Dechert Advises Farmer Mac on Closing US$283.6 Million Securitization of Agricultural Mortgage-Backed Securities

March 02, 2023

Dechert LLP advised the Federal Agricultural Mortgage Corporation (Farmer Mac), the nation's secondary market provider that increases the accessibility of financing for American agriculture and rural infrastructure, in its completion of a US$283.6 million securitization of agricultural mortgage loans. This transaction is the third AMBS securitization that Dechert has handled for Farmer Mac since October 2021.

The mortgage pool for FARM Series 2023-1 consists of 408 agricultural mortgage loans with an aggregate outstanding principal balance of approximately US$283.6 million. The loans in the pool were underwritten to Farmer Mac's standards and acquired by Farmer Mac between January 2021 and February 2022. This deal included a US$262.3 million senior tranche guaranteed by Farmer Mac and a US$21.3 million unguaranteed subordinate tranche.

This transaction follows Dechert’s advising Farmer Mac on closing a US$302.7 million securitization of agricultural mortgage loans in October 2021 and a similar US$301.1 million securitization in August 2022.

Farmer Mac is a vital part of the agricultural credit markets and was created to increase access to and reduce the cost of credit for the benefit of American agricultural and rural communities. As the nation’s secondary market for agricultural credit, Farmer Mac provides financial solutions to a broad spectrum of the agricultural community, including agricultural lenders, agribusinesses, and other institutions that can benefit from access to flexible, low-cost financing and risk management tools.

The team advising Farmer Mac on this transaction included finance and real estate partners Matthew Fischer and Laura Swihart, counsels Gregory Renick and Byung-il Lee, and associates David Peláez, Parker Lacoste, Travis Escobar and Danny Amaisse; employee benefits partner Steven Rabitz; and global tax partner Will Cejudo and associate Daniel Ng.

About Dechert

Dechert is a leading global law firm with 21 offices around the world. The firm advises on matters and transactions of the greatest complexity, bringing energy, creativity, and efficient management of legal issues to deliver commercial and practical advice for clients.

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