REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the exercise of the power to adopt delegated acts conferred on the Commission pursuant to Council Regulation (EC) No 1217/2009 of 30 November 2009 setting up a network for the collection of accountancy data on the incomes and business operation of agricultural holdings in the European Union
Date: 2018-02-07
Institutions: Directorate-General for Agriculture and Rural Development, European Commission
Subjects: European Commission, agricultural holding, agricultural structure, data collection, delegated legislation, economic accounts for agriculture, economic analysis, farm accountancy data network, powers of the institutions (EU), transfer of competence

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 7.2.2018 COM(2018) 57 final  REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the exercise of the power to adopt delegated acts conferred on the Commission pursuant to Council Regulation (EC) No 1217/2009 of 30 November 2009 setting up a network for the collection of accountancy data on the incomes and business operation of agricultural holdings in the European Union  
 
 
1.  

INTRODUCTION 

Council Regulation (EC) No 1217/20091 provides  for the rules on the  setting up a network 
for the collection of accountancy data on the incomes and business operation of agricultural 
holdings in the European Union. 

Article 19a of the Regulation empowers the Commission to adopt delegated acts in order to 
specify  the  content  of  the  additional  reporting  that  Member  States  shall  submit  to  the 
Commission  concerning  specific  aspects  of  the  setting  up  a  network  for  the  collection  of 
accountancy  data  on  the  incomes  and  business  operation  of  agricultural  holdings  in  the 
European Union, such as the list of FADN divisions, the rules fixing thresholds and plans, the 
reference period for standard outputs, the type of farming and data collection. 

2.  

LEGAL BASIS 

This report is required under Article 19a of Council Regulation (EC) No 1217/2009. Pursuant 
to  that  provision,  the  power  to  adopt  delegated  acts  is  conferred  on  the  Commission  for  a 
period  of  five  years  from  20  December  2013  and  the  Commission  is  required  to  prepare  a 
report in respect of the delegation of power. 

3. 

EXERCISE OF THE DELEGATION 

Since  the  entry  into  force  of  Council  Regulation  (EC)  No  1217/2009,  the  Commission  has 
adopted  two  delegated  acts:  Commission  Delegated  Regulation  (EU)  No  1198/20142  and 
Commission Delegated Regulation (EU) 2017/22783.  

Council  Regulation  (EC)  No  1217/2009  empowers  the  Commission  to  adopt  delegated 
Regulations laying down the rules related to the data for the determination of incomes and the 
business analysis of agricultural holdings, with the aim of ensuring a harmonized framework 
for the information to be reported by Member States. 

As provided by Article 3, Articles 5(1) and 5a(1), Article 5b(2) and (3) and Article 8(3) of the 
Regulation the delegated act should notably establish rules: 

a) for updating the list of FADN divisions, 
b) for fixing the threshold values delimiting the field of survey,  
c) for establishing plans for the selection of returning holdings,  
d)  for  fixing  the  reference  period  for  the  standard  outputs,  and  for  determining  the  general 
and principle types of farming and  
e)  for  determining  the  main  groups  of  accountancy  data  on  farm  returns  to  be  collected  as 
well as the general rules to be followed in this respect. 

1 COUNCIL REGULATION (EC) No 1217/2009 of 30 November 2009 setting up a network for the collection of accountancy data on the 
incomes and business operation of agricultural holdings in the European Community (OJ L 328, 15.12.2009, p. 27). 
2  COMMISSION  DELEGATED  REGULATION  (EU)  No  1198/2014  of  1  August  2014  supplementing  Council  Regulation  (EC)  No 
1217/2009 setting up a network for the collection of accountancy data on the incomes and business operation of agricultural holdings in the 
European Union (O.J. L 321, 07.11.2014, p. 2) 
3 COMMISSION DELEGATED REGULATION (EU) 2017/2278 of 4 September 2017 amending Annex I to Council Regulation (EC) No 
1217/2009 setting up a network for the collection of accountancy data on the incomes and business operation of agricultural holdings in the 
European Union (O.J. L 328, 12.12.2017, p. 1) 

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3.a.  Delegation of powers with respect to Article 3 of Regulation (EC) No 1217/2009 
on the list of FADN divisions per Member State. 

The  FADN  are  farm  accountancy  data  network  divisions,  as  defined  by  Article  2  of  the 
Council  Regulation  (EC)  No  1217/2009,  are  the  territories  of  a  Member  State,  or  any  part 
thereof as delimited with a view to the selection of returning holdings. A list of such divisions 
appears in Annex I of the Regulation.  

Article  3  ensures  that  the  list  of  FADN  divisions  can  be  updated  following  a  request  by  a 
Member  State  and  empowers  the  Commission  to  adopt  delegated  acts,  in  accordance  with 
Article 19a, in order to amend the list in Annex I. 

On  31  May  2017  Germany  requested  to  merge  the  divisions  Schleswig-Holstein  and 
Hamburg into one FADN division: Schleswig-Holstein / Hamburg.  

The Commission has used that power, by adopting Commission Delegated Regulation (EU) 
2017/22784 amending Annex I with respect to the list of FADN divisions per Member State, 
by merging the German divisions Schleswig-Holstein and Hamburg into one uniform FADN 
division: Schleswig-Holstein / Hamburg.  

In Annex I, the list of FADN divisions concerning Germany was replaced by the following: 

‘Germany 
1. Schleswig-Holstein/Hamburg 
2. Niedersachsen 
3. Bremen 
4. Nordrhein-Westfalen 
5. Hessen 
6. Rheinland-Pfalz  
7. Baden-Württemberg 
8. Bayern 
9. Saarland 
10. Berlin 
11. Brandenburg 
12. Mecklenburg-Vorpommern 
13. Sachsen 
14. Sachsen-Anhalt 
15. Thüringen’ 

The Commission adopted the Delegated Regulation on 4 September 2017 and it entered into 
force  on  the  seventh  day  following  that  of  its  publication  in  the  Official  Journal  of  the 
European Union on 12 December 2017. It will apply from the accounting year 2018 for the 
Farm Accountancy Data Network. 

4 See footnote 3. 

2 

 
 
 
 
 
                                                            
3.b.  Delegation of powers with respect to Article 5 of Regulation (EC) No 1217/2009 
on the rules for fixing the threshold for the economic size. 

The threshold values delimiting the field of survey should allow representative results for the 
field  of  survey  to  be  obtained.  The  threshold  values  should  maximise  the  benefit/cost  ratio 
and be determined with the aim of including in the field of survey holdings that represent the 
largest  possible  share  of  agricultural  output,  agricultural  area  and  farm  labour,  of  those 
holdings which are run with a market orientation. 

Article  5  of  Council  Regulation  (EC)  No  1217/2009  empowers  the  Commission  to  adopt 
delegated acts, in accordance with Article 19a, laying down the rules for fixing the threshold 
expressed in euro corresponding to one of the lower limits of the economic size classes of the 
Union  typology  for  agricultural  holdings  defined  in  Article  5b  of  the  same  Regulation, 
because  the  field  of  the  survey  referred  to  in  Article  1(2)  shall  cover  agricultural  holdings 
having an economic size equal to or greater than the above mentioned threshold. 

The Commission has used that power, by adopting Commission Delegated Regulation (EU) 
No 1198/20145 to indicate that:  

The  threshold  referred  to  in  Article  5(1)  of  Regulation  (EC)  No  1217/2009  shall  ensure  that  the  field  of  the 
survey represents the largest possible share of agricultural output, agricultural area and farm labour, of holdings 
run with a market orientation. 

The  Commission  adopted  the  Delegated  Regulation  on  1  August  2014  and  it  entered  into 
force  on  the  seventh  day  following  that  of  its  publication  in  the  Official  Journal  of  the 
European Union on 7 November 2014. It applied from the accounting year 2015 for the Farm 
Accountancy Data Network. 

3.c.  Delegation of powers with respect to Article 5a of Regulation (EC) No 1217/2009 
on the rules to draw up a plan for the selection of returning holdings for each Member 
State. 

The selection plan should include a minimum number of elements which demonstrate how a 
representative  sample  is  selected,  thereby  allowing  the survey  to  meet  the  objectives  of  the 
farm accountancy data network. 

Article 5a of Council Regulation (EC) No 1217/2009, empowers the Commission  to adopt 
delegated acts, in accordance with Article 19a, laying down the rules by which each Member 
States  draws  up  a  plan  for  the  selection  of  returning  holdings  that  ensures  a  representative 
accounting sample of the field of survey. Such rules shall ensure that plans for the selection 
of returning holdings: 
- are drawn up on the basis of the most recent statistical data, 
- are presented in accordance with the Union typology for agricultural holdings, and 
- specify, in particular, the distribution of returning holdings per category of holding and the 
detailed rules for their selection. 

The Commission has used that power, by adopting Commission Delegated Regulation (EU) 
No 1198/2014 to indicate that the plan for the selection of returning holdings to be drawn up 

5 See footnote 2.  

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by  each  Member  State  shall  include  elements  to  ensure  that  a  representative  accounting 
sample of the field of survey is obtained. In particular, the plan shall: 

(a) be based on the most recent statistical reference sources; 
(b) explain the procedure for stratifying the field of survey in accordance with the divisions listed in the Annex I 
to Regulation (EC) No 1217/2009 as well as in accordance with the types of farming and economic size classes 
as referred to in Article 5b(1) of Regulation (EC) No 1217/2009; 
(c)  provide  a  breakdown  of  holdings  in  the  field  of  survey  by  types  of  farming  and  economic  size  classes  as 
referred to in Article 5b(1) of Regulation (EC) No 1217/2009 which corresponds at least to the principal types; 
(d) indicate the statistical methods for determining the selection rate chosen for each stratum, the procedures for 
the  selection  of  returning holdings,  and  the number of  returning holdings to be  selected  for  each of  the  strata 
adopted. 

The  Commission  adopted  the  Delegated  Regulation  on  1  August  2014  and  it  entered  into 
force  on  the  seventh  day  following  that  of  its  publication  in  the  Official  Journal  of  the 
European Union on 7 November 2014. It applied from the accounting year 2015 for the Farm 
Accountancy Data Network. 

3.d.  Delegation of powers with respect to Article 5b of Regulation (EC) No 1217/2009 
fixing the reference period for the standard output and concerning the determination of 
the general and principal types of farming. 

The standard outputs are based on average data over a certain reference period. Their values 
should  regularly  be  updated  to  take  account  of  economic  trends  so  that  the  typology  may 
continue  to  be  meaningfully  applied.  The  frequency  of  the  update  should  be  linked  to  the 
years in which Union farm structure surveys are carried out. 
The general and principal types of farming need to be arranged so as to enable homogeneous 
groups  of  holdings  to  be  assembled  in  a  greater  or  lesser  degree  of  aggregation  and  that 
comparisons of the situation of groups of holdings can be made. 

Article  5b  of  Council  Regulation  (EC)  No  1217/2009,  empowers  the  Commission  to  adopt 
delegated  acts,  in  accordance  with  Article  19a,  fixing  the  reference  period  for  the  standard 
output and concerning the determination of the general and principal types of farming. 

The  type  of  farming  of  a  holding  shall  be  determined  by  the  relative  contribution  of  the 
standard output of the different characteristics of that holding to the total standard output of 
the  holding.  Agricultural  holdings  shall  be  classified  in  a  uniform  manner  according  to  the 
Union typology for agricultural holdings, depending on their type of farming, their economic 
size and the importance of other gainful activities directly related to them. The typology shall 
be used in particular for the presentation, by type of farming and by economic size class, of 
data collected through the Union farm structure surveys and the FADN. 
The correspondence between  general  and principal types of  farming  and  particular types of 
farming  specialisations corresponding to  principal types of farming  shall  be specified.  The 
economic size of the holding shall be determined on the basis of the total standard output of 
the holding. The standard outputs and the data for their determination shall be transmitted to 
the Commission by the liaison agency designated by each Member State in accordance with 
Article 7 of the same Regulation or by the body to which that function has been delegated. 

The Commission has used that power, by adopting Commission Delegated Regulation (EU) 
No 1198/2014 to indicate the reference period for the standard output, as follows:  

4 

 
 
 
 
 
 
 
For  the  purposes  of  calculating  standard  outputs  for  the  Union  farm  structure  survey  for  year  N  (…),  the 
reference period consists of the five successive years from year N-5 to year N-1. The standard outputs shall be 
determined using average basic data calculated over the reference period laid down in the first paragraph and 
commonly referred to as ‘N-3 standard outputs’. These N-3 standard outputs shall be updated to take account of 
economic trends at least each time a Union farm structure survey is carried out. 

Commission Delegated Regulation (EU) No 1198/2014 offers in its Annex I, an overview 
of the General and principal types of farming and correspondence between them, as follows: 

General 
type of 
farming 
1.  

2.  

3.  

Description 

Specialist field crops 

Specialist horticulture 

Specialist permanent crops 

4.  

Specialist grazing livestock 

5. 

6. 
7. 

8. 

9. 

Specialist granivores 

Mixed cropping 
Mixed livestock holdings 

Mixed crops — livestock 

Non-classified holdings 

Principal 
type of 
farming 
15. 

16.  
21. 
22. 
23. 
35. 
36. 
37. 
38. 
45. 
46. 
47. 

48. 
51. 
52. 
53. 
61. 
73. 
74. 
83. 
84. 
90. 

Description 

Specialist cereals, oilseeds and protein 
crops 
General field cropping 
Specialist horticulture indoor 
Specialist horticulture outdoor 
Other horticulture 
Specialist vineyards 
Specialist fruit and citrus fruit 
Specialist olives 
Various permanent crops combined 
Specialist dairying 
Specialist cattle — rearing and fattening 
Cattle — dairying, rearing and fattening 
combined 
Sheep, goats and other grazing livestock 
Specialist pigs 
Specialist poultry 
Various granivores combined 
Mixed cropping 
Mixed livestock, mainly grazing livestock 
Mixed livestock, mainly granivores 
Field crops — grazing livestock combined 
Various crops and livestock combined 
Non-classified holdings 

The  Commission  adopted  the  Delegated  Regulation  on  1  August  2014  and  it  entered  into 
force  on  the  seventh  day  following  that  of  its  publication  in  the  Official  Journal  of  the 
European Union on 7 November 2014. It applied from the accounting year 2015 for the Farm 
Accountancy Data Network. 

3.e.  Delegation of powers with respect to Article 8 of Regulation (EC) No 1217/2009 
concerning  the  determination  of  the  main  groups  of  accountancy  data  to  be  collected 
and the general rules for data collection 

The data reported in the farm returns should make it possible to obtain a view of the returning 
holdings as regards the factors of production, to assess the level of farming  income, and to 
reflect technical, economic and social conditions on the holdings involved. The main groups 
of  accountancy  data  to  be  collected  and  the  general  rules  for  data  collection  should  be 
determined for that purpose. 

5 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Article  8  of  Council  Regulation  (EC)  No  1217/2009,  empowers  the  Commission  to  adopt 
delegated  acts,  in  accordance  with  Article  19a,  concerning  the  determination  of  the  main 
groups of accountancy data to be collected and the general rules for data collection.  

The  data  shall  relate  to  a  single  agricultural  holding  and  to  a  single  accounting  year  of  12 
consecutive months, and shall concern exclusively that agricultural holding. Those data shall 
refer to agricultural activities of the holding itself and other gainful activities directly related 
to the holding.  

The Commission has used that power, by adopting Commission Delegated Regulation (EU) 
1198/2014 to indicate that the general and principal types of farming and the correspondence 
between  them  are  specified  in  its  Annex  I.  Besides,  concerning  the  farm  return,  the  main 
groups  of  accountancy  data  to  be  collected  and  the  general  rules  for  data  collection  are 
specified in Annex II to this Regulation. 

Commission Delegated Regulation (EU) 1198/2014 offers in its Annex II, an overview of 
the main groups of accountancy data to be collected for the Farm Return and general rules for 
data collection, as follows: 

Farm return — main groups of accountancy data to be collected 
- General information on the holding, such as data related to its location, status, type and classification. 
- Type of occupation: summary data related to the types of occupancy of the agricultural land areas used by the 
holding. 
-  Labour:  data  characterising  the  holding's  labour,  such  as  the  number  of  persons  working  on  the  farm,  time 
worked and the type of engagement. 
-  Assets:  data  describing  the  assets  of  the  holding,  split  into  categories,  used  in  its  operation  during  the 
accounting year. 
-  Quotas  and  other  rights:  data  related  to  the  quotas  and  other  rights  related  to  the  holding's  operation  in  the 
accounting year. 
- Debts: data related to the holding's indebtedness in the accounting year. 
- Value added tax: data related to the application of the value added tax (VAT) systems to the holding. 
- Inputs: data related to inputs used in the holding's operation, such as specific costs and overheads, to produce 
its outputs in the accounting year. 
- Crops: data detailing production and use of crops in the holding. 
- Livestock production: data detailing production and use of livestock in the holding. 
-  Animal  products  and  services:  data  detailing  production  and  use  of  animal  products  and  services  in  the 
holding. 
- Other gainful activities directly related to the farm: data related to all activities other than farm work, directly 
related  to  the  holding  and  having  an  economic  impact  on  the  holding,  and  where  either  the  resources  of  the 
holding (area, buildings, machinery, agricultural products, etc.) or the products of the holding are used. 
- Subsidies: data detailing subsidies received during the accounting year by the holding. 

Farm return — general rules for data collection 
(a) The accounting year of 12 consecutive months referred to in Article 8(3) of Regulation (EC) No 1217/2009 
shall end during the period 31 December to 30 June inclusive. 
(b)  Data  given  in  a  farm  return  is  to  be  taken  from  accounts  consisting  of  entries  made  systematically  and 
regularly throughout the accounting year. 
(c)  The  data  in  a  farm  return  should  be  given  in  financial  values,  in  euro  or  in  national  monetary  units,  in 
physical measures of weight, volume, area, numbers, as well as in other corresponding units or indications. 
(d) The accountancy data are expressed in monetary terms without VAT. 
(e)  The  accountancy  data  in  monetary  terms  are  expressed  without  taking  into  account  grants  and  subsidies, 
which  are  recorded  separately.  Grants  and  subsidies  are  understood  to  be  all  forms  of  direct  aid  from  public 
funds which have resulted in a specific receipt. 

The  Commission  adopted  the  Delegated  Regulation  on  1  August  2014  and  it  entered  into 
force  on  the  seventh  day  following  that  of  its  publication  in  the  Official  Journal  of  the 

6 

 
 
 
 
 
 
 
 
European Union on 7 November 2014. It applied from the accounting year 2015 for the Farm 
Accountancy Data Network. 

4.  

CONCLUSION 

The  Commission  has  exercised  its  delegated  powers  correctly  and  invites  the  European 
Parliament and the Council to take note of this Report. 

7