Summary

• Federal Agricultural Mortgage Corporation offers stable growth, trading at ~9x P/E with record business volumes of $34.8 billion and a 17% ROE.
• AGM’s diversification into rural infrastructure, renewable energy, and broadband financing reduces dependency on agricultural cycles and enhances portfolio resilience.
• Credit quality is deteriorating, with rising provisions and late loans, reflecting sector headwinds and pressuring the company’s risk profile.
• AGM is best suited for patient, income-oriented investors seeking quality dividends and moderate growth, rather than aggressive re-rating opportunities.

Introduction

In my view, the Federal Agricultural Mortgage Corporation seems cheap, but the rising credit risk limits a more aggressive share price re-rating.

Federal Agricultural Mortgage Corporation (AGM), in the market known as Farmer

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