Federal Agricultural Mortgage

#4394

Rank

$1.92B

Marketcap

United States

Country

Leadership team

Mr. Bradford Todd Nordholm (Pres & CEO)

Ms. Aparna Ramesh (Exec. VP & CFO)

Mr. Stephen P. Mullery (Exec. VP, Gen. Counsel & Corp. Sec.)

Products/ Services

Agriculture, Credit, Financial Services, Rental

Number of Employees

100 - 500

Headquarters

Johnston, Iowa, United States

Established

1988

Company Registration

SEC CIK number: 0000845877

Net Income

100M - 500M

Revenue

100M - 500M

Traded as

AGM

Social Media

URL

https://www.farmermac.com

Overview

Location

Recognition and Award

References

Summary

Federal Agricultural Mortgage Corporation provides a secondary market for various loans made to borrowers in the United States. It operates through four segments: Farm & Ranch, USDA (United States Department of Agriculture) Guarantees, Rural Utilities, and Institutional Credit. The Farm & Ranch segment purchases and retains eligible mortgage loans that are secured by first liens on agricultural real estate; securitizes eligible mortgage loans, and guarantees the timely payment of principal and interest on securities representing interests in or obligations secured by pools of mortgage loans; and issues long-term standby purchase commitments (LTSPC) on designated eligible mortgage loans. The USDA Guarantees segment purchases portions of certain agricultural and rural development loans guaranteed by the USDA. The Rural Utilities segment purchases and guarantees securities that are backed by loans for electric or telecommunications facilities by lenders organized as cooperatives to borrowers; and purchases eligible rural utilities loans and guarantees of securities backed by those loans, as well as LTSPCs for pools of eligible rural utilities loans. The Institutional Credit segment guarantees and purchases general obligations of lenders and other financial institutions that are secured by pools of loans eligible under the Farmer Mac's Farm & Ranch, USDA Guarantees, or Rural Utilities lines of business. Federal Agricultural Mortgage Corporation was founded in 1987 and is headquartered in Washington, District of Columbia.

History

It was created by the Agricultural Credit Act of 1987 as a federally chartered, private corporation responsible for guaranteeing the timely repayment of principal and interest to investors in a new agricultural secondary market. The secondary market allows a lending institution to sell a qualified farm real estate loan to an agricultural mortgage marketing facility, or pooler, which packages these loans, and sells to investors securities that are backed by, or represent interests in, the pooled loans. Farmer Mac guarantees the timely repayment of principal and interest on these securities and, under authorities granted in 1995, can also serve as a loan pooler.

The company was founded in the midst of a $4 billion bailout of the Farm Credit System, hoping to provide an alternative source of credit to farmers following the models of Fannie Mae and Ginnie Mae.

Financial crisis of 2008

In June 2008, Farmer Mac had $47.2 million invested in Fannie Mae shares. Over the next few months, in the wake of the Federal takeover of Fannie Mae and Freddie Mac, these investments lost about $44 million in value. The company also had significant investments in the newly-bankrupt Lehman Brothers Holdings. In response, the Farm Credit System bailed the company out by purchasing $60 million in Farmer Mac stock, and Zions Bancorporation of Salt Lake City purchased another $5 million in stock.

Mission

The mission of Farmer Mac is to provide a secondary market that increases the availability and affordability of credit for the benefit of American agriculture and rural America.

Vision

Farmer Mac strongly believes that it has a responsibility to make sure that rural America has access to the credit it needs to grow and develop. Farmer Mac's vision is to become the leading provider of credit to rural America.

Key Team

Mr. Zachary N. Carpenter (Exec. VP & Chief Bus. Officer)

Mr. Marc J. Crady (Sr. VP & Chief Credit Officer)

Mr. Robert J. Maines (Sr. VP of Operations)

Mr. Gregory N. Ramsey (VP, Controller & Principal Accounting Officer)

Ms. Jalpa Nazareth (Director of Investor Relations & Fin. Strategy)

Michelle Nichols (Director of Compliance)

Megan Murray-Pelaez (Director of Marketing & Communications)

Recognition and Awards

Farmer Mac has been recognized for its work in promoting access to credit in rural America. In 2016, Farmer Mac won the CapitalOne Financial Education Achievement Award for its commitment to financial education for farmers.