U.S. Senator Jerry Moran from Kansas and Senator Angus King from Maine joined forces to propose the Access to Credit for our Rural Economy (ACRE) Act of 2023. The bill aims to provide farmers and rural homeowners with greater flexibility in accessing affordable lines of credit, especially during times of rising inflation and interest rates.
The ACRE Act is set to make a positive impact on rural communities across America. By granting community banks tax-exempt status on earned interest related to farm credit institutions, it allows farm real estate borrowers and rural homeowners to access lower interest rates.
This exemption particularly benefits single-family home mortgage loans in rural municipalities with fewer than 2,500 residents and applies to mortgages under $750,000.
The ACRE Act, a bipartisan bill, aims to address the affordable housing crisis in rural communities by providing low-interest loans for farm ownership and homeownership. It saves family farmers and producers over $400 million annually in interest expenses, supporting the agricultural economy and small towns.
Doug Wareham, President and CEO of the Kansas Bankers Association, lauds the ACRE Act for its potential to alleviate the financial pressure on farmers and ranchers, who are grappling with rising interest rates and escalating energy and crop input costs. It addresses the housing shortage crisis, which poses a threat to the growth and prosperity of rural communities.
If passed, the ACRE Act will open doors for financial institutions to offer accessible credit solutions, promoting rural housing and supporting the agricultural sector that plays a vital role in the fabric of small-town America. The bill's potential to reduce the cost of borrowing for agricultural land and home purchases signifies a positive stride towards fostering economic growth and prosperity in rural areas.
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Categories: Kansas, Business