Feenstra Leads Legislation to Lower Interest Rates for Agricultural and Rural Home Loans
WASHINGTON, D.C. – Today, U.S. Rep. Randy Feenstra (R-Hull) introduced the Access to Credit for our Rural Economy (ACRE) Act, which would benefit American families, farmers, and rural communities nationwide by making loans more accessible and affordable.
U.S. Reps. Nathaniel Moran (R-TX) and Don Davis (D-NC) are co-leading this legislation.
“On my 36 County Tour, I repeatedly hear from Iowans who are very concerned about the high cost of living and want relief from the high prices. 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,” said Rep. Feenstra. “One of my top priorities as a member of the Ways and Means Committee is to enact policies that bring jobs and investment to rural communities. That’s why I introduced the ACRE Act to ensure that our families can buy homes in rural areas, our producers can access the capital that they need to feed and fuel our country and the world, and our community banks can offer credit at lower rates. This legislation will help young families plant their roots in rural Iowa, strengthen our state’s status as an agricultural powerhouse, and support rural lenders who drive economic growth up and down our main streets and across our rural communities.”
“The Iowa Bankers Association applauds Congressman Feenstra’s work to drive down the cost of credit and boost Iowa’s rural economy,” said Adam Gregg, President and CEO of the Iowa Bankers Association. “This legislation will directly benefit farmers and rural homeowners. We thank Congressman Feenstra for his work on the ACRE Act and for his unwavering commitment to rural Iowa.”
“ABA applauds today’s introduction of the Access to Credit for our Rural Economy Act of 2025, and we thank the bill’s lead sponsors Senator Jerry Moran (R-KS), Senator Angus King (I-ME), Senator Ruben Gallego (D-AZ), Senator Kevin Cramer (R-ND), Senator Tommy Tuberville (R-AL), Rep. Randy Feenstra (R-IA-04), Rep. Don Davis (D-NC-01) and Rep. Nathaniel Moran (R-TX-01) for their leadership on this issue,” said Rob Nichols, President and CEO of the American Bankers Association. “The ACRE Act will deliver much-needed financial support to farmers and ranchers working through a difficult economic cycle by lowering the cost of credit without creating new government payments or programs. It would also drive down the cost of homeownership and increase access to credit in more than 17,000 rural communities across the country. We urge all members of Congress to support this critically important legislation.”
“This important legislation will help community bank lenders revive and sustain rural economies struggling to overcome the impact of higher interest rates,” said Rebeca Romero Rainey, President and CEO of Independent Community Bankers of America. “ICBA and the nation’s community banks thank Congressman Feenstra (R-IA) and Davis (D-NC) for providing a reasonable solution that benefits rural Americans, especially young, beginning, and small farmers and ranchers, who will make up the next generation of producers.”
More specifically, the ACRE Act would amend 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 17,000 rural communities nationwide.
Full legislative text can be found HERE.
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