WASHINGTON, D.C. -- The Federal Agricultural Mortgage Corporation (Farmer Mac) has reported net income for 2005 $27.3 million, nearly $1 million lower than the $28.2 million reported for 2004.

For fourth quarter 2005, GAAP net income (based on U.S. Generally Accepted Accounting Procedures) was $6.5 million compared to $7.6 million for the third quarter 2005 and $9.8 million for fourth quarter 2004.

Core earnings were up, however, at $28.7 million for the year compared to $27.4 million for the year ended Dec. 31, 2004.

Farmer Mac reports its "core earnings," a non-GAAP measure, in addition to GAAP earnings. Farmer Mac uses the core earnings measure to present net income available to common stockholders less the after-tax effects of unrealized gains and losses on financial derivatives resulting from the application of the derivative accounting standards.

Farmer Mac President and CEO Henry D. Edelman stated, "Farmer Mac's strategic diversification of its marketing focus is beginning to produce tangible results. Fourth quarter 2005 new business volume was $330.5 million, which accounted for 43 percent of the year's $771.7 million of new volume and was 280 percent of the $117.4 million of new volume in the corresponding quarter of 2004."

Edelmen said that notwithstanding indications of recovering business volume, "Farmer Mac's new business continues to be constrained by market and regulatory factors mentioned in earlier announcements and disclosures. Looking forward, Farmer Mac will continue to focus on the long-term growth of the business and the development of innovative ways to serve the financing needs of rural America; the Corporation remains confident of opportunities for growth and increased business volume."

The full March 16 news release with detailed information is here online.

Farmer Mac is a stockholder-owned instrumentality of the United States chartered by Congress to establish a secondary market for agricultural real estate and rural housing mortgage loans and to facilitate capital market funding for USDA-guaranteed farm program and rural development loans.

SOURCE: Farmer Mac via PR Newswire.