Multifunctional land use is an option to increase economic and environmental sustainability and to make a region more attractive for local inhabitants and visitors. Between 2002 and 2004 we studied 76 grasslands on different farms. This paper presents results on production, flora and fauna (butterflies and grasshoppers) and nitrate concentration in upper groundwater from six different grassland types. We conclude that a combination of agronomic, ecological and environmental goals is possible and that it is possible to combine a high biodiversity with a rather high production level. In most cases this multifunctionality is not profitable for the individual farmer. However, for the region as a whole it provides good opportunities to create extra income. The most important potential for extra income is an increase in recreation and tourism