WASHINGTON – Today, Senator Ruben Gallego (D-AZ) reintroduced the Access to Credit for our Rural Economy (ACRE) Act with Senators Jerry Moran (R-KS), Angus King (I-ME), Roger Marshall (R-KS), Kevin Cramer (R-ND), and Tommy Tuberville (R-AL). This legislation would benefit American families, farmers and rural communities nationwide by providing greater flexibility to more financial institutions to offer affordable lines of credit to rural and agricultural borrowers. This would help lower borrowing costs for rural homeowners and farmers, making it easier for them to secure loans and invest in their futures.
“Owning a home or family farm is a cornerstone of the America dream, and I’m proud to co-lead the ACRE Act to make loans more affordable for rural communities,” said Senator Gallego. “The American dream should be within reach for all Arizonans, including those living in rural parts of our state.”
“Persistent inflation and high interest rates are putting a strain on farmers and rural homeowners in Kansas and across the country,” said Senator Moran. “Rural Americans should have the flexibility to access the capital needed to expand their family farms and achieve the dream of homeownership. This legislation will help to boost rural housing and support the agricultural economy that plays a vital role in small towns across America.”
“Rural communities across America are facing a serious affordable housing crisis. It has simply gotten way too hard to find reasonably priced homes in our small towns,” said Senator King. “The ACRE Act is a commonsense way to make home and farm ownership possible for more families by providing better access to low interest loans.”
“The ACRE Act will help community banks address one of the most significant challenges for rural communities — high interest rates,” said Senator Marshall. “High rates raise the cost of doing business for family farms, make it harder for small businesses to grow, and leave home ownership unattainable for many. The ACRE Act is common sense legislation to reverse these trends.”
“Farmers and ranchers need large swaths of land to grow crops and raise livestock to feed and fuel the world,” said Senator Cramer. “The ACRE Act is a straightforward solution to promote competition among lenders by lowering interest rates for farmland purchases.”
“As Alabama’s voice on the Senate Ag Committee, I will always advocate for Alabama’s farmers and rural communities here in Washington,” said Senator Tuberville. “Our farmers are struggling with cash flow and desperately need expanded access to credit to continue their farm operations. I’m proud to join my colleagues in cosponsoring this bill that would bolster our agricultural economy and stimulate rural housing for all Alabamians.”
The ACRE Act would amend the Internal Revenue Code to exclude interest received on certain loans secured by rural or agricultural real property from gross income. Specifically, it would apply to agricultural real estate and single-family home mortgage loans in rural communities with fewer than 2,500 residents and for mortgages less than $750,000. This would allow farm real estate borrowers and rural homeowners access to lower interest rates by expanding the same tax-exempt status on certain earned interest that applies to other lenders. According to estimates, this legislation would expand access to affordable agricultural and home loans to over 4,000 rural communities nationwide and save family farmers and producers well over $400 million in annual interest expenses.
Full text of this legislation can be found HERE.