What to Expect from the Next Legislative Session

What to Expect from the Next Legislative Session

By Brynna Sentel

It's time for Illinois farmers to ensure their voices are heard as they prepare for the upcoming 2024 legislative session in Illinois. Scheduled to commence in January 2024 and extend into the late spring, this legislative session holds critical importance for the agricultural community.

“The important thing to note is that legislators are going to be very cautious until they know how the primary election will shake out, which will be held on March 19, 2024,” says Greg Cox, ISA’s State Legislative Consultant.

The primary election's outcome will significantly influence the beginning of the session's direction, prompting legislators to either rush the passage of bills they believe will pass from current legislators or exercise restraint to avoid taking overly strong positions before the election.

“Republicans will not want to venture out and take too strong of a position on anything before the primaries,” says Cox. “Democrats should be the same way, and how the primary shakes out could determine how the session goes.”

ISA has already taken proactive steps by hosting five ag legislative breakfasts in August, engaging with and learning from farmers from various regions, including West Frankfort, Effingham, Springfield, Bloomington, and Maple Park. These sessions were dedicated to understanding farmers' priorities regarding the impact of agricultural policies at both the state and federal levels.

In the upcoming legislative session, Illinois Soybean Growers (ISG) plans to advocate for increasing funding for cover cropping, a critical concern given the anticipated tight budgetary constraints.

The current Fall Covers for Spring Savings Cover Crop Premium Discount Program by the Illinois Department of Agriculture allocates $660,000. Eligible applicants receive a $5/acre insurance premium discount for each acre of cover crop enrolled and verified in the program.

Expanding this funding will enable more farmers to benefit from cover cropping.

“The State Legislature is looking for policies to enable and encourage the entire economy to be greener and more environmentally friendly,” says ISA’s Public Policy Manager David Kubik. “Expanding this funding is a no-brainer because it normally runs out of money within the first hours of posting.”

Another significant agenda for ISA is the threshold for the Illinois Estate Tax.

“So next budget cycle, they're going to be extremely cautious with state revenues,” says Cox. “One area that we care about greatly is our desire to change the state's estate tax. We want to change the estate tax to eliminate or increase the threshold; we could do different things with it.”

Currently, estates valued over $4 million are subject to estate taxes. ISA aims to either eliminate this tax or raise the threshold, alleviating the burden on farmers with valuable land that might be subject to taxation.

Illinois used to be coupled with the Federal Estate Tax. In 2003, Illinois decoupled from the federal government because it would negatively impact several Illinois landowners.

Because of the tight state budget, it could be challenging to change that tax, which would mean less revenue to the state.

“Many farmers in Illinois have land handed down to them from their family,” says Cox. “Their estate may be worth over $4 million, but that's only a liquid asset if they sell it. You can't spend an acre of ground unless you sell it. So now our farmers will have no choice but to sell the farm to pay the taxes. You can't put people in that position.”

ISG advocates for a higher threshold for paying estate taxes or totally eliminating the tax.

While advocating for these priorities, ISA is also closely monitoring energy-related issues.

“Something I am going to protect for all I'm worth is our biodiesel tax credit,” says Cox. “I am afraid that people will try to change that before it goes into effect, and that is my top priority, quite honestly.”

The biodiesel tax credit is set to increase from 10% to 13% in March, eventually reaching 20% in 2026. This credit benefits retailers and consumers by lowering diesel prices at the pump, as the sales tax on fuel is waived for those using the right amount of biodiesel.

“The biodiesel sales tax incentive will be a vital tool in expanding markets for soybased biodiesel in the private sector,” says Kubik. “While there is an environmental incentive, there is currently no monetary incentive for local governments to utilize biodiesel and expand to higher blends. ISG is beginning to look at legislation to incentivize public sector biodiesel use.”

Additionally, carbon capture is emerging as a prominent issue, with some companies seeking to reduce their carbon footprint by storing carbon dioxide underground.

“We are still monitoring carbon capture legislation,” says Cox. “We are kind of walking the line. All farmers do not agree on this, and we want to protect all their interests.”

ISA is cautious about taking a stance on this matter, as farmers have differing opinions on carbon capture. The organization is monitoring carbon capture legislation to safeguard agricultural interests, especially concerning landowner rights and the potential impact of pipelines on farmland.

On one hand, storing CO2 underground is better for our atmosphere as those greenhouse gases are eliminated from the environment. On the other hand, this is a costly process, and long-term effects have yet to be calculated.

This also opens several questions that still need answers about landowner rights and the overall safety of storing carbon underground.

ISG closely monitors carbon capture legislation to ensure no agricultural interests get hurt.

“Our farmers are split on this,” says Cox. “It doesn’t make sense for us to jump in the middle and say, this is how it should be. It's best to see what people will present and protect our interest.”

Some groups want to pass legislation to make carbon capture easier, but ISG is cautious because when you do that, you drag the environmental laws in. You can end up losing forward momentum.

To learn more about ISG's efforts in advocating for farmer interests or to become a member today, visit ilsoygrowers.com