Sens. Jerry Moran (R-Kan.), John Boozman (R-Ark.), Mike Rounds (R-S.D.), Kevin Cramer (R-N.D.) and Roger Marshall (R-Kan.) today introduced S. 2202, the American Bankers Association-backed Enhancing Credit Opportunities in Rural America Act of 2021, which would end the 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. A companion bill was introduced in the House earlier this year by Reps. Ron Kind (D-Wis.) and Randy Feenstra (R-Iowa).
“This critically important legislation . . . will help lower the cost of credit for farmers and ranchers in rural America,” said ABA President and CEO Rob Nichols, welcoming the bill’s introduction in the Senate. “ECORA offers a straightforward solution to help farmers and ranchers during this time of lower farm incomes without creating new government payments or programs. We urge Congress to help our country’s farmers and ranchers by moving quickly to pass this timely bill.”