Commission Implementing Regulation (EU) 2024/2499 of 26 September 2024 laying down rules for the application of Council Regulation (EC) No 1217/2009 as regards the financial contributions to Member States’ implementation costs when setting up the Farm Sustainability Data Network

THE EUROPEAN COMMISSION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Council Regulation (EC) No 1217/2009 of 30 November 2009 setting up the Farm Sustainability Data Network ¹, and in particular Article 19(4) thereof,

Whereas:

• (1) Article 19(2) of Regulation (EC) No 1217/2009 lays down that financial contributions from the European Agricultural Guarantee Fund (EAGF) are to be provided to Member States in order to contribute to Member States’ implementation costs when setting up the system for collecting variables relating to the topics set out in Annex -I to Regulation (EC) No 1217/2009, notably environmental and social variables, to meet the requirements of that Regulation, including for training and interoperability between data collection systems.

• (2) To that purpose, it is necessary to lay down, in particular, the detailed procedures relating to the Union financial contributions referred to in Article 19(2) of Regulation (EC) No 1217/2009 and setting out the criteria on the basis of which the contributions are allocated per Member State.

• (3) The Union budget for 2024, within the EAGF envelope, includes an amount of EUR 50 million for the financial contributions referred to in Article 19(2) of Regulation (EC) No 1217/2009, in order to support Member States in the setting up of the Farm Sustainability Data Network (FSDN).

• (4) To address the efforts needed by each Member State to convert their computerised data collection and reporting system to meet the requirements of the FSDN, and to simplify the financial management of the Union contribution, the Union financial contributions referred to in Article 19(2) of Regulation (EC) No 1217/2009 should be made available to Member States in the form of a lump sum contribution to cover eligible costs such as those relating to information technology development and interoperability between the various data sources listed in Article 4(2) of Regulation (EC) No 1217/2009.

• (5) After an in-depth assessment, the Commission considers that lump sums are the most appropriate form of contribution because the nature of the setting-up action lends itself to costs that can be estimated in advance, with associated activities that are to lead to the operational setting up of the FSDN. In addition, it is estimated that there is a low risk of irregularity or fraud as the beneficiaries are public bodies. The use of lump sum contributions is also expected to significantly simplify implementation for the Commission and the Member States by removing the need for financial reporting and verification.

• (6) To simplify the financial management of the Union contribution, the lump sum amounts to be made available should be based on an estimated budget to be provided by each Member State, subject to maximum amounts which are proportionate to the agricultural population, the diversity of structures within the agricultural sector and the size of each Member State’s contribution to the Union’s agricultural production.

• (7) In the absence of any specific transitional period allowing for a clearly distinguishable phase of preparation before implementation, the new requirements introduced by Regulation (EU) 2023/2674 of the European Parliament and of the Council ², which amends Regulation (EC) No 1217/2009, should be applied gradually by the Member States from the start of the first data collection cycle following the entry into force of Regulation (EU) 2023/2674, i.e., the cycle relating to reporting year 2025. This implies that Member States have been urged to start adapting their systems immediately after the entry into force of the new requirements in early 2024 so that they are able to have the first adaptations in place before the end of October 2024, when the collection cycle of the new data starts. To meet this deadline and implement the new requirements successfully, Member States have been encouraged to advance the implementation of the actions necessary for transitioning to the FSDN. Consequently and to avoid Member States being penalised for having started to implement the new requirements as soon as possible in 2024, Member States should be authorised to consider costs incurred as of 1 January 2024 as eligible for Union financial contributions referred to in Article 19(2) of Regulation (EC) No 1217/2009.

• (8) The setting up of the FSDN in each Member State, and thus the eligibility of the Union contribution, should be verified using implementation reports drawn up by the Member States of the actual actions taken leading to the operational setting up of the FSDN. The actual actions taken could differ from those initially planned in case they have been replaced by relevant alternative actions.

• (9) To accelerate the conversion to the FSDN, pre-financing should be provided to Member States before 31 December 2024.

• (10) The Commission, the European Public Prosecutor’s Office (EPPO) in respect of those Member States participating in enhanced cooperation pursuant to Council Regulation (EU) 2017/1939 ³, the European Anti-Fraud Office (OLAF) and the Court of Auditors are to have the power to exert their respective competences, including to carry out audits, on-the-spot-checks and investigations on the use of the Union financial contributions provided under this Regulation.

• (11) To enable the Member States to submit a proposal to the Commission setting out the amount of the requested lump sum contributions as soon as possible, this Regulation should enter into force on the day following that of its publication in the Official Journal of the European Union.

• (12) The measures provided for in this Regulation are in accordance with the opinion of the Committee for the Farm Sustainability Data Network,

HAS ADOPTED THIS REGULATION:

Article 1

Available budget and maximum financial allocation per Member State

Article 2

Single lump sums

The Union financial contributions referred to in Article 19(2) of Regulation (EC) No 1217/2009 shall take the form of single lump sum contributions covering eligible costs associated with the setting up of the Farm Sustainability Data Network (FSDN) in the Member States, as referred to in Article 3 of this Regulation, and shall not exceed the maximum amount per Member State referred to in Article 1(2) of this Regulation.

Article 3

Eligible activities and costs

• (a) developing the Member States’ computerised data collection, data checking, data processing and data reporting system to meet the requirements of Regulation (EC) No 1217/2009 and which shall be operational by 31 December 2027;

• (b) building Member States’ capacity for using the data sources and for linking the data sets referred to in Article 4(2) and in Article 4a(1) of Regulation (EC) No 1217/2009 respectively, including costs related to cooperation between liaison agencies;

• (c) developing methodologies and innovative approaches, including digitally-based solutions, to adapt the Member States’ computerised data collection, data checking, data processing and data reporting system providing feedback reports and benchmark services for farmers to the requirements of Regulation (EC) No 1217/2009;

• (d) recruiting and training experts, in particular in the liaison agencies, to align the human resource capacity to the increased demands of the FSDN, including travel and subsistence allowances;

• (e) incentivising farmers to participate in the FSDN, including by raising their awareness to the benefits of participating in the data network.

Article 4

Procedure for establishing the lump sum contributions

• (a) incurred between 1 January 2024 and 31 December 2027;

• (b) necessary for the activities referred to in Article 3(1);

• (c) in line with the Member State’s usual cost practices;

• (d) compliant with the applicable national law on taxes, labour and social security;

• (e) compliant with the principle of sound financial management, in particular regarding economy and efficiency.

• (a) personnel costs;

• (b) subcontracting costs;

• (c) purchase costs;

• (d) other cost categories;

• (e) indirect costs.

Article 5

Implementation reports

• (a) an interim report submitted no later than 31 March 2026;

• (b) a final report submitted no later than 31 March 2028.

By way of derogation from the first subparagraph, Germany may submit the implementation reports to the Commission within 15 weeks after the respective deadlines referred to in the first subparagraph.

• (a) from 1 January 2024 to 31 December 2025, for the interim report referred to in paragraph 1, point (a);

• (b) from 1 January 2024 to 31 December 2027, for the final report referred to in paragraph 1, point (b).

The final report mentioned in paragraph (1), point (b), shall demonstrate the operational setting up of the FSDN, addressing how the activities described in the proposal, referred to in Article 4(1), or any relevant alternative activities, contributed to the setting up of the FSDN.

Article 6

Payments

Article 7

Entry into force

This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 26 September 2024.

For the Commission

The President

Ursula VON DER LEYEN

ANNEX

Member States’ maximum allocations for setting up the Farm Sustainability Data Network as referred to in Article 1

ELI: http://data.europa.eu/eli/reg_impl/2024/2499/oj

ISSN 1977-0677 (electronic edition)