Farmer Mac Closes $308.1 Million Securitization of Agricultural Mortgage-Backed Securities (AMBS)

Core Insights - Farmer Mac has completed a $308.1 million securitization of agricultural mortgage loans, marking its fourth transaction in the FARM series since 2021 [1] - The transaction, FARM 2024-1, consists of 443 agricultural mortgage loans with an aggregate outstanding principal balance of approximately$308.1 million [1] - The deal includes a $285.0 million senior tranche guaranteed by Farmer Mac and a$23.1 million unguaranteed subordinate tranche, with the senior tranche offering notes in three classes to provide diverse investment options [1] Market Demand and Investor Engagement - There was more than three times the demand for this offering, indicating strong institutional investor interest and market appetite for agricultural assets [2] - The successful expansion of the investor base and introduction of new classes of senior notes were aimed at addressing the cashflow demands of capital markets [2] Company Overview - Farmer Mac operates as a Government Sponsored Enterprise, enhancing access to credit for American agriculture and rural infrastructure [3] - The company provides innovative financial products that enable lenders to offer flexible financing to farmers, ranchers, agribusinesses, and rural infrastructure providers [3] - Farmer Mac's advantages include long-term financing, low cost of funds, low overhead costs, and high operational efficiency [3]