ABA Supports Newly Introduced ECORA Legislation

The American Bankers Association today expressed support for the Enhancing Credit Opportunities in Rural America Act, which would end taxation of interest earned from agricultural real estate loans. Reps. Ron Kind (D-Wis.) and Randy Feenstra (R-Iowa) reintroduced the bipartisan ECORA Act on Wednesday.

“By removing this taxation, the cost to make farm and ranch real estate loans will be reduced and the savings will be passed on to farmer and rancher customers,” ABA said, noting that ECORA could reduce the average interest rate on a farm and ranch real estate loan by 21%.

The ECORA Act would also help to level the playing field between banks and the tax-advantaged Farm Credit System, whose profits from real estate lending are currently exempt from corporate income tax.