In a letter today, the American Bankers Association urged House lawmakers to support the Access to Credit for Our Rural Economy Act, which the association said would grow rural America by making it easier for farmers, ranchers and rural families to access low-cost credit.
ABA noted that farmers and ranchers throughout the country are facing skyrocketing costs on a wide range of necessities, from fertilizer to pallets. At the same time, rising interest rates are making it more difficult to purchase agricultural land and finance existing operations, particularly for younger and socially disadvantaged farmers and ranchers. “ACRE addresses this problem by making the market more competitive and promoting the extension of credit to America’s farmers, ranchers and agricultural borrowers,” ABA said.
“ACRE excludes from gross income the interest received by a qualified lender on all loans secured by farm real estate and aquaculture facilities,” ABA said. “Additionally, ACRE would exclude from gross income the interest received by a qualified lender on home mortgage loans that do not exceed $750,000 in rural communities of no more than 2,500 people.”
Finding bipartisan solutions to reduce interest rates “is extremely important to American agriculture and rural America,” ABA said. “Congress is uniquely positioned to help our country’s farmers, ranchers and rural communities grow and thrive by ensuring they have access to the affordable credit they need.”