Washington, D.C. (May 10, 2023) — The Independent Community Bankers of America (ICBA) today expressed its strong support for the House introduction of the Access to Credit for our Rural Economy (ACRE) Act (H.R. 3139) to support farmers, ranchers, and rural homeowners.
Authored in a bipartisan fashion by Reps. Randy Feenstra (R-Iowa) and Wiley Nickel (D-N.C.), the bill would exempt from taxation interest income on farm real estate and rural mortgage loans, allowing community banks to lower loan rates and more efficiently serve these borrowers.
“With community banks making 80 percent of banking industry agricultural loans, ICBA strongly supports the ACRE Act to help community banks offer lower rates to certain rural borrowers and homeowners," ICBA President and CEO Rebeca Romero Rainey said. "This important legislation will help revive and sustain rural economies struggling to overcome the impact of higher interest rates while providing community bank lenders with benefits they can pass on to customers, similar to other rural credit providers. ICBA and the nation’s community banks thank Reps. Nickel and Feenstra for coming together to provide a common-sense solution that benefits rural Americans, especially young, beginning, and small farmers and ranchers.”
With rural America and the agricultural sector facing continued challenges, the ACRE Act would:
Give lenders a strong incentive to remain in the rural farming and housing markets, thereby boosting local economic activity.
Offer community banks greater flexibility to work with farmers who may have trouble servicing their debt.
Exempt from taxation loans secured by agricultural and aquaculture real estate.
Provide similar relief to interest on loans secured by rural single-family homes that are the borrower's principal residence in towns with populations under 2,500 and below the value of $750,000.
Assist those seeking to remain on the farm or acquire a home loan in rural communities by providing borrowers with more competitive rates and loan terms.
ICBA looks forward to advocating for the ACRE Act’s passage on behalf of rural community bankers and the customers and communities they serve.
The Independent Community Bankers of America® creates and promotes an environment where community banks flourish. ICBA is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education, and high-quality products and services.
With nearly 50,000 locations nationwide, community banks employ nearly 700,000 Americans and are the only physical banking presence in one in three U.S. counties. Holding $5.8 trillion in assets, $4.8 trillion in deposits, and $3.8 trillion in loans to consumers, small businesses and the agricultural community, community banks channel local deposits into the Main Streets and neighborhoods they serve, spurring job creation, fostering innovation and fueling their customers' dreams in communities throughout America. For more information, visit ICBA's website at www.icba.org.