EU Commission Unveils Sweeping Plan to Simplify Agricultural Rules and Cut Red Tape, a move with €1.58 billion Potential Savings

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Brussels, 19 May 2025 — The European Commission has unveiled a major package of reforms aimed at simplifying the EU’s agricultural rulebook, with potential annual savings of up to €1.58 billion for farmers and €210 million for national administrations, according to Commission estimates. The proposal, presented today in Brussels, is the latest in a series of “omnibus” simplification efforts under Commission President Ursula von der Leyen’s second term.

The initiative is designed to streamline the implementation of the Common Agricultural Policy (CAP)—the EU’s cornerstone farming subsidy scheme—by reducing administrative burdens and modernizing compliance systems.

“This package is much more than simplification. It’s about enhancing competitiveness, increasing sectoral resilience, and accelerating digitalisation,” said EU Agriculture Commissioner Christophe Hansen during a press conference.

Key Simplification Measures

The proposal targets overlaps in environmental conditionalities and organic farming regulations, while also reducing on-farm inspections and reporting demands. A central pillar of the reform is the promotion of digital platforms that allow farmers to “report once, use multiple times”, simplifying how data is submitted and shared across authorities.

Member states will be encouraged to adopt interoperable digital systems that reduce duplication, lower compliance costs, and improve farm management efficiency.

Other major simplification features include:

  • Doubling of lump-sum payment thresholds for small farms, from €1,250 to €2,500 annually
  • A new simplified funding track allowing small farms to access up to €50,000 to boost competitiveness
  • Enhanced crisis payments for farms affected by natural disasters or animal disease outbreaks, within national CAP Strategic Plans
  • Clearer conditions for use of the EU agricultural reserve, which will now be reserved exclusively for market-wide disruptions rather than localized events

Environmental Conditionalities: Pragmatism or Backpedaling?

The most contentious aspect of the proposal involves changes to the green architecture of the CAP, particularly the way environmental conditions are applied to subsidy eligibility. In response to last year’s large-scale farmer protests across Europe, the Commission is proposing a more pragmatic and territorially tailored approach.

Under the new framework, if a farm is already subject to equivalent mandatory national environmental rules, these can be recognized as fulfilling EU-level conditionalities—meaning no additional obligations will be imposed.

“We’re not rolling back the green goals of the CAP. But we must acknowledge the challenge of applying uniform standards across a highly diverse farming sector,” Hansen emphasized. “This approach allows member states to meet EU objectives in a more flexible and practical way.”

However, critics argue the proposal may weaken the EU’s environmental ambitions. Austrian Green MEP Thomas Waitz warned, “More flexibility for member states must not come at the expense of environmental protection and public health—especially with rising threats like water pollution from pesticides and fertilisers.”

While some environmental advocates see the reforms as a retreat, others view them as a necessary course correction after the current CAP failed to fully deliver on its sustainability targets.

A New Chapter in EU Agricultural Governance

This reform package lays critical groundwork for the post-2027 CAP, which will be shaped by the EU’s next long-term budget. It reflects a shift in EU agricultural governance toward simplified, results-based administration, while maintaining the bloc’s strategic objectives in sustainability, competitiveness, and resilience.

Another notable change involves greater flexibility for national CAP Strategic Plans. Only significant amendments will now require prior approval from the Commission, speeding up the process for farmers to access new support mechanisms or react to sectoral changes.

The legislative proposal will now move to the European Parliament and the Council for further negotiation and adoption, with final provisions expected to take effect before the next CAP programming period begins.


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