The Federal Agricultural Mortgage Corporation (Farmer Mac; NYSE: AGM and AGM.A) reported record second-quarter 2026 results on July 30, with outstanding business volume reaching $37.2 billion — a 22% increase year-over-year — as demand for agricultural mortgage liquidity and rural infrastructure financing accelerated across all segments.
The Numbers
Core earnings, a non-GAAP measure, rose 24% year-over-year to $58.8 million, or $5.40 per diluted share, compared with $47.4 million, or $4.32 per diluted share, in the second quarter of 2025. GAAP net income attributable to common stockholders came in at $58.9 million, or $5.41 per diluted share, up from $49.2 million, or $4.48 per diluted share, a year earlier. Net interest income grew 22% year-over-year to $118.1 million, and net effective spread — a non-GAAP measure of the net yield earned between interest-earning assets and funding costs — increased 25% to a record $117.4 million. Core return on equity reached 19% in the quarter. The company also raised $100.0 million of Tier 1 capital through a public offering of 6.875% Series I non-cumulative preferred stock, bringing total core capital to $1.9 billion and the Tier 1 Capital Ratio to 13.2% as of June 30, 2026.
Portfolio Drivers
Net portfolio growth of $2.4 billion in the quarter reflected broad customer demand across Farmer Mac's two main segments. Agricultural Finance, representing 65% of outstanding business volume, grew to $24.1 billion. Within that segment, the Farm & Ranch portfolio expanded by $1.7 billion, partly on $1.1 billion of net AgVantage securities growth — including a $800 million security from a new counterparty — plus $483.4 million in net loan purchase volume. Infrastructure Finance, comprising the remaining 35%, added volume across all three sub-segments: Renewable Energy surged 55% year-over-year to $3.0 billion; Broadband Infrastructure climbed 58% to $1.9 billion, reflecting sustained demand for rural telecommunications and data connectivity; and Power & Utilities grew 13% to $8.3 billion. For lenders serving rural America and the agricultural supply chain, the company deployed $4.0 billion in liquidity and lending capacity during the quarter.
Technology and Outlook
Alongside the financial results, Farmer Mac launched Farmer Mac Loan Exchange (FLX), a new Farm & Ranch loan platform intended to modernize how the company delivers liquidity to agricultural lenders at scale. The platform signals Farmer Mac's push to digitize secondary-market infrastructure for agricultural mortgage lending, a sector that has historically relied on manual, relationship-driven processes. Zachary Carpenter, President and Chief Executive Officer, said the company remains well positioned for the second half of 2026 through its diversified portfolio, strong capital base, and disciplined underwriting, even as macro and trade-policy risks continue to affect commodity prices and agricultural borrower repayment capacity. The expense efficiency ratio remained below the company's 30% strategic target.
Written by Michael Politz, Author of Guide to Restaurant Success: The Proven Process for Starting Any Restaurant Business From Scratch to Success (ISBN: 978-1-119-66896-1), Founder of Food & Beverage Magazine, the leading online magazine and resource in the industry. Designer of the Bluetooth logo and recognized in Entrepreneur Magazine's "Top 40 Under 40" for founding American Wholesale Floral, Politz is also the Co-founder of the Proof Awards and the CPG Awards and a partner in numerous consumer brands across the food and beverage sector.
