SPRINGFIELD, Ill. — Signed into law by Governor JB Pritzker on August 1, Illinois’ Farmland Transition Commission Act will establish a commission within the Department of Agriculture to study the barriers individuals ages 25-40 encounter when purchasing or accessing farmland. The commission will be formed from state ag leaders, policymakers and young farmers, with the goal of reviewing existing policies and incentives in order to recommend policy changes to improve farmland transfer opportunities. 

An application portal through the Illinois Boards and Commissions website (https://govappointments.illinois.gov/boardsandcommissions/) has been established to apply to serve on the commission, which will meet through Dec. 31, 2031. According to Claire Shipp, Midwest Policy Manager for American Farmland Trust (AFT), there is a great need for intentional policy interventions that help young and beginning producers access the tools they need to acquire land and build a resilient farm business in Illinois. 

“Our hope is that the Farmland Transition Commission takes a holistic approach to the issue of land access and transfer for Illinois farmers and that they will consider a broad range of existing and novel policy solutions. Ensuring young and beginning farmers can access farmland requires both addressing the barriers they face (cost of land, access to capital, fair leasing agreements, etc.) and the incentive structures farmland sellers experience (development pressures, personal economic needs, complex succession planning, etc.),” said Shipp, who provided Farm World with a list of issues ATF would like to see addressed by the Farmland Transition Commission, once it forms.

“Beginning Farmer Tax Credits (BFTC) offer agricultural asset owners a state income tax credit if they lease land, equipment, livestock and/or buildings to beginning farmers. Details vary from state to state, but typically a landowner will receive a personal property tax exemption or a tax credit in exchange for making land or equipment available to a beginning producer. As of September 2023, six states Iowa, Kentucky, Minnesota, Nebraska, Ohio, and Pennsylvania have implemented BFTC programs. Representative Dan Swanson filed legislation to establish a Retired Farmer Tax Credit program in Illinois last session, and we’d love to see something like this become a priority for the Illinois General Assembly during the next legislative session,” said Shipp. 

“Farmland Purchase and Protection Incentives (FPPI) provide financing to beginning farmers to purchase farmland while protecting it with an agricultural conservation easement. The easement proceeds are passed through to the original seller, reducing the overall cost of buying the land to the beginning farmer. Delaware and Maryland have implemented successful programs to help first time farm buyers afford land.

“Beginning Farmer Loan Programs provide low-interest loans, loan guarantees, and loan participation programs to help producers buy land, buildings, equipment and breeding livestock. Some programs, including ‘Aggie Bond’ programs, are targeted specifically to beginning farmers. The National Council of State Agricultural Finance Programs tracks available programs and produces a comprehensive directory of state-level programs available to beginning and established producers.

“Down payment assistance programs provide direct financial support to beginning farmers and ranchers to purchase land. The Minnesota Department of Agriculture (MDA) has a down payment assistance grant which offers up to $15,000 to qualified farmers purchasing their first farm. The program is administered by the MDA’s Rural Finance Authority (RFA).”

AFT would also like to see the Commission consider ways to expand and support the tools and programs that already exist in Illinois in partnership with organizations, such as The Land Connection’s Illinois Farm Link program that connects land seekers with land sellers. Illinois also offers land leasing programs through the Illinois Department of Natural Resources, which this year is leasing 35,000 acres of agricultural land statewide. 

“It would be great to explore how these existing tools, among others, can be further leveraged or expanded upon to open up land access for young and beginning farmers. Ultimately, we hope the Commission will provide policy recommendations that are politically feasible and effective in addressing the many challenges Illinois farmers face in accessing, transferring and protecting farmland,” said Shipp. 

The legislation (Senate Bill 2372) was sponsored by State Senator Sally Turner (R-Beason). A total of 18 members will take part in the commission, including four young farmers from different regions of the state who will meet quarterly. The Director of Agriculture, or their designee, will serve as chair, according to the legislation. 

“Empowering young farmers is essential for the future of Illinois agriculture,” said Turner. “By focusing on individuals aged 25 to 40, we’re ensuring that those in the early stages of their farming careers have the support they need to access farmland.”