Discussions concerning rural development in Peru since the military coup of 1968 have focused mainly on the large‐scale land reform programme under which the coastal estates and many of the livestock and agricultural haciendas in the highlands have been expropriated [Petras and Rimensnyder, 1970, Quijano, 1971, and Hobsbawm, 1971]. This has tended to deflect interest from other important aspects of rural development policy. It would be wrong to assume that, prior to the latest reforms, the Peruvian scene consisted almost entirely of latifundia agriculture, for a substantial proportion of the productive agricultural land in both the highlands and coastal valleys was, and remains, in the control of smallholder farmers, or is held under communal ownership by peasant communities. In an attempt to incorporate these non‐hacienda zones into the plan for national development [Plan del Peru: 1971–1975], the government is encouraging the expansion of smallholder commercial production, the establishment of new, or t...