In a recent column in the Kansas Banker magazine, Sen. Jerry Moran (R-Kan.) urged support for an American Bankers Association-advocated bill that would end taxation of interest earned from agricultural real estate loans. The Enhancing Credit Opportunities for Rural America Act would not only reduce servicing costs for community banks providing these types of loans, it would also level the playing field between banks and the tax-advantaged Farm Credit System—making it easier for banks to support the farm sector through real estate loans.
“The ECORA Act will promote business growth, stimulate job creation and serve as an incentive for community banks to invest in rural housing,” Moran wrote. “It will provide lower interest rates for Kansas farmers and ranchers struggling with low commodity prices. The act will also help sustain the presence of rural community banks by making them more competitive and able to meet the financing needs of their customers.”