Farmer Mac, officially known as the Federal Agricultural Mortgage Corporation, is a government-sponsored enterprise (GSE) established to improve the availability of mortgage credit in rural America, encourage rural economic development, and ensure competitive and reliable prices for agricultural loans.
Farmers Home Administration (FmHA) was a former agency of the U.S. Department of Agriculture that administered assistance programs for the purchasers of homes and farms in small towns and rural areas. In 1994, the USDA reorganized and transferred the functions of the FmHA to the Farm Service Agency.
The Federal Agricultural Mortgage Corporation, commonly known as Farmer Mac, was established to provide a secondary market for agricultural loans. This organization helps enhance the availability, affordability, and negotiation flexibility for long-term funding for agricultural operations by purchasing and pooling loans from local lenders.
