HB2745 104TH GENERAL ASSEMBLY

LRB104 07361 BDA 17401 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB2745

Introduced 2/6/2025, by Rep. Jay Hoffman

SYNOPSIS AS INTRODUCED:

New Act

Creates the Nitrogen Reduction Program Act. Provides that, subject to appropriation, the Department of Agriculture shall, in consultation with the Department of Natural Resources and soil and water conservation districts in the State, develop a nitrogen reduction incentive program by January 1, 2026 for the purpose of addressing water quality issues. Provides that the program will include a per-acre payment rate of not less than $5 per acre. Provides that crop management records collected from farmers shall be considered confidential. Makes findings. Defines terms. Effective immediately.

A BILL FOR

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 Nitrogen Reduction Incentive Program Act.

Section 5. Findings. The General Assembly finds that:

(1) It is in the interest of this State to preserve and protect Illinois' water resources by incentivizing efficient fertilizer management strategies and the use of innovative crop nutrient technologies to help farmers manage and improve their commercial nitrogen fertilizer application rates.

(2) Innovative fertilizer management strategies and crop nutrient technologies, including biological sources of nitrogen, are growing in popularity and proving an effective tool for managing fertilizer loss while maximizing yields in the State of Illinois. Such strategies and technologies can help farmers maximize productivity while reducing nitrate leaching and runoff and subsequent negative environmental impacts.

(3) Therefore, a nitrogen reduction incentive program should be established in this State. This program should cost $5,000,000 in its first year and renew annually for at least 4 years in order to accomplish the goals of the General Assembly.

Section 10. Definitions. In this Act:

"Commercial nitrogen fertilizer" means fertilizer with a nitrogen content of no less than 25%.

"Department" means the Department of Agriculture.

"Fertilizer" means any substance containing one or more of plant nutrients that is used for its plant nutrient content and is designed for use or claimed to have value in promoting plant growth. "Fertilizer" does not include unmanipulated animal and vegetable manures, sea solids, marl, lime, limestone, wood ashes, and other products excluded by rule of the Department.

"Plant nutrient" means nitrogen, phosphate, potash, or any other nutrient used in accordance with 8 Ill. Adm. Code 210.

Section 15. Nitrogen reduction incentive program.

(a) In consultation with the Department of Natural Resources and Illinois soil and water conservation districts, the Department shall develop a nitrogen reduction incentive program by January 1, 2026, to further address water quality by incentivizing Illinois farmers to improve nitrogen management and incorporate innovative technologies into their crop nutrient management plans. The Department shall determine the scope of qualifying products, fertilizers with nitrogen fixing properties, biological sources of nitrogen, and other biofertilizers. The Department shall administer the program. The program shall provide an annual per-acre incentive for qualifying farmers who verify through documentation that commercial nitrogen fertilizer rates were reduced by the lesser of (i) 15% or (ii) 30 pounds per acre by incorporating a qualifying product, as determined by the Department, in the farmer's fertility plans. A commercial nitrogen fertilizer rate reduction from historic baseline use shall be required to qualify for the program.

(b) The Department shall review at least once during the life of the nitrogen reduction incentive program: (1) the required minimum commercial nitrogen fertilizer rate of reduction for the program to determine if higher reduction targets are warranted; and (2) additional qualifying products, accounting for newly available technologies and products capable of reducing commercial nitrogen fertilizer applications for inclusion in the program.

(c) The Department shall keep the nitrogen reduction incentive program open to all farmers in this State. The Department shall adopt rules that establish a standard for labeled products to qualify for the incentive program.

(d) In consultation with farmers and the agriculture industry, a per-acre payment rate, not less than $5 per acre, shall be established by the Department, and the Department shall periodically review the rates based on inflation or emerging technology in subsequent years. Payments shall be distributed to qualifying entities once nitrogen reduction incentive program requirements are met. The nitrogen reduction incentive program established under this Section shall renew annually for 4 years.

(e) The Department shall adopt rules to implement this Act.

(f) This Section is subject to appropriation.

Section 20. Confidential Records. The crop management records collected from farmers, including, but not limited to, field boundaries, crop yields, or nitrogen rates, shall be used solely for implementation of this Act and shall be considered confidential records.

Section 99. Effective date. This Act takes effect upon becoming law.