An AF Algebra Associated with the Farey Tessellation We associate with the Farey tessellation of the upper half-plane an AF algebra $\AA$ encoding the cutting sequences'' that define vertical geodesics. The Effros--Shen AF algebras arise as quotients of $\AA$. Using the path algebra model for AF algebras we construct, for each $\tau \in \big(0,\frac{1}{4}\big]$, projections $(E_n)$ in $\AA$ such that $E_n E_{n\pm 1}E_n \leq \tau E_n$. Categories:46L05, 11A55, 11B57, 46L55, 37E05, 82B20