Farmer Mac Earnings Rise

The Federal Agricultural Mortgage Corp., Washington, D.C., has reported net income of $5.7 million for 1998, compared with $4.6 million in 1997.Earnings per share totaled $0.52 for class A and B common stock and $1.55 for class C common stock. Farmer Mac said that before the third quarter of 1998, its net income included provisions for income taxes based on an effective tax rate "significantly lower" than its statutory tax rate, due to the recognition of previously deferred tax benefits. If its effective tax rate had equaled its statutory tax rate in those periods, Farmer Mac would have reported net income (on a fully taxable equivalent basis) of $4.2 million for 1998 and $3.0 million for 1997. "Although continued low agricultural commodity prices during 1999 may, as some economists predict, result in increased delinquencies on agricultural mortgages, we believe Farmer Mac's reserves are adequate to cover fully any losses that may arise from those increased delinquencies," said Farmer Mac president and CEO Henry D. Edelman. Farmer Mac's website address is http://www.farmermac.com.