SE Kansas News

U.S. Senators Jerry Moran, Angus King, Roger Marshall, Ruben Gallego, Kevin Cramer, and Tommy Tuberville have reintroduced the Access to Credit for our Rural Economy (ACRE) Act. This legislation aims to assist American families, farmers, and rural communities by enabling more financial institutions to offer affordable credit lines to rural and agricultural borrowers.

Senator Moran stated that "persistent inflation and high interest rates are putting a strain on farmers and rural homeowners in Kansas and across the country." He emphasized the need for rural Americans to have access to capital necessary for expanding family farms and achieving homeownership.

Senator King noted that "rural communities across America are facing a serious affordable housing crisis," highlighting the ACRE Act as a solution to make home and farm ownership possible through better access to low-interest loans.

The ACRE Act seeks to help community banks tackle high interest rates that affect family farms and small businesses. It is designed as common sense legislation aimed at reversing these trends. Senator Gallego expressed pride in co-leading the act, stating that "owning a home or family farm is a cornerstone of the American dream."

Senator Cramer pointed out that farmers require large areas of land for agriculture, with the ACRE Act promoting competition among lenders by lowering interest rates for farmland purchases.

As Alabama's representative on the Senate Ag Committee, Senator Tuberville voiced support for Alabama’s farmers who struggle with cash flow issues. He endorsed the bill as a means to bolster the agricultural economy and stimulate rural housing.

The ACRE Act proposes amendments to the Internal Revenue Code, excluding certain loan interests from gross income. It aims to extend tax-exempt status on earned interest similar to other lenders' benefits. The bill targets agricultural real estate and single-family home mortgage loans in communities with fewer than 2,500 residents for mortgages under $750,000.

Estimates suggest this legislation could expand access to affordable loans in over 4,000 rural communities nationwide while saving family farmers over $400 million annually in interest expenses.

The American Bankers Association (ABA) has applauded this bipartisan effort led by Senators Moran, King, Gallego, Cramer, Tuberville, Marshall along with Representatives Randy Feenstra, Don Davis, and Nathaniel Moran. They believe it will provide crucial financial support without new government programs.

The Independent Community Bankers of America (ICBA) also supports this initiative as a way to revive rural economies impacted by higher interest rates. They thanked Congressmen Feenstra and Davis for their role in offering solutions beneficial particularly for young and small-scale farmers.