Implementation of influence for agricultural policy carried out in each country on the activities of agricultural producers are important indicator system for evaluating effectiveness of this policy. Thus, Farm Data Monitoring System which is used at the level of the European Union, is an important information base for the Common Agricultural Policy of the European Union and acts as a necessary tool for decision-making in this field.

Applying FDMS in Europe has a great experience. So this system was held in Norway 1911, in Finland 1912, in Denmark 1918, in England 1936, in Sweden 1939, in the Netherlands 1940, in Germany 1955, in Luxembourg 1958 and in Austria 1959. European Commission, decision with a dated 1965 in June 15 and FDMS apply at the level of the European Union.

FDMS in Azerbaijan was launched as part of a project of the Food and Agriculture Organization of the United Nations (FAO). As part of this project, Agricultural Economics Research Center (former Research Institute for Agricultural Economics) was designated as responsible executive body. Pilot surveys were conducted on farms in several regions as initial experience.

Since 2015, FDMS data collection processes cover all regions of the country. Currently, database of Agricultural Economics Research Center contains reports for 2015–2018.

Within the framework of FDMS, surveys and collected information include the following issues:

Survey section	Coverage issues
General information of the farm	Geographic Information; type of farm; head of the farm (age, education); number of family members
Workforce	Free labor and wage workers
Capital	Soil; farm animals; buildings; machines and equipments
Credit	Debt volume, sources, interest rate
Production of plant-growing and animal-breeding	Produced plant product; land area; type of land area for buckwheat, irrigation, greenhouse and covered area; produced animal product; head number of animals; agriculture on the mountain, foothill, plain and closed farms; volume of production; volume of sales; price of "door sales"; home consumption; used on the farm as a seed or feed, and so on.
Production costs	Goods and materials for production (seeds, agrochemicals, feed, veterinary preparations, animals for fatten); services (all agrotechnical operations, animal care, harvesting and transportation); prices of goods and services, etc.

The selection of farms to be included in the FDMS survey is based on the EAIS database of the Ministry of Agriculture. EAIS-based farms were divided into five layers according to the acreage and planted species, and a random sampling method was applied. Selected sample number is 1% of each category and on meanwhile 1% of subsidized farms. Thus, farms are selected from all groups (from micro to macro) to collect FDMS data.

Surveys between farms as part of the FDMS are conducted by State Center for Agricultural Development under Ministry of Agriculture. Survey data collected by SCAD is sent directly to the electronic database of Agricultural Economics Research Center.