Farmer Mac stands for the Federal Agricultural Mortgage Corporation. It was created by Congress to increase the availability of long-term credit for agricultural mortgage and rural utilities loans. Farmer Mac is not a direct lender, but works with lenders such as Starion to provide loans.
What does FarmerMAC do?
There are three pieces to Farmer Mac; Farmer Mac I and Farmer Mac II and Rural Utilities. Starion’s agribusiness bankers focus on Farmer Mac I and II.
- Farmer Mac I
Purchases loans from Starion that are secured by farm and ranch properties. In addition to requiring farmland or ranchland as security, the loan must not exceed Farmer Mac’s maximum loan amount and must meet the designated credit and appraisal criteria.
- Farmer Mac II
Purchases the guaranteed portions of loans made by the United States Department of Agriculture (USDA) under these programs:
- Farm Service Agency (Farm Ownership and Term Operating)
- Rural Development Communities Facilities
- Rural Development Business and Industry
- USDA-guaranteed loans are exempted from the credit underwriting, collateral valuation, documentation and other standards required for Farmer Mac I Farm and Ranch Program loans
How do I qualify for a Farmer Mac loan?
To learn more about the program and how it can help you with your farm, ranch or agribusiness operation, contact your nearest Starion Agribusiness Banker.