Washington,
D.C., July 29, 2005—The Federal
Agricultural Mortgage Corporation (Farmer Mac) (NYSE: AGM and
AGM.A) and the National Rural Utilities Cooperative Finance
Corporation (CFC) today jointly announced the sale by
CFC and purchase by Farmer Mac of $500 million of three-year
CFC secured notes. The notes are secured by mortgage indebtedness
issued by CFC member rural electric distribution cooperatives
serving communities across rural America.
Farmer Mac is a stockholder-owned instrumentality of the United States chartered
by Congress to establish a secondary market for agricultural real estate
and rural housing mortgage loans, and to facilitate capital market funding
for USDA guaranteed farm program and rural development loans. CFC is a privately
owned, non-governmental organization that provides low-cost capital and state-of-the-art
financial products and services to approximately 1,000 electric cooperatives
across the United States.
The transaction provides CFC with
a new source of liquidity for its rural utility cooperative
members that serve rural communities and support agriculture
in 47 states. It also advances Farmer Mac’s role and commitment as
an investor in rural America. The structure of the transaction is consistent
with parameters established by the Farm Credit Administration, Farmer Mac’s
federal regulator.
Additional information about Farmer
Mac is available on Farmer Mac’s
website.
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