Farmer Mac to issue $100 million of Series H preferred stock

WASHINGTON - Federal Agricultural Mortgage Corporation (Farmer Mac; NYSE:AGM and AGM.A), a $2.14 billion market cap company with a solid financial health rating according to InvestingPro, announced Wednesday it has agreed to issue $100 million of Tier 1 capital through a public offering of 6.500% non-cumulative perpetual Series H preferred stock.

The preferred stock, with a par value of $25.00 per share, is expected to be listed on the New York Stock Exchange under the symbol "AGM PRH." The offering is anticipated to close on August 25, 2025, subject to customary closing conditions.

According to the company’s statement, the dividend rate will remain at a non-cumulative, fixed rate of 6.500% per year, when, as, and if declared by Farmer Mac’s Board of Directors. The Series H preferred stock will have no maturity date, though Farmer Mac will have the option to redeem it on any dividend payment date on or after October 17, 2030. The company has maintained dividend payments for 22 consecutive years and currently offers a 3.08% dividend yield. Discover more dividend insights and 8 additional key metrics with InvestingPro.

RBC Capital Markets, LLC served as the Sole Book-Running Manager for the transaction.

The offering is being made pursuant to an exemption from registration under the Securities Act of 1933 and solely through an offering circular.

Farmer Mac provides a secondary market for agricultural and rural infrastructure financing, offering liquidity to financial institutions serving these sectors. The company operates across various markets including agriculture, agribusiness, broadband infrastructure, power and utilities, and renewable energy.

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

In other recent news, Federal Agricultural Mortgage, also known as Farmer Mac, reported its second-quarter earnings for 2025, exceeding analysts’ expectations. The company achieved earnings per share of $4.32, slightly above the forecast of $4.31. Revenue figures were particularly strong, reaching $102.63 million, significantly surpassing the anticipated $76.12 million. This revenue performance marked a 34.83% surprise, highlighting the company’s robust financial quarter. Despite these positive earnings and revenue results, the company’s stock experienced a slight decline. These developments offer insights into Farmer Mac’s current financial standing. Investors may take note of these results as they reflect the company’s ability to outperform market expectations.

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