. Number of holdings of 1  ha and over by size category and man/land
ratio.
4. Average size of holdings (mainland Portugal, Azores, Madeira).
5. Regional distribution of holdings over 20 ha as % of total
holdings by region.
6. Number and UAA of holdings by size category (comparison Portugal/  
EUR 9).
7. Percentage breakdown of holdings by size category and according  
to age of farmer.
8. Classification of holdings according to age of farmer and size  
of holdings.
9. National breakdown (%) of irrigated agricultural land in Portugal.

- 50 -
TabLe 1: Economic situation and agricultural disparity by district
V lan* do C artolo  
B raga  
Porto  
V il»  R eal  
Br avança  
À veiro  
Coimbra  
V iseu  
Guarda
C a a telo  Branoo
L e ir ia
L isb oa
Sant area
Port a ie g r e
Evora
S a tu b a i
B eja
Faro
T o ta l P o r tu g a l  
EUR-9.G DP/  
worker
ECUAP/a g r i ç- Agricultural;
1 1 5 6
2 115  
2 864
1 603
2 372
3 233
3 001 
2 384 
1 627
1 959
2 880
4 328 
2 591  
2 059  
2 053  
4 2 9 6 ·  
2 030 
1 799Jütturat 
(worker. 
ECUdisparity
(%)
831 
1 3S5  
2.106  
1.055  
1 149 
1 838  
1 216  
1 182  
1 221  
1 167
1 510
2 529  
1 960  
1 809  
1 95Ô  
1 882  
1 889  
I2 6 9
2 983 1.526Vworker 
regional 
(level as %
lo f  GDP/  
(worker 
national 
level
7 2 .9  
65.5
76.3
86,8
4 8 .4
5 7 .9
4 0 .5  
4 9 ,2
7 5 .1
5 9 .6
5 2 .7  
'5 8 .7  
7 5 .6
8 7 .9
9 5 .4  
4 3 ,8 '
9 3 .1
7 0 .5
5 1 .52 8 ,0
4 6 .7
7 3 .8  
3 5 ,6
38.8
6 2 .0
4 1 .0  
3 9 ,9  
41,2
3 9 .4  
5 1 ,2
8 5 .4
66.1  
61,1 
66,1
6 3 .5
6 3 .8
4 2 .8
5 1 .54> D P  / wprker
P o rtu ­
g a l -
100EUR-9 ·  
100 1
3 9 ,0 1 5 ,7
7 1 ,4 2 8 ,7
9 6 ,7 3 8 ,9
5 4 ,1 2 1 ,8
8 0 ,1 3 2 ,2
1 0 9 ,1 4 3 ,9
1 0 1 ,3 4 0 ,8
8 0 ,5 3 2 ,4
5 4 ,9 2 2 ,1
6 6 ,1 2 6 ,6
9 7 ,2 3 9 ,1
1 4 6 ,1 5 8 ,8
8 7 .4 3 5 ,2
6 9 ,5 20,0
6 9 ,3 •  2 7 ,9
1 4 5 ,0 58 ,3
6 8 ,5 2 7 .6
6 0 ,7 2 4 ,4
100 40,2
1Estimate based on 1972 data,
GDP = Gross Domestic Product  
GAP = Gross Agricultural Product
Source: I AM Montpellier - April 1981 - Vol. II-B.

- 51 - ■
Tab'Le 2: Utilized agricultural area as % of total land area - by district
Mainland Portugal = 26.7%

Table 3: Portugal 1963 - Number of holdings of 1  ha and over by size category and
man/land ratio
Viaria C astel
Sraga
portoDistricts Code
Code
No
VC
BR
PO4.1
4 .1
4 .1Description(Number of  
[holdings of  
^1 ha____
C0
00)of which % with ha
1  -  < 5 5 - <  20 20 -  <  50
Cereals, horti- I 17 646 
cultural products,! 31 343 
flowers + tubers! 26 72381.9
67.9
70,2!7.1
30,6
27.50 .7
1.4
1.90.2
0,2
0 .5an/land rat  
or total ag  
ultural lan
UAA/agriculturworker
0.6
1.1
1 .5
yila  Real
Bravança 
Avei.roVR
BR
AV1.2
i:i
4 .1»iPP
+
PP+ vineyards  
sheep/goats  
+ vineyards
Cereals/horticulturaI  
products, flowers, tuberi30 119 
26 951 
3Ô 31959.5
33.8
78.036*9
54,9
20.33 .0
9 .1  
1 ,40,6
2,2
0 .52.4
7 .7
1.3·
Joimbra
Viseu
GuardaCO
IVI
CU4 .2
4 .2
1.2PP + vineyards +  
shegp/goats. ____37 2
98 
48 388 
35 38878.9
7 2 .4
51.619.8
25.6
42,10 .9
1 .5
5.20 ,4
0 .5
1.11,8·
1.6-
5.5
Castolo Branco
L eiria
Lisboa
Santarea  
Portalegre
Ëvora
Setubal
Beja
Paro
PORTUCALCB
LE
LX3 .0
4-2
1.3Cereals, fallow  
land,·fodder crops,  
PP, olives
Cereals + horticultural!  products + flowers +  tubersPP + vineyards32 959
34 412 
27 61558,1
78.3
72.520,1
24.94,7
1.2
Jj lL
SA 
PE 
EV 
SE 
BE 
I  PA1.1
3.0.
3.0
3 .0
3 .0
2.0PP + vineyards
Cereals, fallow land,  
'fodder crops, PP  
[+ olives
'Cereals, fallow land  + fresh fruits _____37
 896 
11 448
8 .48465.5 
48.3 
42*2
10 400 
18 400 
28 0901^5"
34,9
_ 5 1 * L29,8
34,4
39.22.9
7.8
8 .0
30.1
42.1 
39,27 .3
1 1 ,8
6.5
PO 495 029 63.6 31.0 3,62.7
0 ,4
_2*2_
1,8
9 .5
10,5
" M
11.2
2,7
1.87 ,8
2,0
3*1
4 ,1
14,1
15,0
6 ,4
14.2
4 ,6
(*) PP = Permanent pasture.

- 53 -
Table. 4
Average size of holdings (mainland Portugal, Azores, Madeira)
Mainland Portugal ___Autonomous Regions-
1

- 54 -
Table 5
Regional distribution of holdings over ?0 hi * °f total
holdings by region
South

T a b le  6 -  55 -
P O R T U G A L  /  EUR 9
N U M B E R  A N D  U A A  O F  H O LD IN G S B Y  SIZE C A T E G O R Y  (COM PARISON 
PORTUGAL/EUR 9)
Number of farmers (%)
40 -
30·
20-
10  -
0
0
10  -
20
30
40 -
50 -
UAA (%)^ PORTUGAL · 1968
EUR 9 ■ 1975
PORTUGAL  ·  4Size categories  
in ha UAA
45
CCE'DG V I A /2  8009 4 9

Table 7:  Percentage breakdown of holdings by size category and according to age of farmer
(Survey Portugal 1968)
Size category (ha) ‘ Number of  
holdings1 -  1  »  1 — ■  ■  ■  ■ - ■ ■ ■ ■  - ■  "  '  ’ ■  “ 1  1  -  ■  — — '  '  '  “ * ■
Age of farmer (years) Total
< 35 1  35 -  < 45 45 -  < 5 5 55 -  < 6 5 * 6 5
1 -  <  4
4 -  < 20 
20 -  < 5 0
> 5 0  .314 855 
153 225 
17 716 
9 2338 ,8
5 .5  
4 ,7
5 .52 0 ,0
17.4
16,1
18,124.7 
26,2
25.8 
26,624.9
27.8
29,2
26,621,5
23.2
24.2
23.2100
100
100
100
Total 495 029 7 .6 1 9 ,0 25,2 26.0 22,0 100

Table 8:  Classification of holdings according to age of farmer and size-of holdings
(Survey Portugal 1968)
Size category  
(ha)Age of farmer (years) Total
< 3 5 35 -  < 45 45 -  <  55 55 -  <  65 £ .6 5 (%)
1 -  <  4 
4 -  ^  20
20 -  <  50
> 5 05 .6
1 .7  
0 .2  
0.112.7
5.4
0 ,6
0.315.7
8,1
0 .9
0 .515.8
8 ,6
1.0
0 .513.7
7 .2
0 .9
0.463.6
3 1 .0
3 .6
1.9
Total 7 .6 i9 .o  H 25.2 26,0 22,2 100
I

Table 9- 58 -
—  -  - · —  - i .  -------- ■  " ■ ' ■ » —
PO
RTUGAL
NATIONAL BREAKDOWN (%) OF IRRIGATED  
AGRICULTURAL LAND IN PORTUGAL
Permanent pasture Orchards
Horticultural crops
--------------- VMi
scellaneous fruit trees
Vineyards
Field-scale crops
Cee-DG VI-A 2-8011  G6