Government Relations Call To Action
Farm Credit Fairness Bill
H.R. 1872 and S. 1641 are companion bills filed in the United States House and Senate, known as the “Enhancing Credit Opportunities in Rural America Act of 2019” or “ECORA Act of 2019”, which would make interest earned from certain types of farm loans exempt from taxation. The types of loans included in the exemption include real property used for the production of agricultural products and single family residences located in a rural areas (2,500 or less).
The tax exemption only applies to “qualified lenders” that are defined under the bills as any bank or savings association the deposits of which are insurance by the FDIC.
Thus, these bills would help banks offer more credit to farmers AND help equalize the playing field for banks as against Farm Credit System.
Debra Stamper | General Counsel/EVP