Bill Ryan

Bill Ryan from Seaport Global asked Farmer Mac about the impact of recent tariff headlines on the agricultural sector and the company's stock price, specifically identifying affected crops and the status of market stabilization payments to farmers. He also questioned if the farm and ranch business volume is accelerating and if loan structures have changed.

Answer

Bradford T. Nordholm, CEO, acknowledged that negative headlines impact stock price but noted a nuanced reality, citing recent increases in soybean and almond prices despite pressures in other major crops like corn and cotton. He highlighted farmers' adaptability and confirmed expectations for $10-$12 billion in market facilitation payments. Zach Carpenter, President and COO, emphasized Farmer Mac's national diversity across over 100 commodities, noting strong performance in dairy, protein, and livestock sectors. Mr. Carpenter confirmed a significant increase in farm and ranch loan applications and approvals, with a majority of 2025 growth from new money loans, indicating continued growth. He stated that loan structure criteria remain consistent, and banks' capital management needs drive secondary market utilization.

Bill Ryan from Seaport Global asked about the impact of tariffs on farmers and specific crops, the status of market stabilization payments, and later inquired if the farm and ranch business volume is accelerating, including any changes in loan structure.

Answer

Bradford T. Nordholm, CEO of Farmer Mac, explained that media headlines often overstate the negative impact of tariffs, noting recent increases in soybean and almond prices, and that farmers are adaptive. He mentioned an expectation of $10 billion-$12 billion in market facilitation payments soon. Zach Carpenter, President and COO, highlighted Farmer Mac's national diversity across over 100 commodities, which provides resilience, with strong performance in dairy, protein, and livestock sectors offsetting challenges elsewhere. Mr. Carpenter confirmed a significant increase in farm and ranch loan applications and approvals, driven by both strong agricultural sectors and those needing liquidity. He noted that the majority of 2025 growth came from new money loans for land and equipment purchases, anticipating continued growth as rates moderate, and stated that loan structure criteria remain consistent.

Bill Ryan followed up on the competitive landscape, asking about the impact of increased origination volumes across the board, other companies potentially loosening credit boxes, and fixed-income investors allocating more capital to the sector, specifically if LendingClub has experienced any pressure on its underwriting standards.

Answer

CEO Scott Sanborn affirmed that LendingClub has not faced pressure on underwriting standards, emphasizing that their growth stems from a low base and increased marketing efforts, still operating below historical spend levels in a larger total addressable market. He noted the competitive space remains consistent, with a recent shift in competition from banks to fintechs, and reiterated a commitment to long-term, disciplined underwriting to ensure returns for both LendingClub and its loan buyers.