The European Union commences another budget period (2007-2013). This means significant changes for agriculture and rural areas with respect to the manner and the scope of financing of this sector, which were started in 2003 by the Luxembourg reform. The objective of the article is to analyse the introduced changes and evaluate their results and potential impact on the Polish agriculture and rural areas. Changes in the organisation of the so-called agricultural funds, their scope and the manner of management necessitate harmonisation of Polish agricultural legislation with that of the EU as well as adjustments in the institutional system, established in the first half of the current decade. The author analyses the effects of these changes on Polish agriculture and legal and organisational system, as well as the expected impact of the available financial funds on transformations of the Polish agricultural sector and rural areas in the coming years.