Federal Agricultural Mortgage (AGM)

Farmer Mac’s largest business is its Farm & Ranch segment, which involves eligible mortgage loans secured by first liens on agricultural real estate and rural housing. By buying or guaranteeing these loans from lenders, the company helps banks, farm credit institutions, and other originators recycle capital and continue lending to farmers, ranchers, and rural borrowers. This secondary-market role is similar in concept to other government-sponsored enterprise models, though Farmer Mac focuses on agricultural and rural credit rather than conventional residential mortgages.

The company’s operations also extend into Corporate AgFinance, Power & Utilities, Broadband Infrastructure, Renewable Energy, Funding, and Investments. Through these segments, Farmer Mac provides liquidity to lenders and borrowers involved in agribusiness, rural electric cooperatives, telecommunications infrastructure, renewable energy projects, and USDA-guaranteed loan programs. A subsidiary purchases portions of certain loans guaranteed by the U.S. Department of Agriculture, including agricultural, rural development, business and industry, and community facilities loans.

Farmer Mac earns revenue from interest income, guarantee and commitment fees, and investment activities, while managing credit, interest-rate, funding, and regulatory risks. Its importance comes from its specialized mandate: it links capital markets with rural lenders and borrowers, helping support long-term financing for farmland, rural housing, infrastructure, and essential services in communities throughout the United States.