The Federal Agricultural Mortgage Corporation (Farmer Mac, NYSE: AGM and AGM.A) reported record outstanding business volume of $38.5 billion for the quarter ended September 30, 2026, a 24% increase from $31.1 billion in the same period a year earlier and up 3% sequentially from $37.2 billion at June 30, 2026. The government-sponsored enterprise, which provides secondary-market liquidity to agricultural lenders and rural infrastructure financiers, also set all-time highs for year-to-date revenue and core earnings.
The Numbers
Net interest income rose 18.0% year-over-year to $115.9 million, though it edged down 1.8% from the second quarter, partly due to a nonrecurring interest-income event that boosted the prior period. Net effective spread — Farmer Mac's preferred non-GAAP revenue metric — grew 16% year-over-year to $113.9 million. Net income attributable to common stockholders reached $54.9 million, or $5.03 per diluted share, compared with $48.7 million, or $4.44 per diluted share, in Q3 2025. Core earnings (non-GAAP) came in at $52.6 million, or $4.82 per diluted share — up 6% and 7%, respectively, year-over-year — against $49.6 million, or $4.52, in the prior-year period. The core return on equity held at 16.0% for the quarter. Total core capital stood at $1.9 billion, with a Tier 1 Capital Ratio of 12.9% at September 30, 2026.
Segment Drivers
Agricultural Finance — comprising Farm & Ranch and Corporate AgFinance — accounted for 63% of outstanding volume, with the Farm & Ranch book reaching $22.3 billion, up 22% year-over-year. During the quarter, Farmer Mac acquired servicing rights on approximately $1.4 billion of Farm & Ranch loans. Corporate AgFinance volume totalled $2.1 billion, 13% above the year-ago level. Infrastructure Finance, representing the remaining 37% of the portfolio, was the faster-growing segment in percentage terms. Renewable Energy volume surged 57% year-over-year to $3.6 billion, driven by continued investment in new generation capacity, while Broadband Infrastructure expanded 56% to $2.0 billion as demand for rural data-connectivity infrastructure accelerated. Power & Utilities grew a more measured 14% to $8.4 billion, supported by rural electric-cooperative spending on grid modernisation. The Broadband Infrastructure segment did carry an elevated credit provision in the quarter, partly reflecting updated loss estimates tied to a single telecommunications credit.
Credit Quality & Outlook
Total provision for losses in the quarter was $11.1 million, up from $7.4 million in Q3 2025, driven by new volume growth, portfolio credit migration, and the broadband telecommunications exposure noted above. Management characterised the credit environment as navigable within the context of the broader book. Zachary Carpenter, President and Chief Executive Officer, noted that the company's diversified portfolios and disciplined underwriting position it to continue supporting rural America through credit cycles, while remaining attentive to evolving U.S. agricultural market conditions and trade-policy uncertainty. For food and agribusiness lenders that use Farmer Mac's liquidity facilities — a key channel tracked by Food & Beverage Magazine — the record volume figure signals sustained appetite for agricultural mortgage capital even as farm-level income and commodity-price volatility remain elevated headwinds. Operators and lenders monitoring rural infrastructure investment should also note the accelerating broadband and renewable energy commitments, which carry meaningful implications for food-supply-chain logistics and cold-chain electrification across agricultural regions. For related coverage on agricultural lending trends and rural infrastructure finance, see our analysis at /markets/agricultural-finance and /supply-chain/rural-infrastructure.
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.
