Regulation (EU) 2023/2674 of the European Parliament and of the Council of 22 November 2023 amending Council Regulation (EC) No 1217/2009 as regards conversion of the Farm Accountancy Data Network into a Farm Sustainability Data Network

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 43(2) thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the European Economic and Social Committee (1),

Acting in accordance with the ordinary legislative procedure (2),

Whereas:

(1) The analysis and development of the Union agricultural sector and of the common agricultural policy require objective, up-to-date and relevant information on the performance and sustainability of holdings in the Union. The Farm Accountancy Data Network (FADN) was established by Council Regulation (EC) No 1217/2009 (3).

(2) The Commission’s impact assessment supporting the 2018 legislative proposals for the common agricultural policy (CAP) post-2020 identified the need to enhance the collection of farm-level data.

(3) In the Commission communication of 20 May 2020 entitled ‘A Farm to Fork Strategy for a fair, healthy and environmentally-friendly food system’, the Commission announced its intention to convert the FADN into a Farm Sustainability Data Network (FSDN), with a view to collecting farm-level data on sustainability. The conversion will enable that converted data network to support the development of evidence- and performance-based policies, as well as the analysis of agricultural sectors in the Member States and in the Union as a whole, gauging progress and providing valuable guidance to policy makers. The FSDN will contribute to the analysis of the enhanced economic, environmental and social dimensions of the CAP, to the improvement of advisory services to farmers and benchmarking of farm performance, and to the transparency and fairness of the agri-food supply chain.

(4) In order to give substance to the objectives of the CAP set out in Article 39 of the Treaty on the Functioning of the European Union (TFEU), as well as to ensure that the Union adequately addresses its current and future challenges, it is appropriate to cover the three dimensions of the sustainability of Union agriculture, namely the economic, environmental and social dimensions, in particular as provided for in Articles 5 and 6 of Regulation (EU) 2021/2115 of the European Parliament and of the Council (4). Pursuant to Article 11 TFEU, data concerning environmental protection are to be integrated into the FSDN in order to contribute to the assessment of additional aspects related to the sustainability of Union agriculture. Moreover, in order to strengthen the link to the implementation of the United Nations' 2030 Agenda for Sustainable Development, the framework for the sustainability of holdings under the United Nations Sustainable Development Goals should be taken into account in terms of three main aspects: economic, environmental and social.

(5) The aforementioned objectives can be attained only by means of a Union network for the collection of farm sustainability data, namely the FSDN, based on data collectors already existing in each Member State and enjoying the confidence of the parties concerned.

(6) Data are currently collected mainly to assess economic aspects of holdings. There is, however, a need for the overall sustainability of holdings to be assessed, including on the basis of environmental data linked to soil, air, water and biodiversity, as well as data covering the social dimension of farming, with particular attention given to the situation of women and young people as farmers and farm workers. It is appropriate to lay down in an annex to Regulation (EC) No 1217/2009 the main categories of economic, environmental and social data and, within those categories, the related data topics that can be collected and compiled in the FSDN. Those data topics should be linked to the needs of the CAP and should be relevant for the assessment of the sustainability of Union agriculture and holdings. In order to take into account future sustainability challenges, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of amending that annex, including by modifying topics and adding new ones, while taking into consideration the relevance of the data to be collected and compiled and the administrative burden on national authorities and holdings. Moreover, when adding new topics, the Commission should provide for a minimum period of at least one year before the application of the related implementing act on variables, in order to give sufficient time to Member States to prepare the data collection. In addition, the Commission should not add new topics in the first three years from the date of entry into force of this Regulation.

(7) To describe the social dimension of sustainability, it is necessary to compile certain types of personal data of persons working in the agricultural sector. Such information should support the analysis of topics related to the specific objectives of the CAP under Article 6(1), points (g) and (h), of Regulation (EU) 2021/2115. The processing of such personal data should be limited to the data categories that are strictly necessary to fulfil the purposes of Regulation (EC) No 1217/2009, as amended by this Regulation, in accordance with Regulation (EU) 2016/679 of the European Parliament and of the Council (5), in particular Article 9(1) thereof, and Regulation (EU) 2018/1725 of the European Parliament and of the Council (6), in particular Article 10(1) thereof.

(8) The Commission should publish the results of analyses on the state of sustainability of Union agriculture, in particular in order to allow the use of those results for benchmarking purposes. Advisory services provided to returning holdings based on FSDN data can be valuable and thus offer a significant incentive to take part in the FSDN, provided that the advice is based on relevant data which are as recent as possible, taking into account science-based developments and the latest available knowledge on best practices. Dissemination of aggregated FSDN data related to the environmental topics set out in Regulation (EC) No 1217/2009 as amended by this Regulation, under the conditions laid down therein, should serve the purpose of active and systematic dissemination to the public of environmental information required by Directive 2003/4/EC of the European Parliament and of the Council (7) and by Regulation (EC) No 1367/2006 of the European Parliament and of the Council (8).

(9) Article 8(1), point (c), of Regulation (EU) 2022/2379 of the European Parliament and of the Council (9) and Article 4(1), point (c), of Regulation (EU) 2018/1091 of the European Parliament and of the Council (10) provide for the possibility of Member States using other sources for statistical surveys. Annex I to Regulation (EC) No 138/2004 of the European Parliament and of the Council (11) refers to the use of FADN data. Based on those options and for the purpose of the reuse of data and gaining efficiencies, it is useful to allow Member States to use FSDN data for statistical purposes.

(10) In order to gather data for the FSDN, the scope of which is larger than the FADN, it is appropriate to adapt the current definitions. In particular, the definition of ‘farmer’ should be revised to identify the subject legally responsible for the holding, and the definition of ‘farm’ and ‘holding’ should be made more suitable for analytical purposes to ensure consistency with similar definitions used for statistical purposes. The definition of ‘individual data’ should reflect the concept that data of both natural persons and legal persons should be protected where such data make it possible to identify, directly or indirectly, those persons. The definition of ‘aggregated data’ should clearly refer to data of several holdings, which is the main characteristic of the aggregation technique.

(11) Member States or responsible national authorities should endeavour to modernise data collection modes as far as possible. Moreover, it is necessary to collect harmonised data and to avoid duplication of data already collected, for example, through statistics on agricultural input and output or the CAP. In order to reduce the administrative burden on farmers and data collectors, with the aim of avoiding the duplication of data requests and data collection and of enriching the FSDN dataset, the principle of ‘collect data once and re-use them multiple times’ should be applied. Directive (EU) 2019/1024 of the European Parliament and of the Council (12) is to be taken into consideration for the purpose of applying that principle. In addition, the use of digital solutions, including re-use of data and data sharing with other sources, should be promoted and should always be considered as the first-choice solution, where it is conducive to the broad participation of farmers and the accuracy of data collected. For that purpose, developing or optimising available digital tools for data collection should be explored. A possible extension of the data collection system, when it is based exclusively on farm accountancy offices, should be provided for with a view to collecting environmental and social variables.

(12) In order to improve the efficiency of compiling the farm returns and to reduce the burden on the returning holdings, liaison agencies should be able to use in a timely manner and free of charge national data sources that may be used for relevant data in order to compile the farm returns as defined and set out in Regulation (EC) No 1217/2009 as amended by this Regulation. The use of such data sources is necessary for the exercise of tasks vested in the liaison agencies. For those purposes it is appropriate to define the modalities for access to such data sources and to use other data compilation methods or innovative approaches, including the establishment of cooperation mechanisms between data-handling entities within the Member State concerned. A list of relevant data sources available at national level that liaison agencies may use to compile farm returns should be set out in this Regulation. In order to ensure that the list remains up-to-date and relevant, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of amending that list. In particular, datasets derived from the integrated farm statistics established by Regulation (EU) 2018/1091 and from statistics on agricultural input and output established by Regulation (EU) 2022/2379 should be added to that list when data sharing from those data sources is legally enabled.

(13) In addition to the data contained in the farm return for returning holdings, Member States should provide the means for the Commission to enhance the capacity to analyse sustainability matters by complementing farm return data with content from data for performing the monitoring and evaluation of CAP Strategic Plans (DME) obtained in accordance with the implementing act adopted on the basis of Article 133 of Regulation (EU) 2021/2115 or from the Integrated Administration and Control System (IACS) established by Regulation (EU) 2021/2116 of the European Parliament and of the Council (13), while avoiding increasing the administrative burden on the Member States and returning holdings. Since data collection and compilation approaches and methodologies may differ between the FSDN and those other datasets, for example with regard to definitions and reference times, it may be necessary to take consistency issues into account when analysing the data. In that context, the Member States’ obligation should be understood as an obligation to provide the data contained in those datasets but not to ensure complete consistency with the FSDN. In order to keep the list of datasets as up-to-date as possible, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of amending that list of datasets and adding new appropriate and relevant datasets that are suitable for linkage at Union level, while taking into consideration and duly justifying the relevance of the data to be collected and compiled and the administrative burden on the Member States and returning holdings.

(14) With regard to DME, an example of such data is disaggregated data on CAP interventions. With regard to data in the IACS, examples of such data include land cover of agricultural areas, crops, landscape features, and management of land under organic farming practices. The identification of holdings in DME and IACS is managed by Member States’ authorities at national level through specific identifiers. Based on those identifiers, the national authorities are able to link such data at individual farm level. Member States should choose to send to the Commission either those links or the relevant data related to the returning holding included in those datasets. Where Member States choose to send the relevant data, those data should include the FSDN number, in order to allow the relevant content to be merged with farm returns at Union level. The way to link this information at individual farm level should be specified, including with regard to data protection. In order to ensure uniform conditions for the implementation of the use of data from those datasets, implementing powers should be conferred on the Commission as regards listing the data to be extracted from those datasets as well as laying down detailed rules on technical specification and deadlines for data transmission. Those data should be linked to the purpose of, as well as to one or more of the topics set out in, Regulation (EC) No 1217/2009 as amended by this Regulation.

(15) With regard to the field of the survey set out in Article 5 of Regulation (EC) No 1217/2009, the main criteria for the representativeness of accountancy data and the selection criteria for surveys should be maintained while adding further information for the other aspects of sustainability and bearing in mind that the resulting survey may not be representative with respect to environmental or social variables.

(16) The FSDN should rely on voluntary participation. Nevertheless, given that some Member States face problems with holdings’ participation in the FSDN, it should be possible for Member States to adopt national rules to address that issue without imposing penalties on the farmers. Member States should encourage farmers to participate in the FSDN by using incentives that they should set out in a specific plan. Those incentives could take the form, inter alia, of financial contributions, feedback on farm performance, or advice based on FSDN information.

(17) The conversion of the FADN to the FSDN should enable the data from the returning holding to be benchmarked against aggregated data where the data represent several returning holdings and are presented in the form of regional, national, Union or sectoral averages. Regarding accountancy data, holdings’ accounts constitute the basic source for any assessment of their income or study of their business operation. The regional, national, Union or sectoral averages should also be made available at Member State level to enhance knowledge on the agricultural situation. It should also be possible for the data collected to be used to provide improved tailored advisory services and feedback to farmers with the aim of facilitating the management of holdings and improving their sustainability.

(18) FSDN data should refer to agricultural activities and other gainful activities directly related to the holdings in order to make it possible to cover all relevant aspects of holdings’ activities. Off-farm activities should also be taken into account, as a necessary indication of the overall viability and sustainability of the holding. In that case, the granularity of the data compiled should be strictly limited to what is necessary to analyse the significance of off-farm activities in relation to agricultural activities. No data related to private assets should be taken into account in preparing the farm returns.

(19) In order to ensure uniform conditions for the implementation of farm returns, and in particular that the data in the farm returns are comparable, implementing powers should be conferred on the Commission as regards the definition of variables for which data should be compiled, the reporting year, the form and layout of farm returns and the rules for data transmission to the Commission. When defining those variables, the Commission should endeavour to use existing data sources and analyse the feasibility of the variables, based on inputs from Member States on possible data sources and methods, with a view to limiting the burden on the Member States and returning holdings. While striving to ensure that the data collected are comparable and useful for analytical purposes, in order to obtain a complete and uniform Union-wide dataset, it is appropriate to accommodate specific circumstances of Member States, and specific and justified exemptions should therefore be possible.

(20) The existing computerised data system established by the Commission should continue to function for data transmission and verification between the Member States and the Commission and for the analysis of the data both at individual farm level and at aggregated level. That computerised data system should be adapted to allow the Commission or Member States to combine data at individual farm level between the FSDN and other datasets, such as DME and IACS. In order to ensure uniform conditions for the implementation of that computerised data system, implementing powers should be conferred on the Commission as regards detailed rules on storage, processing, reuse and sharing of data within the Commission.

(21) In order to increase the level of acceptance of farmers to participate in the data gathering and to protect individual data from unauthorised or unsuitable use, it is necessary to clarify that individual data should only be used for analytical purposes linked to the CAP objectives and the sustainability of Union agriculture and, where Member States so decide, for statistical purposes. Any other use of the individual data by the Member States or by the Commission, in particular for controls in accordance with Regulation (EU) 2021/2116 or for taxation purposes, should be prohibited.

(22) Where FSDN data and data from other datasets are shared by the Commission or liaison agencies, it is of the utmost importance to ensure data protection and to give assurance to farmers, both natural and legal persons, that their individual data and all other individual details obtained pursuant to Regulation (EC) No 1217/2009 as amended by this Regulation will be anonymised to avoid their identification. Therefore, it should be specified that FSDN data and data from other datasets may be made public provided that they are both aggregated and anonymised. Concerning the data from other datasets, it should be clarified in addition that they will be made public in aggregated and anonymised format only for the purposes of Regulation (EC) No 1217/2009 as amended by this Regulation and without prejudice to the rules on those datasets provided for in the relevant specific Union legislation.