Dechert Advises Farmer Mac on US$308 Million Issuance of Agricultural Mortgage-Backed Securities

Dechert advised the Federal Agricultural Mortgage Corporation (Farmer Mac), on its US$308 million securitization of agricultural mortgage loans. This transaction is the fourth agricultural mortgage-backed securitization that Dechert has handled for Farmer Mac since October 2021.

The mortgage pool for FARM Series 2024-1 consists of 443 agricultural mortgage loans with an aggregate outstanding principal balance of approximately US$308 million. The loans in the pool were underwritten to Farmer Mac's standards and acquired between February 2022 and August 2023. This deal included a US$285 million senior tranche guaranteed by Farmer Mac and a US$23 million unguaranteed subordinate tranche. The senior tranche reflects an enhanced sophistication by offering certificates in three exchangeable classes, each of which are guaranteed by Farmer Mac, and provide for differing principal repayment cashflows.

This transaction follows Dechert most recently advising Farmer Mac on closing a US$283.6 million securitization of agricultural mortgage loans in March 2023.

Farmer Mac is a vital part of the agricultural credit markets and was created to increase access to and reduce the cost of credit for the benefit of American agricultural and rural communities. As the United States' secondary market for agricultural credit, Farmer Mac provides financial solutions to a broad spectrum of the agricultural community, including agricultural lenders, agribusinesses and other institutions that can benefit from access to flexible, low-cost financing and risk management tools.

The team that advised on this transaction included finance and real estate partners Matthew Fischer and Laura Swihart, counsel Bill Lee, and associates Parker Lacoste and Stephen Tily; employee benefits partner Steven Rabitz; and global tax partner William Cejudo and associate Daniel Ng.

About Dechert

Dechert is a global law firm that advises asset managers, financial institutions and corporations on issues critical to managing their business and their capital - from high-stakes litigation to complex transactions and regulatory matters. We answer questions that seem unsolvable, develop deal structures that are new to the market and protect clients' rights in extreme situations. Our 1,000+ lawyers across 21 offices globally focus on the financial services, private equity, private credit, real estate, life sciences and technology sectors.