Federal Agricultural Mortgage Corporation (A353)

Overview

The Federal Agricultural Mortgage Corporation, commonly known as Farmer Mac, is a key player in the United States agricultural sector, providing a secondary market for a variety of loans. These loans primarily cater to borrowers involved in agriculture or rural utilities, including renewable energy projects. Established in 1987 and headquartered in Washington, D.C., the organization seeks to enhance the availability and affordability of credit for the development of rural America. It operates through distinct segments, each focusing on specific areas such as Corporate AgFinance, Farm & Ranch, Rural Utilities, and Renewable Energy, thereby supporting the diverse needs of rural America.

Products and Services

• Agricultural Finance

This line of business focuses on improving liquidity in the agricultural sector. The services include the purchase and retention of eligible loans and securities, guaranteeing the payment of principal and interest on securities backed by pools of eligible loans, and servicing eligible loans. It also encompasses issuing long-term standby purchase commitments (LTSPCs) for eligible loans, ensuring financial stability and support for farmers and agricultural businesses.

• Rural Infrastructure Finance

Understanding the critical role of infrastructure in rural development, this segment is dedicated to financing rural utilities and renewable energy projects. It includes the purchasing of rural utilities loans and renewable energy loans, guaranteeing securities backed by these loans, and issuing LTSPCs for pools of eligible rural utilities loans. This ensures access to essential services like electricity and telecommunications, especially for cooperatives and other financial institutions that finance the construction of these facilities.