Wisconsin Democrat Ron Kind and Iowa Republican Randy Feenstra introduced the bipartisan Enhancing Credit Opportunities in Rural America Act. The legislation would remove taxation on income from farm real estate loans made by community banks.
The act would benefit farmers, families, and rural communities by allowing more institutions to offer affordable credit to rural and agricultural borrowers.
“I’ve heard from many Wisconsin lenders and farmers about a credit crunch for agricultural and rural loans, which has only gotten worse because of COVID,” says Kind. “The act will take steps to address the issue, lowering the cost for farmers and families to acquire credit in our rural communities and providing a pathway to increased income.”
Kind also says America needs to ensure its hardworking family farmers get the support they need.
“Our hardworking farmers feed and fuel the world, and I will support any effort that provides the resources they need to succeed in today’s economy,” says Feenstra.
Early estimates show the act could reduce the average interest rate on a farm real estate loan by 1.5 to two percent.