The European Commission unveiled a new proposal on Wednesday to scale back additional environmental requirements linked to its massive agricultural subsidy scheme, aiming to reduce red tape and lighten regulatory burdens on farmers.

This latest move comes in the wake of widespread farmer protests across the EU last year, driven by frustration over stringent environmental mandates and competition from cheaper imports. In response, Brussels had already relaxed some of the ecological criteria tied to subsidy payments.

The new proposal goes even further, with the Commission claiming it could save farmers as much as €1.58 billion annually by simplifying compliance and limiting physical farm inspections to just once a year.

The Common Agricultural Policy (CAP), which underpins the EU's farm subsidy framework, commands around €387 billion—nearly a third of the EU’s entire 2021–2027 budget.

Under the updated rules, smaller farms would be exempt from meeting basic environmental conditions to qualify for subsidies. Additionally, the cap on flat-rate payments for these farmers would double to €2,500 per year.

“We're standing with our farmers,” said EU Agriculture Commissioner Christophe Hansen. “By slashing bureaucracy, we’re helping them concentrate on their core mission—feeding people while safeguarding our shared natural environment.”

Other revisions would allow farmers to convert up to 10% of protected permanent grasslands—double the current allowance—despite these areas playing a crucial role in carbon storage. More subsidy eligibility would also be granted for existing efforts to preserve peatlands and wetlands.

Environmental advocates voiced alarm over the rollback, warning it could undermine resilience to climate change. Wetlands, for example, help manage water during extreme weather, acting as natural buffers against floods and droughts.

“The Commission is giving farmers a green light to destroy ecosystems vital for climate adaptation,” said Marilda Dhaskali, a policy officer at BirdLife, a conservation group.

Another measure in the proposal would allow EU countries to fast-track emergency payments following climate-related disasters.

These adjustments are part of a wider EU “simplification omnibus” package aimed at streamlining rules for European businesses amid growing pressure to stay competitive with China and the United States, where regulatory rollbacks under President Donald Trump are moving quickly.