Subsidizing old-style agriculture has two major benefits in my opinion: i) it allows for a smoother transition towards more advanced practices without crushing regular farmers and ii) it helps containing production surpluses, which has been, historically, a major concern in the European Union.

Regulations also help with avoiding surpluses, raising the bar for food safety, and have the added benefit of (arguably) fostering adaptability while giving the Union a relative protection from external markets.

Regarding the technological adoption in Portugal, I guess it depends on the sector you're considering. I really can't speak for other areas, but in the case of agriculture there have been some major investments in the past that allow for more productive practices even if not supported by major breakthroughs. It's mostly automation of harvesting, adoption of new practices and new pesticides, quality control and more training.

So far behind that there is still a local economy based around farm work and hedgerows for wildlife.

Both those things may be regarded by many people as putting them out in front.