New Farm Laws on Data, Water Rights, Loans, and USDA Rules

By Scout Nelson

In a Kansas State University Department of Agricultural Economics Extension Publication, Roger McEowen highlights key agricultural law developments that may have significant implications for farmers, ranchers, and agricultural businesses.

Recent legal changes underscore the need for producers to stay informed about regulatory requirements. Farms operating as LLCs, partnerships, corporations, or joint ventures must file Form CCC-902E with the Farm Service Agency by September 15, 2026, to ensure eligibility under revised farm program payment limitation rules. Failure to submit accurate information could delay or reduce potential benefits.

Water rights remain a critical concern for producers in the western United States. A recent court ruling involving the Klamath Project confirmed that federal environmental laws, including the Endangered Species Act, can affect water deliveries even when long-term contracts are in place. As a result, producers should carefully review water agreements and understand the regulatory authority governing their water sources.

Nebraska has strengthened producer rights by recognizing agricultural data as the property of the farmer who generates it. The state's Agricultural Data Privacy Act limits the sale of farm-generated data without written consent and requires future contracts to include protections against unauthorized data sales. This change highlights the growing value of agricultural data in modern farming operations.

Financing arrangements also require close attention. A recent bankruptcy case demonstrated that lenders with properly perfected security interests may claim crop proceeds, even if they did not directly finance the crop being sold. Farmers should fully understand the scope of security agreements before entering or renewing lending relationships.

An Iowa court decision further emphasized that proving financial or property damage is not enough in a legal dispute. Producers must also provide solid evidence linking the damage to a specific cause and responsible party. In many cases, expert analysis may be necessary to establish that connection.

Collectively, these developments show that legal compliance, contract review, and thorough documentation are becoming increasingly important components of successful farm management.

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