Farmer Mac 2Q Profits Down From '05

The Federal Agricultural Mortgage Corp., Washington, has reported net income of $7.6 million ($0.67 per share) for the second quarter, compared with $8.2 million ($0.72 per share) for the second quarter of 2005.Though down from last year's second-quarter profits, the results were up from $5.0 million ($0.44 per share) in the first quarter, Farmer Mac reported. The government-sponsored enterprise touted increased business volume, attributing it mainly to diversification of its marketing focus to include large program transactions backed by growing numbers of mortgage loans to farmers, ranchers, and rural homeowners. "The combined result of second-quarter business and a $1.0 billion AgVantage securities transaction in July was to raise Farmer Mac's portfolio of loans, guarantees, and standbys to nearly $7 billion," said Henry D. Edelman, Farmer Mac's president and chief executive officer. "This record volume -- 25% above our March 31, 2006 level -- is an important measure of the increased liquidity and lending capacity Farmer Mac is providing to agricultural mortgage lenders who, in turn, extend credit to agricultural and rural America." The GSE can be found online at http://www.farmermac.com.