Which organization was established to support the secondary market for agricultural real estate loans?

The organization established to support the secondary market for agricultural real estate loans is Farmer Mac. It was created specifically to enhance the availability of credit for U.S. farmers and ranchers by providing a secondary market for agricultural mortgage loans. This means that Farmer Mac assists in the buying and selling of agricultural mortgages, which helps ensure that financial institutions can provide farmers with the necessary funds to purchase land or improve their agricultural operations.

Farmer Mac operates similarly to the way Fannie Mae and Freddie Mac function within the residential and commercial mortgage markets, but it focuses solely on the agricultural sector. This specialized role in facilitating liquidity and stability in agricultural financing is essential for the continued growth and sustainability of the agricultural industry.

Other organizations like Freddie Mac and Fannie Mae are primarily concerned with conventional home loans and have no direct role in the agricultural loan market. Ginnie Mae, on the other hand, is involved in guaranteeing mortgage-backed securities, but it does not specifically focus on agricultural loans, leaving Farmer Mac as the dedicated entity for that niche.