Federal Agricultural Mortgage

Revenue is predominantly recurring NES and fees, with long-duration assets and diversified segments across agriculture and rural infrastructure. Q2 2026 core EPS growth was 24 percent year over year, and the efficiency ratio remains below 30 percent. Credit metrics are stable with low 90-day delinquencies and conservative LTVs.

Macro variables can introduce cyclicality: interest rates affect funding and asset-liability management; farm income, commodity prices, and farmland values influence borrower performance; and regulation can alter capital intensity. Still, the business operates like a tollbooth on a large, essential credit market.

We view earnings compounding at a mid-teens ROE as achievable through cycles, albeit with episodic variance.