The American Bankers Association is asking Congress to include legislation to help farmers and rural communications in its budget reconciliation process, pointing to the increasingly difficult economic situation facing many farmers and ranchers.
The Access to Credit for our Rural Economy Act, or ACRE Act, would expand access to affordable real estate credit in rural areas. In a letter to members of Congress, ABA pointed to its 2024 Ag Lender Survey, which found that the combination of lower export demand for U.S. agricultural goods and the rebound of global inventories has put significant downward pressure on global commodity prices and U.S. farm incomes.
“The ACRE Act offers more long-term stability for farmers and ranchers by creating the most competitive interest rate environment possible on loans secured by farm real estate and aquaculture facilities,” ABA said. “The legislation will also drive down the cost of homeownership in rural communities with a population of 2,500 or less by lowering interest rates on home mortgages in rural areas valued at $750,000 or less.”
The Senate and House have passed conflicting budget bills, which must now go through reconciliation. ABA urged lawmakers to include the ACRE Act in its reconciliation package. “Congress can help our country’s farmers, ranchers and rural communities continue to grow and thrive by ensuring they have access to the credit they need,” the association said.
