The decrease in the area of arable land has further continued in the European Union (EU) since the Millennium. Sustainable development is partially based on the sustainable use of natural resources, which is based on the limitation of land use and on the introduction of different incentives. Previous direct subsidies resulted in increased production. The reform of the Common Agricultural Policy (CAP) has aimed to stop the increase in production, possibly even to decrease production. The objective of this research is to show whether such an effect on land use and on the change of production structure in the EU can be observed. Analyses have shown that agricultural and arable areas have further decreased within land use since the Millennium, continuing the previously characteristic trend in the EU. The proportion and the yield of cereals in the production structure have increased. We conclude that in this respect the effects of the CAP on agriculture are the opposite to its original aims.