Basic Law No. 86/95 on Agrarian Development.

This Law, consisting of 45 articles divided into eight Chapters, establishes the bases regulating the development and the modernization of agricultural sector. It establishes the purposes of the agricultural policy: cooperatives, natural resources protection, soil and water use, flora, fauna and forestry protection, subsidy to be granted to agricultural cooperatives, etc. The agricultural development policy obeys the following general principles: a) multi-functionality of agriculture, as an economic activity with a significant social, environmental and rural occupation; b) fairness in the conditions of production within the Community; c) protection of areas affected by permanent natural disadvantages.
In implementing this law, the following strategic objectives of the agricultural policy should be pursued: a) increasing the productivity and competitiveness of agriculture and improving the economic and social situation of the agricultural population; b) rational use of natural resources, preserving their regenerative capacity and stimulating cultural options more compatible with agro-climatic conditions and with the qualitative requirements of the markets, in order to ensure an adequate level of food security; c) preservation of socio-economic balances in the rural world, recognition of the multi-functionality of agricultural activities for an integrated development of the country. In pursuit of the objectives of the agricultural policy, particular attention shall be given to: a) enhancement of human resources through the vocational training of farmers, rural workers and other stakeholders in the sector and promote the direct exploitation of land and the establishment of young farmers; b) re-sizing of small-scale holdings, and increase irrigated areas, afforestation and silvo-pastoralism, in order to make a better use of soils with a marked agricultural suitability and the conversion of those of marginal utility to agriculture; c) organize agricultural and forestry markets and improve commercial efficiency by supporting the modernization of agri-food and agro-forestry industry and trade, as well as by stimulating cooperatives, aiming at a greater integration of productivity; d) strengthen socio-professional and socio-economic associations, with a view to the participation of farmers in the definition of agricultural policy and in the processing and marketing of products; e) reduce the State's powers in the agricultural sector, with a progressive transfer of functions to agricultural and inter-branch organizations; f) develop rural research, experimentation and facilitation; g) qualitative valorisation of regional products and support quality control in enterprises and national products; h) support the development of complementary activities associated with agricultural exploitation, in particular in areas with the most unfavourable natural conditions or with specific ecosystems, to generate income from the exploitation and preservation of the economic, landscape and environmental resources of rural areas.