This paper reports the results of a European agricultural outlook exercise that updates former studies in three ways, i.e. in terms of timeframes, spatial coverage and policy context. This updated European agricultural outlook constitutes a key component of the forthcoming 'State of the Environment and Outlook report' of the European Environment Agency (EEA). Both activity variables and environmental indicators are reported for a baseline projection and alternative scenarios. The main findings include the following: European harvested land is expected to continue to be primarily used to fodder activities and production of cereals (80% of total area); yields increase is projected to be the main source of production growth in Europe over the next 20 years; environmental pressures are expected to significantly increase in the New Member States, as a result primarily of considerable increase in fertilizers use.