Farm Families Face Uncertainty Over Estate Tax

Illinois family farmers are facing mounting uncertainty as they attempt to pass their generational farms to the next generation, burdened by an outdated estate tax system. Despite broad bipartisan backing—including from the Illinois Farm Bureau and rural legislators—a legislative effort in Springfield has stalled.

Currently, the state’s estate tax exemption remains set at $4 million, a threshold unchanged since 2013. For many farm families, whose land, equipment, and livestock accumulate substantial value over time, crossing this limit is all too common. As a result, grieving heirs often find themselves forced to liquidate portions of the farm just to pay the tax bill.

Representative Jason R. Bunting, a sixth-generation family farmer from Livingston County, voiced deep concern over the hardship this tax imposes during an already emotional period. He emphasized that families are left to decide whether to sell off land or assets in the wake of a loved one’s passing.

In early 2025, Illinois lawmakers introduced House Bill 2677, a bipartisan proposal designed to raise the estate tax exemption for farms from $4 million to $6 million, while tying future thresholds to inflation. Despite significant support from both parties, rural stakeholders, and farm groups, the bill was never scheduled for debate. It was quietly referred to a subcommittee and ultimately died in the House Rules Committee without a hearing.

Critics argue that Democrats in the state legislature failed to follow through on commitments made to rural constituents. Many observers expected meaningful action on the bipartisan measure, but lawmakers offered little more than speeches—and no tangible results.

Without relief or reform, experts warn that more farm families will lose farmlands—often to commercial agricultural enterprises—just to cover tax obligations. As estate values rise over time, the risk grows that more farms could be forced into sale, undermining the legacy and sustainability of Illinois's farm communities.

As calls for estate tax reform grow louder across the state, the absence of legislative action leaves many Illinois farmers wondering whether their voices are being heard—and whether the promise of reform will ever become reality.