The FACEPA project develops tools and methods to analyse production costs in European agriculture using FADN (Farm Accountancy Data Network) data. It will provide information, expertise and economic models on cost of production for various agricultural products. The research work is performed by 9 partners in 10 EU countries and receives funding from the European Community’s Seventh Framework Programme [FP7/2007-2013] under grant agreement no. 212292. Project coordinator: Professor Yves Surry, Swedish University of Agricultural Sciences, Uppsala, Sweden. Specific objectives of the project are: to address the usefulness and appropriateness of the present FADN data to measure cost of production for agricultural commodities; to develop a ‘general’ cost of production model for EU agriculture that is easy to use by practitioners and reliable; to test and implement this cost model in an EU context on a large scale (several agricultural commodities and most of EU member countries); to assess the relationship between cost structure and farm performance, farm technology, environmental quality and farm heterogeneity; to provide methodological improvements to the ‘general’ cost of production model; to evaluate agricultural policy measures using models based on the production cost estimates.