A bipartisan measure to reduce borrowing costs for farmers and ranchers is co-sponsored by US Representative Randy Feenstra.
The bill would eliminate taxes on income from agricultural real estate loans made by community banks. This is the Enhancing Credit Opportunities in Rural America Act.
“The Enhancing Credit Opportunities in Rural America Act is an important proposal that will help provide lower cost loans to farmers and ranchers,” Feenstra, a Republican from Hull, said in a written statement. “Our hard-working farmers feed and feed the world, and I will support any effort that will provide them with the resources they need to be successful in today’s economy.
The proposal would grant tax-exempt status to income earned on agricultural mortgage loans administered by banks. Agricultural credit institutions already benefit from a tax exemption status for the agricultural real estate loans they administer.
Feenstra said the proposed change would create competition, lower interest rates and provide farmers with more affordable loan options.
U.S. Representative Ron Kind, D-Wisconsin, is the bill’s other co-sponsor.
Feenstra represents the 4th Congressional District of Iowa, which includes Webster County and all of its surrounding counties.