The American Bankers Association and 52 state bankers associations this week urged senators to include legislation to expand access to affordable real estate credit in rural areas in a budget package currently under consideration in Congress.
The Access to Credit for our Rural Economy Act, or ACRE Act, would help sustain and grow rural America by easing the financial burden on farmers, ranchers and rural communities, the associations said in a letter to Senate Finance Committee leaders. A version of the ACRE Act was included in the budget bill passed by the House last month. The budget bill is now before the Senate, which is expected to make changes.
The associations pointed to research by ABA and others showing that farmers currently face a difficult economic climate. “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, fisheries and aquaculture facilities,” they said. “ABA estimates the ACRE Act will lower the cost of credit by 100-150 basis points. For a young producer financing farmland purchased at $10,000 per acre, that would equal a sustained reduced yearly interest cost of $100-$150 an acre.”
More than 30 million rural Americans stand to benefit from the ACRE Act, the associations said.
“The ACRE Act is a practical, targeted solution to lower the cost of credit and increase credit availability across rural America,” they said. “Congress can help our country’s farmers, ranchers and rural communities continue to grow and thrive by ensuring that they have access to the credit they need.”
