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Sep 30, 2024
Farmer Mac Q3 2024 Earnings Report
Farmer Mac delivered a solid quarter, diversifying revenue streams and leveraging a strong capital base.
Key Takeaways
Farmer Mac reported a strong third quarter in 2024, marked by solid financial performance and strategic growth. The company provided $2.0 billion in liquidity to rural America, maintained a robust capital position, and saw growth across its loan portfolio.
Provided $2.0 billion in liquidity and lending capacity to lenders serving rural America.
Net interest income was $86.8 million, compared to $87.6 million in third quarter 2023.
Net effective spread improved $2.0 million from the prior-year period to $85.4 million.
Core earnings was $44.9 million, or $4.10 per diluted common share.
Farmer Mac
Farmer Mac
Farmer Mac Revenue by Geographic Location
Forward Guidance
Management's expectations for Farmer Mac's future necessarily involve assumptions, estimates, and the evaluation of risks and uncertainties.
Positive Outlook
- availability to Farmer Mac of debt and equity financing and, if available, the reasonableness of rates and terms
- level of lender interest in Farmer Mac's products and the secondary market provided by Farmer Mac
- general rate of growth in agricultural mortgage and rural infrastructure indebtedness
- degree to which Farmer Mac is exposed to interest rate risk resulting from fluctuations in Farmer Mac's borrowing costs relative to market indexes
- Farmer Mac is driven by its mission to increase the accessibility of financing for American agriculture and rural infrastructure
Challenges Ahead
- legislative or regulatory developments that could affect Farmer Mac, its sources of business, or agricultural or rural infrastructure industries
- fluctuations in the fair value of assets held by Farmer Mac and its subsidiaries
- the effect of economic conditions stemming from disruptive global events or otherwise on agricultural mortgage or rural infrastructure lending, borrower repayment capacity, or collateral values, including inflation, fluctuations in interest rates, changes in U.S. trade policies, fluctuations in export demand for U.S. agricultural products and foreign currency exchange rates, supply chain disruptions, increases in input costs, labor availability, and volatility in commodity prices
- developments in the financial markets, including possible investor, analyst, and rating agency reactions to events involving government-sponsored enterprises, including Farmer Mac
- the effects of the Federal Reserve’s efforts to achieve monetary policy normalization to respond to inflation and employment levels