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
Purdue University’s Dr. Michael Langemeier discusses the survey’s findings in February and broader signals in the months ahead.
Texas lawmakers secure funding for sterile fly production as officials work to stop the New World screwworm from spreading into the U.S. cattle herd.
Pennsylvania Secretary of Agriculture Russell Redding discusses the recent surge in bird flu cases, the state’s expanded biosecurity response and efforts to support poultry producers.
The San Antonio Stock Show and Rodeo concluded last night, marking the end of another successful year showcasing youth exhibitors, livestock producers, and the spirit of agriculture.
Kurt Kovarik of Clean Fuels Alliance America joined us to break down the latest developments in the Renewable Fuel Standard rulemaking process and what it could mean for agriculture, energy markets, and rural economies.
Jennifer Tirey of the Illinois Pork Producers Association joined us to discuss efforts to bring pork back into Chicago Public Schools, the nutritional benefits for students, and what the decision could mean for pork producers across the state.

LATEST STORIES BY THIS AUTHOR:

When you work on your estate plan, RFD-TV’s farm legal and tax expert Roger McEowen recommends preparing a vital list of information for whoever will need it.
In today’s Firm to Farm blog post, RFD-TV ag law expert Roger McEowen briefly examines several of the issues that farmers and ranchers face.
When it comes to agricultural law and tax, educating yourself about potential issues and seeking legal and tax counsel is crucial for any agriculture business.
RFD-TV News contributor Roger McOwen covers important topics in ag law and taxation, including FBAR, Read Before Signing, Reporting 4-H Income, and Attorney-Client Privilege.
RFD-TV Agricultural Law & Taxation expert Roger McEowen discusses the Supreme Court’s recent repeal of the Chevron agreement and other current topics in ag law.
With today’s post, RFD-TV Ag Legal & Tax Expert Roger McEowen focuses on some more common issues farmers, ranchers, and rural landowners frequently face.