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
RFD NEWS Markets Specialist Tony St. James reviews the USDA’s Farms and Land in Farms 2025 Summary.
Biofuel and corn producers await proposal as Renewable Fuels Association pushes for expanded ethanol access.
Lori Stevermer with the National Pork Producers Council reacts to the USDA’s speedline proposal, the new Farm Bill’s fix for California’s Prop-12, and other policy developments impacting the pork industry.
South Texas farmers say water shortages continue despite Mexico’s renewed payments under the 1944 Water Treaty.
Bayer’s Monsanto announces $7.25B class settlement for Roundup™ lawsuits alleging Non-Hodgkin lymphoma (NHL), covering claims over 21 years.
Farmer Ed Bell shares how AGRAbility helped him return to his family’s strawberry farm and inspire resilience, legacy, and hope in rural life.

LATEST STORIES BY THIS AUTHOR:

For producers, the cost of doing business is no longer determined solely by feed, fuel, and weather—it is increasingly a matter of navigating the differing legal philosophies of every state line they cross.
For producers, success this season will require more than just a clean field; it will require meticulous record-keeping, a proactive written mitigation plan, and a constant eye on both the forecast and the federal docket.
The most common mistake farmers make is waiting until a health crisis occurs to transfer the farm to their children.
For the broader agricultural industry, a railroad antitrust case in Kansas could lead to the dismantling of legacy regulatory shields, creating a more fluid, market-driven transportation grid that prioritizes moving crops efficiently over protecting historic rail monopolies.
The long-term viability of a ranching operation often hinges on how effectively its owners navigate the overlapping layers of IRS regulations, state tax incentives, and USDA disaster programs.
Formally dubbed “Farm Bill 2.0” by committee leadership, the draft surfaces after a high-stakes legislative dance that saw much of the traditional farm bill’s funding, specifically for crop insurance and safety net programs, carved out and passed in last year’s One Big Beautiful Bill Act (OBBBA).