U.S. Rep. Tom Osborne (R-Neb.) has introduced legislation to level the playing field between banks and Farm Credit System lenders. The nation's bank trade groups are applauding the legislation, H.R. 399, which would make interest income on farm real estate and certain housing loans exempt from taxation. "We applaud Rep. Tom Osborne for introducing legislation that will help strengthen the nation's rural economy by providing farmers, ranchers and rural homeowners access to lower-cost financing," said Ed Yingling, EVP of the ABA. Colorado banker Dale Leighty, ICBA chairman, said: "By providing banks with a tax exemption on lending income earned from certain agricultural real estate and mortgage loans, community banks and their borrowers will be able to enjoy some of the privileges that FCS system lenders now enjoy."

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