The objective of this paper is, primarily, to point to the possibility of quantification of indicators related to multifunctional agricultural and rural development and decision making on the basis of the ones. Quantitative indicators should indicate the achieved level of multifunctional agricultural development in the Republic of Serbia, starting from widely accepted principles of this development: economic, ecological and social ones. The core of multifunctional agricultural and rural development is actually sustainable development which takes into consideration interests of present and future generations. The state development policy in solving sustainable development problems is of great importance, and decisions would be more real if they rely on measureable indicators and adequate quantitative analysis. Composite indicators, very useful for trends identification and drawing attention to certain questions of interest, have a special place in this analysis.