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
Iowa Secretary of Agriculture Mike Naig discusses market conditions, policy priorities, and his outlook for agriculture moving forward.
NEFB President Mark McHargue recaps the Farm Bureau’s Annual Convention, producer sentiment in Nebraska, and discusses key issues facing agriculture.
Congressman Dusty Johnson of South Dakota joined us to discuss key ag policy developments and his outlook for agriculture in 2026.
House Agriculture Committee Democrats are calling for action on the Farm and Family Relief Act, warning that proposed SNAP cost shifts to states could reduce food assistance for low-income families amid ongoing tariffs and trade disruptions that continue to strain U.S. farmers.
From “right to repair” to investigations into the “Big Four” meatpackers, antitrust issues were a major legal topic in 2025 and promise to have a long-term impact on the agriculture industry in the future.
A disciplined, breakeven-based marketing plan helps protect margins and reduce risk, even when markets remain unpredictable.
Expanded school access to whole milk provides modest but reliable demand support for U.S. dairy producers.
StockShowAuctions.com takes us to the Midland County Junior Livestock Show in West Texas, where young producers are showcasing their dedication, skill, and champion livestock.
University of Nebraska President Dr. Jeffrey Gold joined us to share practical health and safety guidance for managing respiratory and skin health during the winter season.

LATEST STORIES BY THIS AUTHOR:

Before you turn the calendar to 2025, take a few moments to think through a few important tax planning matters for your farm or ranch.
RFD-TV Legal Expert Roger McEowen with Kansas’ Washburn School of Law breaks it down in his latest Firm to Farm blog post.
Legal issues can arise for farmers and ranchers when conducting business informally or in another state. RFD-TV Ag Law & Tax Expert Roger McEowen explores both topics in his latest Firm to Farm blog post.
RFD-TV Ag Legal & Tax expert Roger McEowen explains Social Security for farmers and ranchers and how to calculate when to start taking Social Security to maximize your benefits.
RFD-TV ag law and tax expert Roger McEowen with the Washburn School of Law dives into common disputes over boundaries and conflicting surveys in agriculture.
Key legal & tax insights for farmers, like accumulated earnings tax, using 401(k) to start farming, ag data in court, and maximizing farm home-sale exclusions when selling your farm.