Farmer Mac announced the successful completion of a $300.1 million securitization of agricultural mortgage loans, marking its sixth transaction in the FARM series since 2021. This program is a key component of the company's strategy to enhance credit accessibility in rural America.
The FARM Series 2025-1 mortgage pool consisted of 350 agricultural mortgage loans, all underwritten to Farmer Mac's industry standards. The transaction included a $277.6 million senior tranche guaranteed by Farmer Mac and a $22.5 million unguaranteed subordinate tranche.
The senior tranche was structured with three classes of notes (A, A1, and A2) to provide diverse principal repayment cashflows, which helped to attract strong investor demand. This securitization highlights Farmer Mac's continued access to capital markets even amidst market volatility.
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