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SB 3227

NITROGEN REDUCTION INCENTIVE

104th Regular Session Introduced by Paul Faraci and 2 co-sponsors

Illinois creates a state program to pay farmers per acre to reduce nitrogen fertilizer use by adopting qualifying products and practices.

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Bill Summary · SB 3227

Summary of SB 3227 (104th Illinois General Assembly)

Title

Nitrogen Reduction Incentive Program Act

Purpose and intent

  • Establish a state-run Nitrogen Reduction Incentive Program to address water quality concerns related to nitrogen management in agricultural production.
  • Provide financial incentives to farmers who reduce commercial nitrogen fertilizer use by adopting qualifying products and practices.
  • Build on innovative fertilizer management strategies and technologies to reduce nitrate leaching and runoff while maintaining or improving yields.

Key provisions

Program creation and administration

  • Creates the Nitrogen Reduction Incentive Program (the “Program”).
  • The Department of Agriculture (IDOA), in consultation with the Department of Natural Resources (IDNR) and soil and water conservation districts, must develop the Program by January 1, 2027.
  • IDOA will administer the Program.
  • The Program is subject to appropriation; it will renew annually for four years.

Incentive details

  • Qualifying products and technologies include:
    • Fertilizers with nitrogen-fixing properties or biological nitrogen sources
    • Other biofertilizers and innovative crop nutrient technologies
  • Eligibility requires a verified reduction in commercial nitrogen fertilizer:
    • The reduced rate must be the lesser of:
    • A 15% reduction, or
    • A 30 pounds-per-acre reduction
    • The reduction must be achieved by incorporating a qualifying product into the farmer’s fertility plan.
    • Reductions are measured against a historic baseline use.
  • Payment structure:
    • An annual per-acre payment is provided to qualifying farmers (or qualifying entities) who meet the program requirements.
    • The base per-acre payment rate is not less than $5 per acre.
    • The Department will adjust rates periodically in response to inflation and emerging technology (subject to review in subsequent years).
  • Scope and accessibility:
    • The Program shall be open to all farmers in Illinois.
    • Rules will establish standards for products to qualify, including labeling standards.

Monitoring and adjustments

  • The Department must:
    • Review minimum required nitrogen rate reductions at least once during the Program’s life to determine if higher targets are warranted.
    • Consider additional qualifying products as technologies evolve.
  • Documentation and verification:
    • Farmers must verify fertilizer rate reductions through documentation to receive payments.

Confidentiality

  • Crop management records collected from farmers (e.g., field boundaries, yields, nitrogen rates) are confidential and used solely for Program implementation.

Implementation timeline

  • Effective date: Upon becoming law.
  • Key deadlines:
    • By January 1, 2027: Program must be developed and ready for implementation.
  • Funding and continuation:
    • The Act specifies funding through appropriation and plans for a four-year program renewal.

Affected parties

  • Illinois farmers and agricultural producers (eligible for incentive payments).
  • Farmers’ supply chains and agribusinesses supplying qualifying products.
  • State agencies: Department of Agriculture, Department of Natural Resources, and soil and water conservation districts.

Procedural and timeline notes

  • Assigned to Appropriations; introduced February 2, 2026.
  • Rulemaking and implementation steps to be codified through IDOA rules.
  • Annual inflation-adjusted adjustments anticipated for per-acre payments in later years.
  • Confidentiality provisions limit data sharing to Program purposes.

Potential impact

  • Encourages adoption of nitrogen-efficient practices and biologically-based nitrogen sources.
  • Potential reductions in nitrate leaching and runoff, contributing to improved water quality in Illinois.
  • Provides economic support to farmers during transition to lower nitrogen use.
  • Requires ongoing appropriation and regulatory rulemaking to sustain funding and program standards.

Compiled from official sources — confirm details with the bill’s official record.

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