Power and Utilities

Farmer Mac partners with financial institutions that provide loans for rural electric infrastructure. We purchase qualified loans through a network of cooperative lenders, consistent with our charter.

Farmer Mac supports financial institutions by providing secondary market liquidity and flexible financing solutions for power and utility projects.

We help institutions:

• Access capital through loan purchases (individual loans or pools)
• Obtain wholesale financing through AgVantage® securities
• Manage risk with tools such as long-term standby purchase commitments (LTSPCs)
• Address interest rate risk, capital efficiency, and internal lending limits

This approach enables lenders to continue financing essential electric infrastructure in rural areas while managing balance sheet and funding needs.

Farmer Mac finances electric infrastructure projects that support the generation, transmission, and distribution of power in rural areas.

These projects include:

• Electric generation facilities
• Transmission systems
• Distribution systems serving homes, farms, businesses, and schools

Financing may also extend to related infrastructure such as telecommunications and fiber development where eligible under program authorities.

Farmer Mac offers a range of flexible loan terms and structures designed to align with the funding needs of utility borrowers.

Available structures include:

• Short- and long-term financing with maturities up to 30 years
• Fixed or floating interest rate options
• Customized structures and amortizations

Farmer Mac supports capital-intensive projects by providing long-term, reliable access to debt capital through its secondary market.

Power and utility infrastructure requires significant upfront investment, and our financing helps institutions meet those demands.

By delivering consistent liquidity and flexible structures, we enable lenders to support development, expansion, and modernization of critical infrastructure in rural communities.

Farmer Mac is a secondary market capital provider that partners with, rather than competes against, lenders.

Key differentiators include:

• Focus on purchasing and financing existing, fully structured loans rather than originating loans
• Consistent access to capital markets that supports reliable funding across market cycles
• Flexible, customized structures designed for capital-intensive infrastructure projects
• A mission-driven role in providing liquidity to rural infrastructure markets

This model allows us to reduce friction for lenders and support efficient execution.

Farmer Mac plays a supporting role by providing liquidity that enables financial institutions to finance reliable electric infrastructure in rural America.

By helping fund the development, expansion, and resilience of electric generation, transmission, and distribution systems, we contribute to delivering dependable power to rural homes, businesses, and communities.

This activity supports broader economic vitality by ensuring access to essential power infrastructure.