(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.

(23)

It should be possible to grant access to pseudonymised data for research purposes, in the interest of scientific progress in the agricultural area in the Union and in order to contribute to addressing the challenges faced by Union agriculture. In order to ensure the high level of protection that those data require, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of laying down rules and conditions for such access at Union level. The Commission should obtain an opinion of the European Data Protection Supervisor before it adopts those delegated acts.

(24)

Data management with regard to the protection of individual data should be specified by the Commission and Member States through appropriate technical and organisational measures to ensure that the data are used only for the purposes of Regulation (EC) No 1217/2009. Processes corresponding to, and consistent with, those used to ensure compliance with Article 24 of Regulation (EU) 2016/679 and Article 26 of Regulation (EU) 2018/1725 should be used as regards the choice of technical and organisational measures to protect data as well as the evaluation and documentation of such measures. In addition, provisions should be established prohibiting persons participating in the FSDN from disclosing individual data. Concerning personal data, the full scope of protection, including the rights and obligations of the data subjects and the data processors, should comply with Articles 7 and 8 of the Charter of Fundamental Rights of the European Union and with Regulations (EU) 2016/679 and (EU) No 2018/1725.

(25)

In accordance with Regulations (EU) 2016/679 and (EU) No 2018/1725, personal data are to be retained only for as long as they are needed for the purposes for which those data were collected. The uses of FSDN data, and of the personal data included therein, should include the possibility to analyse long-term trends based on indicators, such as on nutrient management or emissions, the evolution of which needs to be assessed over a long period of time to keep pace with natural phenomena. Therefore, analyses should be regularly performed, especially on environmental information. Other subjects that imply the use of long-term analyses include land use and prices, which provide information about structural changes in farming. It should also be possible to build such long-term analyses based on sharing of data between different datasets established through linkages at individual level. Data sharing should enhance information availability, taking into consideration challenges that Union agriculture may face in the future. Such challenges are not possible to foresee at the current time, especially with regard to the future need for retrospective studies that cannot be established with sufficient certainty. Therefore, it is not appropriate to set a time limit for the use of data, but rather to keep data for as long as they are needed to perform time series analyses.

(26)

The compilation, processing and use of personal data should be justified and proportionate in relation to the purposes of the operations concerned, in accordance with, inter alia, the principle of data minimisation. A high proportion of farmers in the Union are natural persons. Information available from the Union integrated farm statistics shows that, in 2020, among the total number of holdings in the Union, 96 % belonged to natural persons. It is therefore necessary that the data collected through the FSDN cover natural persons in order to ensure that the results of the data analysis are representative of the reality of the agricultural sector.

(27)

For the purposes of the processing of personal data at Union level, roles connected to the management and processing of personal data should be determined. The data processing roles at Union level should apply to the data as from the transmission of those data to the Commission through the farm returns. Member States should determine the management of personal data within their jurisdiction, including data protection roles, in accordance with Regulation (EU) 2016/679, taking into consideration in particular the fact that data may be collected for multiple purposes, one of which may be use in farm returns.

(28)

Given the enlarged scope of the FSDN compared to the FADN, it is necessary to adapt the rules on its budget. Regulation (EU) 2021/2116 provides that the European Agricultural Guarantee Fund (EAGF) finances the establishment and maintenance of agricultural accounting information systems as expenditure under direct management. An amount should continue to be payable from the EAGF to the Member States for the delivery, within the set deadline, of duly completed farm returns, which might be proportionate to the extent to which those farm returns cover the relevant data topics. Furthermore, the EAGF should contribute financially to the implementation of Member State systems in order to align them with the revised scope and management of the FSDN. In order to ensure uniform conditions for the implementation of such financing, implementing powers should be conferred on the Commission as regards establishing the procedure for the amounts and contributions to be paid to the Member States from the Union budget, including the criteria for the allocation of financial contributions.

(29)

When adopting delegated acts pursuant to Regulation (EC) No 1217/2009 as amended by this Regulation, it is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making (14). In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

(30)

The name of the Committee for the Farm Accountancy Data Network should be modified to reflect the changes to Regulation (EC) No 1217/2009 pursuant to this Regulation.

(31)

The implementing powers conferred on the Commission under Regulation (EC) No 1217/2009 as amended by this Regulation should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council (15).

(32)

Since the objective of this Regulation, namely the creation of the FSDN, cannot be sufficiently achieved by the Member States but can rather, by reason of the scale and effects of this Regulation, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective.

(33)

The European Data Protection Supervisor was consulted in accordance with Article 42(1) of Regulation (EU) 2018/1725 and delivered an opinion on 11 August 2022 (16).

(34)

Regulation (EC) No 1217/2009 should therefore be amended accordingly,

(1)

the title is replaced by the following:

‘ Council Regulation (EC) No 1217/2009 of 30 November 2009 setting up the Farm Sustainability Data Network ’;

(2)

the title of Chapter I is replaced by the following:

‘CREATION OF A FARM SUSTAINABILITY DATA NETWORK’;

(3)

Article 1 is replaced by the following:

(*1)  Regulation (EU) 2022/2379 of the European Parliament and of the Council of 23 November 2022 on statistics on agricultural input and output, amending Commission Regulation (EC) No 617/2008 and repealing Regulations (EC) No 1165/2008, (EC) No 543/2009 and (EC) No 1185/2009 of the European Parliament and of the Council and Council Directive 96/16/EC (OJ L 315, 7.12.2022, p. 1)."

(*2)  Regulation (EU) 2018/1091 of the European Parliament and of the Council of 18 July 2018 on integrated farm statistics and repealing Regulations (EC) No 1166/2008 and (EU) No 1337/2011 (OJ L 200, 7.8.2018, p. 1)."

(*3)  Regulation (EC) No 138/2004 of the European Parliament and of the Council of 5 December 2003 on the economic accounts for agriculture in the Community (OJ L 33, 5.2.2004, p. 1).’;"

(4)

Article 2 is replaced by the following:

(*4)  Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation) (OJ L 119, 4.5.2016, p. 1)."

(*5)  Regulation (EU) 2018/1725 of the European Parliament and of the Council of 23 October 2018 on the protection of natural persons with regard to the processing of personal data by the Union institutions, bodies, offices and agencies and on the free movement of such data, and repealing Regulation (EC) No 45/2001 and Decision No 1247/2002/EC (OJ L 295, 21.11.2018, p. 39).’;"

(5)

Article 3 is replaced by the following:

(6)

the title of Chapter II is replaced by the following:

‘DATA FOR COMPILING FARM RETURNS AND DATA LINKAGE’;

(7)

Article 4 is replaced by the following:

(*6)  Regulation (EU) 2021/2116 of the European Parliament and of the Council of 2 December 2021 on the financing, management and monitoring of the common agricultural policy and repealing Regulation (EU) No 1306/2013 (OJ L 435, 6.12.2021, p. 187)."

(*7)  Regulation (EU) 2016/429 of the European Parliament and of the Council of 9 March 2016 on transmissible animal diseases and amending and repealing certain acts in the area of animal health (“Animal Health Law”) (OJ L 84, 31.3.2016, p. 1)."

(*8)  Regulation (EU) No 1308/2013 of the European Parliament and of the Council of 17 December 2013 establishing a common organisation of the markets in agricultural products and repealing Council Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and (EC) No 1234/2007 (OJ L 347, 20.12.2013, p. 671)."

(*9)  Regulation (EU) 2018/848 of the European Parliament and of the Council of 30 May 2018 on organic production and labelling of organic products and repealing Council Regulation (EC) No 834/2007 (OJ L 150, 14.6.2018, p. 1)."

(*10)  Regulation (EU) 2021/2115 of the European Parliament and of the Council of 2 December 2021 establishing rules on support for strategic plans to be drawn up by Member States under the common agricultural policy (CAP Strategic Plans) and financed by the European Agricultural Guarantee Fund (EAGF) and by the European Agricultural Fund for Rural Development (EAFRD) and repealing Regulations (EU) No 1305/2013 and (EU) No 1307/2013 (OJ L 435, 6.12.2021, p. 1)."

(*11)  Council Directive 91/676/EEC of 12 December 1991 concerning the protection of waters against pollution caused by nitrates from agricultural sources (OJ L 375, 31.12.1991, p. 1).’;"

(8)

the following article is inserted:

(9)

Article 5 is replaced by the following:

(10)

Article 5a is amended as follows:

(11)

in Article 5b, paragraph 1 is replaced by the following:

(12)

Article 6 is amended as follows:

(13)

in Article 7, paragraph 1 is replaced by the following:

(14)

Article 8 is replaced by the following:

(15)

the following article is inserted:

(16)

Article 16 is replaced by the following:

(17)

the following articles are inserted:

(18)

in Article 17, paragraph 1 is replaced by the following:

(19)

Article 19 is replaced by the following:

(20)

Article 19a is amended as follows:

(21)

Article 19b is replaced by the following:

(*12)  Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13).’;"

(22)

the following article is inserted:

(23)

the text set out in the Annex to this Regulation is inserted as Annex -I;

(24)

the title of Annex I is replaced by the following:

‘ List of FSDN divisions ’.