In a letter today, the American Bankers Association advised House legislators to support the Access to Credit for Our Rural Economy Act, which the association stated would grow rural America by making it much easier for farmers, ranchers and rural households to gain access to low-priced credit.
ABA kept in mind that farmers and ranchers throughout the nation are dealing with escalating expenses on a vast array of needs, from fertilizer to pallets. At the very same time, increasing rate of interest are making it harder to acquire farming land and financing existing operations, especially for more youthful 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 stated.
“ACRE excludes from gross income the interest received by a qualified lender on all loans secured by farm real estate and aquaculture facilities,” ABA stated. “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 options to lower rate of interest “is extremely important to American agriculture and rural America,” ABA stated. “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.”
