Company: AGM-PH
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0000845877-25-000252
Chunk: 282

Company: FEDERAL AGRICULTURAL MORTGAGE CORP
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 2
Chunk 282
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 $210.1 billion in 2022, a record for both nominal and inflation-adjusted farm profits. The primary driver of profitability in 2022 was higher cash revenues, in contrast to 2019 and 2020, when elevated government support payments supported farm incomes. The USDA has reported that annual net cash farm income decreased 25% in 2023, and declined an additional 10% in 2024. For 2025, however, the USDA forecasts that net cash farm income will increase by 29% relative to 2024. The projected turnaround in farm incomes is largely driven by government support, which the USDA forecasts will surpass $40 billion in 2025. Approximately $33 billion of government payments to agricultural producers was authorized in 2024 in the American Relief Act. In total, 2025 net cash farm income would reach one of the highest inflation-adjusted levels in history if the current USDA projection is realized. Ad-hoc and supplemental government support payments are not guaranteed annually, but can help offset poor market conditions for producers.

Commodity prices may continue to see elevated volatility in the remainder of 2025. Rising global inventories put downward pressure on grain prices for much of 2024. Annual crop prices stabilized in first quarter 2025, but have since faced renewed downward pressure in second and third quarter 2025. Conversely, tree nut prices, outside of a brief dip in third quarter 2025, continued to rise throughout 2025 

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to higher levels than last year. Tree nut producers have reduced new plantings in recent years, which, combined with robust exports this marketing year, has provided moderate support for prices. Within the livestock and animal protein sector, producers benefited from lower feed costs and robust export demand in the first three quarters of 2025, particularly the cattle sector. Overall farm expenses remained somewhat stable in 2025, but they remain elevated compared to pre-2020 levels. Agricultural sector revenues remained elevated overall in first half 2025 compared to pre-2020 as well. The USDA shows a similar pattern for agricultural sector revenues and expenses leading up to the 2013 peak in farm incomes and the years thereafter.

U.S. trade policy continues to evolve, resulting in potential challenges and opportunities for the agricultural sector. Exports have historically been a substantial demand source for many U.S. agricultural commodities, including soybeans, cotton, almonds, pistachios, and several other crops and livestock products. Any extended disruption to trade could therefore potentially cause