AGM: Some investors may believe that collateral on AGM's farm loans could be significantly overvalued in that farm land is REAL PROPERTY, and it is not selling very well, except in cases where it is heavily discounted. In particular, when a farm fails, the bank takes it over and sells it as bank-owned, but proceeds of sale may not meet the loan value.
When a farm owner in trouble due to poor crop yield, the bank may not extend additional credit beyond existing credit on collateral (land) that may be already overvalued. In short, the land as collateral has come down in value, thus there remains significant uncertainty as to AGM's good financial results in future if they have to begin writing down more loans in future.
If the scenario develops that farm foreclosures increase, quarterly earnings would be negatively impacted. The primary issue is uncertainty in the underlying collateral, which increases AGM risk over the longer term.
JMHO, 'peeker
Take time to look around, even on a down day!