The bank has a long relationship withUruguay's agricultural sector, expanding over a periodof more than 60 years in which several projects and variousanalytical and advisory assistance initiatives have beenimplemented. The main purposes of the present report are: a)to analyze the main characteristics of family agriculture aswell as its development potential and constraints; b) toexamine Uruguay's current agricultural policy andinstitutional framework; c) present a set of measures aimedat reducing vulnerabilities and increasing developmentopportunities for family producers; and d) contribute toMinistry of Livestock, Agriculture and Fishery's(MGAP's) preparation of an agricultural and ruraldevelopment plan 2010-15, by presenting a set of policyrecommendations and measures to support an economic andenvironmentally sustainable family agriculture developmentwithin the Government's overall strategy to promotemore equitable rural development. Uruguay'sagricultural and food sector has successfully mastered pastcrises and retained its role as an important sector of thenational economy, which saw its contribution to GrossDomestic product (GDP) increased from 6.0 percent during theeconomic crisis in 2000-2001 to 9.1 percent of national GDP,or 13.7 percent including agro-food processing, in 2008.