ICBA expressed strong support for the newly introduced Access to Credit for our Rural Economy (ACRE) Act to support farmers, ranchers, and rural homeowners.
About the Bill: The bipartisan bill introduced by Sens. Jerry Moran (R-Kan.) and Angus King (D-Maine) in the Senate and Reps. Randy Feenstra (R-Iowa) and Don Davis (D-N.C.) in the House would exempt from taxation interest income on farm real estate and rural mortgage loans in small towns, allowing community banks to lower loan rates and lower costs of credit for these borrowers.
More: Additional sponsors include Sens. Tommy Tuberville (R-Ala.), Ruben Gallego (D-Ariz.), and Kevin Cramer (R-N.D.) and Rep. Nathaniel Moran (R-Texas). The Senate bill number is S. 838, while a House bill number will be released soon.
Scope: The ACRE Act would:
Provide farmers, ranchers and rural homeowners with lower-cost credit.
Allow producers to improve their cashflow positions at a time of tremendous economic stress in the farm sector.
Enable family farmers to remain on their farms and ranches, preventing further consolidation within the farm sector.
Offer community banks flexibility to work with struggling family farmers and ranchers.
ICBA Support: In a national news release, ICBA President and CEO Rebeca Romero Rainey said the legislation will help community bank lenders revive and sustain rural economies.
ICBA View: The ACRE Act is a key priority of ICBA’s “Repair, Reform, and Thrive” plan and open letter to the 119th Congress, which outline comprehensive reforms to address the nation’s policy challenges. ICBA looks forward to advocating for the ACRE Act’s passage on behalf of rural community bankers and the customers and communities they serve.
