Abstract Agricultural intensification has simplified landscape composition and configuration, which has led to biodiversity declines. Increasing landscape‐wide crop heterogeneity can promote farmland biodiversity. However, knowledge is still lacking on how the effects of configurational and compositional crop heterogeneity (i.e. field size and crop diversity) are modulated by the amount of semi‐natural habitats in the landscape, especially across large scales. We tested how mean field size and functional crop diversity affect farmland bird diversity and abundance over three consecutive years, and how these effects are modulated by the amount of small woody features (SWF) in the landscape. We related data from a national bird monitoring scheme to field‐level information from a novel, high‐resolution remote sensing‐based crop type map. Smaller field sizes and higher functional crop diversity were not generally associated with a higher diversity or abundance of farmland birds. Associations varied with species' breeding habitat preferences and were modulated by the amount of SWF. In landscapes with a low SWF amount, species diversity and the abundance of species breeding in field edges or shrubs were negatively associated with increasing field size. However, where the amount of SWF was high, larger field size was associated with higher species diversity and abundance of field and shrub breeders. Diversity increased with higher functional crop diversity, as did the abundance of non‐field breeders in landscapes with a medium to high SWF amount. Field size tended to have a stronger effect on bird diversity and abundance than functional crop diversity. Policy implications: National and EU agricultural policies should adopt a landscape perspective by considering the amount of semi‐natural habitats when designing biodiversity‐enhancing measures that target field size and functional crop diversity. In landscapes with low SWF amount, decreasing field sizes may be particularly effective to promote farmland bird diversity and the abundance of non‐field breeders. In landscapes with a medium to high SWF amount, increasing functional crop diversity is likely more effective than reducing field sizes. Field and shrub breeders may be promoted by maintaining landscapes with large fields, only if these offer a high SWF amount, low agronomic yield potential and low productivity.