Farmer Mac's Third-Quarter Volume Growth Accelerates to 24%

The Tip Desk · November 6, 2026 · 3 min read

Third-quarter 2026 outstanding business volume reached a record $38.5 billion as year-over-year growth accelerated to 24%.

Federal Agricultural Mortgage Corporation (AGM) ended the third quarter of 2026 with outstanding business volume of $38.5 billion, a record that marked 24% year-over-year growth after 22% growth in the second quarter.

The secondary-market provider said it supplied $2.7 billion in liquidity and lending capacity to lenders serving rural America. Net interest income was $115.9 million, up 18% from a year earlier. Net effective spread, a non-GAAP measure, was $113.9 million.

Those year-over-year rates slowed from the prior quarter, when net interest income rose 22% and net effective spread rose 25%. Quarter-over-quarter, net interest income and net effective spread fell $2.2 million and $3.6 million, which the company said was primarily driven by a nonrecurring event that favorably impacted interest income in the second quarter of 2026.

Net income attributable to common stockholders was $54.9 million, or $5.03 a share, down $4.0 million from the second quarter. Core earnings were $52.6 million, or $4.82 a share, down $6.2 million. Diluted GAAP earnings per share rose 13% from a year earlier; diluted core earnings per share rose 7%. Core return on equity was 16%.

The company reported broad-based net portfolio growth of $1.3 billion. Farm & Ranch volume was $22.3 billion, with 22% year-over-year growth. Corporate AgFinance was $2.1 billion, up 13%. Infrastructure Finance accounted for 37% of outstanding business volume. Power & Utilities was $8.4 billion, up 14%. Renewable Energy was $3.6 billion, up 57%. Broadband Infrastructure was $2.0 billion, up 56%.

Farm & Ranch grew $297.8 million, primarily from servicing rights on about $280 million of loans owned by third parties. For the quarter, Farmer Mac acquired servicing rights associated with approximately $1.4 billion of Farm & Ranch loans, including loans it owns and loans serviced for others. Corporate AgFinance rose $61.0 million on loan purchases. Power & Utilities increased $164.6 million, which the company tied to rural electric providers investing in system upgrades and grid modernization. Renewable Energy added $586.4 million, and Broadband Infrastructure added $168.8 million.

Credit provisions related to new volume growth, updated loss estimates on a single telecommunications credit in Broadband Infrastructure, and portfolio credit migration trends. The provision for losses was $11.1 million.

Total core capital was $1.9 billion and the Tier 1 Capital Ratio was 12.9% as of September 30, 2026, versus a 13.2% Tier 1 ratio as of June 30.

President and Chief Executive Officer Zachary Carpenter said the company delivered record third-quarter results, with outstanding business volume and year-to-date revenue and core earnings reaching new all-time highs, in a market environment he described as characterized by greater uncertainty and increasingly challenging conditions. He said Farmer Mac remains mindful of evolving conditions in U.S. agricultural markets and the investment needs of rural infrastructure, and that the company is confident in the durability of its business model.