We assess anticipated changes in policy and regional climate on agrarian land use development indicators in Austria for the period 2025-2040. A spatially explicit bio-economic integrated assessment quantifies impacts at 1km grid resolution in order to take into account the heterogeneity of Austrian agricultural landscapes. The impacts of the Common Agricultural Policy (CAP) post-2013 on regional producer surplus are slightly positive and payments shift from intensive to extensive production regions. The economic impact of climate change depends on changes in precipitation patterns. Policy change leads to intensification of land use in favorable cropland and grassland regions and extensification in marginal regions. Regional climate change amplifies land use intensification with increases in crop yields, e.g. in Alpine regions, and land use extensification with declining crop yields, e.g. in eastern cropland regions. Environmental indicators deteriorate at national level in all scenarios. The highly spatially diverging impacts call for more targeted policy measures.