Lawmakers in the House and Senate today reintroduced the Access to Credit for our Rural Economy Act, which would make it easier for farmers, ranchers and rural families to access affordable real estate credit. Passage of the ACRE Act is one of the American Bankers Association’s top policy priorities in 2025.
The ACRE Act would give community banks the same tax treatment on certain earned interest that applies to other lenders, allowing farm real estate borrowers and rural homeowners access to lower interest rates. This 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.
The bipartisan, bicameral bill is sponsored in the House by Reps. Randy Feenstra (R-Iowa), Nathaniel Moran (R-Texas) and Don Davis (D-N.C.). It is sponsored in the Senate by Sens. Jerry Moran (R-Kan.), Angus King (I-Maine), Ruben Gallego (D-Ariz.), Senator Kevin Cramer (R-N.D.) and Tommy Tuberville (R-Ala.). The legislation picked up dozens of sponsors when it was introduced in the previous Congress.
“The ACRE Act will deliver much-needed financial support to farmers and ranchers working through a difficult economic cycle by lowering the cost of credit without creating new government payments or programs.,” ABA President and CEO Rob Nichols said. “It would also drive down the cost of homeownership and increase access to credit in more than 17,000 rural communities across the country. We urge all members of Congress to support this critically important legislation.”
Also, ABA joined state bankers associations in a joint letter urging congressional leaders to support the ACRE Act. The joint letter was in addition to a separate letter ABA sent in support of the bill.
