The following study aims at verifying whether and to which extent functional changes affect the conversion of agricultural land. The land under study features fragmented agrarian structure and the proximity of a subregional city with a population of more than 100 thousand. The paper describes legal conditions of agricultural land conversion (AL), analyses the risk of conversion and the functional and spatial changes of the area under study in 2004–2013. High population density and fragmented agrarian structure create strong pressure on AL conversion. The data illustrating changes in the income structure of agricultural holdings show that the area becomes multifunctional. A simultaneous analysis of utilized agricultural area supported by direct payment shows no relevant change in the share of AL. This leads to a conclusion that the functional transformation does not necessarily mean corresponding spatial changes. They may be based on a more intensive use of land which has already been urbanized. This way of thinking is absent among local land-use planners. In 2011–2013 the surface of non-agricultural land in local land-use plans has increased several times.