Farmer Mac

What Farmer Mac does

Farmer Mac (legal name: Federal Agricultural Mortgage Corporation; NYSE: AGM, AGM.A) is a federally chartered government-sponsored enterprise (GSE) created by Congress in 1988 under the Agricultural Credit Act of 1987 to provide secondary market liquidity for agricultural and rural infrastructure financing. The company operates as a wholesale intermediary: agricultural and rural lenders originate loans, then sell them to Farmer Mac or obtain credit protection, freeing capital for additional originations. Its core products include Farm & Ranch Loan Purchase, USDA Guaranteed Loan Purchase, Agricultural Mortgage-Backed Securities (AMBS), Farm & Ranch Credit Protection, AgVantage facilities, and Farm Equity AgVantage. Underpinning the platform is AgPower, a proprietary loan underwriting system providing approved lenders with daily rates and streamlined processing, plus the FARM Program performance dataset and the proprietary Historical Cost of Funds Index (COFI).

Farmer Mac generates revenue primarily through net interest income on its $34.8 billion portfolio of agricultural mortgages, rural infrastructure loans, and liquidity investments (offset by interest expense on issued debt), supplemented by securitization and guarantee fees from AMBS transactions, annual credit protection commitment fees, and AgVantage facility fees. The company distributes exclusively through an approved lender network spanning all 50 states, including community banks, Farm Credit System institutions, insurance companies, rural electric cooperatives, broadband lenders, agricultural funds, and agribusinesses, with direct outreach via state-level relationship managers. Named customer evidence includes Pioneer Bank and Colorado Community Bank on the community banking side and Bridge Renewable Energy on the rural infrastructure side. Debt securities are distributed through an approved dealer group including Morgan Stanley, BofA Securities, Barclays, Jefferies, Wells Fargo, and others.

The company is regulated by the Farm Credit Administration through the Office of Secondary Market Oversight and is an institution of the Farm Credit System (without cross-liability to other FCS entities). It maintains $1.7 billion in capital reserves, a 13.0% Tier 1 Capital Ratio (62% above regulatory minimum), and has delivered ten consecutive years of record annual core earnings, reaching $182.9 million in FY 2025. Its Q1 2026 results were records across revenue ($109.9M, up 14% YoY), net interest income ($101.4M, up 11% YoY), and core earnings ($51.7M, up from analyst estimates by 6.76%). Farmer Mac has publicly targeted $50-55 billion in outstanding business volume by 2030 and is currently in a planned CEO succession, with Zachary N. Carpenter assuming the CEO role on July 1, 2026.

Name

Farmer Mac

Legal name

Federal Agricultural Mortgage Corporation

Website

https://farmermac.com

Company type

Public

Founded year

1988

Operating status

Operating

Headcount range

101–250 employees

Short description

Farmer Mac is a federally chartered GSE that provides secondary market liquidity for U.S. agricultural and rural infrastructure loans, purchasing or guaranteeing loans originated by community banks, Farm Credit System institutions, and rural utilities through an approved lender network spanning all 50 states.

Ownership category

akta.pro rank

Product category

Agricultural Mortgage Finance

NAICS

Credit Intermediation and Related Activities (522)

SIC

Federal & Federally-Sponsored Credit Agencies (6111), Mortgage Bankers & Loan Correspondents (6162)

akta.pro primary industry

Mortgage Loan Sales & Aggregation (Correspondent/Conduit Aggregators) (FSALAFAD)

akta.pro secondary industry

Agency MBS Securitization & Issuance (GSE/Ginnie) (FSALAFAA)

Keywords

• Agricultural mortgage finance
• Rural infrastructure lending
• Secondary market credit
• Loan securitization services
• Agricultural credit guarantee

Headquarters

HQ city

Johnston

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Infrastructure, Marketing or Sales, Others

Revenue model

1. Net Interest Income: Farmer Mac earns interest income on its portfolio of agricultural mortgage loans, rural infrastructure loans, and liquidity investments, offset by interest expense on debt securities issued to fund these assets. Net interest income was $101.4 million in Q1 2026, up 11% year-over-year, and $390.7 million for full year 2025, up 10% year-over-year.
2. Securitization and Guarantee Fees: Farmer Mac earns fees from securitizing agricultural mortgage loans into Agricultural Mortgage-Backed Securities (AMBS) and providing credit guarantees on these securities. The company has completed multiple securitization transactions including a $313.5 million transaction in December 2025 and $318.8 million in November 2024.
3. Farm & Ranch Credit Protection Fees: Lenders pay annual commitment fees for credit protection from Farmer Mac on specified eligible loans. For a modest annual fee, Farmer Mac commits to purchase any scheduled loans that default, providing loss protection that can be structured with the lender retaining a portion of risk.
4. Wholesale Financing - AgVantage: Farmer Mac provides wholesale financing facilities to agricultural funds, operating companies, and lenders through the Farm Equity AgVantage product. Institutions pledge eligible loans as collateral and issue AgVantage securities to Farmer Mac, generating low-cost capital for the borrower.

Go-to-market motion3 records

Distribution channels4 records

Marketing channels8 records

Core offering

Farmer Mac purchases agricultural and rural infrastructure loans from approved lenders, providing secondary market liquidity, securitization through Agricultural Mortgage-Backed Securities (AMBS), credit protection solutions, and AgVantage wholesale financing facilities. The company serves community banks, Farm Credit System institutions, insurance companies, agricultural funds, and rural utility/broadband lenders across all 50 U.S. states.

Product overview

Farmer Mac operates as a government-sponsored enterprise providing secondary market liquidity for agricultural and rural infrastructure financing. The company offers a platform of integrated products including Farm & Ranch Loan Purchase, USDA Guaranteed Loan Purchase, Agricultural Mortgage-Backed Securities (AMBS), AgVantage facilities, and Farm & Ranch Credit Protection solutions. The product portfolio centers on enabling rural lenders to access competitive financing through loan purchases, credit risk transfer, and securitization programs. Core products include the AgPower underwriting platform, FARM Program for loan performance data, and specialized financing for renewable energy and broadband infrastructure.

Differentiator

Problem solved

Functional benefit

Brands

• FARM Program: Farm & Ranch loan purchase and securitization program providing investors with periodic payment disclosure, loan level disclosure, and loan commodity disclosure data.
• AMBS (Agricultural Mortgage-Backed Securities)
• Farm Equity AgVantage
• AgVantage

Products and services

• Farm & Ranch Loan Purchase Farmer Mac purchases farm and ranch loans from approved rural lenders, providing them liquidity, competitive rates, and long-term fixed-rate loan products while maintaining customer relationships. Designed for community banks, Farm Credit System institutions, and agricultural lenders.
• USDA Guaranteed Loan Purchase Farmer Mac purchases USDA-guaranteed portions of FSA and Rural Development loans including Farm Ownership, Term Operating, Water & Environmental Programs, Business & Industry, and Community Facility loans. For banks, Farm Credit System institutions, and mortgage companies.
• Agricultural Mortgage-Backed Securities (AMBS) Farmer Mac Guaranteed Securities providing lenders both credit protection and liquidity, securitizing agricultural mortgages and USDA-guaranteed loans with timely payment guarantees. For approved lenders and institutional investors seeking GSE-quality agricultural exposure.
• Farm & Ranch Credit Protection Risk management tools that help lenders free up capital and reduce credit risk through customizable credit protection solutions including guaranteed security products and purchase commitment products. Risk weighting on protected loans can drop from 100% to as little as 20%.
• Farm & Ranch Purchase Commitment Credit protection product where Farmer Mac commits to purchase defaulted scheduled loans for a modest annual fee, allowing lenders to retain loans on balance sheet while eliminating credit risk.
• AgVantage Facility allowing rural lenders to borrow from Farmer Mac by pledging eligible loans as collateral, providing low-cost capital without impacting loan collateral or customer relationships.
• Farm Equity AgVantage Wholesale financing product for agricultural funds and operating companies to use existing assets as collateral for borrowing low-cost debt capital to expand farm or agribusiness operations. Institutions issue AgVantage securities to Farmer Mac.
• Rural Infrastructure Finance Financing solutions for power, utilities, and broadband infrastructure in rural communities, including renewable energy and rural connectivity projects. For rural electric cooperatives, utilities, and broadband infrastructure lenders.
• FARM Program Farm & Ranch Performance Data program providing historical loan performance data for investor analysis and transparency on agricultural mortgage-backed securities, with periodic payment, loan level, and loan commodity disclosures.

Quantifiable outcome

• Outstanding business volume of $34.8 billion with 17% year-over-year growth
• +3 more outcomes

Named customers3 records

Segments6 records

Ideal customer profiles5 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Partnerships

Three partnerships are on record, tiered core and supporting.

• Bridge Renewable EnergycoreStrategic or Co-development Partner · 22 October 2025Farmer Mac participated as a lender in an $80 million delayed draw term loan facility and $5 million revolving credit facility for Bridge Renewable Energy's 40 MW distributed energy solar and battery storage portfolio across nine U.S. states. The partnership supports Farmer Mac's expansion into renewable energy infrastructure financing.
• Energetic CapitalsupportingStrategic or Co-development Partner · 22 October 2025Energetic Capital was involved in the Bridge Renewable Energy project financing, representing a partnership in sustainable energy infrastructure.
• Approved Dealer NetworkcoreChannel Partner/ Reseller/ DistributorFarmer Mac maintains an approved dealer group including major financial institutions (Academy Securities, Barclays Capital, BofA Securities, Cantor Fitzgerald, Jefferies, Morgan Stanley, RBC Capital Markets, UBS, Wells Fargo, and others) for distribution of debt securities including discount notes and medium-term notes.

Scale indicators12 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• Fannie Mae: Fannie Mae (FNMA) is a federally chartered GSE that operates a secondary mortgage market and issues MBS — the closest structural analogue to Farmer Mac, differing primarily by serving residential rather than agricultural mortgages.
• Freddie Mac: Freddie Mac (FMCC) is a federally chartered GSE providing secondary market liquidity for residential mortgages via securitization. Like Farmer Mac, it relies on GSE status, agency debt funding, and securitization to deliver liquidity to a closed network of approved lenders.
• CoBank: CoBank is a Farm Credit System bank that provides wholesale lending, capital markets, and related services to agricultural cooperatives, rural infrastructure providers, and Farm Credit associations — directly competing with Farmer Mac in ag and rural infrastructure secondary market activities.
• AgriBank: AgriBank is a Farm Credit System bank that funds and supports associations across the U.S. Midwest and beyond. It overlaps Farmer Mac's agricultural lending and securitization franchise and competes for the same rural lender relationships.
• Federal Home Loan Banks: The FHLBank System is a GSE cooperative that provides wholesale funding and liquidity to member institutions, supporting housing finance and community lending. It mirrors Farmer Mac's GSE cooperative structure and mission of providing secondary market liquidity to a defined lender network.

Broad incumbents

• Ginnie Mae: Ginnie Mae (GNMA) is a U.S. government agency that guarantees MBS backed by government-insured loans. It shares Farmer Mac's securitization-and-guarantee model but is a federal agency rather than a GSE, and its mission is housing-related rather than agricultural.
• MetLife Investment Management — Agricultural Finance: MetLife's Agricultural Finance group is a major institutional investor in agricultural mortgages and rural infrastructure. It competes with Farmer Mac by directly purchasing ag loans and providing capital to the same lender and borrower segments.
• TIAA / Nuveen (Global Agriculture): TIAA's Nuveen agriculture platform invests in farmland and agribusiness debt and equity. It is an institutional capital provider to the rural and agricultural sectors, offering an alternative to Farmer Mac's secondary market solutions for large-scale ag operators.

Emerging players

• Sallie Mae: Sallie Mae (SLM) is a publicly traded specialty finance company that originates and holds private education loans. It shares Farmer Mac's hybrid GSE/private capital structure and securitization-heavy funding model, though its asset class (student loans) differs from agricultural mortgages.

Regional players

• Rabobank: Rabobank is a global food and agribusiness bank with deep U.S. agricultural lending exposure. While primarily a direct lender rather than a secondary market participant, it competes for the same ag borrowers and rural infrastructure opportunities in the U.S. market.

Market position

Strengths5 records

Weaknesses4 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/farmermacnews
• Facebookfacebook.com/farmermacnews

Revenue estimate

Valuation estimate

Number of profiles

Profiles9 records

Subsidiaries1 record

Funding overview

Funding rounds5 records

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments2 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Farmer Mac