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Date: 27-Sep-2024 Category: Not Applicable State: Union Government Country: Europe

Commission Implementing Regulation (EU) 2024/2499 of 26 September 2024 laying down rules for the application of Council Regulation (EC) No 1217/2009 as regards the financial contributions to Member States’ implementation costs when setting up the Farm Sustainability Data Network

Issued by European Commission · Directorate-General for Agriculture and Rural Development

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Executive Summary & Key Takeaways

Key Changes

  • The financial contributions will be provided as lump sum contributions to cover eligible costs related to setting up the FSDN.
  • Lump sum amounts are based on estimated budgets provided by each Member State, subject to maximum amounts proportionate to their agricultural population, diversity of agricultural structures, and contribution to the Union’s agricultural production.
  • Costs incurred from 1 January 2024 to 31 December 2027 are eligible for Union financial contributions.
  • Member States must submit a proposal to the Commission setting out the amount of the requested lump sum contribution, based on their estimated budget necessary for setting up the FSDN, no later than 4 November 2024.
  • Member States are required to submit an interim implementation report by 31 March 2026 and a final report by 31 March 2028, detailing the activities carried out.
  • A pre-financing payment of 100% of the approved lump sum will be paid to the Member States upon approval of their proposal.
  • The Union financial contribution per Member State shall not exceed 95 % of the eligible costs estimated by the Member State.
  • Indirect costs shall be calculated by applying a maximum flat rate of 7 % of the total eligible direct costs, excluding subcontracting costs.
  • A total of EUR 50 million from the European Agricultural Guarantee Fund (EAGF) is allocated to finance financial contributions to Member States in 2024.

What it means

  • Commission Implementing Regulation (EU) 2024/2499 lays down rules for the application of Council Regulation (EC) No 1217/2009 regarding financial contributions to Member States' implementation costs for setting up the Farm Sustainability Data Network (FSDN).

Impact Analysis

Member States

  • Germany has a 15-week extension for submitting implementation reports.

European Commission

  • The Commission will provide templates for Member States to draft their proposals and implementation reports.

Farmers

  • The FSDN aims to provide feedback reports and benchmark services for farmers, potentially improving farm management practices.

Action Items

  • European Commission: Prepare for the assessment of Member States' proposals and the monitoring of FSDN implementation.

Key Entities Referenced

European Commission: The executive branch of the European Union, responsible for proposing legislation, implementing decisions, and managing the EU budget. European Agricultural Guarantee Fund (EAGF): A fund that provides financial support for the implementation of the Common Agricultural Policy (CAP). Farm Sustainability Data Network (FSDN): A data network aimed at collecting and analyzing data on the sustainability of farms in the European Union. Council Regulation (EC) No 1217/2009: The original regulation setting up the Farm Accountancy Data Network, which is being converted into the Farm Sustainability Data Network. Regulation (EU) 2023/2674: Regulation amending Council Regulation (EC) No 1217/2009 to convert the Farm Accountancy Data Network into a Farm Sustainability Data Network. Regulation (EU) 2021/2116: Regulation on the financing, management and monitoring of the common agricultural policy. European Public Prosecutor’s Office (EPPO): The European Public Prosecutor’s Office is the independent and decentralised prosecution office of the European Union, with competence for investigating, prosecuting and bringing to judgment crimes against the EU budget. European Anti-Fraud Office (OLAF): The European Anti-Fraud Office (OLAF) investigates fraud against the EU budget, corruption and serious misconduct within the European institutions, and develops anti-fraud policy for the European Commission. Court of Auditors: The European Court of Auditors (ECA) is the EU's independent external auditor. It checks that EU funds are collected and used correctly, and helps to improve EU financial management.
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Official Journal EN of the European Union L series 2024/2499 27.9.2024 COMMISSION IMPLEMENTING REGULATION (EU) 2024/2499 of 26 September 2024 laying down rules for the application of Council Regulation (EC) No 1217/2009 as regards the financial contributions to Member States’ implementation costs when setting up the Farm Sustainability Data Network THE EUROPEAN COMMISSION, Having regard to the Treaty on the Functioning of the European Union, Having regard to Council Regulation (EC) No 1217/2009 of 30 November 2009setting up the Farm Sustainability Data Network(1), and in particular Article 19(4) thereof, Whereas: (1) Article 19(2) of Regulation (EC) No 1217/2009 lays down that financial contributions from the European Agricultural Guarantee Fund (EAGF) are to be provided to Member States in order to contribute to Member States’ implementation costs when setting up the system for collecting variables relating to the topics set out in Annex -I to Regulation (EC) No 1217/2009, notably environmental and social variables, to meet the requirements of that Regulation, including for training and interoperability between data collection systems. (2) To that purpose, it is necessary to lay down, in particular, the detailed procedures relating to the Union financial contributions referred to in Article 19(2) of Regulation (EC) No 1217/2009 and setting out the criteria on the basis of which the contributions are allocated per Member State. (3) The Union budget for 2024, within the EAGF envelope, includes an amount of EUR 50 million for the financial contributions referred to in Article 19(2) of Regulation (EC) No 1217/2009, in order to support Member States in the setting up of the Farm Sustainability Data Network (FSDN). (4) To address the efforts needed by each Member State to convert their computerised data collection and reporting system to meet the requirements of the FSDN, and to simplify the financial management of the Union contribution, the Union financial contributions referred to in Article 19(2) of Regulation (EC) No 1217/2009 should be made available to Member States in the form of a lump sum contribution to cover eligible costs such as those relating to information technology development and interoperability between the various data sources listed in Article 4(2) of Regulation (EC) No 1217/2009. (5) After an in-depth assessment, the Commission considers that lump sums are the most appropriate form of contribution because the nature of the setting-up action lends itself to costs that can be estimated in advance, with associated activities that are to lead to the operational setting up of the FSDN. In addition, it is estimated that there is a low risk of irregularity or fraud as the beneficiaries are public bodies. The use of lump sum contributions is also expected to significantly simplify implementation for the Commission and the Member States by removing the need for financial reporting and verification. (6) To simplify the financial management of the Union contribution, the lump sum amounts to be made available should be based on an estimated budget to be provided by each Member State, subject to maximum amounts which are proportionate to the agricultural population, the diversity of structures within the agricultural sector and the size of each Member State’s contribution to the Union’s agricultural production. (1) OJ L 328, 15.12.2009, p. 27, ELI: http://data.europa.eu/eli/reg/2009/1217/oj. ELI: http://data.europa.eu/eli/reg_impl/2024/2499/oj 1/6EN OJ L, 27.9.2024 (7) In the absence of any specific transitional period allowing for a clearly distinguishable phase of preparation before implementation, the new requirements introduced by Regulation (EU) 2023/2674 of the European Parliament and of the Council(2), which amends Regulation (EC) No 1217/2009, should be applied gradually by the Member States from the start of the first data collection cycle following the entry into force of Regulation (EU) 2023/2674, i.e., the cycle relating to reporting year 2025. This implies that Member States have been urged to start adapting their systems immediately after the entry into force of the new requirements in early 2024 so that they are able to have the first adaptations in place before the end of October 2024, when the collection cycle of the new data starts. To meet this deadline and implement the new requirements successfully, Member States have been encouraged to advance the implementation of the actions necessary for transitioning to the FSDN. Consequently and to avoid Member States being penalised for having started to implement the new requirements as soon as possible in 2024, Member States should be authorised to consider costs incurred as of 1 January 2024as eligible for Union financial contributions referred to in Article 19(2) of Regulation (EC) No 1217/2009. (8) The setting up of the FSDN in each Member State, and thus the eligibility of the Union contribution, should be verified using implementation reports drawn up by the Member States of the actual actions taken leading to the operational setting up of the FSDN. The actual actions taken could differ from those initially planned in case they have been replaced by relevant alternative actions. (9) To accelerate the conversion to the FSDN, pre-financing should be provided to Member States before 31 December 2024. (10) The Commission, the European Public Prosecutor’s Office (EPPO) in respect of those Member States participating in enhanced cooperation pursuant to Council Regulation (EU) 2017/1939(3), the European Anti-Fraud Office (OLAF) and the Court of Auditors are to have the power to exert their respective competences, including to carry out audits, on-the-spot-checks and investigations on the use of the Union financial contributions provided under this Regulation. (11) To enable the Member States to submit a proposal to the Commission setting out the amount of the requested lump sum contributions as soon as possible, this Regulation should enter into force on the day following that of its publication in the Official Journal of the European Union. (12) The measures provided for in this Regulation are in accordance with the opinion of the Committee for the Farm Sustainability Data Network, HAS ADOPTED THIS REGULATION: Article 1 Available budget and maximum financial allocation per Member State 1. The total available amount provided by the European Agricultural Guarantee Fund (EAGF), under direct management expenditure as referred to in Article 5(3), point (c), of Regulation (EU) 2021/2116 of the European Parliament and the Council(4), to finance in 2024 the financial contributions referred to in Article 19(2) of Regulation (EC) No 1217/2009 shall be EUR 50 million. (2) Regulation (EU) 2023/2674 of the European Parliament and of the Council of 22 November 2023 amending Council Regulation (EC) No 1217/2009 as regards conversion of the Farm Accountancy Data Network into a Farm Sustainability Data Network (OJ L, 2023/2674, 29.11.2023, ELI: http://data.europa.eu/eli/reg/2023/2674/oj). (3) Council Regulation (EU) 2017/1939 of 12 October 2017 implementing enhanced cooperation on the establishment of the European Public Prosecutor’s Office (‘the EPPO’) (OJ L 283, 31.10.2017, p. 1, ELI: http://data.europa.eu/eli/reg/2017/1939/oj). (4) Regulation (EU) 2021/2116 of the European Parliament and of the Council of 2 December 2021 on the financing, management and monitoring of the common agricultural policy and repealing Regulation (EU) No 1306/2013 (OJ L 435, 6.12.2021, p. 187, ELI: http://data.europa.eu/eli/reg/2021/2116/oj). 2/6 ELI: http://data.europa.eu/eli/reg_impl/2024/2499/ojEN OJ L, 27.9.2024 2. The Union financial contributions referred to in Article 19(2) of Regulation (EC) No 1217/2009 are allocated to Member States as set out in the Annex to this Regulation and shall be limited to the amounts provided therein. Article 2 Single lump sums The Union financial contributions referred to in Article 19(2) of Regulation (EC) No 1217/2009 shall take the form of single lump sum contributions covering eligible costs associated with the setting up of the Farm Sustainability Data Network (FSDN) in the Member States, as referred to in Article 3 of this Regulation, and shall not exceed the maximum amount per Member State referred to in Article 1(2) of this Regulation. Article 3 Eligible activities and costs 1. The lump sum contributions referred to in Article 2 of this Regulation may cover eligible costs linked to one or more of the following categories of activity: (a) developing the Member States’ computerised data collection, data checking, data processing and data reporting system to meet the requirements of Regulation (EC) No 1217/2009 and which shall be operational by 31 December 2027; (b) building Member States’ capacity for using the data sources and for linking the data sets referred to in Article 4(2) and in Article 4a(1) of Regulation (EC) No 1217/2009 respectively, including costs related to cooperation between liaison agencies; (c) developing methodologies and innovative approaches, including digitally-based solutions, to adapt the Member States’ computerised data collection, data checking, data processing and data reporting system providing feedback reports and benchmark services for farmers to the requirements of Regulation (EC) No 1217/2009; (d) recruiting and training experts, in particular in the liaison agencies, to align the human resource capacity to the increased demands of the FSDN, including travel and subsistence allowances; (e) incentivising farmers to participate in the FSDN, including by raising their awareness to the benefits of participating in the data network. 2. The Union financial contribution per Member State shall not exceed 95 % of the eligible costs estimated by the Member State. 3. Eligible costs may include both direct and indirect costs. 4. Indirect costs shall be calculated by applying a maximum flat rate of 7 % of the total eligible direct costs, excluding subcontracting costs. 5. Salary costs of the personnel of national administrations are eligible, to the extent that they relate to the cost of activities referred to in paragraph 1 which the relevant public authority would not carry out if the setting up of the FSDN was not undertaken. 6. Costs funded under other Union actions are not eligible. Article 4 Procedure for establishing the lump sum contributions 1. Each Member State shall submit a proposal to the Commission setting out the amount of the requested lump sum contribution based on their estimated budget necessary for setting up the FSDN. The proposal shall include a breakdown of the estimated costs showing the share per category of activity referred to in Article 3(1). The proposal shall also describe the activities covered by each category and the related resources. ELI: http://data.europa.eu/eli/reg_impl/2024/2499/oj 3/6EN OJ L, 27.9.2024 2. The detailed cost estimation per category referred to in paragraph 1 of this Article shall include only costs that are: (a) incurred between 1 January 2024and 31 December 2027; (b) necessary for the activities referred to in Article 3(1); (c) in line with the Member State’s usual cost practices; (d) compliant with the applicable national law on taxes, labour and social security; (e) compliant with the principle of sound financial management, in particular regarding economy and efficiency. 3. The estimated eligible costs shall be broken down by the following budget categories: (a) personnel costs; (b) subcontracting costs; (c) purchase costs; (d) other cost categories; (e) indirect costs. 4. Member States shall draft their proposal using the relevant template provided by the Commission and submit it within one month after the entry into force of this Regulation and in any case no later than 4 November 2024, whichever occurs first. 5. The Commission shall assess the estimated budget proposed by the Member States against the activities proposed by them. Ineligible costs will be removed and the Union contribution may be adjusted by the Commission as deemed appropriate. Article 5 Implementation reports 1. Member States shall provide the Commission with the following implementation reports: (a) an interim report submitted no later than 31 March 2026; (b) a final report submitted no later than 31 March 2028. By way of derogation from the first subparagraph, Germany may submit the implementation reports to the Commission within 15 weeks after the respective deadlines referred to in the first subparagraph. 2. The implementation reports shall contain a description of the activities, as referred to in Article 3(1), carried out: (a) from 1 January 2024to 31 December 2025, for the interim report referred to in paragraph 1, point (a); (b) from 1 January 2024to 31 December 2027, for the final report referred to in paragraph 1, point (b). The final report mentioned in paragraph (1), point (b), shall demonstrate the operational setting up of the FSDN, addressing how the activities described in the proposal, referred to in Article 4(1), or any relevant alternative activities, contributed to the setting up of the FSDN. 3. Member States shall submit their implementation reports by using the relevant template provided by the Commission. Article 6 Payments 1. Upon approval of the Member State’s proposal by the Commission, a pre-financing payment of 100 % of the approved single lump sum contribution shall be paid to the Member State. 4/6 ELI: http://data.europa.eu/eli/reg_impl/2024/2499/ojEN OJ L, 27.9.2024 2. The pre-financing payment shall be cleared at the moment of the final payment only if the Commission is satisfied with the operational setting up of the FSDN by the Member State and approves the final implementation report demonstrating the operational setting up of the FSDN. 3. The Commission may, at the moment of the final payment or afterwards, reduce the financial contribution for a Member State if the Member State has breached its obligations under this Regulation, including improper implementation, non-compliance with eligibility conditions, submission of false information, failure to provide required information, substantial errors, irregularities or fraud. 4. The amount of the reduction shall be proportionate to the seriousness and duration of the errors, irregularities or fraud or breach of obligations, by applying an individual reduction rate to the approved Union financial contribution. The Commission reserves the right to recover any amounts unduly paid. Article 7 Entry into force This Regulation shall enter into force on the 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, 26 September 2024. For the Commission The President Ursula VON DER LEYEN ELI: http://data.europa.eu/eli/reg_impl/2024/2499/oj 5/6EN OJ L, 27.9.2024 ANNEX Member States’ maximum allocations for setting up the Farm Sustainability Data Network as referred to in Article 1 EUR (current prices) Belgium 1 056 000 Bulgaria 1 092 568 Czechia 1 033 904 Denmark 1 196 202 Germany 4 513 608 Estonia 655 304 Ireland 1 143 549 Greece 2 188 568 Spain 4 979 273 France 5 963 231 Croatia 995 604 Italy 5 034 307 Cyprus 663 014 Latvia 786 887 Lithuania 951 572 Luxembourg 611 660 Hungary 1 436 663 Malta 607 896 Netherlands 2 178 215 Austria 1 138 913 Poland 4 269 601 Portugal 1 567 936 Romania 2 577 741 Slovenia 801 960 Slovakia 762 344 Finland 854 106 Sweden 939 374 6/6 ELI: http://data.europa.eu/eli/reg_impl/2024/2499/oj

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