Agricultural GSE Posts Loss

Farmer Mac lost $61.1 million ($6.03 per share) in the fourth quarter 2008 as a result of its losses on financial derivatives and provisions for losses related to credits granted in the ethanol sector.The GSE halved its dividend for the first quarter, cutting it to five cents a share. For the full year 2008, Farmer Mac lost $154.1 million or $15.40 per share. Newly installed president and chief executive Michael A. Gerber, said "We have adjusted our funding strategies to reduce the reliance on financial derivatives that have adversely affected our capital position, notwithstanding that all of our derivatives have been economically effective." He said the company was able to raise $124.2 million in new capital through preferred stock offerings in the third and fourth quarters of last year.