Federal Agricultural Mortgage Corporation (NYSE: AGM), commonly known as Farmer Mac, is a government-sponsored enterprise chartered in 1988 under the Agricultural Credit Act of 1987. Headquartered in Washington, D.C., Farmer Mac was established to enhance the availability of mortgage credit for the agricultural and rural utility sectors. The corporation operates as a secondary market for agricultural real estate and rural infrastructure loans, providing lenders with liquidity and risk management solutions.
The company’s principal business activities include purchasing and securitizing long-term fixed-rate agricultural mortgage loans and rural utilities loans originated by approved lenders. By acquiring these loans, Farmer Mac packages them into guarantee securities, enabling lenders to replenish their capital and extend new credit to farmers, ranchers, agribusinesses and rural utility borrowers. This model supports the stability and affordability of credit in the agricultural sector.
Farmer Mac offers a range of products and services designed to meet the financing needs of its customers. Its offerings include guaranteed mortgage-backed securities, stand-by purchase commitments, and risk-sharing transactions. The company also provides credit enhancements and other structured financing solutions that help lenders manage portfolio risk while promoting investment in farmland and rural utilities infrastructure.
Serving all regions of the United States, Farmer Mac plays a critical role in bolstering the agricultural credit system by working closely with commercial banks, Farm Credit System institutions and other approved lenders. The corporation is regulated by the Farm Credit Administration and subject to oversight by the U.S. Department of the Treasury, ensuring adherence to its public mission of supporting agricultural and rural finance.
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