Letter to the editor: ECORA Act could give struggling farmers the help they need

Help farmers

In its Dec. 11 editorial, “‘There needs to be some relief’: Kansas farmers paying price for trade wars and inaction,” (16A) The Kansas City Star Editorial Board highlighted several issues facing farmers, including Washington’s failure to take action. But one key issue that wasn’t mentioned is access to affordable credit.

In a tough year marked by international trade disputes, untenably low commodity prices and unpredictable weather, farmers and ranchers across the state would benefit from lower credit rates made possible through tax incentives.

Currently, the only lender that benefits from substantial federal tax advantages is the government-sponsored Farm Credit System. The result is that many rural and agricultural borrowers don’t have equal access to affordable credit.

Thankfully, some federal lawmakers are working on a solution. ECORA, the Enhancing Credit Opportunities in Rural America Act, introduced by Sen. Pat Roberts and Rep. Steve Watkins, Republicans from Kansas, would extend the same tax advantages for other lenders and allow more institutions to offer lower cost credit to rural and agricultural borrowers.

That would help farmers across Kansas and in other states by ensuring that more borrowers — not just those preferred by Farm Credit institutions — have access to more affordable credit. Anyone who supports farmers and ranchers should support the ECORA Act.

- Doug Wareham, President and CEO, Kansas Bankers Association, Topeka