Bill Text: IL HB5593 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Creates the Agricultural Land Conservation Act. Provides that, beginning on January 1, 2027, a Farmland Conversion Fee of $275 per acre shall be paid by the buyer or lessee of a transaction for any agricultural land that will be removed from production for the specific purpose of developing an industrial park, a commercial area, a single-family or multi-family dwelling or for being put to any other use that removes the agricultural land from production. Provides that the fee shall be collected by the Department of Agricultural. Provides for the creation of the Farmland Conversion Fee Fund as a special fund in the State Treasury. Provides that all Farmland Conversion Fees collected by the Department of Agriculture shall be contributed to the Fund. Further provides that moneys in the Fund may be exclusively used for the following purposes: (i) supporting education and programs that support healthy soil clean water, and climate-smart agricultural practices; (ii) supporting operations funding for soil and water conservation districts; (iii) covering costs associated with administering the Act; (iv) any other purposes that the Department of Agriculture determines are consistent with the purposes of the Act. Provides that, before expending moneys for any other purposes, the Department of Agriculture shall, subject to the availability of moneys in the Fund, ensure that during each State fiscal year, $10,000,000 is distributed to soil and water conservation districts, for the purpose of supporting their operations funding. Provides that $500,000 shall be distributed to the Department of Agriculture for the purposes of collecting fees and administering the program created under the Act. Provides for penalties. Effective immediately.

Sponsorship: Partisan Bill (Democrat 3)

Status: (Introduced - Dead) 2026-04-09 - Added Chief Co-Sponsor Rep. Sonya M. Harper [HB5593 Detail]

Download: Illinois-2025-HB5593-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026HB5593 Introduced , by Rep. Sharon Chung SYNOPSIS AS INTRODUCED:
New Act
30 ILCS 105/5.1036 new
Creates the Agricultural Land Conservation Act. Provides that, beginning on January 1, 2027, a Farmland Conversion Fee of $275 per acre shall be paid by the buyer or lessee of a transaction for any agricultural land that will be removed from production for the specific purpose of developing an industrial park, a commercial area, a single-family or multi-family dwelling or for being put to any other use that removes the agricultural land from production. Provides that the fee shall be collected by the Department of Agricultural. Provides for the creation of the Farmland Conversion Fee Fund as a special fund in the State Treasury. Provides that all Farmland Conversion Fees collected by the Department of Agriculture shall be contributed to the Fund. Further provides that moneys in the Fund may be exclusively used for the following purposes: (i) supporting education and programs that support healthy soil clean water, and climate-smart agricultural practices; (ii) supporting operations funding for soil and water conservation districts; (iii) covering costs associated with administering the Act; (iv) any other purposes that the Department of Agriculture determines are consistent with the purposes of the Act. Provides that, before expending moneys for any other purposes, the Department of Agriculture shall, subject to the availability of moneys in the Fund, ensure that during each State fiscal year, $10,000,000 is distributed to soil and water conservation districts, for the purpose of supporting their operations funding. Provides that $500,000 shall be distributed to the Department of Agriculture for the purposes of collecting fees and administering the program created under the Act. Provides for penalties. Effective immediately.
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A BILL FOR
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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 a 2024 report published by the
Department of Agriculture at the University of Illinois at
Urbana-Champaign, midwestern states lost over 1.5 million
acres of agricultural land to development between 2001 and
2021, with the highest losses occurring in Illinois.
(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 conservation districts are units of
local government, but they lack taxing authority.
(4) Soil and water conservation 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

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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 conservation
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 that
support wetland crops; other lands used to support the
production of livestock; and small tree farms.
Section 15. Farmland Conversion Fee Fund. The Farmland

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Conversion Fee Fund is created as a special fund in the State
treasury. Revenue generated from the Farmland Conversion Fees
imposed under Section 20 shall be collected by the Department
of Agriculture and deposited into the Farmland Conversion Fee
Fund. Moneys in the Farmland Conversion Fee Fund may be
expended and distributed by the Department of Agriculture
exclusively for the following purposes:
(1) supporting education and programs that support
healthy soil, clean water, and climate-smart agricultural
practices;
(2) supporting operations funding for soil and water
conservation districts;
(3) covering costs associated with administering the
Act; and
(4) any other purpose that the Department of
Agriculture determines is consistent with the purposes and
intent of this Act.
Before expending moneys for any other purpose, the
Department of Agriculture shall, subject to the availability
of moneys in the Fund, ensure that during each State fiscal
year:(i) $500,000 is distributed to the Department of
Agriculture for the collection of fees and the administration
of the program; (ii) at least $10,000,000 is distributed to
soil and water conservation districts in the State for the
purposes of paragraph (2). Any remainder may be expended by
the Department of Agriculture for the purposes enumerated in

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this Section.
Beginning in State fiscal year 2027, the amounts described
in items (i) and (ii) shall be annually increased by the annual
unadjusted percentage increase (but not less than zero) in the
consumer price index-u for the 12 months ending with the
September preceding each November 1, including all previous
adjustments. 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, 2027, 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 an industrial park, a
commercial area, or 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 Agriculture, in accordance with rules
adopted by the Department, within 30 days of the purchase or
lease of the agricultural land by the buyer or lessee. The fee

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under this Section shall be $275 per acre.
(b) Revenue from Farmland Conversion Fees shall be
collected by the Department of Agriculture 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;
(4) any conversion of land whose primary purpose is
the establishment of conservation practices; or
(5) any conversion of land for the development of
renewable energy providers, limited to wind and solar
projects only.
(d) The Department of Agriculture shall adopt rules to
implement this Section.
Section 25. Enforcement. The Attorney General, in
conjunction with the Department of Agriculture shall enforce

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this Act. Any person who fails to pay a Farmland Conversion Fee
shall be subjected to a penalty equivalent to 3 times the
Farmland Conversion Fee due, plus interest calculated at a
rate equal to the yield on 26-week United States Treasury
bills most recently auctioned prior to the date of the
determination of the repayment obligation to the Department of
Agriculture.
Section 90. The State Finance Act is amended by adding
Section 5.1036 as follows:
(30 ILCS 105/5.1036 new)
Sec. 5.1036. The Farmland Conversion Fee Fund.
Section 99. Effective date. This Act takes effect upon
becoming law.