ABA Writes Lawmakers in Support of ECORA Act

In letters to House and Senate lawmakers today, ABA urged lawmakers to support the Enhancing Credit Opportunities in Rural America Act, a bill that would end taxation of interest earned from agricultural real estate loans. This 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.

Amid persistent difficulties for the ag sector, “it is estimated that ECORA could reduce the average interest rate on a farm and ranch real estate loan by 1.5% to 2%,” ABA said. “This legislation offers a straightforward solution to help farmers and ranchers during this time of lower farm incomes without creating new government payments or programs.”