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This paper examines the effectiveness of European Union (EU) agroforestry programmes in reversing land degradation processes in the Mação region of central Portugal. Since the 1980s, the region has experienced severe forest fires, which have had serious consequences for the local ecosystem in terms of land degradation processes and changes in the hydrological cycle. In an attempt to reverse this situation, agroforestry programmes and aid schemes have been introduced to improve land management practices and increase the forest area and stabilize soil. However, evaluations of the environmental, economic and social impacts of these schemes have been limited. This paper considers the effectiveness of agroforestry programmes from the perspectives of farmers in the area, as revealed by a detailed survey of land users' perceptions of these measures. The paper also reflects on the implications for current and future policy. The results suggest that present assistance regimes may be insufficient to ensure adequate forest management in the future. A new approach to forest management is proposed involving greater cooperation among local farmers, diversification of species in new afforestation and the establishment of demonstration projects.