Farmer Mac Completes $318.8M FARM Securitization

Author

Slice of Agriculture Team
November 28, 2024

Key Highlights:

  • Farmer Mac successfully completes its fifth FARM Series securitization since 2021, raising $318.8 million.

  • 446 agricultural loans were securitized, adhering to Farmer Mac’s strict underwriting standards.

  • The deal includes $294.9M guaranteed senior tranche and $23.9M unguaranteed subordinate tranche, offering diversified investment options.

  • The transaction demonstrates strong investor demand and contributes to developing a vibrant AMBS market.

  • BofA Securities, Oppenheimer, CastleOak, and Seaport Global acted as transaction bookrunners.

Source: PR Newswire

Notable Quotes:

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"Farmer Mac remains committed to being a frequent issuer and developing a vibrant and liquid AMBS market that is central to our core mission to improve credit accessibility in rural America."

Brad Nordholm, President and CEO at Farmer Mac
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"The FARM 2024-2 transaction exemplifies the strength and breadth of our platform and the continued strong demand for our attractive portfolio of agricultural mortgage loans."

Aparna Ramesh, CFO and Treasurer at Farmer Mac

Our Take:

Farmer Mac’s $318.8 million FARM 2024-2 securitization reflects its unwavering dedication to supporting rural America's financial ecosystem. By incorporating sophisticated tranche structures and maintaining rigorous underwriting standards, Farmer Mac continues to position itself as a leader in the agricultural mortgage-backed securities market. The robust investor response underscores confidence in the AMBS program and signals significant market potential for future securitizations. Partnering with prominent financial institutions and leveraging innovative strategies, Farmer Mac is paving the way for sustainable growth in rural financing.