Agriculture continues to occupy an important position in the economy, but its contribution is declining. Between the early 1990s and 2004 the share of agriculture in GDP declined from 14% to 7% and the share of farm employment in total employment from 22% to 15% [1, 2]. Farming accounted for two-thirds of total land use and nearly 90% of water use in 2001-03 (Figure 3.10.1). While the overall volume of farm production changed little between 1990-92 and 2002-04, the volume of crop production rose by 2.6% but livestock production declined by 2.1% (Figure 3.10.2). Moreover, the intensity of production increased and agricultural productivity improved [3, 4]. The rise in crop production was mainly accounted for by higher output of notably olives, vines for wine, cotton and some horticultural crops, as overall livestock production declined, although poultry, sheep and goat numbers rose [1]. There was a 2% decrease in the area farmed between 1990-2 and 2002-04 but the use of inputs increased during this period including for pesticides (39%), water (33%) and energy (10%), but inorganic fertiliser use (nitrogen and phosphorus) decreased by around –40%. Small family plots of less than 5 hectares, compared to the EU15 average of over 16 hectares, account for three quarters of farmland, and around 60% of farms are situated on hilly or mountainous terrain [5].