The changes in utilization of agricultural land have gradually grown into one of the major factors impacting grain output in China. This study explores the various components of agricultural production in China from the land utilization perspective, involving changes in grain production per unit area, multi-cropping index, and adjustment of agricultural structure. Compared with the record values, different research methodologies are used to analyze the potential of above three components. The results indicate that grain production potential of 65.68×109kg was unexploited in 2006, in which 45.8×109kg came from the restructuring in agriculture. So we can infer that the reduction of grain production in China could be primarily attributed to agricultural restructuring in recent years. So the productive potential can be fully restored by increasing agricultural investment, or recovering agricultural structure in favorable conditions. So we can say that Chinas current condition of food security is good.