ABSTRACT
The non-agricultural sector is very diversified, with ample opportunity for off farm employment. These regions thus offer a good opportunity to evaluate the competitiveness and long run viability of small farm agriculture, from both a part time and full time farming perspective. The small and medium traditional systems produce a number of crops for market. The small farm system grows about equal areas of grapes, orchards, and forages for beef production. The calculations of present and potential future performance were based on budgets of costs and returns of alternative commodities and technologies. Future competitiveness of the Portuguese farming systems is estimated by modification of the baseline model and results. The effect of structural adjustments on rural areas in Northern and Central Portugal and the kinds of policies that are needed to ease the process of structural adjustment are the principal concerns of policy. Portugal has considerable distance to go in the process of structural change.
