Sioux City Times

U.S. Representative Randy Feenstra has introduced the Access to Credit for our Rural Economy (ACRE) Act, aiming to make loans more accessible and affordable for American families, farmers, and rural communities. The legislation is co-led by Representatives Nathaniel Moran and Don Davis.

Feenstra emphasized the need to lower interest rates for families and farmers to promote rural economic growth. He stated, "To bring down interest rates for our families and farmers and drive rural economic growth, we need to level the playing field and give our community banks greater flexibility to offer home and agricultural loans at more affordable rates."

The Iowa Bankers Association expressed support for the initiative. Adam Gregg, President and CEO of the association, said, “This legislation will directly benefit farmers and rural homeowners.”

Rob Nichols from the American Bankers Association also endorsed the bill, noting its potential impact on reducing credit costs without new government programs. He urged Congress members to support the legislation.

Rebeca Romero Rainey of Independent Community Bankers of America highlighted how the ACRE Act could help sustain rural economies facing high interest rates.

The ACRE Act proposes amending IRS code to grant tax-exempt status on earned interest for community banks administering agricultural real estate loans. This exemption would extend to single-family home mortgage loans in small rural communities.

According to the American Bankers Association, this act could enhance access to affordable loans in over 17,000 rural communities nationwide.