Gallego Backs Bipartisan Bill to Expand Access to Capital for Arizona Farmers and Rural Communities
WASHINGTON, DC – Today, Rep. Ruben Gallego (AZ-03) announced his support for the Access to Credit for our Rural Economy (ACRE) Act of 2023. This bipartisan legislation would allow more financial institutions to offer affordable lines of credit to rural and agricultural borrowers.
“Too often, farmers and other rural Arizonans struggle to access loans for their homes and business,” said Rep. Gallego. “I’m proud to back the bipartisan, commonsense ACRE Act to make it easier for rural Arizonans to access the capital they need within their own communities.”
The ACRE Act would amend the Internal Revenue Service (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 to over 4,000 rural communities nationwide and save family farmers and producers well over $400 million in annual interest expenses.
Backing this bill is part of Rep. Gallego’s ongoing efforts to support Arizona’s rural communities. Earlier this week, he announced his support for the Rural Physician Workforce Production Act of 2023 to lift the current cap on Medicare reimbursement payments to rural hospitals that cover the cost of taking on residents, in order to alleviate the serious disadvantage that rural hospitals face when recruiting new medical professionals.