Rabobank to acquire $354 million agricultural loans in US
Rabobank on Monday announced the purchase of a $354 million portfolio of agricultural loans from the Federal Agricultural Mortgage Corporation (Farmer Mac).
The acquisition was conducted by two of Rabobank Group’s US subsidiaries: Rabo AgriFinance, the US agricultural finance arm, and Rabobank, NA, the California community bank.
"Rabobank’s purchase of this portfolio from Farmer Mac is a clear demonstration of our continued commitment to invest in American agriculture and expand our business," said John Ryan, President and CEO for Rabo AgriFinance.
"As a part of the Rabobank Group, we have the resources and flexibility to complete this acquisition, while providing Farmer Mac with added liquidity. This transaction further advances our mission to be a premier agricultural lender in America."
The portfolio purchased by Rabobank includes approximately 1,000 agricultural loans of various sizes and terms, originated by many different lenders, including Rabobank.
The borrowers operate in all major sectors of agriculture and are located throughout the entire United States.
Rabo AgriFinance, headquartered in St. Louis, MO, originates and services agricultural loans for farmers and ranchers throughout the United States.
Rabo AgriFinance offers a comprehensive suite of agricultural financial services and crop insurance through a network of relationship managers and loan production offices across the US.
With roughly 300 employees and about $5 billion in assets under management, Rabo AgriFinance is one of the largest agricultural lenders in America.
Federal Agricultural Mortgage Corporation, commonly known as Farmer Mac, is a stockholder-owned, government sponsored enterprise or "GSE" created by Congress to improve the availability of long-term credit for America’s farmers, ranchers, rural homeowners, businesses and communities.
Farmer Mac accomplishes this public policy mission by providing a secondary market for qualified agricultural mortgage loans, rural housing mortgage loans, rural utilities loans (to cooperative borrowers made by cooperative lenders) and the guaranteed portions of agricultural and rural development loans guaranteed by the US Department of Agriculture.
