Recent trends in Albania suggest that it has the potential for a modern and competitive agricultural sector, provided there is sufficient private investment and the right policy environment. This chapter looks at the role of agriculture in the economy and the current status of the sector, and outlines the implications of modernization and transformation of agriculture for rural areas. It also identifies trends and sources of growth for agriculture, and concludes by presenting the key policy challenges for the sector. The rest of this report analyzes the challenges facing the agricultural sector and recommends policies for addressing them. These challenges are analyzed in greater detail, and more specific policy recommendations are given in the following chapters, which focus on strengthening supply chains, improving food safety, and ensuring that reforms are carried out in compliance with EU legislation. The final chapter looks at how well public expenditures in agriculture are managed in order to achieve these policy objectives.