Federal Agricultural Mortgage: Loan Losses Cause Concern, But Growth Should Overshadow Fear

Jeremy LaKosh6.05K FollowersFollow5ShareSavePlay(7min)CommentsSummaryFarmer Mac shares plunged 14% after an earnings miss, but I view the current price as a compelling entry point.AGM's core earnings grew to $182.9M in 2025, but rising nonaccrual loans and a $33M increase in loan loss provisions raised concerns.Portfolio growth is shifting toward non-agricultural sectors like power, utilities, renewable energy, and broadband, driving a 15% increase in shareholder equity.Despite interest rate risks and loan performance issues, AGM trades below book value, with analyst estimates suggesting strong forward returns and multiple expansion potential. SimonSkafar/E+ via Getty Images Introduction Federal Agricultural Mortgage Corporation (AGM), or less formally known as Farmer Mac, is a GSE whose mission is to support the financing of agriculture and infrastructure in rural America. Last Friday, the company This article was written byJeremy LaKosh6.05K FollowersFollowOther writing on Substack: https://yieldstrategies.substack.com/I am currently focused on income investing through either common shares, preferred shares, or bonds. I will occasionally break away and write about the economy at large or a special situation involving a company I've been researching in. I target two articles per week for publication on Monday and Tuesday.About My Background: Bachelors in history/political science, Masters in Business Administration with a specialization in Finance and Economics. I enjoy numbers. I have been investing since 2000. Professionally, I am the CEO of an independent living retirement community in Illinois.Analyst’s Disclosure: I/we have a beneficial long position in the shares of AGM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.