Help Wisconsin Banks Support Rural Housing and Farmers with the ECORA Act
The Enhancing Credit Opportunities in Rural America (ECORA) Act provides an opportunity to benefit our farmers through better rates and loan terms, and boost local economic activity by ensuring that the agricultural industry will receive increased access to low-cost credit from banks.
How does ECORA work?
ECORA would remove the taxation on income from certain farm real estate loans that are made by financial institutions backed by the Federal Deposit Insurance Corporation (FDIC). The removal of this taxation would reduce banks’ cost to make farm real estate loans, providing farm customers with a more competitive market for interest rates. ECORA offers a simple solution to help farmers during this time of lower farm incomes without creating new government payments or programs.
Why is ECORA important?
Legislators are in a position to help our farmers in this current agricultural economy. Farm prices continue to remain stagnate while the cost for land and farm inputs continue to rise. When this happens, farmers feel the squeeze. Simply put, ECORA will lower the cost for farmers to acquire credit in rural areas, helping to address rural housing and farmers’ bottom lines.