On March 31, the U.S. District Court for the Northern District of Iowa, Eastern Division will hear oral arguments in the Liberty Justice Center’s legal challenge in CTM Holdings, LLC v. U.S. Department of Agriculture. The Liberty Justice Center and Pacific Legal Foundation are challenging the federal “Swampbuster” law, which unconstitutionally takes farmers’ property without compensation and conditions federal benefits on the waiver of constitutional rights.
In Monday’s hearing, Liberty Justice Center Senior Counsel Loren Seehase will urge the Court to declare that Swampbuster’s administrative rules exceed the agency’s authority and Pacific Legal Foundation Senior Attorney Jeffrey McCoy will urge the Court to declare that Swampbuster exceeds Congress’s power under the Constitution’s Commerce Clause and imposes an unconstitutional condition in violation of the Fifth Amendment.
WHO:
Loren Seehase, Senior Counsel at the Liberty Justice Center
Jeffrey McCoy, Senior Attorney at Pacific Legal Foundation
WHEN:
1:30 p.m. CST, Monday, March 31, 2025
WHERE:
United States Courthouse
Courtroom 1
111 Seventh Avenue SE
Cedar Rapids, IA 52401
HOW: The courtroom will also be open to the public on a first come, first serve basis. For questions about media access, contact the Clerk’s Office at (319) 286-2300.
ISSUE BACKGROUND: In 1985, Congress passed the “Swampbuster” law to protect wetlands by requiring farmers to leave designated “wetlands” on their property untouched. To enforce compliance, the federal government conditions eligibility for U.S. Department of Agriculture (USDA) benefits—such as disaster relief, crop insurance, and loans—on farmers agreeing not to use any land deemed “wetlands.” If farmers violate this condition, they risk losing all USDA benefits for every property they or their affiliates own.
CTM Holdings, LLC owns and manages farmland in Iowa, including a 71-acre parcel where the federal government has designated 9 acres as “wetlands.” However, this land is dry, arable, and not connected to any water source. Under Swampbuster, CTM Holdings cannot farm on these 9 acres without jeopardizing USDA benefits for all of its farmland and tenants.
The Liberty Justice Center and Pacific Legal Foundation argue that Swampbuster violates farmers’ Fifth Amendment rights by taking private property without just compensation and by conditioning federal benefits on the waiver of constitutional rights. The lawsuit also challenges Swampbuster on the grounds that it exceeds the federal government’s authority under the Commerce Clause and unlawfully expands the USDA’s regulatory power.
The U.S. District Court for the Northern District of Iowa, Eastern Division scheduled a hearing to hear oral arguments and consider the parties competing motions for summary judgment on March 31.
The Liberty Justice Center’s legal filings in CTM Holdings, LLC v. U.S. Department of Agriculture are available here.