SB2387 104TH GENERAL ASSEMBLY

LRB104 12209 BDA 22314 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB2387

Introduced 2/7/2025, by Sen. David Koehler

SYNOPSIS AS INTRODUCED:

New Act

Creates the Agricultural Land Conservation Act. Makes findings. Defines terms. Provides that, beginning January 1, 2026, a Farmland Conversion Fee shall be paid by the buyer or lessee in a transaction for any agricultural land that will be removed from production for the specific purpose to develop solar farms, wind farms, industrial parks, commercial areas, single and multiple family dwellings, or any other use that removes agricultural land from production, with certain requirements, of between $700 and $900 per acre, according to the amount of acres. Provides for certain exemptions. Provides for remittance to and collection by the Department of Revenue, with rulemaking required. Creates the Farmland Conversion Fee Fund as a special fund in the State treasury, with certain requirements. Provides that certain amounts must be expended from the Fund for certain purposes. Provides that all State real property being used in the commercial production of agricultural commodities shall use an established metric for the purpose of advancing adoption of conservation practices, with certain requirements. Effective immediately.

A BILL FOR

AN ACT concerning agriculture.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Agricultural Land Conservation Act.

Section 5. Findings and intent. The General Assembly hereby reiterates the legislative findings and statement of intent set forth in Section 2 of the Farmland Preservation Act and further finds that:

(1) According to the United States Department of Agriculture Economic Research Service, between 2012 and 2020 in the Midwest, 70% of solar projects and 94% of wind projects were located on agricultural land.

(2) Each year in Illinois, thousands of acres of agricultural land are rezoned and developed into industrial, commercial, and residential areas.

(3) Soil and Water Conversation Districts are units of local government; however, they have no taxing authority.

(4) Soil and Water Conversation District employees serve as the critical infrastructure in every county in Illinois, administering vital State and federal conservation programs. They are on the front lines of addressing pressing environmental challenges, including improving water quality, enhancing soil health, and building resilience to the increasingly severe impacts of climate change. Their work is foundational to achieving environmental goals, and their presence on the ground ensures that these efforts reach the necessary scale.

(5) Unstable or intermittent funding threatens to undermine the capacity of Soil and Water Conversation Districts to deliver programs that support farmers, landowners, and communities across the State. Without adequate staffing, Illinois risks losing the ability to put federal funds earmarked for conservation and climate resilience onto the ground in Illinois. Moreover, it puts at risk the progress made in addressing water quality issues, mitigating flooding, and improving soil sustainability.

Section 10. Agricultural land; defined. In this Act, "agricultural land" means land that is intensively used and managed for the production of food and fiber. "Agricultural land" includes cropland; hay land; pastures, including native pastures and rangeland; orchards; vineyards; areas which support wetland crops; other lands used to support the production of livestock; and small tree farms.

Section 15. Farmland Conversion Fee Fund. The Farmland Conversion Fee Fund is created as a special fund in the State treasury. Revenue generated from Farmland Conversion Fees under Section 20 shall be collected by the Department of Revenue and deposited into the Fund. Moneys from the Fund may be expended and distributed by the Department of Agriculture for the following purposes and no other purpose:

(1) supporting healthy soil, clean water, and climate smart agricultural practice programs, and education;

(2) supporting operations funding for Soil and Water Conservation Districts;

(3) associated administrative costs for administering the Act;

(4) any other purpose expressly provided under this Act or rules adopted under this Act.

Annually, the Department of Agriculture shall ensure that, subject to moneys in the Fund, before expending moneys for any other purpose, (i) at least $17,500,000 is distributed to Soil and Water Conservation Districts for the purposes under paragraph (2) of this Section, annually adjusted by the percentage change in the consumer price index-u of the preceding year; (ii) exactly $2,000,000 is distributed to the Department of Labor, annually adjusted by the percentage change in the consumer price index-u of the preceding year; and (iii) exactly $1,000,000 is distributed to the Department of Revenue for administrative and other costs associated with collection of the Farmland Conversion Fees under Section 20 and related activities. Any remainder, subject to moneys in the Fund, may be expended by the Department of Agriculture according to the purposes enumerated in this Section. In this Section, "consumer price index-u" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100.

Section 20. Farmland Conversion Fees.

(a) Beginning January 1, 2026, a Farmland Conversion Fee shall be paid by the buyer or lessee in a transaction for any agricultural land that will be removed from production for the specific purpose of developing a solar farm, a wind farm, an industrial park, a commercial area, a single-family or multiple-family dwelling or for being put to any other use that removes the agricultural land from production. This Farmland Conversion Fee shall apply to agricultural land that is leased or purchased. This Farmland Conversion Fee shall be remitted to the Department of Revenue according to rule of the Department of Revenue within 30 days of the purchase or lease of the agricultural land by the buyer or lessee. The fee schedule established under this Section shall be based on a 3-tier system as follows:

(1) For removal of up to 10 acres of agricultural land, the Farmland Conversion Fee shall be $900 per acre.

(2) For removal of more than 10 acres but less than 30 acres of agricultural land, the Farmland Conversion Fee shall be $800 per acre.

(3) For removal of 30 or more acres of agricultural land, the Farmland Conversion Fee shall be $700 per acre.

(b) Revenue from Farmland Conversion Fees shall be collected by the Department of Revenue and deposited into the Farmland Conversion Fee Fund.

(c) Conversion of agricultural land that will be removed from production is exempt from the Farmland Conversion Fee if it is removed from production for the personal use of a farmer or landowner or if it is one or more of the following types of agricultural land conversion:

(1) any conversion of land in which the primary function of the converted area supports agricultural infrastructure, such as livestock operations or grain elevators;

(2) any conversion of land done by a State agency;

(3) any conversion of land done for the creation of high-voltage transmission systems; or

(4) any conversion of land whose primary purpose is the establishment of conservation practices.

(d) The Department of Revenue shall adopt rules to implement this Section.

Section 25. State agricultural property. All State real property being used in the commercial production of agricultural commodities, including any real property under lease agreements with the Department of Natural Resources, shall use an established metric for the purpose of advancing adoption of conservation practices, including, but not limited to, the following:

(1) cover crops;

(2) no till;

(3) strip till;

(4) nutrient management plans;

(5) saturated buffers;

(6) bioreactor terraces;

(7) contours;

(8) grass filter strips;

(9) riparian buffers;

(10) grassed waterways;

(11) pollinator plantings;

(12) windbreaks;

(13) constructed wetlands;

(14) tile drainage water that is collected and sampled for water quality;

(15) conservation plans that reduce sheet and rill erosion; and

(16) nitrogen rate studies.

Section 99. Effective date. This Act takes effect upon becoming law.