FADN-RICA: Farm Accounting Data Network

Last update: 09/2005

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What is FADN-RICA?
Objectives
How does it work?
Achievements
Who benefits?
The role of IDA
Technical information

What is FADN-RICA?

Established in 1965, the Farm Accountancy Data Network (FADN) is a data analysis tool designed to evaluate the income of agricultural holdings or farms and the impact of the CAP. The networks evaluation activities consist of annual surveys carried out by the Member States.

Farms producing little output do not warrant inclusion in the FADN sample. Thus, in defining the FADN field of observation, the Commission follows the guidelines specified in Regulation 79/65/EEC of 15/06/1965 and subsequent amendments and adopts a pragmatic approach by including only those farms deemed to be commercial. In order to be classified as commercial, a farm must exceed a minimum economic size.

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Objectives

The key objective of FADN-RICA is to collect accountancy data from farms across the EU Member States for an annual determination of incomes and business analyses of agricultural holdings.

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How does it work?

Every year, the European Commission services responsible for the operation of the FADN collect accountancy data from a sample of the agricultural holdings across the European Union.

Holdings are selected to take part in national surveys on the basis of sampling plans established at the regional level.

FADN-RICA is the only harmonised source of micro-economic data of agricultural holdings in the EU. The bookkeeping principles, for example, are the same in all countries.

The methodology applied aims to provide representative data on three levels:

• Region;
• Economic size;
• Type of farming.

The standard results are made available on the web in a public database.

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Achievements

• Currently, the annual sample covers:
  • Approximately 60,000 farms (which in statistical terms represent a population 
    of about 4,000,000 farms in the EU's 15 Member States);
  • Approximately 90% of the total utilised agricultural area (UAA); and
  • More than 90% of the total agricultural production of the Union.
• Some 1,000 variables are collected from each sample farm and submitted by liaison agencies to the Commission.
• The FADN-RICA website is also a success with an increasing number of visits per month. For the moment it acts as an information channel from the FADN Unit to the outside world, liaison agencies and the general public. However, it is also rapidly becoming a connection point for liaison agencies to deliver their data.

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Who benefits?

Policy makers: These are the primary beneficiaries of FADN-RICA. The technical and economic data made available has proved very useful in characterising different production systems and in appraising the different effects of the proposal for CAP reform presented by the European Commission.

Businesses: FADN-RICA also assists farmers and other professionals. The FADN-RICA survey not only covers the entire range of agricultural activities on farms but also collects data on some non-agricultural farming activities (such as tourism and forestry). The analysis of the technical data collected through FADN-RICA influences the differentiated way in which public funds are allocated to farms. The standard results are also available to all in a Public Database. Anyone interested in agriculture and farming can also consult these results, which describe the economic situation of different groups of farmers in considerable detail.

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The role of IDA

The IDA Programme has provided support to activities related to the connectivity of the Member States' Administration partners. However, direct financial contribution has been minor.

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Technical information