Business Solutions, a subsidiary of the American Bankers Association, has renewed its agreement with the Federal Agricultural Mortgage Corp. (Farmer Mac, NYSE: AGM and AGM.A) to provide ABA member banks with an outlet for the sales of real estate farm loans.

ABA's agreement with Farmer Mac, dating back to 2005, enables ABA banks to manage the interest rate, credit, liquidity, and capital risk of offering long-term, fixed-rate loan products to their farm and ranch customers. The agreement also gives banks exclusive access to special pricing for selected Farmer Mac products and a streamlined approval process for becoming a Farmer Mac seller.

"We're very pleased to renew our agreement with Farmer Mac," said William Kroll, president of Business Solutions. "Our alliance with Farmer Mac not only provides our member banks with preferred rates on long-term, fixed-rate ranch and farm loans, it also enables banks to shift the credit and interest rate risk away from the banks, providing them increased lending capacity and greater liquidity."

"Farmer Mac is very pleased with the success of the alliance, which has provided us an excellent platform to demonstrate our product offerings to ag bankers across the country," said Tom Stenson, executive vice president and chief operating officer of Farmer Mac. "They appreciate the benefits Farmer Mac brings to their institutions and the opportunity to build relationships with their farm and ranch customers through expanded and competitively-priced products offerings. It doesn't take long for farmers to figure out which lenders are doing all they can to offer them the right tools. The banks that do will benefit over the long run by bringing solutions to their customers."

The American Bankers Association represents banks of all sizes and charters and is the voice for the nation's $13 trillion banking industry and its two million employees. The majority of ABA's members are banks with less than $155 million in assets. Learn more at www.aba.com.

Farmer Mac is a stockholder-owned instrumentality of the United States chartered by Congress to establish a secondary market for agricultural real estate and rural housing mortgage loans and rural utilities loans and to facilitate capital markets funding for USDA-guaranteed farm program and rural development loans. Learn more at www.farmermac.com.

10.01.2012