Farmer Mac to Issue $100 Million in Series H Preferred Stock Offering

Farmer Mac Announces Major Preferred Stock Offering

The Federal Agricultural Mortgage Corporation, commonly referred to as Farmer Mac, is embarking on an exciting venture by issuing $100 million in non-cumulative perpetual Series H preferred stock. This strategic move, publicly announced on August 20, 2025, is set to bolster Farmer Mac's financial framework and enhance its capacity to support rural America's agricultural and infrastructure needs.

Details of the Offering

The Series H preferred stock will be offered at a par value of $25.00 per share, featuring a fixed dividend rate of 6.500% per annum, which allows dividends to be declared at the discretion of Farmer Mac's Board of Directors. The offering is expected to conclude on August 25, 2025, pending standard closing conditions, with plans to list the newly issued shares on the New York Stock Exchange under the ticker symbol "AGM PRH."

The Significance of Series H Stock

This offering is crucial for Farmer Mac as it works diligently to provide enhanced liquidity for crucial agriculture-related financing. Unlike traditional stock, this preferred stock has no maturity date, offering flexibility for Farmer Mac. Notably, the company retains the right to redeem the preferred stock on any dividend payment date from October 17, 2030, onwards. This unique structure is designed to appeal to investors looking for stable returns in a secure format.

RBC Capital Markets, LLC is acting as the Sole Book-Running Manager for this issuance, showcasing the confidence major financial institutions have in Farmer Mac’s mission and financial health.

Forward-Looking Statements

In announcing this offering, Farmer Mac emphasized its commitment to transparency and responsible business conduct. While historical data underlines solid financial practices, the company also shared forward-looking statements that include its expectations regarding the usage of the proceeds and the anticipated closing date for this offering. Investor caution is recommended as outlined in the "Risk Factors" section of the offering circular, ensuring stakeholders are well aware of potential uncertainties.

Farmer Mac’s Mission

This bold move is aligned with Farmer Mac's mission to enhance financial accessibility for American agriculture and foster growth within rural communities. By improving liquidity in the agricultural sector, Farmer Mac continues to play a pivotal role in supporting essential infrastructure and business operations across farming, agribusiness, and community-based enterprises.

The organization has positioned itself uniquely within markets including agriculture, renewable energy, and broadband infrastructure, striving to address diverse financial needs while championing growth and innovation.

For further information, stakeholders and interested investors may contact RBC Capital Markets, LLC, based in New York City, to gain access to the offering circular and additional details.

Conclusion

The issuance of $100 million in Series H preferred stock is not just a financial maneuver; it is a testament to Farmer Mac’s enduring commitment to supporting vital aspects of agriculture and rural infrastructure in the United States. As they move forward with the offering, Farmer Mac reaffirms its role as a cornerstone for funding vital community needs and agricultural endeavors that drive the nation’s economy.