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Birds of agricultural systems are one of the most threatened groups of birds in Europe mainly due to their sharp population decline in recent decades. Habitat intensification resulting from more productive agricultural practices has been proposed as a major cause for these declines. However, especially in some regions such as Eastern European and Mediterranean countries, little is known about the ultimate factors linked to habitat intensification that drive population declines for different species. The Lesser Grey Shrike is a good study species for a better understanding of such processes since it is closely related to agricultural habitats in Europe and has suffered a strong decline in range and population size across the western half of the continent. In this study, we explored variations in breeding parameters of this shrike related to habitat composition and food supply at the territory level. We found that fledgling success of early breeders was related to the presence of natural (shrub lands) and semi-natural (fallows) habitats in the predominantly agricultural matrix that dominated breeding territories. Their influence on fledgling success appeared to be mediated by a higher arthropod availability on these habitats. Indeed, Lesser Grey Shrike showed a strong preference for these habitats as hunting locations. Our results highlight the importance of natural habitats in intensified agricultural land mosaics for the conservation of bird species. We suggest that management plans should pay special attention to the availability of habitats which serve as high quality food reservoirs and can potentially contribute to enhance the species population viability in an area. Finally, we discuss the possible link between agricultural intensification and Lesser Grey Shrike population declines in Western Europe.