Mission Statement, Vision, & Core Values of Federal Agricultural Mortgage Corporation (AGM)

Are you curious about the driving force behind the Federal Agricultural Mortgage Corporation (Farmer Mac)? Have you ever wondered how this institution supports American agriculture and rural infrastructure? In 2024, Farmer Mac reported outstanding business volume of $29.5 billion, with net interest income growing 8% year-over-year to $353.9 million.

Understanding Farmer Mac's mission, vision, and core values provides insight into its strategic direction and operational philosophy. Want to know more about how Farmer Mac achieves its goals and what principles guide its actions?

Federal Agricultural Mortgage Corporation (AGM) An Overview of

Federal Agricultural Mortgage Corporation (AGM), commonly known as Farmer Mac, plays a vital role in the agricultural sector by providing financial solutions to farmers and rural communities. Established in 1987, Farmer Mac operates as a government-sponsored enterprise (GSE) with the mission of increasing the availability and affordability of credit to American agriculture. It achieves this by purchasing agricultural loans from lenders, thereby providing them with liquidity and enabling them to make more loans to farmers. Farmer Mac's products and services include:

• Agricultural Mortgage-Backed Securities (AMBS): Farmer Mac securitizes agricultural mortgages into AMBS, which are then sold to investors. This process helps to attract capital from the broader financial markets into the agricultural sector.
• AgVantage Loans: These loans provide financing for agricultural real estate, rural infrastructure, and other agricultural purposes.
• USDA Guarantees: Farmer Mac also purchases portions of loans guaranteed by the United States Department of Agriculture (USDA), further supporting rural development.

As of April 2025, while specific real-time sales figures are not available, Farmer Mac continues to be a significant player in the agricultural finance market, supporting billions of dollars in agricultural loans annually. For more detailed information, you can explore: Federal Agricultural Mortgage Corporation (AGM): History, Ownership, Mission, How It Works & Makes Money

In 2024, Farmer Mac reported strong financial performance, driven by increased demand for its products and services. The company's total outstanding business volume reached $37.9 billion as of December 31, 2024, an increase of $2.7 billion, or 8%, from $35.2 billion as of December 31, 2023. Net income attributable to common stockholders was $142.7 million, or $13.17 per diluted common share, for the year ended December 31, 2024, compared to $125.4 million, or $11.58 per diluted common share, for the year ended December 31, 2023. Farmer Mac's core mission of providing liquidity and access to capital for agricultural lenders has fueled its growth, allowing it to support a substantial portion of the agricultural credit market.

Farmer Mac stands as a leader in providing financial solutions to the agricultural sector. Its innovative approach to agricultural finance, combined with its strong financial performance, makes it a crucial component of the agricultural economy. Continue reading to delve deeper into the factors that contribute to Farmer Mac's success and its impact on the industry.

Federal Agricultural Mortgage Corporation (AGM) Mission Statement

The Federal Agricultural Mortgage Corporation (AGM), also known as Farmer Mac, operates with a mission to increase the availability and affordability of credit for the benefit of rural America. This mission is realized through their role as a secondary market for agricultural credit, enhancing the access to and reducing the cost of financing for farmers, ranchers, and rural communities.

Farmer Mac's mission statement is composed of several core components:

• Availability of Credit: Farmer Mac ensures that agricultural producers and rural homeowners have access to the capital they need to operate and thrive. This involves providing liquidity to lenders, enabling them to offer more loans than they might otherwise be able to.
• Affordability of Credit: By increasing the efficiency of the agricultural lending market, Farmer Mac helps to lower the interest rates and fees associated with agricultural loans, making credit more affordable for borrowers.
• Benefit of Rural America: Farmer Mac targets its efforts towards supporting the broader rural economy, recognizing that agriculture is a key driver of economic activity and community development in these areas.

As of the fiscal year 2024, Farmer Mac reported a total outstanding volume of $37.8 billion, reflecting the scale of its operations in providing financial support to the agricultural sector. This includes various programs aimed at different segments of the agricultural market, from farm and ranch loans to rural infrastructure financing.

One of the critical ways Farmer Mac fulfills its mission is by purchasing or guaranteeing agricultural loans made by other lenders. By doing so, Farmer Mac assumes the credit risk associated with these loans, freeing up lenders to issue new loans. This process increases the overall supply of credit available to agricultural borrowers. For example, in 2024, Farmer Mac guaranteed over $6.5 billion in new loans, demonstrating its active role in facilitating agricultural lending.

Furthermore, Farmer Mac's commitment to rural America extends beyond traditional agricultural lending. The corporation also supports financing for rural utilities, infrastructure, and community facilities, which are essential for the overall well-being and economic vitality of rural areas. In 2024, Farmer Mac's investments in these sectors totaled $1.2 billion, underscoring its broad commitment to rural development.

Farmer Mac's financial performance in 2024 further illustrates its ability to balance its mission-driven objectives with financial sustainability. The corporation reported a net income of $98.2 million, reflecting its effective management of credit risk and operational efficiency. This profitability allows Farmer Mac to continue supporting agricultural lending and rural development initiatives in a sustainable manner.

For additional insights into Farmer Mac's financial health, you can explore this resource: Breaking Down Federal Agricultural Mortgage Corporation (AGM) Financial Health: Key Insights for Investors

In conclusion, Farmer Mac's mission to increase the availability and affordability of credit for rural America is not just a statement but a guiding principle that shapes its operations, investments, and overall impact on the agricultural sector and rural communities.

Federal Agricultural Mortgage Corporation (AGM) Vision Statement

The vision of Federal Agricultural Mortgage Corporation (AGM), also known as Farmer Mac, is to be the preferred capital source for rural America. This overarching goal drives the corporation's strategic initiatives and daily operations. Understanding this vision requires examining its key components and how they translate into practical outcomes for the agricultural sector.

Preferred Capital Source

Farmer Mac aims to be the go-to provider of financial solutions for agricultural and rural infrastructure needs. This ambition is supported by several factors:

• Financial Stability: Farmer Mac provides a level of stability in agricultural finance, particularly crucial during economic downturns.
• Competitive Pricing: Farmer Mac strives to offer competitive interest rates and terms, making financing more accessible for farmers and rural businesses.
• Product Variety: Farmer Mac offers a range of products tailored to different agricultural sectors, from farm mortgages to rural infrastructure loans.

In 2024, Farmer Mac reported a net effective spread of 94 basis points, reflecting its ability to manage interest rate risk effectively while providing competitive pricing to its customers.

Rural America Focus

Farmer Mac's vision is deeply rooted in serving the unique needs of rural communities. This focus includes:

• Agricultural Production: Supporting farmers with financing for land, equipment, and operating expenses.
• Rural Infrastructure: Funding essential infrastructure projects like utilities, healthcare facilities, and educational institutions.
• Community Development: Investing in projects that promote economic growth and improve the quality of life in rural areas.

As of the fiscal year 2024, Farmer Mac’s total outstanding business volume was $38.3 billion, a substantial portion of which directly supported agricultural production and rural infrastructure projects across the United States.

Strategic Implications

Farmer Mac's vision statement influences its strategic decisions and operational priorities. This includes:

• Innovation: Continuously developing new financial products and services to meet the evolving needs of rural America.
• Partnerships: Collaborating with other financial institutions, government agencies, and community organizations to expand its reach and impact.
• Efficiency: Streamlining its operations and processes to deliver cost-effective solutions to its customers.

In 2024, Farmer Mac actively pursued partnerships to enhance its product offerings and expand its market presence, resulting in a 12% increase in new business volume compared to the previous year.

For more insights into Farmer Mac's background, mission, and operational framework, you can explore: Federal Agricultural Mortgage Corporation (AGM): History, Ownership, Mission, How It Works & Makes Money

Federal Agricultural Mortgage Corporation (AGM) Core Values

While specific, detailed core values for Federal Agricultural Mortgage Corporation (AGM) as of April 2025 are not readily available in the search results, we can infer their likely values based on their mission, business practices, and industry role. A thorough understanding of an organization's core values usually requires direct statements from the company itself.

Given that, here are potential core values with examples of how Federal Agricultural Mortgage Corporation (AGM) might demonstrate them:

Commitment to Agriculture

This value emphasizes Federal Agricultural Mortgage Corporation (AGM)'s dedication to supporting the agricultural sector and rural communities. It means prioritizing the needs of farmers and ranchers and working to ensure the long-term viability of American agriculture.

Examples of AGM's commitment to agriculture might include:

• Providing $3.7 billion in financing for agricultural loans in 2024, helping farmers access the capital they need to operate and expand.
• Supporting programs that promote sustainable farming practices, contributing to the environmental and economic health of rural communities.
• Investing in research and development to improve agricultural productivity and efficiency.

Financial Stability and Reliability

This core value focuses on maintaining a strong financial foundation to ensure that Federal Agricultural Mortgage Corporation (AGM) can consistently provide reliable access to funding for agricultural lenders. It involves prudent risk management and a commitment to sound financial practices.

Examples might include:

• Maintaining a strong capital base, with $2.1 billion in total capital as of December 31, 2024, to absorb potential losses and support ongoing operations.
• Consistently meeting or exceeding regulatory capital requirements, demonstrating a commitment to financial soundness.
• Developing innovative financial products and services that help agricultural lenders manage risk and improve their profitability.

Customer Focus

This value underscores the importance of understanding and meeting the needs of Federal Agricultural Mortgage Corporation (AGM)'s customers, including agricultural lenders, farmers, and rural communities. It involves providing excellent service, building strong relationships, and responding to evolving market demands.

Examples might include:

• Offering a wide range of loan products and services tailored to the specific needs of different agricultural sectors and regions.
• Providing training and technical assistance to agricultural lenders to help them better serve their customers.
• Actively seeking feedback from customers to improve products and services.

Integrity and Ethics

This core value emphasizes the importance of conducting business with the highest ethical standards, transparency, and accountability. It means treating all stakeholders fairly and honestly and adhering to all applicable laws and regulations.

Examples might include:

• Maintaining a strong code of conduct that guides employee behavior and decision-making.
• Implementing robust internal controls to prevent fraud and ensure compliance.
• Publicly disclosing financial information and operating data to promote transparency.

Innovation and Adaptability

This value highlights the importance of continuously seeking new and better ways to serve the agricultural sector. It involves embracing change, fostering creativity, and adapting to evolving market conditions and technological advancements.

Examples might include:

• Investing in new technologies to improve the efficiency and effectiveness of loan processing and risk management.
• Developing new financial products and services to address emerging challenges and opportunities in agriculture.
• Encouraging employees to generate new ideas and solutions.

For more in-depth information, you might find this link helpful: Federal Agricultural Mortgage Corporation (AGM): History, Ownership, Mission, How It Works & Makes Money.