Federal Agricultural Mortgage Corporation (Farmer Mac) reported its financial results for the second quarter of 2025, revealing a net income attributable to common stockholders of $49.2 million, a 22% increase from $40.3 million in the same period last year. For the first half of 2025, net income reached $93.2 million, compared to $87.3 million in the prior year. The company’s total interest income for the quarter was $399 million, slightly down from $403.7 million a year earlier, while total interest expense decreased to $302.2 million from $316.4 million, resulting in a net interest income of $96.8 million, up from $87.3 million in the previous year.
Farmer Mac's total assets increased to $33 billion as of June 30, 2025, up from $31.3 billion at the end of 2024, primarily driven by a rise in loans held for investment, which grew to $12.2 billion from $11.2 billion. The company also reported a significant increase in its investment securities portfolio, which rose to $6.7 billion, reflecting a 12% increase from the previous period. The total liabilities also increased to $31.5 billion, primarily due to a rise in notes payable, which reached $28.8 billion, up from $27.4 billion.
In terms of operational metrics, Farmer Mac's outstanding business volume reached $30.6 billion, marking a net increase of $0.8 billion from the previous quarter. The company reported a provision for losses of $7.8 million for the second quarter, which included a $2.8 million charge-off related to two specific borrower relationships. The allowance for losses increased to $30.4 million, reflecting the tightening agricultural economy and the need for additional liquidity among borrowers.
Strategically, Farmer Mac has expanded its share repurchase program, increasing the total authorized amount from $9.8 million to $50 million, with an extended expiration date to August 2027. The company continues to focus on enhancing its capital position, which remains well above regulatory requirements, and has maintained strong liquidity levels throughout the year. Looking ahead, Farmer Mac anticipates ongoing increases in operating expenses due to planned investments in technology and human capital, aimed at supporting future growth opportunities and enhancing operational efficiency.
Overall, Farmer Mac's financial performance in the second quarter of 2025 reflects a positive trajectory, with increased net income, a growing asset base, and strategic initiatives aimed at bolstering its market position in agricultural and infrastructure financing. The company remains committed to providing liquidity and capital to support rural America while navigating the challenges posed by the current economic landscape.
About FEDERAL AGRICULTURAL MORTGAGE CORP
Farmer Mac is a federally chartered government-sponsored enterprise providing a secondary market for agricultural and rural infrastructure loans. It purchases, guarantees, and securitizes loans and securities, supporting lenders and expanding access to rural financing. Its core activities include loan servicing, issuing guarantee and debt securities, and fostering liquidity in agricultural and infrastructure markets across the U.S.
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