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About Federal Agricultural Mortgage Corporation (Farmer Mac)
The Federal Agricultural Mortgage Corporation, commonly known as Farmer Mac (NYSE: AGM), is a stockholder-owned, government-sponsored enterprise (GSE) established by Congress to enhance the availability of long-term credit for America's agricultural and rural sectors. Farmer Mac plays a pivotal role in the U.S. financial ecosystem by providing a secondary market for qualified agricultural mortgage loans, rural housing loans, rural utilities loans, and USDA-guaranteed portions of agricultural and rural development loans. Through its mission-driven approach, Farmer Mac supports the economic vitality of rural America by offering liquidity, risk management, and capital relief to lenders.
Core Business Model
Farmer Mac operates primarily by purchasing eligible loans, securitizing them into Farmer Mac Guaranteed Securities, and facilitating "swap" transactions where lenders exchange loans for securities. These activities provide lenders with increased lending capacity and reduced risk exposure. The company's diversified revenue streams include interest income from its loan portfolio, guarantee fees from securitized loans, and earnings from its investment activities. Farmer Mac’s business segments include:
- Farm & Ranch: Purchases and securitizes loans secured by agricultural real estate and rural housing.
- Corporate AgFinance: Offers financing solutions to agribusinesses and agricultural cooperatives.
- Power & Utilities: Supports rural electric cooperatives and renewable energy projects.
- Broadband Infrastructure: Expands access to high-speed internet in rural areas.
- Renewable Energy: Facilitates financing for sustainable energy projects in rural communities.
Market Position and Competitive Landscape
As the nation’s premier secondary market provider for agricultural credit, Farmer Mac is uniquely positioned to address the financial needs of rural America. Its GSE status allows it to access low-cost capital, enabling competitive financing solutions. Farmer Mac’s focus on rural infrastructure and agricultural finance differentiates it from traditional financial institutions, while its diversified portfolio mitigates risks associated with economic cycles and commodity price volatility. The company is also committed to innovation, leveraging financial instruments and partnerships to expand its market reach.
Significance and Impact
Farmer Mac’s operations contribute to the economic framework of rural America by ensuring the availability of affordable credit for farmers, ranchers, rural homeowners, and businesses. Its efforts support job creation, infrastructure development, and sustainability in rural communities. By providing liquidity and stability to agricultural lenders, Farmer Mac plays a critical role in fostering growth and resilience in the agricultural and rural sectors.
Farmer Mac (NYSE: AGM) has reported strong financial results for 2024, with notable growth in key metrics. Net interest income increased 8% year-over-year to $353.9 million, while net effective spread grew 4% to $339.6 million. The company achieved net income attributable to common stockholders of $180.4 million, up from $172.8 million in the previous year.
The company's financial position remains robust with total core capital of $1.5 billion and a Tier 1 Capital Ratio of 14.2% as of December 31, 2024. The Board of Directors approved a 7% increase in the quarterly dividend to $1.50 per share, marking the fourteenth consecutive annual increase. The company maintained strong liquidity with 264 days of coverage.
President and CEO Brad Nordholm expressed optimism about the company's position, highlighting its strong liquidity, capital levels, diversified business mix, and risk management practices as key factors supporting their mission to strengthen Rural America's economic framework.
Farmer Mac (NYSE: AGM), the Federal Agricultural Mortgage , has scheduled the release of its Q4 and full-year 2024 financial results for Friday, February 21, 2025, before market open. The company will host a conference call at 8:30 a.m. eastern time to discuss the results.
Farmer Mac operates as the nation's secondary market provider, enhancing financing accessibility and liquidity for American agriculture and rural infrastructure. The company supports rural America by offering solutions for financial institutions' growth, liquidity, risk management, and capital relief needs across various sectors including agriculture, agribusiness, broadband infrastructure, power and utilities, and renewable energy.
Farmer Mac (NYSE: AGM) has completed a $318.8 million securitization of agricultural mortgage loans, marking its fifth FARM series transaction since 2021. The FARM 2024-2 mortgage pool comprises 446 agricultural mortgage loans, featuring a $294.9 million senior tranche guaranteed by Farmer Mac and a $23.9 million unguaranteed subordinate tranche. The senior tranche is structured into three guaranteed classes (A, A1, and A2) offering different principal repayment cashflows to attract new investors. The transaction demonstrates strong demand from diverse investors and reinforces Farmer Mac's commitment to improving credit accessibility in rural America.
Farmer Mac has declared its fourth quarter dividends for 2024. Common stockholders will receive $1.40 per share across all three classes of common stock (AGM.A, Class B, and AGM), payable on December 31, 2024, to holders of record as of December 16, 2024. The company also declared dividends for its four preferred stock classes: Series D at $0.35625, Series E at $0.359375, Series F at $0.328125, and Series G at $0.3046875 per share, all payable on January 17, 2025, to holders of record as of January 2, 2025.
Farmer Mac (NYSE: AGM) reported its Q3 2024 results with net income of $42.3 million and core earnings of $44.9 million ($4.10 per diluted share). The company maintained a strong capital position with total core capital of $1.5 billion, exceeding statutory requirements by 66%. Net interest income was $86.8 million, slightly down from $87.6 million in Q3 2023, while net effective spread improved by $2.0 million to $85.4 million. The company provided $2.0 billion in liquidity and lending capacity to rural American lenders, with outstanding business volume reaching $28.5 billion.
Farmer Mac (NYSE: AGM and AGM.A), the nation's secondary market provider for agricultural and rural infrastructure financing, has announced it will release its financial results for Q3 2024 on Monday, November 4, 2024, before market open. A conference call to discuss the results is scheduled for 4:30 p.m. eastern time on the same day.
Investors can access the call via phone or webcast. Domestic callers should dial (800)-836-8184, while international callers can use (646)-357-8785. The webcast will be available at https://www.farmermac.com/investors/events-presentations/. A replay of the call will be accessible on Farmer Mac's website after the conference concludes.
Farmer Mac (NYSE: AGM and AGM.A), the nation's secondary market provider for agricultural and rural infrastructure financing, has relocated its headquarters to 2100 Pennsylvania Ave NW, Washington, D.C. The new office space is designed to foster collaboration, flexibility, and sustainability. Key features include:
- A mix of workstations, communal areas, private phone rooms, and a quiet zone
- Focus on employee well-being and environmental sustainability
- Pending applications for LEED and WELL certifications
- Implementation of the innovative 'Presence with Purpose' hybrid work model
President and CEO Bradford T. Nordholm emphasized that the new headquarters reflects Farmer Mac's commitment to creating a workspace that supports a strong culture and promotes employee productivity.
Farmer Mac (NYSE: AGM) has declared its third quarter dividends for common and preferred stock. For common stock, a dividend of $1.40 per share will be paid on September 30, 2024, to holders of record as of September 16, 2024. This applies to all three classes of common stock: Class A Voting, Class B Voting, and Class C Non-Voting.
For preferred stock, dividends were declared for four classes: Series D (5.700%), Series E (5.750%), Series F (5.250%), and Series G (4.875%). These dividends will be payable on October 17, 2024, to holders of record as of October 1, 2024. Farmer Mac aims to increase accessibility of financing for American agriculture and rural infrastructure as a secondary market provider.
Farmer Mac (NYSE: AGM) reported strong Q2 2024 results, showcasing resilience in an uncertain economic environment. Net interest income grew 11% year-over-year to $87.3 million, while net effective spread increased 2% to $83.6 million. The company maintained a robust capital position with total core capital of $1.5 billion, exceeding statutory requirements by 71%. Farmer Mac provided $1.5 billion in liquidity and lending capacity to rural America lenders. Despite these positive metrics, net income attributable to common stockholders slightly declined by $0.1 million to $40.3 million. Core earnings were $39.8 million, or $3.63 per diluted common share. The company's strong performance was attributed to its diversified revenue streams and disciplined asset liability management.
Farmland Partners Inc. (NYSE: FPI) has announced the appointment of Dr. Bruce Sherrick to its Board of Directors, effective July 23, 2024. Dr. Sherrick, a renowned agricultural economist and farmland expert, brings extensive experience in agricultural economics, farmland investment, and public company board service. He currently holds the Marjorie and Jerry Fruin Professorship at the University of Illinois and runs the TIAA-CREF Center for Farmland Research. Dr. Sherrick's expertise includes credit risk assessment, farmland investment performance tracking, and agricultural finance. His appointment is expected to provide valuable economic insights and a unique perspective to FPI's board, potentially strengthening the company's operational performance and future planning.
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