Illinois lawmakers are looking to support farmers who are facing financial challenges because of tariffs, inflation and a more competitive foreign market.
The Trump administration is giving bridge payments to farmers to offset losses from the tariffs, but the payments are not enough for some farmers to offset their losses.
Reid Thompson is a fifth generation farmer from Colfax and eastern McLean County. He grows corn and soybeans with his father.
When talking about tariffs, Thompson said he supports free and fair trade.
The tariffs, he said, have hurt more due to increased competition from South America, where farmers are coming off a record soybean harvest.
“In the last year or so, it coincides with extreme production gains in South America, so more of a market competition, and so maybe we have seen price reductions as a result of the tariffs, and we aren't fans of it,” said Thompson, adding the increased competition is impacting the price of corn and soybeans more than tariffs.
Inflation also is driving up the cost to grow crops. Thompson said the bridge payments are a start, but will not be enough to fully support farmers through their financial troubles.
“I think as we look at 2026, there's already been discussions about farm bridge payment 2.0 as well as increase in projected ARC [Agriculture Risk Coverage], PLC [Price Loss Coverage] payments for the 2026 crop year,” Thompson said.
Farmers do get other payments for bad crop years, but those payments come after some bills already have arrived.
Thompson said he is worried that as family farmers face more financial issues, they might have to sell more land to large farm operators.
Estate tax
The Illinois legislature should let the markets fix themselves, he said, but could focus on increasing the estate tax exemption threshold.
“We've lost people to the state due to the sales, the income taxes, the other tax issues up in the northern half of our state, as well as people moving out of the state in order to kind of circumvent state issues,” Thompson said.
He said he knows people who had to sell some of their land to afford the estate tax.
Democratic state Sen. Dave Koehler of Peoria said it is important to continue supporting family farms by raising the estate tax exemption — even with demands for additional revenue during a tight budget year. He plans to push for the legislation during the spring session. Previous efforts have failed.
“I don't know what that means for any of our programs because we're going to have to cut somewhere,” Koehler said. “But this is an important one if we want to preserve the character of family farms in Illinois.”
Koehler, whose district includes parts of Bloomington-Normal, said tariffs are driving business toward other countries that now have cheaper crop prices. He added that getting rid of the tariffs would help farmers.
“It's been disastrous for the farm economy when we incentivize foreign countries to do business with Brazil rather than the United States. There's something wrong with that policy,” said Koehler, who has introduced a bill to pay farmers for buying clean-energy farming equipment and vehicles.
“Farmers who are doing the right things to help the environment, to help de-carbonize our environment, in transportation, they're going to receive a credit, be able to monetize that,” Koehler said.
He said Illinois needs to pay attention to one of its biggest industries and make sure farming stays a mostly family industry.
Koehler's estate tax threshold bill is relying on bipartisan support. Republican state Rep. Regan Deering, whose district covers a mostly rural area between Bloomington-Normal and Decatur, wants to see it pass this spring.
“I know that it is back front and center this time. I would like to think that I can continue to advocate alongside my colleagues for getting that bill called and passed,” said Deering, who also wants to continue educating the next generation of farmers and incentivize farmers to improve soil health with cover crops.
She supports the tariffs and trusts the Trump administration to make good business decisions, adding the administration expected some fallout from the tariffs.
“I think his bridge payments are a perfect example of him trying to soften the impact, specifically to our farmers, when it comes to tariffs he uses it as a great negotiating tool,” Deering said.
Deering said the federal government still needs to do more to help farmers with their financial challenges.
She introduced a resolution last year to ask the Trump administration to move the U.S. Department of Agriculture [USDA] from Washington, D.C. to Bloomington-Normal or Decatur. It has not been called for a vote.
Deering said by moving USDA to Central Illinois, the agency can be closer to the rural farmers the Department of Agriculture serves.
The department has offices across Illinois, including a service center in Bloomington-Normal.
