Farmer Mac announced the completion of its seventh agricultural mortgage‑backed securities (AMBS) securitization on December 3 2025. The deal packages 343 loans with an aggregate outstanding principal balance of $313.5 million into a $290.0 million senior tranche guaranteed by the GSE and a $23.5 million unguaranteed subordinate tranche. The senior tranche is further split into three guaranteed classes—A, A‑1, and A‑2—providing investors with differentiated cash‑flow options and broadening demand for the notes.
The transaction follows two recent AMBS issuances—$300.1 million in June 2025 and $318.8 million in November 2024—demonstrating Farmer Mac’s growing expertise and confidence in the market. The $313.5 million deal represents roughly 10% of the GSE’s total outstanding loan portfolio, underscoring the scale of the program and its role in supporting the company’s broader mission to improve credit accessibility in rural America.
Farmer Mac’s management highlighted that the securitization was driven by robust institutional demand for high‑quality agricultural assets, even amid volatile macroeconomic conditions. The company’s capital‑raising strategy allows it to free up capital, strengthen liquidity, and pursue additional loan purchases across its diversified portfolio, which includes farm, ranch, broadband, and renewable‑energy segments. The structure of the senior tranche, with multiple classes, is designed to appeal to investors with varying risk appetites and cash‑flow preferences, thereby enhancing market depth.
The loan pool underlying the securitization is diversified across Farmer Mac’s core business lines. While the exact segment allocation is not disclosed, the portfolio includes loans originated in the farm, ranch, broadband, and renewable‑energy segments, reflecting the GSE’s broad exposure to rural infrastructure and agricultural financing. This diversification helps mitigate concentration risk and supports the stability of the cash‑flow streams backing the securities.
CEO Bradford T. Nordholm said the transaction “demonstrates our commitment to grow our securitization platform and support a vibrant and liquid AMBS market that is central to our core mission to improve credit accessibility in rural America.” President and COO Zachary N. Carpenter added that the company is “very pleased with the tremendous support we’ve seen for this program and look forward to exploring other credit‑risk transfer opportunities to grow our platform while continuing to deliver high‑quality opportunities for our investors.”
The completion of the $313.5 million securitization strengthens Farmer Mac’s capital position, providing additional liquidity to fund future loan purchases and support growth in its diversified segments. The transaction also signals confidence in the continued demand for agricultural assets and positions the GSE to introduce new products in the coming year, further expanding its role as a key liquidity provider in the agricultural finance market.
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