Farmer Mac appoints new director to its board

WASHINGTON - The Federal Agricultural Mortgage Corporation, known as Farmer Mac (NYSE:AGM and AGM.A), has announced the appointment of Daniel L. Shaw to its board of directors. Shaw, a Nebraska-based farmer with a long history in agricultural business and governance, will fill the vacancy left by the late Roy H. Tiarks, who passed away in February 2025. The appointment comes as Farmer Mac maintains strong financial health, with InvestingPro data showing a robust market capitalization of $2.1 billion and a healthy current ratio of 1.35.

Shaw is a seasoned veteran in the agricultural sector, having managed Shaw Farms, LLC since 1975. His governance experience is extensive, including previous tenure on Farmer Mac’s board from December 2019 to May 2021. Shaw’s board service extends to other significant agricultural finance institutions, such as AgriBank Farm Credit Bank and Farm Credit Services of America. His appointment strengthens a company that has shown consistent financial performance, with a P/E ratio of 9x and revenue growth of 4.1% in the last twelve months.

Board Chair Lowell L. Junkins highlighted Shaw’s deep understanding of agricultural production and his background in risk assessment as valuable assets to the board. Junkins expressed confidence in Shaw’s ability to contribute effectively to the board’s oversight of Farmer Mac’s mission.

Shaw expressed his dedication to serving rural America and his eagerness to collaborate with fellow board members to advance opportunities in rural areas. His appointment is part of the unique composition of Farmer Mac’s board, which includes members elected by holders of its Class B and Class A Voting Common Stock, as well as those appointed by the president of the United States.

Farmer Mac plays a crucial role in providing liquidity for American agriculture and rural infrastructure. The company’s secondary market support enables financial institutions to meet various needs, including growth, liquidity, risk management, and capital relief, across several sectors such as agriculture, agribusiness, and renewable energy. InvestingPro analysis reveals the company’s strong dividend track record, having raised dividends for 13 consecutive years, with a current yield of 3.1%. For deeper insights into Farmer Mac’s financial health and future prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, available for over 1,400 US stocks.

This appointment is based on a press release statement from Farmer Mac.

In other recent news, Farmer Mac has announced several notable developments. The company has increased its executive compensation, with salary raises for key executives such as Zachary N. Carpenter and Aparna Ramesh, effective retroactively to January 1, 2025. Additionally, stock appreciation rights and restricted stock units have been granted, aligning executive incentives with company performance. In a separate update, Keefe, Bruyette & Woods analysts have raised Farmer Mac’s stock target to $230, reflecting a positive outlook on future earnings, which are projected to be $17.63 in 2025 and $19.62 in 2026. The analysts maintain a Market Perform rating, indicating expectations for the stock to align with market trends.

Furthermore, Farmer Mac has expanded its credit facility with the National Rural Utilities Cooperative Finance Corporation from $6 billion to $6.5 billion, extending the borrowing period until 2030. This move aims to enhance the availability of credit for the agricultural community and rural utilities. In another development, Farmer Mac disclosed the passing of board member Roy H. Tiarks, who played a significant role in various committees. The Board is considering filling the vacancy left by Tiarks before the next annual stockholders’ meeting. These recent developments highlight Farmer Mac’s strategic adjustments in executive compensation, financial projections, and credit facilities.

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