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The multifunctionality of agriculture is a crucial element of the system of the national economy. Land preservation and restoration is the main objective in the strategy of multifunctional agriculture, ensuring the provision of necessary food products and raw materials for the next generation. Multifunctional agriculture occurs mainly in the countries members of the EU, though its development is at a different level depending on the situation in individual countries. The aim of the study is to analyze the social and economic effects of the application of multifunctional agriculture. The study is based on good practices of different farms in Bulgaria and Germany. The results show that multifunctional agriculture provides a stable social and economic development of agricultural farms and contributes to the development of vital rural regions in which they are located. [ABSTRACT FROM AUTHOR]