Company: AGM-PH
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000845877-25-000033
Chunk: 211

Company: FEDERAL AGRICULTURAL MORTGAGE CORP
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 211
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 lead to delays in completing current projects and slow future investments in renewable energy and 

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battery storage projects as well as the deployment of fiber and broadband infrastructure in rural areas. The infrastructure sector may experience varying degrees of disruption and adaptation in response to these evolving policies, and these changes could increase the volatility of sector profitability in the near-term. The potential for disruption in these sectors due to policy changes may be somewhat mitigated by the historically strong market demand for electrification, the ongoing diversification of power generating assets from electricity producers, and continued strong investments in data centers and fiber infrastructure. 

Legislative and Regulatory Outlook

Farmer Mac continues to closely monitor potential legislative and regulatory changes that could significantly impact the organization or its stakeholders, including:

•The 2024 elections have resulted in single-party control over both the executive and legislative branches of government. Some recent executive branch actions have the potential to influence Farmer Mac's regulatory environment:

◦President Trump has designated Jeffery Hall, who had already been serving on the board of the Farm Credit Administration (FCA), as the board chairman and CEO of FCA, the safety and soundness regulator of Farmer Mac. Chairman Hall will oversee FCA’s regulatory agenda while serving in that role. Any new rules proposed by FCA would not be subject to President Trump's "regulatory freeze" executive order issued on January 20, 2025 because that freeze does not apply to rules approved by a department or agency head appointed or designated by President Trump. FCA's latest regulatory projects plan published in Fall 2024 includes a review of Farmer Mac's regulatory capital framework, with a notice of proposed rulemaking targeted for May 2025. This timeline may change, and Farmer Mac's management team will continue to monitor and engage with this regulatory process as it develops.

◦President Trump has designated Mark Uyeda as the Acting Chairman of the Securities and Exchange Commission (SEC). Similar to any new rules proposed by FCA, any new rules proposed by the SEC would not be subject to President Trump's "regulatory freeze" executive order issued on January 20, 2025 because the Acting Chairman was designated by President Trump.

•Two of the three members of the FCA board, including Chairman Hall, are currently serving in a "holdover status," meaning that their terms have expired. These board members will continue to serve until the President nominates and the Senate confirms their replacements. 

•FCA's final rule on cyber risk management became effective on January 1, 2025