On January 29, 2025, the Council of Ministers reviewed a draft bill on the EU Farm Sustainability Data Network (FSDN), proposed by the Minister of Agriculture and Rural Development. According to Dr. Marek Woch, an expert at the Legislation Center of the Federation of Entrepreneurs, implementing the legislation is expected to cost approximately 582,150,000 PLN over 10 years.
European Commission’s Initiative
As outlined on the European Commission’s official website, this initiative aims to expand the current EU farm data collection network to include information about farms’ environmental and social practices.
By collecting this new data, the EU will be able to compare farm performance and provide tailored advice to farmers. This effort seeks to improve the sustainability of farming operations, including farmer incomes, in alignment with the objectives of the Common Agricultural Policy, the European Green Deal, the “Farm to Fork” strategy, and the biodiversity strategy.
Regulatory Impact Assessment
The Regulatory Impact Assessment explains that the transformation of the Farm Accountancy Data Network (FADN) into the Farm Sustainability Data Network (FSDN) is intended to meet the requirements of the Common Agricultural Policy (CAP), including evaluating its effects on the agricultural sector.
The new FSDN will collect and analyze farm data across economic, environmental, and social dimensions. These data points will help assess the sustainability of EU agriculture and address challenges within the sector.
Poland is set to receive approximately 19 million PLN in additional funding to transition from FADN to FSDN. Over the next 10 years, projected revenues amount to 163 million PLN, while expenses are expected to reach 582,150,000 PLN. Although initially planned for adoption by the fourth quarter of 2024, the project faced delays.
Expanded Data Collection
Until the end of 2024, data collected from farms covered 16 topics, including 13 economic, two social, and one environmental dimension. Starting in 2025, an additional 26 topics will be incorporated, including:
- Five new economic topics
- Six new social topics
- 15 new environmental topics
Additionally, two existing economic topics will be expanded.
Composition of the National FSDN Committee
The National FSDN Committee will include representatives from various ministries and institutions:
- Chairperson: Minister of Agriculture or a designated representative.
- Deputy Chairperson: Representative designated by the Minister of Agriculture.
- Two representatives from the Ministry of Finance.
- Representatives from:
- Ministry of Regional Development,
- Ministry of Agricultural Markets,
- Ministry of Environment,
- Ministry of Social Security,
- President of the Central Statistical Office,
- Liaison agency (designated by the Director of the Institute of Agricultural and Food Economics – National Research Institute),
- National Council of Agricultural Chambers.
Scope and Beneficiaries
The regulations will apply to 9,000 farmers who voluntarily provide farm data for the network. These farmers will receive a tax-exempt financial benefit for their participation.
Benefits for Participating Farmers
The Regulatory Impact Assessment highlights several benefits for farmers who share their data:
- Performance Monitoring: Ongoing assessment of farm performance, including financial settlements with suppliers and buyers, and comparisons with planned outcomes.
- Frequent Consultations: Regular access to advisors for detailed guidance on farm operations.
- Enhanced Knowledge: Improved understanding of farm economics and management, enabling better decision-making and economic outcomes.
- Organizational Skills: Development of systematic habits, document organization, and openness to change.
Challenges and Concerns
While the Green Deal and related agricultural reforms aim to shape the future of rural Poland, they have also triggered social concerns and increased production costs. Behind promises of new opportunities, farmers often face additional burdens and costs that could affect consumers as well.
Source: ManagerPlus.pl