WASHINGTON – Rep. Burgess Owens (UT-04) co-sponsored the bipartisan Access to Credit for our Rural Economy (ACRE) Act of 2023, which would benefit American families, farmers, and rural communities nationwide by giving greater flexibility to more financial institutions to offer affordable lines of credit to rural and agricultural borrowers.
“Record-high inflation and skyrocketing interest rates are squeezing farmers, ranchers, and rural communities out of the housing market,” said Rep. Owens. “The ACRE Act provides local community banks the resources to offer affordable capital for farmers to own a home, support the agricultural industry, and grow the rural economy in Utah and the nation. I am proud to support this common sense legislation, and I will continue to advocate for rural communities in Congress.”
“Given the current interest rate environment, this bill will provide much-needed, long-term relief to a sector of Utah’s economy that is vital to every Utah family!” – Howard Headlee, President & CEO of the Utah Bankers Association
The ACRE Act would amend IRS code to level the playing field for community banks to administer agricultural real estate loans by granting them tax-exempt status on earned interest. This same exemption already applies to farm credit institutions.
This exemption would also apply to single-family home mortgage loans in rural communities with fewer than 2,500 residents and for mortgages less than $750,000.
According to the American Bankers Association, this legislation would expand access to affordable agricultural and home loans nationwide to over 4,000 rural communities and save family farmers and producers well over $400 million in annual interest expenses.
The full text of the legislation is available here.