Federal Agricultural Mortgage Corp (NYSE: AGM)

Federal Agricultural Mortgage Corporation, also known as Farmer Mac, is a stockholder-owned, federally chartered corporation operating in the agricultural and rural finance industry. The company provides a secondary market for agricultural and rural loans, with the aim of increasing access to credit for rural America and agricultural borrowers.

Farmer Mac generates revenue through interest income earned on assets held on its balance sheet, as well as guarantee and commitment fees received for outstanding guaranteed securities and long-term standby purchase commitments (LTSPCs). These revenues are primarily funded through debt issuance in the public capital markets.

The company's secondary market activities are divided into two main lines of business: Agricultural Finance and Rural Infrastructure Finance. Within these lines, there are four segments: Corporate AgFinance, Farm & Ranch, Rural Utilities, and Renewable Energy. The Agricultural Finance segment provides a secondary market for eligible agricultural mortgage loans, including Farm & Ranch loans, which are secured by first liens on agricultural real estate. The Farm & Ranch segment focuses on providing financing for agricultural producers and rural housing borrowers. The Corporate AgFinance segment provides financing for larger, more complex agricultural operations and agribusinesses. The Rural Utilities segment provides financing for rural utilities, such as electric cooperatives and telecommunications providers. Finally, the Renewable Energy segment provides financing for renewable energy projects, such as wind and solar farms.

Farmer Mac's competitive advantages include its ability to provide a stable and efficient secondary market for agricultural and rural loans, as well as its expertise in underwriting and servicing these types of loans. The company's key competitors include other government-sponsored enterprises, such as the Farm Credit System, as well as private lenders and investors.

Farmer Mac's customers include agricultural producers, rural housing borrowers, and rural utilities, as well as lenders and investors who participate in its secondary market. The company's largest customers are the Farm Credit System institutions, which are a network of banks and associations that provide financing to agricultural producers and rural communities.

As a publicly-traded corporation, Farmer Mac is subject to the oversight of the Federal Crop Insurance Corporation (FCA) and the Office of Secondary Market Oversight (OSMO). The company is required to file quarterly reports of condition with OSMO and is subject to regular examinations by FCA.

Farmer Mac's human capital is comprised of 185 employees, with 36 new employees hired during the year resulting in a net increase of 27 employees compared to year-end 2022. The company has a geographic evolution in its workforce, with employees located in 27 states across the United States. The workplace culture is focused on community, collaboration, and communication, with a hybrid work approach that relies on managers and leaders to consider their unique team circumstances and determine an appropriate cadence for purposeful in-person presence.

In terms of compensation and benefits, Farmer Mac offers a robust paid time off program, an "equity for all" program, a group health plan, a 401(k) plan, and other benefits. The company also has a talent acquisition and development program, which includes a comprehensive suite of learning and development services, as well as a succession planning program.

Farmer Mac's philanthropic activities include supporting agricultural and rural communities, as well as participating in community and charitable service activities. The company's mission is to serve the public purpose by providing a stable and efficient secondary market for agricultural and rural loans, thereby increasing access to credit for rural America and agricultural borrowers.

The brand names and/or trade names of Farmer Mac's products and services include the Agricultural Finance segment, the Farm & Ranch segment, the Corporate AgFinance segment, the Rural Utilities segment, and the Renewable Energy segment. These segments provide a range of financing options for agricultural producers, rural housing borrowers, and rural utilities, as well as lenders and investors who participate in the secondary market.