Firm to Farm: A New Era of WOTUS — The “Top 10" Ag Law and Tax Developments of 2025

The Supreme Court of the United States looms above a river winding through grasslands.

davidevison, kat7213 – stock.adobe.com

In 2025, the long-running saga of the “Waters of the United States” (WOTUS) reached a decisive turning point, providing farmers and ranchers with the regulatory clarity that has been sought for decades. Following years of “ping-pong” rulemaking between administrations, the developments of 2025 centered on a final alignment with the Supreme Court’s landmark Sackett v. EPA[1] decision.

In late 2025, the EPA and the Army Corps of Engineers unveiled a new rule that finally aligns federal oversight with the Supreme Court’s Sackett decision, effectively replacing bureaucratic ambiguity with standards visible to the naked eye.

For farmers, the 2025 rule represents a victory for property rights. The most significant shift is the adoption of a strict Relatively Permanent” standard. Federal jurisdiction is now limited to bodies of water that are standing or continuously flowing. This change explicitly excludes ephemeral features—those dry ditches and low spots that only carry water after rainfall. Previously, these features left producers vulnerable to heavy fines; today, they are firmly outside federal reach.

To account for regional differences, the rule introduces a “Wet Season” definition. While waters that flow predictably during wetter months may still be regulated, the rule requires a continuous surface connection to navigable waters. If a feature does not maintain water during the defined regional wet season, the federal government has no authority over it.

The 2025 reforms also strengthened essential exclusions. For the first time, groundwater and subsurface tile lines are explicitly excluded by rule, ensuring that vital drainage infrastructure remains a private management matter. Furthermore, Prior Converted Cropland status was simplified: land only loses its exclusion if it is abandoned for more than five years and reverts to a wetland state.

The public comment period on the proposed rule closed in early January of 2026. The agencies are reviewing the submitted comments and are working on the drafting of the final rule, which is expected to be issued sometime in the Spring or Summer of 2026.

WOTUS Comparison: 2023 vs. 2025

FeatureAmended 2023 RuleNov. 2025 Proposed Rule
Primary Standard“Relatively Permanent” but undefinedDefined: Flowing/standing year-round or during a predictable “Wet Season.”
Ephemeral StreamsCase-by-case (often regulated)Explicitly Excluded: Land that only flows after rain is non-jurisdictional.
WetlandsMust have a surface connectionTwo-Prong Test: Must (1) touch a WOTUS and (2) have surface water during the wet season.
GroundwaterGenerally excluded by practiceExplicitly Excluded by Rule: Includes tile drains and subsurface systems.
Interstate WatersRegulated because they cross linesRemoved: Must independently meet the permanence standard to be regulated.

Related Stories
Dr. Seth Meyer Concludes Service; Dr. Justin Benavidez Appointed USDA Chief Economist
Last year was a busy year for pesticide litigation in the United States. At No. 10, it kicks off RFD-TV Legal Expert Roger McEowen’s list of the “Top 10” Agricultural Law and Tax Developments of 2025.
On a spreadsheet, it looks like the ultimate way to harvest extra profit. But in the eyes of the IRS—as RFD-TV Farm Legal & Tax Expert Roger McEowen explains—this “tax-free” bank can quickly turn into a field full of weeds.
Bigger cows must wean proportionally heavier calves to justify higher ownership costs.
Read the full press release published by the U.S. Department of Agriculture.
Lily Pryer’s passion shows how National FFA members are making an impact in classrooms and communities all across Rural America.
A look at the legislative year ahead as lawmakers return to Washington with a slate of trade concerns to tackle in 2026—from new Chinese tariffs on beef imports to the USMCA review this summer.
Farmer Bridge Assistance payments provide immediate balance-sheet support heading into 2026, but remain a short-term bridge rather than a substitute for long-term market recovery.
The New Year is here, but in Oregon, some ranchers and livestock producers are still trying to recover from record wildfires back in 2024.

LATEST STORIES BY THIS AUTHOR:

One drawback of co-equal ownership in estate planning is the right of partition of a co-owner. That’s a particularly acute problem when parents have both on-farm and off-farm heirs.
A family settlement agreement is one method to resolve financial conflicts among family members over assets—if executed properly, that is.
In this Firm to Farm blog post, RFD-TV agri-legal expert Roger McEowen tackles a handful of topics related to property rights.
What is “gross income from farming” for purposes of Chapter 12 (farm) bankruptcy – that is the topic of today’s Firm to Farm blog post by Roger McEowen.
In today’s Firm to Farm blog post, Roger McOwen breaks down the Court’s regulations on unconstitutional federal power and the ruling’s impact on BOI reporting.
The topic of this Firm to Farm blog post by RFD-TV agri-legal expert Roger McEowen is a potpourri of legal issues facing farmers and ranchers—farm bankruptcy, sovereign immunity, farm leases, and pipeline damages.