Company: AGM-PH
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0000845877-25-000252
Chunk: 249

Company: FEDERAL AGRICULTURAL MORTGAGE CORP
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 8
Chunk 249
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 impact Farmer Mac, its regulatory environment, the borrowers under the loans it owns or guarantees, or its stakeholders, including: 

Tariffs and Trade Restrictions

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. The Administration has entered into negotiations with several countries on tariff and non-tariff matters including Indonesia, Vietnam, the Philippines, South Korea, the United Kingdom, the European Union and Japan. Export markets drive demand for some U.S. agricultural products like soybeans, almonds, pistachios, cotton, grains, and livestock. 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. Tariffs and trade restrictions may lead to higher domestic inventory levels of agricultural commodities—resulting in lower prices that affect the profitability of farmers and ranchers—while also impacting the cost and availability of farm inputs such as fertilizers, pesticides, and machinery, which is particularly challenging for producers with tight profit margins. 

Farmer Mac will continue to closely monitor trade developments throughout 2025 for impacts on its lines of business.

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Congress

H.R. 1 was enacted into law on July 4, 2025. It includes many provisions that have the potential to impact Farmer Mac and its stakeholders, including farmers, ranchers, and the renewable energy industry. Notably, the bill contains several updates to the federal crop insurance and revenue protection programs, including expanded coverage for some permanent crop and livestock producer types. These updates typically would have been addressed during a farm bill reauthorization.

Farm bill programs not reauthorized by H.R. 1 expired on September 30, 2025. Congress will need to act on these sections of the farm bill that were not eligible for inclusion in the H.R. 1 budget reconciliation legislation. H.R. 1 did not include a suspension of permanent law that is typically done through the farm bill reauthorization. Permanent law refers to the Agricultural Adjustment Act of 1938 and the Agricultural Act of 1949. These laws support a limited number of commodities and are considered outdated and potentially disruptive if implemented. Without a suspension of permanent law, these outdated statutes would become effective.

Reversion to permanent law is used as an incentive to pass new farm bills or extend existing farm bills.  We expect Congress to consider options to address the suspension of permanent law