FARMER MAC FEDERAL AGRICULTURAL MORTGAGE CORPORATION FAMC

A publicly traded, shareholder-owned corporation that was federally chartered by an act of Congress in 1988. Farmer Mac's mission is to establish a secondary market for agricultural real estate and rural housing mortgage loans, as well as to increase the availability of long-term credit at stable interest rates for American farmers, ranchers and rural homeowners.

To fulfill its mission, Farmer Mac purchases newly originated and seasoned agricultural loans from lenders, issues long-term standby commitments to purchase agricultural mortgage loans, exchanges loans for mortgage-backed securities through a swap program, and purchases and guarantees mortgage bonds backed by eligible agricultural mortgage loans.

Farmer Mac's programs and mission are very similar to Fannie Mae's and Freddie Mac's programs and missions for traditional residential mortgages. Farmer Macs was established to provide a liquid secondary market for agricultural mortgages, thereby lowering interest rates and providing a stable flow of funds to agricultural borrowers. This is similar to how Fannie Mae and Freddie Mac were established to provide similar benefits to the residential mortgage market.