ICBA expressed its strong support for the House introduction of legislation to exempt from taxation interest income on farm real estate and rural mortgage loans.

ACRE Act: Authored by Reps. Randy Feenstra (R-Iowa) and Wiley Nickel (D-N.C.), the Access to Credit for our Rural Economy (ACRE) Act (H.R. 3139) would provide relief for loans secured by agricultural and aquaculture real estate or by rural single-family homes that are the borrower's principal residence.

Impact: In a national news release and a letter to the lead sponsors, ICBA said 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.

  • 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.