Illinois Agricultural Use Valuation Appeal Letter Generator

If you own farmland in Illinois and believe your property has been improperly assessed at fair market value instead of agricultural use value, you have specific rights under the Illinois Property Tax Code. Illinois uses a unique productivity-based formula to assess qualifying farmland, often resulting in significantly lower assessments than market-value taxation. When a county assessor fails to apply this preferential valuation—or applies it incorrectly—you can lose thousands of dollars in unnecessary property taxes each year. A properly drafted appeal letter to the Board of Review citing the correct statutory provisions is your first and most important step. This tool helps you generate a comprehensive demand letter that addresses your specific assessment dispute with proper Illinois statutory citations.

Illinois law provides preferential property tax treatment for qualifying farmland under 35 ILCS 200/10-110 through 10-145. Rather than being taxed at one-third of fair market value like most property, farmland is assessed based on its agricultural economic value—a productivity-based formula calculated by the Illinois Department of Revenue using factors like soil productivity index (PI), crop yields, commodity prices, and production costs averaged over a five-year period.

To qualify for agricultural use valuation, the property must be used solely for the growing and harvesting of crops, the feeding, breeding, and management of livestock, dairying, or any other agricultural or horticultural use, and must have been used in this manner for at least the two preceding years (35 ILCS 200/1-60). Land enrolled in conservation programs like CRP also typically qualifies.

The assessment is determined by multiplying the soil's productivity index by the certified equalized assessed value per PI point published annually by the Department of Revenue. Each soil type on the parcel is valued separately based on its specific PI rating from the University of Illinois Bulletin 811 or its successor publication.

Common assessment errors include: failure to classify qualifying land as farmland, incorrect soil productivity ratings, improper inclusion of homesite acreage in farm acreage (or vice versa), failure to account for slope or erosion adjustments, incorrect assessment of farm buildings under 35 ILCS 200/10-140, and misapplication of the debasement factors. Wasteland, permanent pasture, and other land used less intensively than cropland receive different treatment under the statute.

Property owners who disagree with the assessment must first appeal to the County Board of Review under 35 ILCS 200/16-55, then potentially to the Property Tax Appeal Board (PTAB) under 35 ILCS 200/16-160 or to circuit court.

An effective Illinois agricultural use valuation appeal letter must accomplish several objectives. First, it should clearly identify the property by parcel index number (PIN) and demonstrate that the land qualifies as farmland under 35 ILCS 200/1-60, including the two-year prior use requirement. Provide evidence of agricultural use such as lease agreements, FSA Form 578 acreage reports, Schedule F tax returns, or USDA program documentation.

Second, the letter should specifically identify the error in the current assessment. Common challenges include disputing the soil productivity index assigned to specific portions of the parcel, contesting the classification of acreage as homesite versus farmland, challenging the valuation of farm buildings, or arguing that wasteland or permanent pasture has been incorrectly classified.

Third, the letter should cite the controlling statutory provisions—35 ILCS 200/10-115 (cropland), 10-125 (permanent pasture), 10-130 (other farmland), and 10-135 (wasteland)—and reference the Department of Revenue's certified values for the assessment year.

Fourth, the letter should propose a specific corrected assessment value supported by the proper PI calculations and request a hearing before the Board of Review under 35 ILCS 200/16-55. Include comparable assessments of similar farmland in the township when available.

A strong demand letter often resolves the dispute at the Board of Review level, avoiding the need for PTAB proceedings or circuit court litigation. Even when it does not result in immediate correction, a well-documented letter creates the administrative record needed for further appeals.

Illinois Board of Review appeals must generally be filed within 30 days after the assessment list is published in the county newspaper, though deadlines vary by county and Cook County operates on a different schedule by township. Filing with the Board of Review is free. If unsatisfied with the Board's decision, you may appeal to the Property Tax Appeal Board (PTAB) within 30 days of the Board's final decision—PTAB filing is also free, though formal hearings may benefit from professional representation. Alternatively, you may file a tax objection complaint in circuit court after paying taxes under protest. Small claims court is generally not the proper venue for property tax assessment disputes in Illinois; the statutory administrative process is mandatory before judicial review. Cook County has unique rules under the Cook County Real Property Assessment Classification Ordinance.