Washington, D.C. (Feb. 26, 2025) — The Independent Community Bankers of America (ICBA) today expressed strong support for the Senate introduction of the Access to Credit for our Rural Economy (ACRE) Act to support farmers, ranchers, and rural homeowners.
The bipartisan bill introduced by Sens. Jerry Moran (R-Kan.) and Angus King (D-Maine) would exempt from taxation interest income on farm real estate and rural mortgage loans in small towns, allowing community banks to lower loan rates and lower costs of credit for these borrowers.
“With community banks making 80 percent of banking industry agricultural loans, the ACRE Act would allow community banks to offer lower loan rates to farmers and ranchers on agricultural real estate loans and for rural homeowners in small towns," ICBA President and CEO Rebeca Romero Rainey said. "This important legislation will help community bank lenders revive and sustain rural economies struggling to overcome the impact of higher interest rates. ICBA and the nation’s community banks thank Sens. Moran and King for providing a reasonable solution that benefits rural Americans, especially young, beginning, and small farmers and ranchers, who will make up the next generation of producers.”
To assist rural homeowners and the farm sector, the ACRE Act would:
Provide farmers, ranchers and rural homeowners with lower cost credit.
Allow producers to improve their cashflow positions at a time of tremendous economic stress in the farm sector.
Enable family farmers to remain on their farms and ranches, preventing further consolidation within the farm sector.
Offer community banks flexibility to work with struggling family farmers and ranchers.
The ACRE Act is a key priority of ICBA’s “Repair, Reform, and Thrive” plan and open letter to the 119th Congress, which outline comprehensive reforms to address the nation’s policy challenges. ICBA looks forward to advocating for the ACRE Act’s passage on behalf of rural community bankers and the customers and communities they serve.
About ICBA
The Independent Community Bankers of America® has one mission: to create and promote an environment where community banks flourish. We power the potential of the nation’s community banks through effective advocacy, education, and innovation.
As local and trusted sources of credit, America’s community banks leverage their relationship-based business model and innovative offerings to channel deposits into the neighborhoods they serve, creating jobs, fostering economic prosperity, and fueling their customers’ financial goals and dreams. For more information, visit ICBA’s website at icba.org.