ABA Supports Senate Bill to Lower Loan Costs for Farmers, Ranchers

The  American Bankers Association wrote to Sen. Pat Roberts (R-Kan.) today expressing support for his bill, S. 1641, which would amend the Internal Revenue Code to exclude from gross income interest received on certain loans secured by agricultural real property. The association noted that the bill will help lower the cost of agriculture real estate loans to farmers and ranchers and enable community banks to better serve these customers.

“ABA has long advocated for a more level playing field in agricultural lending, and this legislation helps to achieve that parity,” the letter said. “The goal of banks in agriculture is ultimately lower costs for all farmers and ranchers, and this will be accomplished by leveling the playing field for all lenders.”