As Congress contemplates additional coronavirus relief legislation, the American Bankers Association and the 51 state bankers associations today wrote to congressional leaders urging them to include the Enhancing Credit Opportunities in Rural America Act of 2019 in the so-called “Phase IV” legislative package. The bill—which ABA has long advocated—would provide relief to the nation’s farmers and ranchers by ending the taxation of interest earned from agricultural real estate loans, effectively lowering the cost of credit for ag borrowers.
“The availability of low-cost credit is vitally important to American agriculture,” the associations wrote. “Congress is strategically positioned to help our country’s farmers and ranchers at this critical moment in our nation’s history. ECORA could reduce the average interest rate on a farm and ranch real estate loan by 1 to 1.5%. 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.”
