Company: AGM-PH
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000845877-25-000204
Chunk: 292

Company: FEDERAL AGRICULTURAL MORTGAGE CORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 292
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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 but currently estimates that it rebounded 2% higher in 2024. For 2025, the USDA forecasts an additional 22% increase in net cash farm income, fueled by a $33 billion increase in government support payments from the American Relief Act enacted in 2024. On July 9, 2025, the USDA announced that $16 billion in funding for the Supplemental Disaster Relief Program authorized in the American Relief Act would be available in two stages. This first stage opened in July 2025 to producers with eligible crop losses that received assistance under crop insurance or the Noninsured Crop Disaster Assistance Program during 2023 and 2024. The second stage will begin in the fall of 2025 for eligible shallow or uncovered losses. In total, 2025 net cash farm income would reach the third-highest inflation-adjusted level in history if the current USDA projection is realized. Ad-hoc and supplemental 

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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, and even increased modestly for some crops, before facing renewed downward pressure in second quarter 2025. Conversely, tree nut prices continued to rise in second quarter 2025. Tree nut producers have reduced new plantings in recent years, which, combined with robust exports this marketing year, has provided moderate support for prices. Tree nut prices, including almonds and walnuts, had faced pressure in recent years from increased production. But relatively stable production in 2024 helped limit and even partially alleviate the buildup in inventories. Within the livestock and animal protein sector, producers benefited from lower feed costs and robust export demand in first half 2025, particularly the cattle sector. Overall farm expenses remained somewhat stable in first half 2025, but remained higher than the period before the most recent surge in farm incomes from 2020-2022. 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