Congress Expands Farmer Mac's Authorities Farm Bill Adds Rural Utilities Loans
May 27 2008 - 9:20AM
PR Newswire (US)
WASHINGTON, May 27 /PRNewswire-USNewswire/ -- The United States
Congress last week enacted into law the Food, Conservation and
Energy Act of 2008 with a provision that significantly expands the
charter of the Federal Agricultural Mortgage Corporation (Farmer
Mac, NYSE: AGM and AGM.A) to authorize it to purchase and guarantee
securities backed by rural utilities loans throughout the nation.
Those loans, made by cooperative lenders such as the National Rural
Utilities Cooperative Finance Corporation ("Nat Rural") and
institutions of the Farm Credit System ("FCS"), finance
electrification and telecommunications systems for Rural America.
Farmer Mac President and Chief Executive Officer Henry D. Edelman
stated, "We are excited about this addition to Farmer Mac's
guarantee authorities and believe it offers important new business
opportunities. While we cannot currently give any assurance as to
what level of new business volume may result from it, this
expansion of authorities significantly increases Farmer Mac's
potential for future growth. "Advancing the vision outlined by
Congress in 1987, this new legislative authority expands Farmer
Mac's mission to provide additional liquidity and lending capacity
to Rural America, by ensuring competitive capital markets access
for rural utilities cooperative lenders. We expect this extension
of Farmer Mac's authorities to facilitate the continuation and
improvement of affordable electric and telecommunications service
to farmers and others in Rural America well into the future. We are
gratified by this display of Congressional support, and we look
forward to meeting the challenge put before us, as we work with Nat
Rural, FCS institutions, and others to effectuate these new
authorities." Farmer Mac is a stockholder-owned instrumentality of
the United States chartered by Congress to establish a secondary
market for agricultural real estate and rural housing mortgage
loans and rural utilities loans and to facilitate capital markets
funding for USDA-guaranteed farm program and rural development
loans. Farmer Mac's Class C non-voting and Class A voting common
stocks are listed on the New York Stock Exchange under the symbols
AGM and AGM.A, respectively. Additional information about Farmer
Mac is available on Farmer Mac's website at
http://www.farmermac.com/. DATASOURCE: Farmer Mac CONTACT: Mary
Waters of Farmer Mac, +1-202-872-7700 Web site:
http://www.farmermac.com/
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