South Dakota farmers face new uncertainty as changes to federal wetlands rules threaten the status—and value—of thousands of acres of cropland.
Sackett Decision Upends Wetlands Protections
The uncertainty began in May 2023, when the U.S. Supreme Court ruled in Sackett v. Environmental Protection Agency that only wetlands with a “continuous surface connection” to federally protected waters—such as rivers or lakes—are covered by the Clean Water Act. Wetlands separated by a berm, road, or even a narrow strip of land are no longer federally protected.
The ruling removed oversight from millions of acres of wetlands nationwide. Environmental analysts say eastern South Dakota is among the most affected regions.
Since 1993, land drained before 1985—known as prior converted cropland—has been exempt from Clean Water Act oversight. That exemption allowed producers to farm some of South Dakota’s most productive ground without fear of federal penalties.
What’s at Stake for Farmers
After the Sackett decision, the Environmental Protection Agency revised its Waters of the United States rule to align with the Court’s interpretation. According to recent EPA guidance, land that loses its exemption—even temporarily, due to flooding or crop rotation—can be reclassified as a wetland and become off-limits to farming.
“South Dakota farmers and ranchers work hard to protect their land, and they don’t need a heavy-handed federal government subjecting them to additional burdensome rule changes,” said U.S. Senator Mike Rounds, R-S.D., who has introduced the Farmers Freedom Act of 2025 to address the issue.
Scott VanderWal, president of the South Dakota Farm Bureau, said the latest definition of prior converted cropland “will only contribute to further uncertainty for producers.” VanderWal said farmers require flexibility to manage their land in a changing climate and market.
Landowners who lose their exemption could see property values fall. Agriculture accounts for nearly 30 percent of South Dakota’s economic output. Any decline in land values or productivity affects rural tax bases, school funding, and local businesses.
Environmentalists Warn of Wetland Loss
Environmental groups say the Sackett ruling puts South Dakota’s wetlands at risk of incremental losses that could lead to permanent damage. Dr. Stacy Woods, research director for the Food and Environment Program at the Union of Concerned Scientists, said,
“Now, the Sackett decision has put tens of millions of acres of wetlands in the Upper Midwest at risk of losing protections and being polluted, converted to farmland or otherwise developed,” Wood said. “As the climate crisis increases the frequency and severity of flooding, wetlands become increasingly valuable as natural flood protection that can capture and slow floodwaters that threaten homes. The loss of remaining wetlands will have very real consequences for people living in South Dakota.”
A recent NRDC study found that at least 60 percent of the region’s wetlands are left unprotected after the Sackett decision. South Dakota is especially vulnerable because it lacks state-level laws to fill the regulatory gap.
Lawmakers and Farm Groups Push for “Certainty”
Senator Rounds’ Farmers Freedom Act would allow land to be farmed at least once every five years to maintain its exemption, providing what he calls “regulatory certainty” for producers. The bill is co-sponsored by Senator John Thune, R-S.D., and supported by the South Dakota Farm Bureau and American Farm Bureau Federation.
“The current rules surrounding prior converted cropland make it difficult for farmers to ensure they are making the best use of their land while protecting the environment,” said Courtney Briggs, senior director of government affairs for the American Farm Bureau Federation.
With Congress deadlocked on the next Farm Bill and ongoing legal challenges, South Dakota’s farmers remain caught between regulation and risk.
Why It Matters
The outcome of this fight will shape the future of farming, land values, and rural economies across South Dakota. Producers remain in limbo with the new planting seasons here or approaching, and the Farm Bill is stalled in Congress.
