Company: AGM-PH
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000845877-25-000152
Chunk: 265

Company: FEDERAL AGRICULTURAL MORTGAGE CORP
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 2
Chunk 265
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 placed a universal tariff of 10 percent on all countries. These new tariffs were set to take effect on April 5, 2025. Major U.S. trading partners announced retaliatory tariffs in response, and the U.S. government responded in kind. On April 9, 2025, the United States government paused the retaliatory tariffs on dozens of U.S. trading partners for 90 days, leaving in place the universal 10 percent tariff announced on April 2, 2025, as well as previous tariffs that were in place. The 90-day pause on reciprocal tariffs did not apply to China, which is a large export market for U.S. agricultural goods. 

Export markets drive demand for some U.S. agricultural products such as almonds, pistachios, grains, and livestock. Tariffs and trade restrictions may lead to higher domestic inventory levels of agricultural commodities, resulting in lower prices which may affect the profitability of farmers and ranchers. Reciprocal tariffs may impact the cost and availability of some farm inputs such as fertilizers, pesticides, and machinery, impacting farmers with tight profit margins. While tariffs and trade restrictions may create uncertainty for the agricultural economy, new trade agreements could boost demand for U.S. commodities in the long-term if foreign barriers are reduced. 

Tariffs and trade restrictions also may lead to supply chain disruptions for materials and technology used in some renewable energy and broadband infrastructure projects that may result in higher material and project costs while the market adjusts. 

Farmer Mac will continue to closely monitor trade developments throughout 2025.

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•On January 20, 2025, President Trump 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. On March 31, 2025, FCA board member Vincent Logan announced his retirement from federal service. His departure creates a vacancy on the FCA board that the Administration will have the opportunity to fill, subject to the advice and consent of the U.S. Senate. The remaining two board members, including Chairman Hall, are currently serving in a "holdover status." These members will continue in their roles until the President nominates and the U.S. Senate confirms their replacements.

•FCA's final rule on cyber risk management became effective on January 1, 2025. Farmer Mac does not expect this new rule to have a significant effect on its business practices or operations, as