The Farm Accountancy Data Network (FADN) in the EU was founded in 1965 by the Council of Europe decision when the legal basis for the organization were established.

FADN system is based on the annual collection of production, economic and financial data from a sample of agricultural holdings classified according to the following criteria: holdings economic size, type of agricultural production and regional affiliation. The representativeness of the data is ensured by selecting a sample of farms in the FADN system which covers 90% of the total utilized agricultural area, 90% of the total livestock units (LU) and more than 90% of the value of agricultural production in an EU Member State.

Conducting annual surveys according to the EU FADN methodology is the obligation of all EU member states, and is an instrument of the European Commission to evaluate the income of agricultural producers and determine the impact of the Common Agricultural Policy (CAP) on their business.

Accordingly with the legislation and methodology of the European Commission, the Liaison Agencies are responsible for conducting FADN surveys in the Member States. In the Republic of Croatia, the function of the Liaison Agency is held by the Ministry of Agriculture.

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