IL News: Agriculture, Illinois State Fair & Pensions

Agriculture

Democrats Failed to Deliver for Farmers. Illinois farmers are no strangers to hard work, long days, and generational commitment. But when it comes to passing on the family farm, they’re facing a tax burden that threatens everything they’ve built. Despite bipartisan calls for reform, Democrats in Springfield have failed to act.

Illinois is one of just 16 states that still levy an estate tax, and its exemption threshold, currently set at $4 million, hasn’t been adjusted for inflation since 2013. That might sound like a lot, but for farmers whose value is tied up in land and equipment, it’s alarmingly easy to cross that line. The result? Families are forced to sell off acreage or assets just to pay the tax bill.

State Representative Mike Coffey met with members of the Sangamon County Farm Bureau to discuss challenges they face and how legislation passed in Illinois impacts every aspect of farmer’s operations. He supports several House Bills that protect our farmers, their land, and reduce tax burdens:

HB 4600 – Amends the Illinois Estate and Generation-Skipping Transfer Tax Act. 

HB 1459 -Would match the exclusion amount with the Federal amount.

HB 1576 -Increase the exclusion amount to $8 million.

HB 1582 -Would repeal the Estate Tax.

HB 2993 – Increase the exclusion amount to $12 million.

HB 3661 – Authorizes a future decedent to sign a written revocable testamentary document to move the decedent’s unused exclusion amount from the decedent’s spouse to the decedent’s child or children.

HB 4519 – Would match the exclusion amount with the Federal amount and then Provides that, for persons dying on or after January 1, 2026, the exclusion amount shall be the greater of

(i)  the applicable exclusion amount calculated under the Internal Revenue Code or

(ii) the exclusion amount that would have been calculated under the Internal Revenue Code if the decedent had died in calendar year 2025.

In early 2025, lawmakers introduced House Bill 2677, a bipartisan proposal to raise the estate tax exemption for farms from $4 million to $6 million and tie it to inflation going forward. The bill had support on both sides of the aisle, the Illinois Farm Bureau, and farmers across the state, yet it was never given a hearing. Instead, it was quietly sent to a subcommittee and left to die in the House Rules Committee.

Meanwhile, Democrats floated a separate proposal to lower the exemption to just $2 million, a move that would have hit farmers even harder.

Even Governor JB Pritzker, who once called estate tax reform a “shared priority,” has remained silent on the issue. While some Democratic lawmakers did co-sponsor reform bills like the Family Farms Preservation Act (SB 2921 / HB 4600), leadership failed to prioritize them in budget negotiations.

The numbers speak for themselves: 96% of Illinois farms are family-owned, and nearly 70,000 families rely on agriculture as their livelihood. These families deserve action.

Illinois farmers feed, fuel, and clothe our communities. It’s time Illinois Democrats stop treating them like a budget line item and start protecting the legacy they’ve worked so hard to build.

ILLINOIS STATE FAIR

Adventure Awaits at the Illinois State Fair! The 2025 Illinois State Fair is only one week away, and this year promises plenty of adventure and excitement at the state fairgrounds in Springfield.

This year’s event features a showcase of Illinois agriculture and products, as well as plenty of carnival rides, attractions, concerts and (of course) good food!

The event kicks off on Thursday August 7 with the annual State Fair Twilight Parade through Springfield and into the fairgrounds.

The fair is offering plenty of deals and discounts for visitors, on everything from parking and admission to food.

This year’s grandstand lineup features everyone from Snoop Dogg to Brad Paisley to Def Leppard and the Black Crowes at night, with horse racing and even auto racing during the day.

Every day at the fair has a theme, with special programs and discounted admission. Special days will celebrate agriculture, veterans, senior citizens, first responders and park districts just to name a few.

Read more about the Illinois State Fair at The Caucus Blog.

PENSIONS

Report Shows Illinois Government Pension Crisis Worst in U.S. Illinois has the nation’s worst public pension crisis. Nationwide analysis from the Equable Institute shows Illinois state pensions remain fiscally unstable and threaten retirees and taxpayers, underscoring the need for reform.

The Equable Institute’s annual report on the state of public pensions nationwide reaffirms that Illinois pensions continue to lag the nation in funding and are in desperate need of reform.

If the state fails to fix its pension issues, the budget will continue to be strained, people will continue leaving the state over high taxes and future pension benefits could be at risk. Preserving the cost savings of Tier 2, offering retirement choice to state employees and constitutional pension reform should all be implemented if Illinois is to have any hope of gaining fiscal stability.

Comparing pension debt to the state’s gross domestic product helps measure the state’s ability to pay based on the local tax base. By that measure, Illinois ranks as the nation’s worst: unfunded obligations equal 19.02% of state GDP, up from 18.52% a year ago. In other words, roughly one-fifth of everything produced in the state would be required just to erase the shortfall.

That’s driving up the burden on taxpayers, whose contributions to state pension systems have grown nearly 20-fold, from $614 million in fiscal year 1996 to $11.2 billion in fiscal year 2025. The heavy pension bill explains why Illinoisans pay the highest effective property tax rate in the country.

Illinois’ funded ratio, the share of promised benefits already covered by assets, is 50.6%, the second worst in the nation. The state finished the previous two years in last place, but this year New Jersey slipped below it with a ratio of 50.2%. Illinois is one of only four states that remains under the 60% threshold many analysts label as seriously troubled.

Read more on this report from the Illinois Policy Institute.

Other News in Illinois

Pritzker signs 124 bill impacting Chicago pensions, AI, buses, bicycles and more

Veterans to be honored with free day at Illinois State Fair on August 10

New child care center to open in Springfield