The invention relates to a rare earth brass alloy with environment protection and easy cutting, which achieves the purpose of improving the easy cutting of the alloy by adding Bi and Mn to replace the lead in Pb brass. The alloy has the components of 55.0-65wt percent of Cu, 0.1-2.5wt percent of Bi, 0.1-1.0wt percent of Mn, 0-3.0wt percent of Sn, 0-1.0wt percent of Ni, 0.1-1.0wt percent of Al, 0.01-0.05wt percent of one or two of Ce and La, the rest of Zn and other inevitable impurities, wherein Bi, Si, Ce, La and Ce+La are added respectively in the form of master alloys of Cu-Bi, Cu-Si, Cu-Ce, Cu-La and Cu-Ce-La. The alloy has the advantages of favorable cutting performance, cold and hot working performances and cast performance, little thermal fragment trend, simple production process of supporting preparation in the existing Pb brass production equipment, low alloy cost, good polishing performance and welding performance, etc.