Enhancing Credit Opportunities in Rural America (ECORA) Act Issue Update

Issue Update

The Enhancing Credit Opportunities in Rural America Act (H.R. 1977), also known as ECORA, is a farmer friendly bill to help lower the cost of financing farm and ranch real estate. ECORA has been introduced in the House of Representatives by Representatives Ron Kind (D-WI) and Randy Feenstra (R-IA) in the 117th Congress.

Without record financial assistance from USDA, net farm income would have dropped dramatically in 2020. With farm incomes declining from their high in 2012, Congress needs to do everything they can to help farmers and ranchers do more with less income. ECORA would enhance net farm income for the long term and will benefit agricultural producers that aren’t likely to receive similar direct assistance in the future.

Why It Matters

Congress is in a position to help our country’s farmers and ranchers 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 and ranchers feel the squeeze. Simply put, ECORA will lower the cost for farmers and ranchers to acquire credit in rural America.

ECORA removes the taxation on income from farm real estate loans that are made by Federal Deposit Insurance Corporation backed financial institutions. By removing this taxation, the cost to make farm and ranch real estate loans will be reduced, and the savings will be passed on to farm and ranch customers. It is estimated that ECORA could reduce the average interest rate on a farm and ranch real estate loan by 21%. ECORA offers a simple solution to help farmers and ranchers during this time of lower farm incomes without creating new government payments or programs.

Recommended Action Items

Cosponsor ECORA

Helping farmers and ranchers obtain low cost credit is a bipartisan priority.

Hold Hearings on ECORA

The House of Representatives Agriculture and Ways and Means Committees and the Senate Agriculture and Finance Committees have jurisdiction over this legislation. The committees should hold hearings on the value of ECORA to farmers and ranchers and give financial institutions the opportunity to explain the benefits of this legislation.