Harvest Stable Dividends With “Farmer Mac”

The Federal Agricultural Mortgage Corporation ($AGM) is one of those weird businesses that most people have never heard about.

Yet, the company has delivered long-term, market-beating returns.

And, has raised its dividend at a rate that outpaces inflation.

In today’s article, we’ll look at what the Federal Agricultural Mortgage Corporation, often referred to as “Farmer Mac,” does. And why it might be an interesting income investment.

What Does The Federal Agricultural Mortgage Corporation Do?

“Farmer Mac is a stockholder-owned, federally chartered corporation that combines private capital and public sponsorship to serve a public purpose.” This is how the company describes itself in its 2023 annual report.

Essentially, the Federal Agricultural Mortgage Corporation issues loans and purchases farm mortgages from regional banks.

Reviewing a financial company may seem weird at a time when bank failures are a major news story. But, I think Farmer Mac has several unique advantages that separate it from the competition.

Mainly, the fact that farming is subsidized by the United States government.