In order to bolster the availability of credit products to borrowers in the agricultural sector, Federal Agricultural Mortgage Corporation was chartered by the United States federal government in 1988. The company continues to serve lenders and act as a secondary market in agricultural loans. The business is publicly traded on the New York Stock Exchange and continues to trade its shares under the symbol AGM.
Based in Washington, D.C. the company continues to work with lenders and purchases loans and markets instruments backed by those loans. The business is also commonly referred to as Farmer Mac. The business closely works with the United States Department of Agriculture. Also serving as a loan pooler, the business serves as the secondary market, which allows these lending institutions to sell their qualified farm real estate to agricultural mortgage marketing facilities or poolers. These loans are then packaged and sold to investors securities that are also part of the pooled loans. As a loan pooler, Farmer Mac ensures the timely repayment of the principal and interest on these securities.
Farmer Mac continues to function as a secondary market that promotes liquidity and provides lending capacity to its lenders. Other than purchasing those eligible loans, the business also issues long term standby purchase commitments for those eligible loans. Additionally, it securitizes assets and guarantees the payment of these liabilities. These activities are conducted by the company through its four reporting segments: USDA Guarantees, Farmer Mac Farm & Rach, Rural Utilities and Institutional Credit. These lines of business also have various sub-divisions that further mobilize the operations of the entire organization.
The group was created by the Agricultural Credit Act of 1987 as a federally chartered, private corporation. The efforts of the group continue to pave the development of the country’s agricultural sector and backs lender from any delinquencies and incapacity to pay for the loans approved.