Federal Agricultural Mortgage Corporation (AGM): Business Model Canvas [Dec-2025 Updated]

You're looking to understand the engine behind the financing of rural America, and honestly, mapping the Business Model Canvas for the Federal Agricultural Mortgage Corporation (AGM) reveals a fascinating, specialized operation. As someone who's spent two decades in this game, I can tell you their model hinges on their unique Government-Sponsored Enterprise (GSE) charter, which lets them provide vital liquidity to lenders-think of it as the backbone for over $31.1 billion in outstanding rural loans as of late 2025. Their revenue, driven by a $98.5 million net interest income in Q3 2025, is all about managing that spread and guaranteeing securities, so if you want to see exactly how this specialized entity turns regulatory status and loan pools into consistent shareholder returns, dive into the nine building blocks below.

Federal Agricultural Mortgage Corporation (AGM) - Canvas Business Model: Key Partnerships

You're looking at the ecosystem that keeps the Federal Agricultural Mortgage Corporation (Farmer Mac) running smoothly. Honestly, without these counterparties, the secondary market function just stalls. It's all about who originates the loans, who buys the paper, and who helps manage the process.

Financial institutions (lenders) who originate loans

Farmer Mac relies on a network of Approved Lenders to originate the loans that eventually become securities. These lenders use Farmer Mac's proprietary platform, AgPower® Loan Origination System, to underwrite and prepare loans. The relationship is mutually beneficial; lenders get access to competitive rates and liquidity, while Farmer Mac fulfills its mission.

The scale of this partnership is evident in the liquidity provided:

• Provided $2.5 billion in liquidity and lending capacity to lenders serving rural America in the third quarter ended September 30, 2025.
• Provided $1.8 billion in liquidity and lending capacity to lenders in the first quarter ended March 31, 2025.

Farm Credit System institutions (GSE segment)

As a fellow Government-Sponsored Enterprise (GSE), the Farm Credit System (FCS) is a major player in the agricultural lending space that Farmer Mac supports. While Farmer Mac doesn't lend directly to farmers, its secondary market activities complement the FCS's primary lending role. The System institutions are massive; as of June 30, 2025, the System banks and associations held $557 billion in assets. Farmer Mac, on the other hand, held $33 billion in assets as of that same date.

The structure involves specific stock ownership rules, which ties the GSEs together:

• Only institutions of the Farm Credit System may hold Farmer Mac's Class B voting common stock.
• Class B stockholders elect 5 members of Farmer Mac's 15-member board of directors.

Commercial banks and insurance companies

Farmer Mac engages with a broader set of financial institutions beyond the cooperative structure of the FCS. To facilitate loan origination for its members, Farmer Mac maintains strategic alliances with key banking associations. These relationships help drive volume by offering preferred terms to member banks.

Key association partnerships include:

• American Bankers Association (ABA): Enables ABA-member banks to receive Farmer Mac preferred rates for farm and ranch mortgage loans.
• Independent Community Bankers of America (ICBA): Offers ICBA-member banks preferred rates on select loan products and access to on-demand training.

For loan closing documentation, the preferred provider partner is PPDocs, Inc., which is fully integrated with the AgPower® system.

AgVantage counterparties for loan securitization

When Farmer Mac executes securitizations, particularly for its AgVantage securities, it relies on institutional counterparties. These counterparties are typically secured by eligible loans held by the issuing institution. You should know that Farmer Mac has historically had concentrated exposures to individual business counterparties on these AgVantage securities.

The FARM securitization program is central to its operation, with a target of $300 million deal sizes for farm securitizations in 2025. For example, the FARM Series 2025-1 transaction closed on June 11, 2025, with an aggregate principal balance of approximately $300.1 million, consisting of 350 agricultural mortgage loans.

Here's a look at the roles in that specific June 2025 deal:

Capital markets investors for debt and equity issuance

Farmer Mac must maintain access to the debt and equity markets to fund its operations and meet liquidity needs. The support from the investor base is crucial, especially amid market volatility. The company issued $100.0 million of Tier 1 capital in Q3 2025 via the public offering of 6.500% Series H non-cumulative preferred stock.

The total outstanding business volume as of September 30, 2025, surpassed $31.1 billion, which reflects the capital deployed through these markets. As of July 31, 2025, the total outstanding common stock was 1,030,780 shares of Class A, 500,301 shares of Class B, and 9,402,841 shares of Class C. This capital base supports the entire structure. Finance: draft 13-week cash view by Friday.

Federal Agricultural Mortgage Corporation (AGM) - Canvas Business Model: Key Activities

You're looking at the core engine of Federal Agricultural Mortgage Corporation (FARMER MAC) as of late 2025, based on the latest reported figures through the third quarter. These activities are what keep the capital flowing to rural America.

Providing secondary market liquidity for rural loans

The primary function is injecting liquidity into the agricultural and rural infrastructure finance markets. This is measured by the volume of business supported and the direct capacity provided to lenders.

• Provided $2.5 billion in liquidity and lending capacity to lenders serving rural America in the third quarter of 2025.
• Total outstanding business volume reached $31.1 billion as of September 30, 2025.
• Total on- and off-balance sheet segment assets stood at $31,119,162 thousand as of September 30, 2025.
• Total assets on the consolidated balance sheets were $33,379,560 thousand at the end of Q3 2025.

Here's a quick look at the quarterly liquidity support you saw this year:

Asset-liability management and funding execution

Managing the balance sheet effectively is crucial, especially given the interest rate environment. The net effective spread (NES) is a key metric here, as it reflects the spread earned between interest-earning assets and all related funding costs, including derivatives.

• Net Effective Spread (NES) hit a record $97.8 million in Q3 2025, growing 14% year-over-year.
• Net Interest Income for Q3 2025 was $98.5 million, up 13% year-over-year.
• The company maintained a strong capital position with total core capital of $1.7 billion as of September 30, 2025, which exceeded the statutory requirement by 75%.
• The investment portfolio, which acts as a back-up source of liquidity, was valued at $7.3 billion as of March 31, 2025.

The execution on funding was notable in the first half; for instance, funding costs improved materially in Q1 2025 by "buying into narrowing SOFR spreads," which helped the NES. Still, you have to watch the core earnings, which were $49.6 million in Q3 2025.

Acquiring and guaranteeing loan pools (AgVantage securities)

FARMER MAC guarantees securities backed by pools of eligible loans. The AgVantage securities are a significant part of the business volume.

• As of March 31, 2025, $8.3 billion of the $29.8 billion outstanding business volume were AgVantage securities.
• The total outstanding principal amount of AgVantage securities as of June 30, 2025, was $8.02 billion.
• The weighted-average remaining maturity for these outstanding AgVantage securities was 4.8 years as of March 31, 2025.

You can see the maturity profile for the AgVantage balances as of March 31, 2025 (amounts in thousands):

Also, the Power & Utilities segment closed a $300 million AgVantage security in Q1 2025.

Diversifying the portfolio into new asset classes

The Federal Agricultural Mortgage Corporation is actively growing its Infrastructure Finance line alongside its core Agricultural Finance business. This diversification helps manage risk and capture growth in rural development areas.

• As of December 31, 2024, Agricultural Finance volume was $20.5 billion, and Infrastructure Finance volume was $9.0 billion.
• Infrastructure Finance outstanding volume grew to $9.77 billion by Q1 2025.
• Broadband Infrastructure volume increased 22% since the end of 2024, approaching $1.0 billion in Q1 2025.
• The Renewable Energy segment added approximately $200 million in net loan purchases, representing a 14% increase in Q1 2025.

Maintaining GSE compliance and regulatory reporting

As a Government-Sponsored Enterprise (GSE), compliance with the Farm Credit Administration (FCA) rules is a constant, key activity, especially regarding capital adequacy.

• The Tier 1 Capital Ratio stood at 13.9% as of September 30, 2025.
• This $1.7 billion in total core capital exceeded the statutory requirement by 75% at the end of Q3 2025.
• As of June 30, 2025, FARMER MAC was classified as within 'level 1,' which is the highest compliance level for statutory capital requirements.
• 90-day delinquencies across all lines of business were reported at 0.57% as of September 30, 2025.

For context on credit quality, the 90-day delinquencies rose to 54 basis points (or 0.54%) in Q1 2025 from 37 basis points (or 0.37%) in Q4 2024, though this was noted as seasonal. Finance: draft the Q4 2025 capital adequacy projection by December 15th.

Federal Agricultural Mortgage Corporation (AGM) - Canvas Business Model: Key Resources

You're mapping out the core strengths of Federal Agricultural Mortgage Corporation (FARMER MAC) right now, and honestly, the foundation is rock solid, built on its unique government backing and strong balance sheet.

The single most important resource is its Government-Sponsored Enterprise (GSE) charter status. This status, stemming from being a federally chartered instrumentality of the United States, provides an implicit government guarantee that underpins market confidence and access to capital markets. This isn't just a title; it's the bedrock that allows FARMER MAC to operate as the nation's secondary market provider for agricultural and rural financing.

Capital strength is clearly a top-tier resource. As of the third quarter ended September 30, 2025, the company maintained a total core capital of $1.7 billion. That figure is significant because it exceeded the statutory minimum requirement by 75%, amounting to an excess of $723 million. This robust position supported a Tier 1 Capital Ratio of 13.9% at that same date.

FARMER MAC demonstrates reliable access to preferred stock capital, which is a key enabler for growth while maintaining regulatory ratios. For instance, in August 2025, the company successfully executed a public offering to issue $100.0 million of Tier 1 capital via the 6.500% non-cumulative perpetual Series H preferred stock. This issuance directly contributed to the increase in core capital.

The sheer scale and diversification of the loan portfolio represent a massive, tangible asset base. As of September 30, 2025, the total outstanding business volume reached $31.1 billion. This volume is spread across several key areas, showing a strategic shift away from reliance on single asset classes.

Here's a quick look at how that $31.1 billion volume was distributed across the main segments as of Q3 2025:

The firm's deep expertise in agricultural and infrastructure credit risk is a non-replicable resource. This expertise allows FARMER MAC to manage a well-diversified portfolio, which management noted was beneficial through changing market cycles. This is evidenced by their Q3 2025 performance metrics:

• Record Net Effective Spread of $97.8 million for Q3 2025.
• Record Core Earnings of $49.6 million for Q3 2025.
• Provided $2.5 billion in liquidity and lending capacity to lenders in Q3 2025.
• Maintained 317 days of liquidity as of September 30, 2025.

This operational strength, backed by the capital base, is what allows FARMER MAC to execute its mission effectively. The ability to generate strong earnings, like the $49.6 million in core earnings for the quarter, directly feeds back into strengthening the capital base. That's the flywheel working for you.

Federal Agricultural Mortgage Corporation (AGM) - Canvas Business Model: Value Propositions

Federal Agricultural Mortgage Corporation provides vital liquidity to rural lenders, evidenced by providing $2.5 billion in liquidity and lending capacity to lenders serving rural America in the third quarter of 2025. As of September 30, 2025, Federal Agricultural Mortgage Corporation maintained 317 days of liquidity, building on a total liquidity position of $8 billion and $900 million in cash reported in November 2025. This support is crucial when lenders report that over 70% of borrowers show worsening working capital. Federal Agricultural Mortgage Corporation has helped fund loans to over 100,000 rural borrowers across all 50 states over its history, resulting in more than $93 billion of investments in rural America.

The corporation offers risk management and capital relief for financial institutions. As of September 30, 2025, total core capital stood at $1.7 billion, which exceeded the statutory requirement by 75%, with a Tier 1 Capital Ratio of 13.9%. In the first quarter of 2025, 90-day delinquencies across all business lines were 0.54%. Rural lenders, however, reported farm loan delinquency rates of 1.45% in Q1 2025, highlighting the environment Federal Agricultural Mortgage Corporation helps mitigate.

Federal Agricultural Mortgage Corporation facilitates lower-cost, long-term financing for rural borrowers, with flexible terms available out to 30 years. The overall Outstanding Business Volume reached $31.1 billion as of the quarter ended September 30, 2025, up from $29.5 billion at the end of Q1 2025. In 2024, more than 90% of its Farm & Ranch and USDA guaranteed loans went to family farms. Furthermore, the financing provided supports rural electric cooperatives that power an estimated 16 million residential customers.

For shareholders, Federal Agricultural Mortgage Corporation delivers consistent returns, having increased its dividend for 14 consecutive years. The company declared a quarterly common stock dividend starting Q1 2025 of $1.50 per share, which represented a 7% increase from 2024. The projected 2025 Dividend Per Share (DPS) is $6.00, and the stated value proposition includes a 3.6% dividend yield. The target payout ratio remains around 35% of earnings.

Federal Agricultural Mortgage Corporation expands funding for renewable energy and broadband infrastructure. The Broadband Infrastructure segment grew by $300 million in 2024, representing 60% year-over-year growth. The renewable energy portfolio has doubled annually for the last five years, with solar and solar plus battery projects comprising 75% of that portfolio. Management plans for the Renewable Energy segment pipeline to double its portfolio volume again in 2025. The company also continues to target $300 million deal sizes for farm securitizations in 2025.

Here's a quick look at key financial performance metrics from the third quarter of 2025:

Federal Agricultural Mortgage Corporation (AGM) - Canvas Business Model: Customer Relationships

You're a lender in rural America facing tighter margins and higher rates in 2025; you rely on the Federal Agricultural Mortgage Corporation (AGM) to manage balance sheet risk and maintain funding capacity. This relationship is built on a foundation of long-term partnership, which is evident as 77% of agricultural lenders reported using Farmer Mac for agricultural real estate and USDA-guaranteed loans in 2025, an increase from 67% in 2024. The Federal Agricultural Mortgage Corporation (AGM) serves over 450 agricultural lenders nationwide through this collaborative approach.

The core of the Federal Agricultural Mortgage Corporation (AGM) relationship is providing vital liquidity and risk management solutions across diverse markets. Here's a look at the scale of the commitment to these financial institution customers as of late 2025:

Dedicated relationship management for financial institutions is crucial, especially as the Federal Agricultural Mortgage Corporation (AGM) expands its offerings beyond core Farm & Ranch into accretive segments like broadband infrastructure, power and utilities, and renewable energy. The Corporate Ag Finance segment reached $2 billion at the end of Q2 2025, showing growth opportunities that require tailored support. The company offers a wide range of solutions to meet these institutions' growth, liquidity, risk management, and capital relief needs.

High-touch service for AgVantage security issuers is integrated into the secondary market function, which provides liquidity to American agriculture and rural infrastructure finance businesses. The Federal Agricultural Mortgage Corporation (AGM) facilitates competitive access to financing, which fuels growth and innovation in rural communities. This service ensures that the market for these securities remains robust, supporting the lenders who issue them.

Maintaining a stable, reliable source of funding is a direct relationship commitment, as it assures lenders that the Federal Agricultural Mortgage Corporation (AGM) can meet their needs across economic cycles. The organization maintained a strong capital position as of September 30, 2025, with total core capital of $1.7 billion, which exceeded the statutory requirement by 75%. Furthermore, as of September 30, 2025, Farmer Mac had 317 days of liquidity on hand.

• Lenders rely on Farmer Mac to manage balance sheet risk.
• The firm's mission is to provide capital through agricultural and economic cycles.
• Net interest income grew 13% year-over-year to $98.5 million in Q3 2025.
• Net effective spread reached a record $97.8 million in Q3 2025.

Federal Agricultural Mortgage Corporation (AGM) - Canvas Business Model: Channels

You're looking at how Federal Agricultural Mortgage Corporation (AGM) gets its products and services to market, which is all about providing liquidity to lenders in rural America.

Direct loan purchase from local and regional lenders

Federal Agricultural Mortgage Corporation purchases or commits to purchase eligible mortgage loans secured by first liens on agricultural real estate. This channel helps lenders preserve capital and offer their borrowers attractive rates and terms. The company provided $2.5 billion in liquidity and lending capacity to lenders serving rural America in the third quarter of 2025. The total outstanding business volume across all lines reached $31.1 Billion as of September 30, 2025. The on-balance sheet Farm & Ranch Loans stood at $5,915,220 thousand as of that same date.

The volume breakdown for the Farm & Ranch category as of September 30, 2025, included:

AgVantage securities program for loan pool guarantees

The AgVantage securities program involves guaranteeing securities that represent interests in or obligations secured by pools of eligible loans. As of September 30, 2025, the on-balance sheet balance for AgVantage Securities was $3,745,000 thousand, down from $4,720,000 thousand on December 31, 2024. Management noted a strategic shift away from lower-spread AgVantage securities. The company reported no credit losses on any AgVantage securities over the life of the program as of June 30, 2025. This structure is used across several segments:

• Farm & Ranch loans securing AgVantage securities.
• Corporate AgFinance segment includes AgVantage securities to larger and more complex farming operations and agribusinesses.
• Power & Utilities segment includes AgVantage securities secured by loans to rural electric generation and transmission cooperatives and distribution cooperatives.

Capital markets for debt and equity fundraising

Federal Agricultural Mortgage Corporation accesses capital markets to fund its operations and maintain its capital position. In the third quarter of 2025, the company issued $100.0 million of Tier 1 capital through the public offering of 6.500% Series H non-cumulative preferred stock. This action supported a total core capital of $1.7 billion as of September 30, 2025, which exceeded the statutory requirement by 75%. The Tier 1 Capital Ratio stood at 13.9% as of that date. The quarterly common stock dividend increased by $0.10 to $1.50 per share starting in the first quarter of 2025.

Direct engagement with financial institutions

Federal Agricultural Mortgage Corporation's customers are diverse, ranging from small rural community banks to large financial institutions. The company offers solutions to meet financial institutions' needs across growth, liquidity, risk management, and capital relief. The company provides lenders competitive interest rates and flexible terms out to 30 years for their customers. Every Federal Agricultural Mortgage Corporation customer has access to an experienced, dedicated team of highly skilled agricultural and financial specialists.

Key customer types include:

• Commercial & Community Banks
• Non-Bank Lenders
• Rural Electric Cooperatives
• Rural Utilities
• Agricultural Funds
• Agribusinesses
• Farm Credit System Institutions

Finance: draft 13-week cash view by Friday.

Federal Agricultural Mortgage Corporation (AGM) - Canvas Business Model: Customer Segments

You're looking at the core groups Federal Agricultural Mortgage Corporation (AGM), or Farmer Mac, serves to fulfill its mission of providing liquidity to American agriculture and rural infrastructure. It's a diverse set of counterparties, ranging from the local bank originating the loan to the large institutional investor buying the security.

Rural financial institutions (commercial banks, Farm Credit System)

These are your primary originators and partners. Federal Agricultural Mortgage Corporation provides them with wholesale financing solutions, which are customizable funding options, to help them manage risk and offer competitive terms to their end customers. The customer base mirrors the rural landscape, from small community banks to larger entities.

• Federal Agricultural Mortgage Corporation serves Commercial & Community Banks, Non-Bank Lenders, Rural Electric Cooperatives, Rural Utilities, Agricultural Funds, and Farm Credit System Institutions.
• The company provides financing to rural electric cooperatives that power an estimated 16 million residential customers.
• Federal Agricultural Mortgage Corporation provided $2.1 billion in liquidity and lending capacity to lenders serving rural America in the second quarter of 2025.

Agricultural and agribusiness borrowers

While Federal Agricultural Mortgage Corporation doesn't typically deal with the end borrower directly, its entire business is built around facilitating financing for them through its lender network. The loans Federal Agricultural Mortgage Corporation supports cover a wide range of agricultural needs.

• Federal Agricultural Mortgage Corporation has helped fund loans to nearly 100,000 rural borrowers across all 50 states.
• More than 90% of its Farm & Ranch and USDA guaranteed loans went to family farms in 2024.

Here's a look at the outstanding business volume supporting these borrowers as of the first quarter of 2025:

Renewable energy and rural infrastructure project developers

This is a key area of strategic growth for Federal Agricultural Mortgage Corporation, moving beyond traditional farm mortgages into broader rural development. The company offers solutions for power, utilities, broadband, and renewable energy projects.

• The Infrastructure Finance line of business accounted for $9.0 billion of the total outstanding business volume as of December 31, 2024.
• The Renewable Energy segment grew by nearly $200 million, a 14% increase, in the first quarter of 2025.
• Broadband Infrastructure Volume grew over $300 million, or 60%, year-over-year, based on Q1 2025 data.

Institutional investors buying AGM debt and equity

These investors provide the capital that allows Federal Agricultural Mortgage Corporation to operate its secondary market. They purchase the securities Federal Agricultural Mortgage Corporation issues or hold its common and preferred stock.

• Institutional investors owned roughly 68.03% of Federal Agricultural Mortgage Corporation stock as of November 10, 2025.
• The quarterly dividend declared in November 2025 was $1.50 per share, equating to an annual dividend of $6.00, representing a yield of about 3.6%.

The largest holders of Federal Agricultural Mortgage Corporation equity as of late 2025 include:

Corporate AgFinance entities

This segment represents loans made to larger agribusinesses, which Federal Agricultural Mortgage Corporation purchases and securitizes. It is one of the five operating segments of the company.

The Corporate AgFinance segment volume was approximately $2 billion at the end of the first quarter of 2025. This segment saw healthy loan purchase volumes during that quarter.

Federal Agricultural Mortgage Corporation (AGM) - Canvas Business Model: Cost Structure

The Cost Structure for Federal Agricultural Mortgage Corporation (AGM) is heavily influenced by funding costs, operational scaling to support new business lines, and managing credit risk inherent in agricultural and infrastructure lending.

Interest expense on debt and preferred stock funding

Interest expense is the primary cost driver, given the business model of funding long-term assets with short-term debt and preferred stock. While the specific interest expense is not isolated in the latest reports, the net result of this funding structure is reflected in the net effective spread. Federal Agricultural Mortgage Corporation achieved a record net effective spread of $97.8 million in Q3 2025. For comparison, Net Interest Income in Q2 2025 was $96.8 million. The company raised $100 million through a Series H preferred stock issuance in August 2025 to support capital and growth objectives.

Operating expenses (OpEx) for technology and servicing

Operating expenses reflect the investment needed to scale operations, particularly in newer, higher-spread segments. In Q3 2025, OpEx rose to $29.8 million, up from $24.6 million year-over-year. This increase stemmed from higher headcount, technology investment, and transaction-related legal costs, all supporting elevated business volumes in segments like Infrastructure Finance.

• Q3 2025 Operating Expenses: $29.8 million
• Q2 2025 Compensation and employee benefits: $17,631 (in thousands)
• Q4 2024 Operating expenses rose 18% sequentially

Net provision for loan losses

Credit expense, or the net provision for loan losses, is a variable cost directly tied to portfolio quality and growth. The Net provision for loan losses for Q3 2025 was reported as $7.4 million, specifically $7.43 million. This reflected an increased loss estimate on certain substandard assets and volume growth.

The components of the Q3 2025 credit expense included:

• Charge-offs: $4.4 million related to three different loans
• Recovery on a previously charged-off loan: $2.2 million

Compensation and benefits for a lean operation

Federal Agricultural Mortgage Corporation maintains a relatively lean structure compared to industry peers, though compensation costs are rising with business expansion. The trailing twelve months (TTM) Stock Based Compensation ending September 2025 was $8.2 Mil.

For context on executive compensation, the 2024 total compensation for CEO Brad Nordholm was $3.3 million, which was 61% below the industry median for comparable companies. His salary component was 25% of the total compensation in 2024, at $800k.

Regulatory and compliance costs due to GSE status

As a Government-Sponsored Enterprise (GSE), Federal Agricultural Mortgage Corporation faces specific regulatory oversight, which translates into ongoing compliance and legal costs. While a precise dollar figure for total regulatory and compliance costs is not itemized, the OpEx increases noted above include higher transaction-related legal fees supporting growth in new segments like renewable energy tax credit purchases and other business transactions.

The following table summarizes key financial metrics relevant to the Cost Structure as of late 2025:

The efficiency ratio was managed below the strategic target of 30% in Q3 2025.

Federal Agricultural Mortgage Corporation (AGM) - Canvas Business Model: Revenue Streams

You're looking at the core engine of how Federal Agricultural Mortgage Corporation makes money, which is fundamentally about managing interest rate risk and providing liquidity. The primary revenue driver, as you'd expect for a financial institution, centers on the spread between what they earn on assets and what they pay for funding.

The most direct measure of this is the Net Interest Income. For the third quarter of 2025, Federal Agricultural Mortgage Corporation reported net interest income grew 13% year-over-year, hitting $98.5 million. This is the baseline earnings from their lending and investment activities before accounting for the nuances of their asset-liability management.

The next layer is the Net Effective Spread from Asset-Liability Management. This metric is key because it shows the true economic spread after accounting for certain items excluded from traditional net interest income, like the impact of preferred stock dividends. Federal Agricultural Mortgage Corporation achieved a record net effective spread of $97.8 million in Q3 2025. Year-to-date through Q3 2025, the net effective spread reached $281 million, reflecting double-digit growth. Management has noted that this growth is driven by higher average loan balances and a strategic shift toward higher-spread business lines, such as rural infrastructure and renewable energy, rather than just market rate movements.

Here's a quick look at the Q3 2025 financial snapshot related to earnings and spread:

The overall profitability is summarized by the Year-to-date 2025 core earnings of $143 million. This figure shows the underlying performance after adjusting for certain non-recurring items, giving you a clearer picture of the business's earning power. The total outstanding business volume supporting these revenues reached $31.1 billion as of September 30, 2025.

Beyond the core spread, Federal Agricultural Mortgage Corporation generates revenue through fees associated with its secondary market activities. While specific dollar amounts for these fee categories in Q3 2025 weren't broken out in the same detail as the spread, they are integral to the model:

• Guarantee and commitment fees on AgVantage securities.
• Loan purchase and servicing fees.

The strategic move away from lower-spread AgVantage securities toward higher-spread assets like renewable energy and broadband infrastructure is explicitly cited as a key contributor to the increase in net effective spread. This fee-based income, tied to the volume and type of securities guaranteed and loans serviced, complements the interest income stream, helping to diversify the revenue base. Honestly, the focus on diversifying the loan portfolio into newer lines of business is what's helping them through changing market cycles.

Finance: draft a sensitivity analysis on the impact of a 50 basis point rate cut on the Q4 2025 net effective spread by next Tuesday.