Farmer Mac Posts $600M Infrastructure Gain, 11% Revenue Growth and 3.5% Yield
Farmer Mac trades at a forward P/E of 8.24 and boasts a 3.5% dividend yield after 14 years of consecutive increases. The Infrastructure Finance portfolio grew by $600 million in Q3 2025 as annual revenue and EPS have risen roughly 11% and 15% respectively over the past decade.
1. Bullish Thesis Overview
Farmer Mac is viewed as a stable, defensive play on agricultural real estate credit with a government sponsorship profile combined with growth catalysts in its Infrastructure Finance segment.
2. Financial Performance
The company achieved 11.3% annualized revenue growth and 15.1% EPS growth over the past decade, trading at a trailing P/E of 9.70 and a forward P/E of 8.24.
3. Infrastructure Finance Growth
In Q3 2025, the Infrastructure Finance business added $600 million to its portfolio, with Renewable Energy and Broadband volumes more than doubling year-over-year, highlighting diversification beyond traditional farm mortgages.
4. Capital and Risk Metrics
Core capital exceeds statutory requirements by $723 million, pre-tax profit margin stood at 68.8% in 2024, efficiency ratio was 27%, lifetime charge-off losses are just 0.12%, and a 3.5% dividend yield follows 14 consecutive annual hikes.