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Supporting Investors and Rural Lenders

For investors, our AMBS program offers a portfolio diversification option that’s backed by and in support of the success of U.S. agricultural land. Farmer Mac AMBS provide the potential for attractive returns for both interest rates and credit investors. Farmer Mac’s guarantee provides a GSE-backed security with unique payment characteristics compared to other GSE-backed securities, while unguaranteed securities benefit from Farmer Mac’s underwriting experience and provide competitive returns.

For lending institutions, the AMBS structure allows lenders to move credit risk associated with underlying debt—and capital required to post against it—off their balance sheets. Institutions can then pass on the savings from that relief to rural borrowers in the form of lower borrowing costs.

Farmer Mac FARM Securitization Program

Farmer Mac’s dual-tranche FARM Securitization Program provides investors with an opportunity to invest in first-lien mortgage loans secured by U.S. agricultural land with or without exposure to credit risk.
FARM Program Overview FARM Securities Structure
Program Overview

FARM Program Overview

The FARM program exemplifies Farmer Mac’s core mission to improve the accessibility of credit to American farmers and ranchers through the structuring and underwriting of compelling investment products that connect the U.S. financial markets to rural America.

Structure

How the FARM Program Works

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Diversification

Geographic and commodity diversification within Farmer Mac’s loan portfolios is largely representative of American agriculture, offering a way for investors to gain broadly diversified exposure across their portfolios.

 

Presentation

Liquidity

Leading securitization underwriters and selling groups have already created a robust syndicated market for our FARM securities, as well as an active secondary market. The A-tranche securities offer benefits and a risk-return profile comparable to that of other GSE-guaranteed securities, while the B-tranche securities benefit from historically low credit losses on the underlying collateral. Farmer Mac is committed to building a robust liquidity market through its securitization program.
security

Credit Performance

Farmer Mac’s farm and ranch portfolio has low lifetime losses. This is a product of the rigorous underwriting standards that precede a Farmer Mac guarantee and of the general health and vitality of American agriculture. Farmer Mac FARM securities—both A- and B-tranche—are backed by loans of the same quality as all Farmer Mac loans.

Historical Loan Performance Data

Users must download the entire file to ensure they capture all updated and corrected Farm Ranch Performance Data.

Farmer Mac plans to update the performance data file each May and November

Program Overview

FARM Securities Structure

The underlying loan pool for each transaction comprises real estate used for farming, ranching, or other agricultural purposes, secured by a first-lien mortgage. Each Farmer Mac FARM pool has two tranches:

• The A-tranche is 100% guaranteed by Farmer Mac

• The B-tranche is an unguaranteed security with direct exposure to the credit risk of the

underlying collateral

Structure

How the FARM Program Works

home-icon

Diversification

Geographic and commodity diversification within Farmer Mac’s loan portfolios is largely representative of American agriculture, offering a way for investors to gain broadly diversified exposure across their portfolios.
Presentation

Liquidity

Leading securitization underwriters and selling groups have already created a robust syndicated market for our FARM securities, as well as an active secondary market. The A-tranche securities offer benefits and a risk-return profile comparable to that of other GSE-guaranteed securities, while the B-tranche securities benefit from historically low credit losses on the underlying collateral. Farmer Mac is committed to building a robust liquidity market through its securitization program.
security

Credit Performance

Farmer Mac’s farm and ranch portfolio has low lifetime losses. This is a product of the rigorous underwriting standards that precede a Farmer Mac guarantee and of the general health and vitality of American agriculture. Farmer Mac FARM securities—both A- and B-tranche—are backed by loans of the same quality as all Farmer Mac loans.

Historical Loan Performance Data

Users must download the entire file to ensure they capture all updated and corrected Farm Ranch Performance Data.

Farmer Mac plans to update the performance data file each May and November

Pool Data

Other Farmer Mac Securitization Programs

Farm & Ranch
For all SEC-registered Farmer Mac AMBS, Farmer Mac provides investors with three types of information on a monthly basis: periodic payment disclosure, loan level disclosure, and loan commodity disclosure. Each of the three types of monthly reports contains records in a fixed format. View or download the field layouts below.

USDA Guarantees 

Farmer Mac provides investors with monthly reports on certain AMBS. These reports can be accessed below by date.

Important Risk Factors
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