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Department of Agriculture

FADN


Farm Accountancy Data Network (FADN)

The Farm Accountancy Data Network is a contractual obligation of the Member States of the European Union (EU), based on Regulation (EC) 1217/2009 and all subsequent amendments thereto. It is an integrated system for collecting accounting information on the activities of agricultural and livestock farms and covers the whole range of agricultural and livestock activities taking place on a holding as well as certain non-agricultural activities such as agro-tourism, forestry, etc.
Information is collected on an annual basis, from a representative sample of farmers. It concerns the physical and structural characteristics of the holding, such as the area under cultivation, the number of livestock, the workforce of the holding, as well as financial and accounting data such as subsidies received by a holding, its income and expense.
The participation of farmers and stock farmers in the sample is voluntary. The information collected is confidential and is only available to the EU's Directorate-General for Agriculture.

Objectives

FADN serves as a tool for gathering information with the following main objectives:
1. Assessing Agricultural Income in Member States.
2. To study the implications of EU policy in the agricultural section.

Operation

The operation of FADN is regulated by:
1. The FADN Community Committee, which monitors the implementation of the program in all Member States and is responsible for legislation and the provision of appropriate information to the relevant EU bodies. The Community Committee is composed of representatives from all EU Member States. Representative of Cyprus is the Department of Agriculture, Ministry of Agriculture, Rural Development and the Environment, based on Article 6 of Law 138 (I) of 2015.
2. The National Commission, which is responsible for approving the selection plan for the agricultural and livestock holdings participating in the sample. The Cypriot National Commission has seven-members and chaired by the Director of the Department of Agriculture. The other six members are The Ministry of Agriculture, Rural Development and Environment, The General Directorate of European Programs, Coordination and Development, Treasury, Cyprus Agricultural Payments Organization, the Statistical Service and the Agricultural Research Institute.

Scope of Observations

The field of observations for FADN are all commercial agricultural and livestock holdings. According to the acquis communautaire, commercial holding is an exploitation which sells part of its production, is considered to be large enough to provide the holder with a satisfactory income that can support his family and exceeds a minimum economic size.

Criterion of economic size of the holding is Standard Output *1 (SO) defined as the value of the product produced per hectare or per animal. In Cyprus, eligible for participation in the sample are holdings with an economic size of at least 4 European Size Units (EMU), ie. > = 4000 €.

*1. The standard output of an agricultural product (crop or livestock), abbreviated as SO, is the average monetary value of the agricultural output at farm-gate price, in euro per hectare or per head of livestock.





Sample selection

The sample is selected by random stratified sampling. Field of observation are all agricultural and livestock farms registered in the Census of Agriculture. Eligible is the holding which meets the following criteria:
1. The Region Criterion: For the purposes of FADN, the EU is divided into 139 regions after Croatia's accession (July 1, 2013), with Cyprus being considered as one region with a code of 740.
2. The Economic Size criterion, which is calculated on the basis of the standard output of all primary products of the holding and exceeds 4,000.
3. The Farm Type criterion, which is determined on the basis of the percentage of participation of a branch or of a combination of more branches in the Total Standard Output of the holding.
This ensures the homogeneity of agricultural holdings in all EU Member States.

Practical implementation

At the beginning of each calendar year, the FADN staff will carry out individual visits to the holdings participating in the sample to conduct the opening of the accounting year, based on the FADN Farm Return. During the year more visits are carry out to the sample holdings, in order to register all necessary information of the holding during the year. The data registered refer to the workforce, plant and livestock, as well as farm income and expenses. Finally, in December the Expiry Census is carried out with individual visits to the sample holdings.

The data after being properly processed are then sent online to the EU database (12 months after the end of the calendar year) followed by EU-based audits.

Results

FADN is been applied in Cyprus since 2004. Based on the analysis of the FADN data from 2004 to 2013, the following formal results arise:
Table 1: Typical results for the average exploitation of the Farm Accountancy Data Network


Variables
2004 *2
2016
2013/2016 Change (%)
Per hectar 2016
Cyprus
Cyprus
EU28
Cyprus
Cyprus
EU28
Economic Size (€)
47.100
35.500
68.400
-7,07
3.172
1.996
Total Labor Input (in AWU*3)
1,57
1,41
1,5
0,13
0,04
Total Utilize Agricultural Area (hectars)
10,21
11,19
34,26
22,7
Total output (€)
33.547
35.892
71.604
- 11,96
3.208
2.090
Total inputs (€)
32.486
32.252
64.868
- 6,72
2.882
1.893
Gross Farm Income (€)
17.636
16.434
38.412
- 15,56
1.469
1.121
Farm Net Income (€)
6.136
7.557
17.984
- 32,81
675
525

*2 Prices for 2004 have been revised on the basis of inflation

*3 1 AWU (Annual Work Unit) equals to 2080-hour work offered by a person during one calendar year under full-time employment

Source: FADN European Commission


As shown in the table above, the average area cultivated per farm in Cyprus increased from 9.12 ha (2013) to 11.19 ha (2016) and is the fourth smallest area after Slovenia (9.78 hectares), Romania (9.37 hectares) and Malta (2.77 hectares). The corresponding EU28 average for 2016 was 34.26 hectares. Average total agricultural income in the EU28 Member States was € 71.604 compared to € 35.892 in Cyprus (2016). The average net agricultural income of the EU28 amounted to € 17.984 (2016), while the corresponding agricultural income of Cyprus was estimated at € 7.557. Also, Cypriot farms have one and a half times as much cost and three times as much labor per hectare as compared to the EU28 average.

The economic size of Cypriot farms declined by 7.07% in the period 2013 - 2016. Additional, the average of UAA was increased by 22.7%. Gross agricultural income decreased by 15.56%, and expenditure decreased by 6,72%. Finally, farm net income decreased by 32.81%.

All FADN results regarding Cyprus are published, along with those of the other Member States, on the relevant FADN Community Committee website
(http://ec.europa.eu/agriculture/rica/index.cfm).

National legislation:

The Establishment and Operation of the Farm Accountancy Data Network Law of 2015
(Legislation 138 (I) / 2015)

EU Legislation:

Click here for transfer to the European Union's website with legislation for FADN

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