Economy growth analysts have noted and explained the fact that the production growth is necessarily associated with the change of its structure. Cause of those changes is the lag of the agricultural sector. The importance of agriculture is in constant drop for the last, almost 50-year long, period. Mentioned trend only proves the rule of agricultural degradation by the growth of economy. Primary cause of it should be searched for in the change of consumption structure. In fact, the income flexibility demand of food products is constantly dropping with the increase of income. Theory section of this study explains the importance of modern agricultural politics, as well as its general magnitude in agriculture. The analysis part of the study shows modern agricultural politics of the European union and the implementation of collective agricultural politics in the Republic of Croatia. The study is concluced with a chapter on forthcoming agricultural challenges in Europe by the year 2020. The most relevant task of agricultural production is to feed the local inhabitants, that is, to ensure the satisfactory production level of food. It is imperative to additionally stimulate the means of agricultural politics in order to stimulate the process of sustainable economic growth. As opposed to the Republic of Croatia, the agricultures of european and other patricularly developed countries are highly subventioned. In the years to come. Europe will have to face an increased rate of demand and competition regarding delimited natural resources.