|News Release||Farm Credit Administration|
1501 Farm Credit Drive
McLean, Virginia 22102-5090
For Immediate Release
NR 08-15 (10-01-08)
Contact: Martha Schober or Christine Quinn, 703-883-4056
Web site: www.fca.gov
Statement from FCA Chairman Leland A. Strom
McLEAN, Va., October 1, 2008 — The Federal Agricultural Mortgage Corporation (Farmer Mac) successfully issued $65 million in preferred stock on September 30, 2008, to build capital. This action was taken to address recently sustained losses from deterioration of certain investments. These investment losses were related to the broader deterioration in the financial marketplace.
I want to emphasize that Farmer Mac’s agricultural mortgage program business remains strong. The Farm Credit Administration will continue to closely monitor the situation and take aggressive regulatory action as needed to address any capital or other regulatory or safety and soundness concerns. We will review the company’s September 30 financial position in detail when it becomes available.
The Farm Credit Administration is the safety and soundness regulator of the cooperative Farm Credit System (System) and the Federal Agricultural Mortgage Corporation (Farmer Mac). FCA charters, regulates, and examines the 104 banks, associations, and service corporations of the System and Farmer Mac. System institutions make loans to agricultural producers and their cooperatives nationwide. Farmer Mac provides a secondary market for agricultural real estate and rural housing mortgage loans. Members of the FCA Board are Leland A. Strom, Chairman and CEO; Nancy C. Pellett; and Dallas P. Tonsager.
Note: FCA news releases are available on the Web at www.fca.gov.