EUROPEAN COMMISSION Brussels, 9.12.2016 COM(2016) 786 final 2016/0389(COD) Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on integrated farm statistics and repealing Regulations (EC) No 1166/2008 and (EU) No 1337/2011 (Text with EEA relevance) {SWD(2016) 429 final}

{SWD(2016) 430 final}



EXPLANATORY MEMORANDUM 1.CONTEXT OF THE PROPOSAL •Reasons for and objectives of the proposal Policy makers require supplementary statistical information on agriculture in order to plan, monitor and evaluate the impact and efficiency of current policies and their potential changes. Such changes are e.g. related to the impact of agriculture on the environment and to sustainable farming practices. An evaluation of the European Agricultural Statistics System (EASS) concluded that even if the main users of agricultural statistics are quite satisfied with the level of detail and quality of the agricultural statistics, they are not content with the lack of data on specific items (supply balance sheets, land prices and rents, nutrient flows, data related to environment, and others), and that the system is too rigid, not allowing the rapid introduction of new data collections. Agricultural statistics used at the Union level are taken from a variety of sources: statistical surveys, administrative data, data from farms and other businesses, as well as farm level data in the form of an agricultural census and samples. The current proposal relates to that last source of agricultural statistics data. The current system for producing European statistics at farm and agricultural household level is based on Regulation (EC) 1166/2008 of the European Parliament and of the Council. The data are collected from samples and every ten years from a census. The last of the surveys carried out in the framework of that regulation is the Farm Structure Survey (FSS) in 2016. This initiative is part of the Regulatory Fitness and Performance Programme (REFIT) and is the first step of the Strategy for Agricultural Statistics 2020 and beyond, that aims at streamlining the EASS as a whole and to render the data collection process more efficient and relevant. The two proposed Regulations in the strategy, of which the first one is proposed in this document, should guarantee the comparability and consistency of the agricultural data in the long run. The EASS should be sufficiently robust and efficient, and should ensure that the high quality of statistics is maintained – which can be challenging given the continual change in this area. This first regulation should ensure continuation of the series of European farm structure surveys, thus ensuring consistent time series, while fulfilling new and emerging needs for data at farm level. •Consistency with existing policy provisions in the policy area It is necessary for statistics to be reliable and of high quality in order for policymakers, businesses and the general public to be able to take appropriate evidence-based decisions. Providing statistics of that quality is, however, challenging for the European Statistical System (ESS): the ever-increasing demand for data and pressure from respondents to statistical surveys to reduce the burden combine to put pressure on the production of statistics. Recent statistical initiatives have, subsequently, aimed to simplify and improve coordination and collaboration within the ESS, with a view to making the production of European statistics more efficient and reducing the burden on respondents. One example is Regulation (EC) No 223/2009 on European statistics which was amended in 2015 to clarify the governance of the ESS and to strengthen means of coordination and collaboration at both the Union and national level. Other modernisation initiatives, such as this proposal, are included in the Commission's REFIT initiative and aim to simplify and streamline the production of European statistics within targeted domains. A strategy on agricultural statistics that has been drafted by Eurostat and agreed with the European Statistical System Committee (ESSC) has as specific objectives to: produce high-quality statistics that meet users' needs efficiently and effectively; increase the flexibility and reaction speed of the agricultural statistics system; improve the integration between agricultural, forestry, land use and environmental statistics; develop a responsive and responsible governance structure for agricultural statistics; improve the harmonisation and coherence of European agricultural statistics; produce more statistics while lowering the burden on respondents by exploring alternative data sources and possibilities of efficiency improvement. •Consistency with other Union policies

Provision of quality statistics to support European policies is the main driver of the European Statistical Programme 2013-2017. Environmental and agricultural statistics are one of the three pillars of statistical production under that programme. Among the relevant objectives of the programme is "the review and simplification of the agricultural data collection in line with the Common Agricultural Policy (CAP) review post-2013 and the redesign of the agricultural data collection processes, in particular with the objective of improving the quality and timeliness of the provided data." This initiative implements that objective. The future European Agricultural Statistics System will also contribute to at least four of the ten priorities of the Commission, namely "1. A new boost for jobs, growth and investment"; "3. A resilient energy union with a forward-looking climate change policy"; "4. A deeper and fairer internal market with a strengthened industrial base"; and "9. A stronger global actor"; by providing better data for job, growth, investment, prevention and mitigation policies in agriculture, climate change, bio-energy and environmental actions, and a deeper understanding of global food flows, developments and risks, respectively. Agricultural statistics may also be useful to other Union or Member State priorities affecting or affected by agriculture and rural development. Agricultural statistics provide high-quality statistical evidence for the implementation and monitoring of the Common Agricultural Policy (CAP) 2014-2020. The CAP is an important driver for jobs and smart, sustainable and inclusive growth in the Union. The rural development policy, being an integral part of the CAP, on top of its social objectives aims to improve the competitiveness and sustainability of agricultural production. The CAP represents more than 37% of the Union total budget in the context of the Multiannual Financial Framework (MFF) 2014-2020. Agricultural statistics are also increasingly needed for other key Union policies like social policy, environmental and climate change policies, trade policy, regional policy etc. 2.LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY •Legal basis Article 338 of the Treaty on the Functioning of the European Union (TFEU) provides the legal basis for European statistics. Acting in accordance with the ordinary legislative procedure, the European Parliament and the Council adopt measures for the production of statistics where this is necessary for the Union to carry out its role. Article 338 sets out the requirements relating to the production of European statistics, stating that they must conform to standards of impartiality, reliability, objectivity, scientific independence, cost-effectiveness and statistical confidentiality. •Subsidiarity (for non-exclusive competence) The subsidiarity principle applies insofar as the proposal does not fall within the exclusive competence of the Union. The ESS provides an infrastructure for statistical information. The system is designed to meet the needs of multiple users, for the purpose of decision-making in democratic societies. The proposal for this Regulation has been drafted with a view to protecting core activities of ESS partners while improving efficiency and ensuring that unnecessary changes and duplication of work are avoided as far as possible. The collection of statistics covered by the proposal currently takes place according to different rules at the Union level. The proposal intends to streamline and modernise the collection of farm-level statistics under one framework while all other agricultural statistics would be included in another framework regulation. It is only possible to provide Union-wide, comparable statistics for policy purposes by acting at the Union level. One of the main criteria that the statistical data must meet is to be consistent and comparable. The Member States cannot achieve the necessary consistency and comparability without a clear European framework, that is to say, Union legislation laying down the common statistical concepts, reporting formats and quality requirements. The objective of the proposed action, namely streamlining European agricultural statistics, cannot be achieved satisfactorily by the Member States acting independently. Action can be taken more effectively at the Union level, on the basis of a Union legal act ensuring the comparability of statistical information at the Union level in the statistical domains covered by the proposed act. The data collection itself, meanwhile, can be carried out by the Member States. The Union may therefore adopt measures in this area in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. •Proportionality The proposal complies with the proportionality principle, in view of the following:

It will ensure the quality and comparability of European agricultural statistics collected from samples by applying the same principles across Member States. Similarly, it will ensure that European agricultural statistics remain relevant and are adapted to respond to user needs. The Regulation will make the production of statistics more cost-effective while respecting the specificities of Member States' systems. Current Union legislation concerning agricultural statistics has been developed since the 1950s. An evaluation of the European Agricultural Statistics System (EASS) has shown that a common framework for the process of collecting, processing and disseminating statistical data in agriculture can make the processes more efficient (cost/benefit) and effective, and reduce identified quality issues. The Regulation is expected to reduce the financial and administrative burden placed on respondents, national, regional and local authorities, businesses, and the general public. It will do so in particular by: standardising concepts and methods, removing duplications, reducing the frequency with which data have to be provided in some areas, and making greater use of a combination of sources in addition to surveys. In accordance with the principle of proportionality, the proposed Regulation confines itself to the minimum required to achieve its objective and does not go beyond what is necessary for that purpose. •Choice of the instrument Proposed instrument: a Regulation. Given the objectives and content of the proposal, a Regulation is the most appropriate instrument. Important common EU policies such as the CAP inherently depend on comparable, harmonised and high-quality agricultural statistics at European level. These can best be ensured by Regulations, which are directly applicable in Member States and do not need to be transposed into national law first. They allow the collection of data at the same level of detail in all Member States and impose the application of common standards, definitions and methodologies. This ensures the production of high quality comparable statistics at the service of EU policies in an efficient and timely manner. Directives would not be able to ensure a similar level of the desired harmonisation, as data quality would depend on 28 different legislatures' decisions. 3.RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS •Ex-post evaluations/fitness checks of existing legislation Although this initiative was launched prior to the adoption of the new Better Regulation guidelines (COM(2015) 215), an evaluation of the current situation was made, based on already available information and documentation. In addition, Eurostat’s standard system for evaluating existing legislation formed a central part of the whole process. •Stakeholder consultations The development, production and dissemination of European agricultural statistics is achieved by Eurostat through close, coordinated and regular cooperation in the European Statistical System, building upon a long partnership between Eurostat and the NSIs as well as all other relevant authorities. The main categories of stakeholders of European agricultural statistics are data producers (NSIs and ONAs as well as Eurostat), respondents (farmers, farmers' organisations and businesses) and users (public and private decision makers, in particular other Commission DGs; researchers and journalists). They have been consulted extensively on problems and desired changes in the status quo, their data needs and priorities, possible policy options to solve the problems, impacts of suggested actions, and the formulation of the strategy specifically, as the following overview table shows. The main fora for these consultations have been the meetings and seminars of the Standing Committee for Agricultural Statistics (CPSA) and its successor, the Directors' Group for Agricultural Statistics (DGAS) (for NSI directors of agricultural statistics, international organisations, farmers' organisations, data respondents, data users and others), ESSC meetings (for NSI directors-general), and regularly scheduled consultations and hearings (for Commission DGs). Overview of stakeholder consultations on the agricultural statistics strategy 2020 Consultation on problems and changes Consultation on needs and priorities Consultation on options and impacts Producers ESSC Meeting May 2014 CPSA Meetings and Seminars since 2009 DGAS Meeting July 2015, ESSC Meeting November 2015 Respondents CPSA Seminars since 2009 Open public consultation August-November 2015 Users Open public consultation August-November 2015

Written consultations and hearings since 2014 The open public consultation was carried out during August-November 2015, and the results are detailed in a specific report. The main results of the above consultations, forming the core of the agricultural statistics strategy 2020 and subsequently of this regulation, are threefold: The current Union agricultural statistics legislation does not adequately serve new and emerging data needs because their provision is not included in the legislative acts, and the acts are not flexible and integrated enough to answer to new needs in a timely manner. Moreover, Regulation (EC) No 1166/2008 which is a central piece in the current overall EASS will cease to provide any statistical information as of 2018. These new data needs mainly stem from new developments in agriculture, revised legislation and changing policy priorities, in particular the recently reformed CAP.

The data collections are not harmonised and coherent because new data needs are emerging, legislation has been developed separately over many years, and partly different definitions and concepts are used in different agricultural statistics areas. The burden of providing data is perceived as too high because data needs are increasing, data collection is not harmonised, and resources continue to shrink at the Union and national level. That burden was confirmed as jeopardising data collection and data quality. •Collection and use of expertise Eurostat has held extensive discussions on the proposal with the NSIs. It set up working groups, task forces, and directors' groups, which met regularly to consult on the proposal. The proposal has also been presented to the European Statistical System Committee set up by Regulation (EC) No 223/2009. •Impact assessment This proposal is accompanied by an impact assessment. It identifies the problems currently being faced, presents a number of policy options that could be used to address those problems, and assesses the social and economic impact of each of the options. The Regulatory Scrutiny Board gave a positive opinion of the impact assessment in March 2016. The impact assessment identified three main factors underlying the problems being faced in the area of the EASS: (1)new and emerging data needs not adequately served; (2)data collections not sufficiently harmonised and coherent; (3)burden of providing data perceived as too high. The following options were assessed as ways of addressing the identified issues. Option Description 1. Baseline – no Union action on structural data of agriculture If no Union action is taken, the result would be that Regulation (EC) No 1166/2008 will expire and the collection of structural data on agriculture will remain at the discretion of Member States. The other agricultural statistics legislation would remain in place as it is today, but with less assurance of quality as an agricultural census is often used to update farm registers that are used for stratification in sample surveys. 2. Prolongation of Regulation (EC) No 1166/2008 Renewal of Regulation (EC) No 1166/2008 which expires by 2018. This would mean that the current system, in force since 1966, would continue without integrating changes. The other agricultural statistics legislation would remain in place, and the status quo would continue. 3. Single legal framework for all agricultural statistics Creation of a completely new legal framework for all Union agricultural statistics. All legislation related to agricultural statistics would be integrated into one single framework regulation. 4. Two-step integration of agricultural statistics A two-step integration of agricultural statistics would safeguard the continuation and modernisation of structural statistics on agriculture. Two new framework regulations would be introduced stepwise: an integrated farm statistics (IFS) regulation and another framework regulation on statistics on agricultural input and output (SAIO). Following a detailed assessment of the impacts of the different options, the following conclusions were reached: Option 1 "Baseline" offers the worst outcomes in almost all dimensions, particularly in the long term as data needs and resource constraints become even more urgent. Option 2 "Prolongation" offers only limited value in the short term and severely damages the functioning of the EASS in the long term as it becomes more outdated and cumbersome. Options 3 "One framework regulation" and 4 "Two-step integration", while requiring some initial investments and new EU Regulations, offer the best chances to achieve the objectives formulated earlier in a cost-efficient manner, present the comparatively lowest risks, have the most positive indirect impacts, and best satisfy stakeholders' requirements. They also fulfil the REFIT initiative's goals of updating the Union legislation to increase its cost-benefit ratio and reduce the burden on small and medium-sized enterprises (SMEs). Option 4 also has the added benefits of presenting less timing risk in the legislative process (as a new agricultural census regulation needs to be adopted by the Council and the Parliament at the latest by the end of 2018) and being slightly more flexible due to a less unwieldy legislative architecture. Therefore, Eurostat prefers option 4 over option 3. The main stakeholders of the EASS, i.e. the Commission as data user, the NSIs and ONAs as data producers, and farmers as data respondents also prefer option 4. •Regulatory fitness and simplification The REFIT objective of the proposal is to make best possible use of the information provided, and to meet the current and future needs for European agricultural statistics while limiting the response burden. Those goals will be achieved by bringing the various European statistical data collection exercises, which are currently covered by separate regulations, under one framework.

Details of the reduction of costs for data producers and providers, calculated based on model scenarios, can be found in the impact assessment (section 5 "Impact Analysis" and Annex IV: "Impact analysis methodology"). The proposal aims to reduce the burden on micro-enterprises and for SMEs by raising the survey thresholds. The proposal promotes interoperability and reusability of the supporting information and communication technology by making use of: The same technical specifications for data sets. The specifications will include the number and description of variables; the statistical classifications; the characteristics of the statistical populations, the observation units and the respondents; the reference periods and dates; and the requirements relating to geographical coverage, sample features, technical aspects of the field work editing and imputation, weighting, estimation and variance estimation. The same standards for submitting data and exchanging and sharing information between Eurostat and the Member States. The standards will cover concepts, processes and products, including data and metadata. Where the quality of data complies with the quality criteria given in Article 12(1) of Regulation (EC) No 223/2009, Member States should be able to provide data from several sources including methods or innovative approaches in so far as they ensure the production of data that are comparable and compliant with the specific requirements laid down by the Regulation. •Fundamental rights The proposal has no consequences for the protection of fundamental rights. The most relevant considerations for this proposal are the possible effects on personal data protection (for which the rights are laid down by Article 8 of the Union Charter of Fundamental Rights, Article 16 TFEU and in secondary legislation). None of the selected policy options, however, envisages a change in provisions on personal data protection. National and Union legislation on statistics provides for NSIs to guarantee the protection of data. They have strong policies in place for, for example, safeguarding respondent confidentiality, anonymizing records and protecting replies to questionnaires. 4.BUDGETARY IMPLICATIONS The proposal has a financial impact for the years 2019 to 2020 (with possible financial impact extended up to 2028 depending on the next MFF). The total appropriations under the current MFF are estimated at EUR 40 million. Detailed budgetary implications are set out in the legislative financial statement. 5.OTHER ELEMENTS •Implementation plans and monitoring, evaluation and reporting arrangements The proposed Regulation is expected to be adopted by the European Parliament and the Council in 2017, with the adoption of implementing measures by the Commission to follow shortly afterwards. Member States are expected to start providing data to the Commission under the new Regulation in 2022. The proposed legislative instrument is part of the EASS that will be subject to a complete evaluation in order to assess, amongst other things, how effective and efficient it has been in terms of achieving the objectives and to decide on whether new measures or amendments are needed. Annual compliance monitoring of the statistics produced Eurostat conducts annual compliance assessments. Those assessments include a review of the data availability, quality and punctuality and follow-up actions in case of non-compliance. In accordance with the requirements of the Union legislation, Member States are requested to provide the Commission with relevant figures on agricultural statistics. Those figures are subject to strict transmission deadlines which must be respected for the good management, dissemination and usefulness of the Union statistics, as missing or incomplete data lead to shortcomings in the availability of information (that is to say, it is not possible to calculate Union aggregates and to publish data according to planned time schedules). Regulation (EC) No 223/2009, which is the basic legal framework for the functioning of the European Statistical System and for all sectoral legislation for the production of European statistics, has been amended on 29 April 2015.

While timeliness, punctuality and completeness are already important factors in the annual compliance assessments to ensure a timely dissemination of agriculture statistics, more attention will be paid to those and other quality dimensions in order to ensure confidence in the statistics produced by the ESS. Continuous improvement of the EASS: identification of new data needs and new data sources, improvement of coherence, reduction of burden At present, Eurostat conducts annual hearings with other services of the Commission. An important point for those hearings is the exchange of information on the respective work programmes. They provide a formal platform for stating upcoming needs for new statistics, and to review the usefulness of the available statistics. Further collaboration with other Commission services, NSIs and ONAs will take place at different hierarchical levels in regular Working Group meetings and seminars, Directors' Group meetings, ESSC meetings, and through frequent bilateral exchanges. Particular attention will be focused on the identification of administrative data and other information sources maintained under the Union legislation and the assessment of their suitability for the production of statistics in order to establish agreements for their stability, accessibility and eventual adaptation to better fit statistical requirements. Furthermore, periodic surveys and analyses will be conducted to identify potential for improvement of European agricultural statistics and for burden reduction, for example by abolishing variables with a low cost-benefit ratio. The new, more flexible legal framework will make adjustments possible. Those adjustments and the overall functioning of the legal framework will be monitored and evaluated in particular against the strategy objectives listed earlier. Triennial monitoring reports In order to monitor the functioning of the renewed EASS and to ensure its fulfilment of the REFIT goals of simplification and burden reduction, a regular reporting on the functioning of the overall system will be carried out every three years. Evaluation The second triennial monitoring report will be replaced by a retrospective evaluation of the renewed EASS, conducted according to the Commission's evaluation guidelines. It could also constitute a basis for further revisions of the legislation, if deemed necessary. •Detailed explanation of the specific provisions of the proposal The proposed Regulation consists of 19 Articles and five Annexes. As set out in article 1, the purpose of the Regulation is to establish a framework for European agricultural statistics at farm level and to provide for integration of the structural information with other information, such as production methods, rural development measures, agro-environmental aspects and others. The main definitions are described in Article 2. The scope and coverage are described in Article 3. The proposal allows and promotes the use of new forms of data collection and alternative data sources including administrative data and other sources (Article 4). The statistics covered by the Regulation are referred to in Articles 5, 6 and 7 for specific reference years and periods (Article 10). It is proposed to empower the Commission to adopt delegated acts to amend the core characteristics listed in Annex III (Article 5), restricted to alignment with administrative registers, and the detailed topics for the modules listed in Annex IV (Article 8) in order to adapt the data collected to future users’ needs; and to meet specific user requirements in ad-hoc surveys (Article 9). The Commission should also be empowered to adopt implementing measures on the technical specifications required for the data sets (Article 8) and the quality reporting (Article 11). The requirements relating to quality reporting are in accordance with Regulation (EC) No 223/2009, which provides a reference framework and requires Member States to comply with the statistical principles and quality criteria specified in that Regulation. The data must be transmitted within predefined deadlines (Article 12). The draft regulation includes the provisions for financial support to the Member States (Articles 13 and 14) for: complying with data requirements and developing methodologies aiming at higher quality or lower costs, or both, and the administrative burden of collecting and producing integrated farm statistics; the cost of data collections; the collection of ad-hoc data. In addition, the Regulation contains the required provisions on the protection of the financial interests of the Union (Article 15), and on the exercise of the delegation of power (Article 16).

The final Articles refer to the Committee procedure (Article 17) and to the repeal of two existing Regulations that will be replaced in full by the Regulation (Article 18). The five Annexes set out the detailed information on the livestock unit coefficients, the list of the physical thresholds, the list of characteristics for the core structural data, the characteristics to be covered in the modules, and the requirements related to accuracy. 2016/0389 (COD) Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on integrated farm statistics and repealing Regulations (EC) No 1166/2008 and (EU) No 1337/2011 (Text with EEA relevance) 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 338 thereof, Having regard to the proposal from the European Commission, After transmission of the draft legislative act to the national parliaments, Acting in accordance with the ordinary legislative procedure, Whereas: (1)Regulation (EC) No 1166/2008 of the European Parliament and of the Council establishes a framework for European statistics on the structure of agricultural holdings up to 2016. Regulation (EC) No 1166/2008 should subsequently be repealed. (2)The programme of European surveys on the structure of agricultural holdings, which has been carried out in the Union since 1966, should be continued in order to examine the trends in the structure of agricultural holdings at the Union level and to provide the statistical knowledge base necessary for the design, implementation, monitoring and evaluation of related policies, in particular the Common Agricultural Policy and environmental, climate change adaptation and mitigation policies. (3)An international evaluation of agricultural statistics led to setting up the Food and Agriculture Organization's (FAO) Global Strategy to Improve Agricultural and Rural Statistics that was endorsed by the United Nations Statistics Committee (UNSC) in 2010. European agricultural statistics should, where appropriate, follow the recommendations of the Global Strategy to Improve Agricultural and Rural Statistics, as well as those of the FAO World Programme for the Census of Agriculture 2020. (4)A multipurpose survey programme on agricultural holdings should be set up for the next decade to provide the framework for harmonised, comparable and coherent statistics. (5)The Strategy on Agricultural Statistics 2020 and beyond, set up by the European Statistical System Committee (ESSC) in November 2015, envisages the adoption of two framework Regulations covering all aspects of agricultural statistics, with the exception of the Economic Accounts for Agriculture. This Regulation on integrated farm statistics is one of those framework Regulations.

(6)For the purposes of harmonisation and comparability of information on the structure of agricultural holdings and in order to meet the current needs of the Single Market Organisation and in particular the fruit and wine sector, Regulation (EU) No 1337/2011 of the European Parliament and of the Council should be integrated with the structural information at the level of agricultural holdings from 2023 onwards. Regulation (EU) No 1337/2011 should subsequently be repealed. (7)Comparable statistics from all Member States on the structure of agricultural holdings are important to determine the development of the common agricultural policy. Therefore standard classifications and common definitions should be used insofar as possible for survey characteristics. (8)For the purposes of updating the basic registers of agricultural holdings and the rest of the information required for the stratification of sample surveys, a census of agricultural holdings should be carried out in the Union at least every ten years. The most recent census took place in 2009/2010. (9)In order to avoid placing an unnecessary burden on agricultural holdings and national administrations, thresholds that exclude non-relevant survey units from the basic entities in respect of which statistics are to be collected should be established. (10)The whole areas used for agricultural production should be covered by agricultural statistics, including the land used by several agricultural holdings because common rights apply. (11)In order to reduce the burden on respondents, the National Statistical Institutes (NSIs) and other national authorities should have access to administrative data, to the extent that those data are necessary for the development, production and dissemination of European statistics. (12)For the purposes of flexibility to the European agricultural statistical system, and simplification and modernisation of the agricultural statistics, the variables to be collected should be allocated to different collection groups (core data and modules) varying in frequency or representativeness, or both. (13)The collection of information on nutrient and water use and agricultural production methods applied on agricultural holdings should be improved in order to provide additional statistics for the development of agro-environmental policy and to enhance the quality of agro-environmental indicators. (14)For geo-reference of holdings, the standard European geographical grid system in accordance with Annex I of Directive 2007/2/EC of the European Parliament and of the Council should be used as the common reference framework. (15)The Commission is to respect the confidentiality of the data transmitted in line with Regulation (EC) No 223/2009 of the European Parliament and of the Council. The necessary protection of confidentiality of data should be ensured, among other means, by limiting the use of the location parameters to spatial analysis of information and by appropriate aggregation when publishing statistics. For that reason a harmonized approach for the protection of confidentiality and quality aspects for data dissemination should be developed. (16)Any processing of personal data under this Regulation is subject to Directive 95/46/EC and its national implementing provisions, and/or Regulation 45/2001, as the case may be. (17)Regulation (EC) No 1893/2006 of the European Parliament and of the Council establishes the statistical classification of economic activities in the European Union referred to in this Regulation for the purpose of defining the relevant population of agricultural holdings. (18)In accordance with Regulation (EC) No 1059/2003 of the European Parliament and of the Council, territorial units should be defined in accordance with the Nomenclature of Territorial Units for Statistics (NUTS) classification. (19)Funding should be required from both the Member States and the Union over a number of years in order to carry out the survey. Provision should therefore be made for a Union grant to support that programme of surveys through the European Agricultural Guarantee Fund under Regulation (EC) No 1306/2013 of the European Parliament and of the Council. (20)This Regulation establishes a financial envelope for the duration of the relevant multiannual financial framework (MFF) which constitutes the prime reference for the budgetary authority during the annual budgetary procedure, within the meaning of point 17 of the Inter-institutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on cooperation in budgetary matters and sound financial management. The Regulation makes a provision for establishing the budget for further surveys in the context of the subsequent financial framework. (21)Since the objective of this Regulation, namely the systematic production of European statistics on agricultural holdings in the Union, cannot be sufficiently achieved by the Member States and can therefore, for reasons of consistency and comparability be better achieved at the Union level, the Union should 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. (22)Regulation (EC) No 223/2009 provides a reference framework for European statistics and requires Member States to comply with the statistical principles and quality criteria specified in that Regulation. Quality reports are essential for assessing, improving and communicating on the quality of European statistics. The ESSC has endorsed a European Statistical System (ESS) standard for Quality Reports Structure, in accordance with Article 12 of Regulation (EC) No 223/2009. That ESS standard should contribute to the harmonisation of quality reporting under this Regulation. (23)An impact assessment has been performed in accordance with the principle of sound financial management, in order to focus the survey programme established by this Regulation on the need for effectiveness in achieving the objectives and in order to incorporate budgetary constraints from the design phase of the survey programme onwards. (24)In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission in respect of specifying the descriptions of characteristics listed in Annex III and the technical elements of the data to be provided, defining the information to be provided on an ad-hoc basis, as well as setting out the modalities and contents of the quality reports. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011. (25)In order to take account of emerging data needs mainly stemming from new developments in agriculture, revised legislation and changing policy priorities, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of amending the detailed topics listed in Annex IV. In order to provide for compatibility and facilitate the use of other data sources, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of amending the characteristics listed in Annex III. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations are conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016. In particular, in order to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council should 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.

(26)The European Data Protection Supervisor has been consulted. (27)The European Statistical System Committee has been consulted, HAVE ADOPTED THIS REGULATION: Article 1 Subject matter This Regulation establishes a framework for European statistics at the level of agricultural holdings and provides for the integration of information on the structure with that on production methods, rural development measures, agro-environmental aspects and other related information. Article 2 Definitions For the purposes of this Regulation, the following definitions shall apply: (a)‘agricultural holding’ (‘farm’) means a single unit, both technically and economically, which has a single management and which undertakes economic activities in agriculture in accordance with Regulation (EC) No 1893/2006 belonging to groups A.01.1, A.01.2, A.01.3, A.01.4, A.01.5 or to the “maintenance of agricultural land in good agricultural and environmental condition” of group A.01.6 within the economic territory of the Union, either as its primary or secondary activity. Regarding activities of class A.01.49, only the activities “Raising and breeding of semi-domesticated or other live animals” (with the exception of raising of insects) and “Bee-keeping and production of honey and beeswax” are included; (b)‘common land agricultural unit’ means an entity of land on which common rights apply and which is used by several agricultural holdings for agricultural production, but is not allocated amongst them; (c) ‘region’ means the Nomenclature of Territorial Units for Statistics (NUTS) territorial unit, defined in accordance with Regulation (EC) No 1059/2003; (d) ‘livestock unit’ means a standard measurement unit that allows the aggregation of the various categories of livestock in order to enable them to be compared; the coefficients for establishing the livestock units for individual livestock categories are listed in Annex I. (e) ‘survey reference year’ means a calendar year to which the reference periods refer. (f) ‘kitchen garden’ means areas used for food production intended for own consumption. Article 3 Coverage 1.The data required by this Regulation shall cover 98 % of the total utilised agricultural area (UAA) (excluding kitchen gardens) and 98 % of the livestock units of the Member State. 2.In order to meet those requirements, Member States shall provide data representative of the agricultural holdings and common land agricultural units that meet at least one of the physical thresholds listed in Annex II with regard to the size of agricultural land or the number of animals.

3.By way of exception, where the main survey frame specified under paragraph 2 represents more than 98 % of the national agricultural production, measured by the Standard Output in accordance with Commission Delegated Regulation (EU) No 1198/2014, Member States may, subject to prior approval by the Commission (Eurostat), establish higher physical or corresponding economic thresholds to reduce the survey frame, as long as the 98 % coverage of the total utilised agricultural area (excluding kitchen gardens) and 98 % of the livestock units of the Member States is reached. 4.Where the main survey frame specified under paragraph 2 does not represent 98 % of the utilised agricultural area and 98 % of the livestock units, Member States shall extend the frame by establishing lower thresholds than those referred to in paragraph 2, or by establishing additional thresholds, or both. Article 4 Data sources 1.For the purpose of obtaining the data referred to in this Regulation, Member States shall carry out statistical surveys. 2.Member States may use information from the integrated administration and control system (IACS) established by Regulation (EU) No 1307/2013 of the European Parliament and of the Council, the system for the identification and registration of bovine animals established by Regulation (EC) No 1760/2000 of the European Parliament and of the Council [] and the system for the identification and registration of ovine and caprine animals established by Council Regulation (EC) No 21/2004, the vineyard register implemented in accordance with Article 145 of Regulation (EC) No 1308/2013 of the European Parliament and of the Council, and the organic farming registers set up pursuant to Council Regulation (EC) No 834/2007, provided that information is of at least equal quality to information obtained from statistical surveys. Member States may also use administrative sources associated with specific rural development measures. 3.Member States shall have the right to use other sources of information than those mentioned in paragraph 2 to provide data as long as they are of at least equal quality as the information obtained from statistical surveys. Member States which decide to use other sources shall inform the Commission (Eurostat) during the year preceding the survey reference year and shall provide details concerning the quality of the data obtained from that source and the data collection methods to be used. 4.National authorities responsible for fulfilling the requirements of this Regulation shall have the right to access and use, promptly and free of charge, data, including individual data on agricultural holdings and personal data on their holders contained in administrative files compiled on their national territory pursuant to Article 17a of Regulation (EC) No 223/2009. The national authorities and the owners of the administrative records shall establish the necessary cooperation mechanisms. Article 5 Core structural data 1.Member States shall collect and provide the core structural data (‘core data’) related to the agricultural holdings referred to in paragraphs (2) and (3) of Article 3, for the survey reference years 2020, 2023 and 2026, as listed in Annex III. The core data collection for the survey reference year 2020 shall be carried out as a census. 2.The core data collections for the survey reference years 2023 and 2026 may be carried out as sample surveys. In that case, Member States shall ensure that the weighted survey results are statistically representative of agricultural holdings within each region and are designed to meet the precision requirements set out in Annex V. 3.When a characteristic listed in Annex III has a low or zero prevalence in a Member State, the characteristic may be excluded from the data collection subject to the Member State concerned providing information duly justifying its exclusion to the Commission (Eurostat) in the calendar year preceding the survey reference year. 4.The Commission shall be empowered to adopt implementing acts for the purpose of specifying the descriptions of characteristics listed in Annex III. 5.The implementing acts shall be adopted in accordance with the examination procedure referred to in Article 17(2) not later than [Publications Office, please insert the exact date: entry into force of this Regulation+6 months, or 31 December 2018, whichever is the latest] for the survey reference year 2020, not later than 31 December 2021 for the survey reference year 2023, and not later than 31 December 2024 for the survey reference year 2026. 6.The Commission is empowered to adopt delegated acts in accordance with Article 16 concerning amendments of the information listed in Annex III in case it would be needed for the purpose of harmonisation with the data sources specified in Article 4(2), for the years 2023 and 2026. In exercising its power the Commission shall ensure that such delegated acts only replace characteristics listed in Annex III that can no longer be directly derived from the specified data sources. It shall further ensure that such delegated acts do not impose a significant additional burden or cost on the Member States or on the respondents, and that a maximum of 10%, rounded up to the nearest integer, of the characteristics listed in Annex III are changed. 7.Those delegated acts shall be adopted by 30 September 2021 for the survey reference year 2023 and by 30 September 2024 for the survey reference year 2026. Article 6 Frame extension 1.Member States that extend the survey frame in accordance with Article 3(4) shall provide core data on the agricultural holdings included in that frame extension for the survey reference year 2020, covering the information specified in Annex III.

2.The data on the agricultural holdings in the frame extension may be collected by carrying out sample surveys. In that case Member States shall ensure that the weighted survey results are statistically representative of agricultural holdings within each region and are designed to meet the precision requirements set out in Annex V. Article 7 Module data 1.Member States shall collect and provide the module data (‘modules’) on the topics and detailed topics listed in Annex IV for the following survey reference years: (a) ‘Labour force and other gainful activities’ module for 2020, 2023 and 2026; (b) ‘Rural development’ module for 2020, 2023 and 2026; (c) ‘Animal housing and manure management’ module for 2020 and 2026; (d) ‘Irrigation’ module for 2023; (e) ‘Soil management practices’ module for 2023; (f) ‘Machinery and equipment’ module for 2023; (g) ‘Orchard’ module for 2023; (h) ‘Vineyard’ module for 2026. 2.The scope of those data collections shall include the agricultural holdings referred to in Article 3(2) and Article 3(3). 3.The modules may be collected by carrying out sample surveys. In that case Member States shall ensure that the weighted survey results are statistically representative of agricultural holdings within each region and are designed to meet the precision requirements set out in Annex V. 4.The modules shall be collected from sub-samples of the agricultural holdings surveyed for the core data for the same reference year. In any case each record providing information on modules shall be accompanied by the core data listed in Annex III. 5.Member States with less than 1000 hectares of any of the individual crops, referred to under the detailed topics of the ‘Orchard’ module in Annex IV, producing entirely or mainly for the market, are exempted from carrying out the ‘Orchard’ module for that particular crop. 6.Member States with less than 1000 hectares of vineyards planted with vines with grapes for wine, producing entirely or mainly for the market, are exempted from carrying out the ‘Vineyard’ module. 7.Member States with less than 2 % irrigable area of the UAA, and with no NUTS 2 level regions with at least 5% of irrigable area of the UAA, are exempted from carrying out the ‘Irrigation’ module. 8.The Member States shall inform the Commission (Eurostat) of cases in paragraphs 5, 6 and 7 by the end of June of the year preceding the respective survey reference year. 9.When a characteristic has a low or zero prevalence in a Member State, the characteristic may be excluded from the data collection subject to providing information duly justifying the exclusion to the Commission (Eurostat) in the calendar year preceding the survey reference year.

Article 8 Technical specification concerning the module data 1.The Commission shall be empowered to adopt implementing acts for the purpose of specifying the following technical elements of the data to be provided for each module and the corresponding topic and detailed topic listed in Annex IV: (a) the list of characteristics and the corresponding measurement units; (b) the descriptions of characteristics. 2.Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 17(2) not later than [Publications Office, please insert the exact date: entry into force of this Regulation+6 months, or 31 December 2018, whichever is the latest] for the survey reference year 2020, not later than 31 December 2021 for the survey reference year 2023 and not later than 31 December 2024 for the survey reference year 2026. 3.For the years 2023 and 2026 the Commission is empowered to adopt delegated acts in accordance with Article 16 concerning amendments of the detailed topics listed in Annex IV. In exercising its power the Commission shall ensure that such delegated acts do not impose a significant additional burden or cost on the Member States or on the respondents, and that a maximum of 25%, rounded up to the nearest integer, of the detailed topics listed in Annex IV are changed for each module by delegated acts. 4.Those delegated acts shall be adopted by 30 September 2021 for the survey reference year 2023 and by 30 September 2024 for the survey reference year 2026. Article 9 Ad-hoc data 1.The Commission shall be empowered to adopt implementing acts for the purpose of specifying the information to be provided on an ad-hoc basis by providing: (a) a list of characteristics not exceeding 40 variables to be transmitted to the Commission (Eurostat) and the corresponding measurement units; (b) the descriptions of characteristics; (c) the precision requirements; (d) the survey reference year; (e) the reference periods; (f) the possible data sources and other methodological aspects; (g) the transmission dates. 2.Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 17(2) not later than 12 months before the beginning of the survey reference year. Article 10

Reference periods The collected information shall refer to a single reference year that is common to all Member States by referring to the situation during a specified timeframe as follows: (a) For characteristics on farm land: (i) the main use of the land shall refer to the survey reference year; (ii) a reference day within the survey reference year shall be established by each Member State for identification of the land parcels. (b) For characteristics on irrigation and soil management practices, the reference period is a 12-month period ending within the survey reference year, to be established by each Member State with a view to covering the related production cycles. (c) For characteristics on livestock, animal housing and manure management, a common reference day within the survey reference year shall be established by each Member State. The characteristics on manure management shall refer to the 12-month period ending at that date. (d) For characteristics on labour force, a 12-month reference period ending on a reference day within the survey reference year shall be established by each Member State. (e) For characteristics on rural development measures implemented in the individual agricultural holdings, the reference period shall be the three-year period ending on 31 December of the survey reference year. (f) For all other characteristics, a common reference day within the survey reference year shall be established by each Member State. Article 11 Quality 1.Member States shall take the necessary measures in order to ensure the quality of the transmitted data and metadata. 2.For the purposes of this Regulation, the quality criteria defined in Article 12(1) of Regulation (EC) No 223/2009 shall apply. 3.The Commission (Eurostat) shall assess the quality of the data and metadata transmitted. 4.For that purpose, Member States shall transmit, for each survey reference year covered by this Regulation, a quality report describing the statistical process and in particular: (a) the quality criteria referred to in paragraph 2; (b) the inclusion and exclusion criteria applied to meet the coverage requirements specified in this Regulation; (c) the organisation and methodology applied; (d) the sampling frame for surveys; (e) the levels of precision achieved for sample surveys; (f) the reference periods in accordance with Article 10;

(g) information on the quality of data sources other than statistical surveys used; (h) information on the validation of the data carried out by the Member State in advance of submitting the dataset to the Commission (Eurostat). The Commission shall be empowered to adopt implementing acts setting out the modalities and contents of the quality reports. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 17(2). 5.Member States shall inform the Commission (Eurostat) as soon as possible about any relevant information or change with regard to the implementation of this Regulation that could influence the quality of the data transmitted. 6.At the request of the Commission (Eurostat), Member States shall provide additional information necessary to evaluate the quality of the statistical information. Article 12 Data and metadata transmission 1.For the survey reference year 2020, Member States shall transmit validated core and module data and a quality report to the Commission (Eurostat) within 15 months after the end of the survey reference year. 2.For the survey reference years 2023 and 2026, Member States shall transmit validated core data, labour force and other gainful activities module data and a quality report to the Commission (Eurostat) within 9 months after the end of the survey reference year. Data for other modules and related metadata shall be submitted within 12 months after the end of the survey reference year. 3.The data transmitted to the Commission (Eurostat) shall be at the level of individual agricultural holdings. The module and the ad-hoc data shall be linked to the core data listed in Annex III at the individual holding level for the same reference year. The records provided shall include the extrapolation factors. 4.Member States shall transmit the data and metadata using a technical format specified by the Commission (Eurostat). The data and metadata shall be provided to the Commission (Eurostat) through the single entry point services. Article 13 Union contribution 1.For the implementation of this Regulation, the Union may provide grants to the national statistical institutes and other national authorities referred to in Article 5(2) of Regulation (EC) No 223/2009, for (a) developing or implementing data requirements, or both; (b) developing methodologies aiming at higher quality or lower costs and the administrative burden of collecting and producing integrated farm statistics, or both. 2.Member States may receive grants from the Union towards covering the cost of data collections specified in Articles 5, 6 and 7, within the scope of the financial envelope specified in Article 14. 3.The Union financial contribution shall not exceed 75% of the eligible costs, subject to the maximum amounts specified in paragraphs 4 and 5. 4.For the combined costs of the 2020 core data and module data collections, the Union financial contribution shall be limited to the maximum amounts specified below: (a) EUR 50 000 each for Luxembourg and Malta;

(b) EUR 1 000 000 each for Austria, Croatia, Ireland and Lithuania; (c) EUR 2 000 000 each for Bulgaria, Germany, Hungary, Portugal and the United Kingdom; (d) EUR 3 000 000 each for Greece, Spain and France (e) EUR 4 000 000 each for Italy, Poland and Romania; (f) EUR 300 000 each for all other Member States. 5.For the core data and module data collections in 2023 and 2026, the maximum amounts specified in paragraph 4 shall be reduced by 50%, subject to the provisions under the Multiannual Financial Framework post-2020. 6.For the collection of the ad-hoc data specified in Article 9, the Union may provide grants to the national statistical institutes and other national authorities referred to in Article 5(2) of Regulation (EC) No 223/2009 towards covering the cost of the implementation of an ad-hoc data collection. That Union financial contribution shall not exceed 90% of the eligible costs. 7. The Union financial contribution is provided by the European Agricultural Guarantee Fund under Article 4(2), point (d) of Regulation (EU) No 1306/2013. Article 14 Financial envelope 1.The Union financial envelope for the implementation of the programme of data collections for the survey reference year 2020, including the appropriations necessary for the management, maintenance and development of the database systems used within the Commission to process the data supplied by the Member States under the provisions of this Regulation, shall be EUR 40 000 000 for the period 2018-2020, covered by the Multiannual Financial Framework 2014-2020. 2.Following the date of entry into force of the multiannual financial framework after 2020, the amount for the period post-2020 shall be fixed by the budgetary and legislative authority on a proposal from the Commission. Article 15 Protection of the financial interests of the Union 1.The Commission shall take appropriate measures ensuring that, when actions financed under this Regulation are implemented, the financial interests of the Union are protected by the application of preventive measures against fraud, corruption and any other illegal activities, through consistent and effective checks and, if irregularities are detected, through the recovery of the amounts wrongly paid and, where appropriate, through effective, proportionate and dissuasive administrative and financial penalties. 2.The Commission or its representatives and the Court of Auditors shall have the power of audit, on the basis of documents and on-the-spot checks, over all grant beneficiaries, contractors and subcontractors and third parties who have, directly or indirectly, received Union funds under the Programme. 3.The European Anti-Fraud Office (OLAF) may carry out investigations, including on-the-spot checks and inspections on economic operators concerned directly or indirectly by such funding in accordance with the procedures laid down in Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council and in Council Regulation (Euratom, EC) No 2185/96 with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union in connection with a grant agreement or grant decision or contract funded, directly or indirectly, within the framework of this Regulation. 4.Cooperation agreements with third countries and international organisations and grant agreements and grant decisions resulting from the implementation of this Regulation shall expressly empower the Commission, the Court of Auditors and OLAF to conduct such audits, on-the-spot checks and inspections. 5.Where the implementation of an action is outsourced or sub-delegated, in whole or in part, or where it requires the award of a procurement contract or financial support to be given to a third party, the contract, grant agreement or grant decision shall include the contractor's or beneficiary's obligation to impose on any third party involved explicit acceptance of those powers of the Commission, the Court of Auditors and OLAF. 6.Paragraphs 4 and 5 shall apply without prejudice to paragraphs 1, 2 and 3.

Article 16 Exercise of delegation 1.The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article. 2.The power to adopt delegated acts referred to in Article 5(6) and Article 8(3) shall be conferred on the Commission for an undetermined period of time from [Publications Office: please insert exact date of entry into force of the Regulation]. 3.The delegation of power referred to in Article 5(6) and Article 8(3) may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force. 4.Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016. 5.As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council. 6.A delegated act adopted pursuant to Article 5(6) or Article 8(3) shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council. Article 17 Committee procedure 1.The Commission shall be assisted by the European Statistical System Committee established by Regulation (EC) No 223/2009. That Committee shall be a committee within the meaning of Regulation (EU) No 182/2011. 2.Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply. Article 18 Repeal 1.Regulation (EU) No 1337/2011 is repealed with effect from 1 January 2022. 2.Regulation (EC) No 1166/2008 is repealed with effect from 1 January 2019. 3.References to the repealed Regulations shall be construed as references to this Regulation. Article 19 Entry into force

This Regulation shall enter into force on the twentieth 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, For the European Parliament For the Council The President The President LEGISLATIVE FINANCIAL STATEMENT 1.FRAMEWORK OF THE PROPOSAL/INITIATIVE 1.1.Title of the proposal/initiative 1.2.Policy area(s) concerned in the ABM/ABB structure 1.3.Nature of the proposal/initiative 1.4.Objective(s) 1.5.Grounds for the proposal/initiative 1.6.Duration and financial impact 1.7.Management mode(s) planned 2.MANAGEMENT MEASURES 2.1.Monitoring and reporting rules 2.2.Management and control system 2.3.Measures to prevent fraud and irregularities 3.ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE 3.1.Heading(s) of the multiannual financial framework and expenditure budget line(s) affected

3.2.Estimated impact on expenditure 3.2.1.Summary of estimated impact on expenditure 3.2.2.Estimated impact on operational appropriations 3.2.3.Estimated impact on appropriations of an administrative nature 3.2.4.Compatibility with the current multiannual financial framework 3.2.5.Third-party contributions 3.3.Estimated impact on revenue LEGISLATIVE FINANCIAL STATEMENT 1.FRAMEWORK OF THE PROPOSAL/INITIATIVE 1.1.Title of the proposal/initiative Regulation of the European Parliament and of the Council on Integrated Farm Statistics and repealing Regulations (EC) No 1166/2008 of the European Parliament and of the Council of 19 November 2008 on farm structure surveys and the survey on agricultural production methods and (EU) No 1337/2011 of the European Parliament and of the Council of 13 December 2011 concerning European Statistics on permanent crops 1.2.Policy area(s) concerned in the ABM/ABB structure 3403 – Production of European statistics 1.3.Nature of the proposal/initiative ◻ The proposal/initiative relates to a new action ◻ The proposal/initiative relates to a new action following a pilot project/preparatory action ◻ The proposal/initiative relates to the extension of an existing action X The proposal/initiative relates to an action redirected towards a new action 1.4.Objective(s) 1.4.1.The Commission's multiannual strategic objective(s) targeted by the proposal/initiative

Harmonised and comparable statistical data on the structure of agricultural holdings will contribute to priority 4 ("A deeper and fairer internal market with a strengthened industrial base") of the Commission's ten main priorities, but can also contribute to at least the following other priorities: 1 ("A new boost for jobs, growth and investment"), 3 ("A resilient energy union with a forward-looking climate change policy") and 9 ("A stronger global actor"). 1.4.2.Specific objective(s) and ABM/ABB activity(ies) concerned Specific objective No Commission Work Programme 2016 REFIT Initiative No 26 – Statistics Package ABM/ABB activity(ies) concerned 3403 – Production of European statistics 1.4.3.Expected result(s) and impact Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted. The proposal aims to ensure further financial support for Member States to collect data on the structure of agricultural holdings, by fixing the financial envelope for the period 2019-2020, with a possible extension to 2028 depending on the new MFF. In response to changes in world agriculture such as globalisation and climate change and consequent changes in the Common Agricultural Policy (CAP) and other EU policies related to agriculture creating new data needs, and to reduce incoherence between agricultural statistics data as well as the burden of data collection, the initiative aims to set up renewed legislation to collect structural statistics on farm level. High-quality data comparable across Member States are important for designing, implementing, monitoring and evaluating EU priorities such as the CAP and related policies, which command almost 40% of the total EU budget. Statistical legislation is primarily administrative legislation mainly affecting the data users (i.e. other services of the Commission), data producers (National Statistical Institutes), and data respondents (farmers), with only limited direct economic, social and environmental effects. The main direct costs for stakeholders relate to the adaptation to new statistical, organisational and technical systems, but those costs and burdens are expected to pay for themselves in the mid to long term by lowering the burden of data collection and achieving several efficiencies and savings. An EU financial contribution to national agricultural statistics data collections is expected to continue at a level and proportion comparable to the status quo in the new system, and national expenditures should also reach a similar level as today. When fully realised, burden and cost reduction actions as well as the expected decline in the number of agricultural holdings (based on observed trends) can lead to a reduced budgetary need for data collection. 1.4.4.Indicators of results and impact Specify the indicators for monitoring implementation of the proposal/initiative. Annual compliance assessments, continuous exchanges with stakeholders to improve the European Agricultural Statistics System (EASS) and triennial monitoring reports based on several key performance indicators and targets will serve to review the policy. 1.5.Grounds for the proposal/initiative 1.5.1.Requirement(s) to be met in the short or long term The farm structure surveys (the 2020 agricultural census and the 2023 and 2026 sample surveys) are covered and partly financed by the proposed regulation. 1.5.2.Added value of EU involvement Harmonised EU policies such as the CAP need ipso facto high-quality data comparable across Member States in order to target policy interventions most efficiently, effectively and fairly. This can only be ensured by common and coordinated action in the European Statistical System (ESS). This is particularly important for a policy commanding almost 40% of the total EU budget, its single biggest allocation. 1.5.3.Lessons learned from similar experiences in the past The farm structure surveys have been carried out on an EU basis since 1966/1967 and continue to be a fundamental cornerstone of European agricultural statistics. But their legal basis needs to be updated to meet the challenges detailed above and remedy the main issues identified in an ex-post evaluation of the current EASS. They are: 1. The current agricultural statistics legislation does not adequately serve new and emerging data needs

2. The EASS is not flexible enough and is not reacting sufficiently quickly to the emerging needs 3. The data collections are not harmonised and coherent to a satisfactory degree 4. The statistics could be produced more efficiently 5. The burden of providing data is perceived as high 1.5.4.Compatibility and possible synergy with other appropriate instruments The proposed regulation is part of Eurostat's strategy for agricultural statistics for 2020 and beyond, planned to consist of two framework regulations: Integrated Farm Statistics (IFS) and Statistics on Agricultural Input and Output (SAIO). Both regulations would integrate a common scope and share technical and methodological documentation and together cover all aspects of the strategy for agricultural statistics. 1.6.Duration and financial impact X Proposal/initiative of limited duration –X Proposal/initiative in effect until 31/12/2028 –X Financial impact from 2019 to 2020 (with possible financial impact extended up to 2028 depending on new MFF) ◻ Proposal/initiative of unlimited duration –Implementation with a start-up period from YYYY to YYYY, –followed by full-scale operation. 1.7.Management mode(s) planned X Direct management by the Commission –X by its departments, including by its staff in the Union delegations; –◻ by the executive agencies ◻ Shared management with the Member States ◻ Indirect management by entrusting budget implementation tasks to: –◻ third countries or the bodies they have designated;

–◻ international organisations and their agencies (to be specified); –◻the EIB and the European Investment Fund; –◻ bodies referred to in Articles 208 and 209 of the Financial Regulation; –◻ public law bodies; –◻ bodies governed by private law with a public service mission to the extent that they provide adequate financial guarantees; –◻ bodies governed by the private law of a Member State that are entrusted with the implementation of a public-private partnership and that provide adequate financial guarantees; –◻ persons entrusted with the implementation of specific actions in the CFSP pursuant to Title V of the TEU, and identified in the relevant basic act. –If more than one management mode is indicated, please provide details in the ‘Comments’ section. Comments 2.MANAGEMENT MEASURES 2.1.Monitoring and reporting rules Specify frequency and conditions. Grant recipients must deliver the data collected and the corresponding quality reports. 2.2.Management and control system 2.2.1.Risk(s) identified Potential data quality and timeliness issues. 2.2.2.Information concerning the internal control system set up Technical and methodological documentation and guidelines to be communicated to Member States in advance. Compliance with deadlines will be monitored. Quality reports will be scrutinised for each survey. 2.2.3.Estimate of the costs and benefits of the controls and assessment of the expected level of risk of error The controls will have no extra cost as they will be carried out by Commission officials as part of their regular duties. Their benefits are an increased data quality and comparability. The expected level of risk of error is low, as data collection in agricultural statistics has been carried out in good cooperation with Member States since the 1950s. Adaptation of technical and other survey systems could lead to a slight increase in the risk of error in the short term, but is expected to regress to the mean in the mid to long term.

2.3.Measures to prevent fraud and irregularities Specify existing or envisaged prevention and protection measures. In addition to applying all regulatory control mechanisms, Eurostat will apply an antifraud strategy in line with the Commission's general antifraud actions. This will ensure that the fraud management risk approach is geared to identify fraud risk areas and adequate responses. Networking groups and specific IT tools dedicated to analysing fraud cases will be set up where necessary. Eurostat has defined a control strategy accompanying the implementation of expenditure. The measures and tools in this strategy are fully applicable to the proposed regulation. Reducing complexity, applying cost-effective monitoring procedures as well as conducting risk-based ex-ante and ex-post controls will aim to reduce the likelihood and contribute to the prevention of fraud. Specific awareness-raising measures and relevant training with regard to fraud prevention are part of the control strategy. 3.ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE 3.1.Heading(s) of the multiannual financial framework and expenditure budget line(s) affected Existing budget lines In order of multiannual financial framework headings and budget lines. Heading of multiannual financial framework Budget line Type of

expenditure Contribution Number […]

[Heading…………] Diff./Non-diff. from EFTA countries from candidate countries from third countries within the meaning of Article 21(2)(b) of the Financial Regulation 2 05 08 02

"Surveys on the structure of agricultural holdings" Diff. NO NO NO NO New budget lines requested In order of multiannual financial framework headings and budget lines. Heading of multiannual financial framework Budget line Type of

expenditure Contribution Number […]

[Heading…………] Diff./Non-diff. from EFTA countries from candidate countries from third countries within the meaning of Article 21(2)(b) of the Financial Regulation None YES/NO YES/NO YES/NO YES/NO 3.2.Estimated impact on expenditure 3.2.1.Summary of estimated impact on expenditure EUR million (to three decimal places) Heading of multiannual financial

framework 2 05 08 02 "Surveys on the structure of agricultural holdings" DG: AGRI Year

2019 Year

2020 TOTAL • Operational appropriations Number of budget line 05 08 02 Commitments (1) 39,000 1,000 40,000 Payments (2) 19,200 0,900 20,100 Number of budget line Commitments (1a) Payments (2a) Appropriations of an administrative nature financed from the envelope of specific programmes Number of budget line (3) TOTAL appropriations

for DG AGRI Commitments =1+1a +3 39,000 1,000 40,000 Payments =2+2a +3 19,200 0,900 20,100





• TOTAL operational appropriations Commitments (4) 39,000 1,000 40,000 Payments (5) 19,200 0,900 20,100 • TOTAL appropriations of an administrative nature financed from the envelope for specific programmes (6) TOTAL appropriations

under HEADING 2

of the multiannual financial framework Commitments =4+ 6 39,000 1,000 40,000 Payments =5+ 6 19,200 0,900 20,100 If more than one heading is affected by the proposal / initiative: • TOTAL operational appropriations Commitments (4) Payments (5) • TOTAL appropriations of an administrative nature financed from the envelope for specific programmes (6) TOTAL appropriations

under HEADINGS 1 to 4

of the multiannual financial framework

(Reference amount) Commitments =4+ 6 Payments =5+ 6







Heading of multiannual financial

framework 5 ‘Administrative expenditure’ EUR million (to three decimal places) DG: ESTAT 29 01 • Human resources 0,549 0,549 1,098 • Other administrative expenditure 0,045 0,030 0,075 TOTAL DG ESTAT Appropriations 0,594 0,579 1,173 TOTAL appropriations

under HEADING 5

of the multiannual financial framework (Total commitments = Total payments) 0,594 0,579 1,173 EUR million (to three decimal places) 2019 2020 TOTAL TOTAL appropriations

under HEADINGS 1 to 5

of the multiannual financial framework Commitments 39,594 1,579 40,573 Payments 19,794 1,479 21,273

3.2.2.Estimated impact on operational appropriations –◻ The proposal/initiative does not require the use of operational appropriations –X The proposal/initiative requires the use of operational appropriations, as explained below: Commitment appropriations in EUR million (to three decimal places) Indicate objectives and outputs ⇩ 2019 2020 OUTPUTS Type Average cost No Cost No Cost Total No Total cost SPECIFIC OBJECTIVE No 1… - Output Data-base 0,600 1,000 1,600 - Output Micro-data on agricultural holdings 38,400 0 38,400 Subtotal for specific objective No 1 39,000 1,000 40,000 TOTAL COST 39,000 1,000 40,000 3.2.3.Estimated impact on appropriations of an administrative nature 3.2.3.1.Summary –◻ The proposal/initiative does not require the use of appropriations of an administrative nature –X The proposal/initiative requires the use of appropriations of an administrative nature, as explained below: EUR million (to three decimal places) 2019 2020 TOTAL HEADING 5

of the multiannual financial framework Human resources 0,549 0,549 1,098 Other administrative expenditure 0,045 0,030 0,075 Subtotal HEADING 5

of the multiannual financial framework 0,594 0,579 1,173 Outside HEADING 5

of the multiannual financial framework Human resources Other expenditure

of an administrative nature Subtotal

outside HEADING 5

of the multiannual financial framework TOTAL 0,594 0,579 1,173

The appropriations required for human resources and other expenditure of an administrative nature will be met by appropriations from the DG that are already assigned to management of the action and/or have been redeployed within the DG, together if necessary with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints . 3.2.3.2.Estimated requirements of human resources –◻ The proposal/initiative does not require the use of human resources. –X The proposal/initiative requires the use of human resources, as explained below: Estimate to be expressed in full time equivalent units 2019 2020 • Establishment plan posts (officials and temporary staff) 29 01 01 01 (Headquarters and Commission’s Representation Offices) 4.1 4.1 XX 01 01 02 (Delegations) XX 01 05 01 (Indirect research) 10 01 05 01 (Direct research) • External staff (in Full Time Equivalent unit: FTE) XX 01 02 01 (AC, END, INT from the ‘global envelope’) XX 01 02 02 (AC, AL, END, INT and JED in the delegations) XX 01 04 yy - at Headquarters - in Delegations XX 01 05 02 (AC, END, INT - Indirect research) 10 01 05 02 (AC, END, INT - Direct research) Other budget lines (specify) TOTAL 4.1 4.1 XX is the policy area or budget title concerned. The human resources required will be met by staff from the DG who are already assigned to management of the action and/or have been redeployed within the DG, together if necessary with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints. Description of tasks to be carried out: Officials and temporary staff - management of grants related to the initiative - validation of data - support and methodological work - analysis of reports - dissemination of data External staff 3.2.4.Compatibility with the current multiannual financial framework –X The proposal/initiative is compatible the current multiannual financial framework. –◻ The proposal/initiative will entail reprogramming of the relevant heading in the multiannual financial framework. Explain what reprogramming is required, specifying the budget lines concerned and the corresponding amounts. None –◻ The proposal/initiative requires application of the flexibility instrument or revision of the multiannual financial framework.