Federal Agricultural Mortgage

Net effective spread percentage typically hovers near 1.2% across cycles, driven by funding costs, credit mix, competition, and fee schedules.

The franchise can reprice programs and mix toward higher‑spread segments (for example renewable energy and broadband) but competes with Farm Credit System lenders and commercial banks, which limits unilateral fee increases. Regulatory and mission considerations also check pure price maximization.

Still, the GSE cost of funds and structural demand for liquidity confer some latent ability to defend spread even when competition is fierce.