Bill to lower credit costs for producers has ‘uphill’ battle in Congress
Legislation that would lower the cost of credit for producers is struggling to gain momentum in Congress.
Richard Baier is the president and CEO of the Nebraska Bankers Association. “It’s going to be a bit of an uphill climb because obviously the sheer numbers of people who sit on the coast, this isn’t going to be high on their priority lists,” Baier says. “But when we talk about finance and taxation, we do think there are some opportunities out there.”
He tells Brownfield the bill would create equity in ag real estate and lower costs for farmers to acquire credit. “If we can lower the interest rate the farmer is paying on a loan, then that will drop to the bottom line of the farmer and make them profitable in the long term.”
The Enhancing Credit Opportunities in Rural America Act (ECORA) removes the taxation on income from farm real estate loans that are made by banks.
It was introduced in the House by Rep. Ron Kind (Wis.) and Rep. Randy Feenstra (IA). Companion legislation was also introduced in the Senate.