{"data":{"id":"sw_c111e9666ce5d02f222a","slug":"farmer-mac-s-series-f-preferred-trades-32-below-par-despite-being-callable-now","title":"Farmer Mac's Series F Preferred Trades 32% Below Par Despite Being Callable Now","subheadline":"Federal Agricultural Mortgage Corp's 5.25% Series F preferred closed at $16.96, a discount to its $25 par value that mirrors gaps seen across other fixed-rate preferred stacks.","summary":"Farmer Mac's Series F preferred stock trades roughly 32% below its $25 par value even though the GSE has had the right to call it since October 2025, a discount pattern also visible in its Series E shares and across utility and insurance preferred stacks.","body":"Shares of Federal Agricultural Mortgage Corp's Series F preferred stock, known as Farmer Mac and traded under tickers including AGM-F and AGMprF, closed at $16.96 on October 26, a level that sits roughly 32% below the security's $25 liquidation preference. The 5.25% non-cumulative perpetual preferred has been callable by the issuer since October 17, 2025, meaning Farmer Mac could redeem the shares at par at any time, yet the market continues to price them well under that redemption value. The current yield on the shares works out to 7.74% based on the $1.3125 annual dividend, a gap that first stood out in data tracked on Preferred Stock AI, a Madison Labs research site.\n\nThe discount reflects a basic mechanic of fixed-rate perpetual preferred stock: when a security's coupon is set well below what investors can earn on newly issued paper of similar risk, the only way its yield can adjust to current market conditions is through a lower price, since the dividend itself is fixed at 5.25% of the $25 par value. Because the stock is non-cumulative and perpetual, holders have no maturity date forcing a return to par, and because Farmer Mac has not exercised its call option, the shares continue to trade as if redemption is not imminent. Within Farmer Mac's own preferred lineup of six issues carrying a current yield, the average discount to par is around 25.3%, with Series F trading wider than that average, a pattern also visible in other issues within the company's stack, including Series E.\n\nFor holders and prospective buyers, the gap between market price and par carries two distinct implications that cut in opposite directions. A purchase at $16.96 would, if the shares were ever called at $25, produce capital appreciation of roughly 47%, or $8.04 per share, according to figures drawn from the security's own pricing data. At the same time, the fact that Farmer Mac has let the shares trade post call date without acting on its redemption right means investors cannot assume a near-term return to par is likely, and the yield to call is not a meaningful figure once a security is already callable with no exercise in sight. Market participants weighing fixed-rate preferred stock more broadly have been navigating a similar dynamic across sectors, as issuers with older, lower-coupon paper see those shares discounted relative to face value while newer issues carry coupons closer to prevailing rates.\n\nFarmer Mac is a federally chartered, stockholder-owned government-sponsored enterprise created by Congress in 1988 to support a secondary market for agricultural real estate and rural housing loans. The company's business spans farm and ranch lending, USDA guarantees, rural utilities, and institutional credit, with total business volume of approximately $31 billion as of late 2025, according to the company's own disclosures. Its common stock, which trades separately under the ticker AGM, closed at $200.62 on October 26, up 0.49% on the day, and has returned 96% over five years, a run that Yahoo Finance reported on October 17 as leaving the stock looking overvalued by its own analysis. Separately, Kalkine Media reported on October 6 that Matthew 25 Management disclosed a 10.12% ownership stake in Federal Agricultural Mortgage Corp, and Simply Wall St raised the question of a potential stock index addition for Farmer Mac shares in a September 24 report.\n\nThe preferred stock discount comes against a broader market backdrop in which interest rate sensitive securities have continued to draw scrutiny from fixed income investors. Capital Data Wire's review of current market levels shows the Federal Reserve's rate path remains a central variable for any perpetual, fixed-coupon instrument, since a lower discount would typically require either a decline in prevailing yields or a reduction in perceived credit risk relative to the coupon on offer.\n\nInvestors watching Farmer Mac's preferred stack are likely to focus on several triggers in the months ahead: whether the company exercises its call option on Series F or other now-callable issues, how the spread between Series F's 7.74% current yield and the issuer's average compares as rates move, and whether Farmer Mac's November 5 earnings report, flagged by Simply Wall St on October 23 as a date to watch for the common stock, offers any signal about capital management plans that could touch the preferred shares. None of the figures cited here constitute a forecast of where any Farmer Mac security will trade, and any call decision rests solely with the issuer.","source":{"name":"Preferred Stock AI","slug":"preferredstock-ai"},"category":"Preferred Stocks","article_type":"News","license":"Free to republish, in full or in part, with attribution to Capital Data Wire and a link to the original article. No fees, registration, or permission required.","quality_score":86,"human_reviewed":false,"original_url":"https://preferredstock.ai/symbol/AGM-P-F","featured_image":null,"published_at":"2026-10-27T11:24:05.815929+00:00","updated_at":"2026-10-27T11:24:05.815929+00:00","is_demo":false,"attribution":"Via Capital Data Wire. Discovered via Preferred Stock AI.","attribution_html":"Via Capital Data Wire. Discovered via <a href=\"https://preferredstock.ai/symbol/AGM-P-F\">Preferred Stock AI</a>."},"meta":{"demo_data":false}}