About Farmer Mac 2
Farmer Mac II LLC is an operating subsidiary of the Federal Agricultural Mortgage Corporation (Farmer Mac). Established in 2009, Farmer Mac II LLC purchases the guaranteed portions of loans guaranteed by the United States Department of Agriculture under the Consolidated Farm and Rural Development Act of 1972.
The Farmer Mac 2 Program provides financial institutions with an efficient and competitive secondary market for USDA guaranteed portions and enhances participants’ ability to offer innovative products to their customers.
Eligible USDA-guaranteed portions include Guaranteed Farm Ownership, Operating, and Conservation loans under the Farm Service Agency; also eligible are Business and Industry, Community Facility, and Water and Environmental Program loans under Rural Development.
Benefits of working with Farmer Mac 2 include:
- Build customer relationships by offering borrowers a wide variety of competitively priced loan products.
- Enhance ROA through greater servicing fee income.
- Increase the liquidity of their guaranteed loan portfolios enabling them to re-lend to new borrowers.
- Minimize interest rate risk while still offering borrowers intermediate and long-term fixed rate loans.