News

Bankers seek support for tax legislation

Bankers are supporting a tax reform package they say would help farmers.  Ed Elfmann with the American Bankers Association tells Brownfield they are asking farmers and their associations to support the ACRE Act, or Access to Credit for our Rural Economy Act. “What ACRE does is it’s a tax bill that affects banks, but at the end of the day, it makes us more competitive across the board.”

Elfmann says interest rates are really a combination of risk and cost, so lowering the bank’s taxes will level the playing field with other types of ag lenders and lower the cost of money for farmers by reducing lender cost and increasing lender competition. “We believe it lowers interest rates 50-150 basis points on average for farmers. In a higher interest rate environment for farmers, that’s going to make a difference for a lot of folks.”

Elfmann says their estimates show passing the ACRE Act could reduce farmer interest charges by 1.15 billion dollars nationally and by 47 million dollars in Wisconsin alone. 

Elfmann spoke to Brownfield during the Wisconsin Agricultural Bankers Conference Friday.

He says with a lot of land notes coming due soon, the ACRE Act will make those renewals less painful, keeping those 4% notes from jumping to as high as 7% interest.

Elfmann says some states have passed similar legislation, but a national solution is needed.

Add Comment

Your email address will not be published.


 

Stay Up to Date

Subscribe for our newsletter today and receive relevant news straight to your inbox!

Brownfield Ag News