Sens. Jerry Moran (R-Kan.) and Angus King (I-Maine) today introduced the Access to Credit for our Rural Economy Act in the Senate. The American Bankers Association-supported ACRE Act would make it easier for farmers, ranchers and rural families to access low-cost credit. The bill was introduced in the House earlier this year by Reps. Randy Feenstra (R-Iowa) and Wiley Nickel (D-N.C.).
The ACRE Act would give community banks the same tax-exempt status on certain earned interest that applies to farm credit institutions, allowing farm real estate borrowers and rural homeowners access to lower interest rates. The exemption would also apply to single-family home mortgage loans in rural communities with fewer than 2,500 residents and for mortgages less than $750,000.
In a statement, ABA President and CEO Rob Nichols applauded Moran and King for introducing the bill in the Senate. “Inflation and supply chain disruptions are driving up the cost of running America’s farms and ranches,” Nichols said. “At the same time, rising interest rates are squeezing profitability for farmers and putting homeownership out of reach for many rural Americans. ACRE offers a simple and targeted solution that will deliver much-needed relief to farmers, ranchers and rural homeowners in more than 17,000 communities throughout the country without creating new government payments or programs.”
