House Lawmakers Reintroduce Bill to Leverage Playing Field Between Banks, FCS

Reps. Ron Kind (D-Wis.) and Randy Feenstra (R-Iowa) last week introduced the ABA-backed Enhancing Credit Opportunities in Rural America (ECORA) Act. The bill, H.R. 1977, would end the taxation of interest earned from agricultural real estate loans.

This would not only reduce servicing costs for community banks providing these types of loans, it would also level the playing field between banks and the tax-advantaged Farm Credit System—making it easier for banks to support the farm sector through real estate loans. The ECORA Act was introduced during the prior Congress.

“By removing this taxation, the cost to make farm and ranch real estate loans will be reduced and the savings will be passed on to farmer and rancher customers,” the ABA said, noting that ECORA could reduce the average interest rate on a farm and ranch real estate loan by 21%.

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