Joco Today

U.S. Senators Roger Marshall and Jerry Moran, both from Kansas, have introduced the Access to Credit for our Rural Economy (ACRE) Act. This legislation aims to assist community banks in providing agricultural real estate loans by granting them tax-exempt status on earned interest. The act is designed to make loans more accessible and affordable for rural and agricultural borrowers across the United States.

Joining Senators Marshall and Moran in this initiative are Senators Angus King from Maine, Ruben Gallego from Arizona, Kevin Cramer from North Dakota, and Tommy Tuberville from Alabama.

Senator Marshall stated, "The ACRE Act will help community banks address one of the most significant challenges for rural communities — high interest rates." He highlighted that these high rates increase business costs for family farms and small businesses, making homeownership difficult. Senator Moran echoed this sentiment: "Persistent inflation and high interest rates are putting a strain on farmers and rural homeowners in Kansas and across the country."

Senator King added that rural communities face an affordable housing crisis, saying the ACRE Act is a commonsense solution to provide better access to low-interest loans. Senator Gallego emphasized the importance of affordable loans for achieving the American dream of owning a home or farm.

Senator Cramer noted that large areas of land are necessary for farming activities, asserting that the ACRE Act promotes competition among lenders by reducing interest rates on farmland purchases.

Rob Nichols, President and CEO of the American Bankers Association (ABA), praised the bipartisan introduction of the act. "The ACRE Act will deliver much-needed financial support to farmers and ranchers working through a difficult economic cycle," Nichols said. Rebeca Romero Rainey, President and CEO of Independent Community Bankers of America (ICBA), expressed support as well, highlighting its benefits for young and small-scale farmers.

The bill text can be accessed online.