Farmer Mac, formally known as the Federal Agricultural Mortgage Corporation, operates as a secondary market provider focused on enhancing the accessibility of financing for rural America’s agriculture and infrastructure sectors. As a publicly traded entity on the NYSE under the ticker AGM, the company has established a reputation for providing necessary liquidity to those in agricultural finance.

In its first quarter of 2025, Farmer Mac reported a significant rise in its financial metrics, indicating robust operational performance. Core earnings reached a record $46 million, a 6% increase from both the previous quarter and year-over-year figures. The company also saw net income attributable to common stockholders of $44 million, alongside strong liquidity indicators with $1.8 billion provided in lending capacity during the same period.

Revenue figures showed high single-digit growth, with total revenue for the quarter reflecting substantial resilience. Specifically, net effective spread increased to a record $90 million, up 8% compared to the same period last year, with a sequential improvement of $2.5 million. The growth in net effective spread was attributed to higher average loan balances and a decrease in nonaccrual loans.

The company reported a total business volume of $29.8 billion, marking an increase of $232 million after accounting for repayments and maturities since the end of the previous quarter. This indicates a continued expansion in lending activity despite typical seasonality and scheduled repayments within the Farm & Ranch sector, where loan purchases rose by $86 million.

Farmer Mac’s infrastructure finance segment demonstrated notable growth of approximately $750 million, bolstered by loan activity in its Broadband Infrastructure, Power & Utilities, and Renewable Energy lines. The latter segment saw growth of nearly $200 million, reflecting a 14% increase compared to year-end 2024. Operating expenses also increased by 8% year-over-year to accommodate investments in technology and operational infrastructure.

As of March 31, 2025, Farmer Mac maintained a core capital level of $1.5 billion, exceeding its statutory requirement by 65%, and held a Tier 1 capital ratio of 13.9%. Operational efficiency was reported at 29%, reflecting a modest improvement from the previous quarter. Additionally, liquidity remained robust, with Farmer Mac holding approximately $1 billion in cash and cash equivalents, equating to 289 days of liquidity available.

The company’s strategic diversifications and proactive approach to asset management are vital for maintaining its solid position in the financial markets, providing essential support for a sector representing critical economic contributions to rural America. Farmer Mac aims to continue leveraging its strengths in the agricultural finance market to capitalize on upcoming opportunities while maintaining vigilance over the evolving credit landscape.