Sangamon Sun

Illinois farmers continue to face challenges related to the state’s estate tax, which some say threatens the future of family farms. Illinois is one of 16 states that still impose an estate tax, with an exemption threshold of $4 million that has not been adjusted for inflation since 2013. For many farmers, whose assets are primarily in land and equipment, it is easy to exceed this limit. As a result, families may have to sell portions of their property or equipment to pay the tax.

State Representative Mike Coffey met with members of the Sangamon County Farm Bureau to discuss these issues and how current legislation affects farming operations. “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,” Coffey said.

Coffey supports several House Bills aimed at reducing tax burdens on farmers and protecting their land. These include HB 4600 (amending the Illinois Estate and Generation-Skipping Transfer Tax Act), HB 1459 (matching the exclusion amount with the federal level), HB 1576 (raising the exclusion amount to $8 million), HB 1582 (repealing the estate tax), HB 2993 (increasing the exclusion amount to $12 million), HB 3661 (allowing unused exclusion amounts to be transferred from spouse to children), and HB 4519 (aligning exclusion amounts with federal levels for deaths after January 1, 2026).

In early 2025, lawmakers introduced House Bill 2677, a bipartisan proposal supported by both parties as well as the Illinois Farm Bureau and farmers statewide. The bill would have raised the farm estate tax exemption from $4 million to $6 million and tied it to inflation but was never given a hearing and was sent instead to a subcommittee in the House Rules Committee.

Democrats proposed lowering the exemption threshold further, which could increase financial pressure on family farms. Governor JB Pritzker has previously called estate tax reform a “shared priority,” but has not taken recent action on this issue.

“96% of Illinois farms are family-owned, and nearly 70,000 families rely on agriculture as their livelihood. These families deserve action,” Coffey said.

Coffey was elected as a Republican representative for Illinois’ 95th House District in 2023, succeeding Tim Butler.

The upcoming Illinois State Fair will begin August 7 in Springfield with events highlighting agriculture alongside concerts and attractions. Each day will feature special themes such as agriculture day, veterans day, senior citizens day, first responders day, and park districts day.

A recent report from the Equable Institute shows that Illinois continues to face significant challenges regarding public pension funding. The state’s unfunded pension obligations now equal about one-fifth of its gross domestic product—19.02%, up from last year’s figure—and taxpayer contributions have risen from $614 million in fiscal year 1996 to $11.2 billion in fiscal year 2025. Illinois currently has a funded ratio of just over half its promised benefits at 50.6%, making it second worst in the nation behind New Jersey.

Experts suggest that unless reforms are implemented—including preserving cost savings measures like Tier 2 pensions or considering constitutional changes—the state may continue facing budget strains and high taxes.

Other recent developments include Governor Pritzker signing bills affecting Chicago pensions and transportation policy; plans for honoring veterans at the State Fair on August 10; and news about a new child care center opening in Springfield.