10-Q

As filed with the Securities and Exchange Commission on November 9, 2017

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2017

Commission File Number 001-14951 

 ____________________________________________________________

FEDERAL AGRICULTURAL MORTGAGE CORPORATION

(Exact name of registrant as specified in its charter)

Federally chartered instrumentality of the United States	52-1578738
(State or other jurisdiction of incorporation or organization)	(I.R.S. employer identification number)
1999 K Street, N.W., 4th Floor, Washington, D.C.	20006
(Address of principal executive offices)	(Zip code)

(202) 872-7700

(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes        x                               No           o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes        x                                No          o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.  (Check one):

Large accelerated filer	o	Accelerated filer	x
Non-accelerated filer	o (Do not check if smaller reporting company)
		Smaller reporting company	o
		Emerging growth company	o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes        o                                No           x

As of November 1, 2017, the registrant had outstanding 1,030,780 shares of Class A Voting Common Stock, 500,301 shares of Class B Voting Common Stock, and 9,086,963 shares of Class C Non-Voting Common Stock.

Table of Contents

PART I - Financial Information		3
Item 1.	Consolidated Financial Statements	3
	Consolidated Balance Sheets	4
	Consolidated Statements of Operations	5
	Consolidated Statements of Comprehensive Income	6
	Consolidated Statements of Equity	7
	Consolidated Statements of Cash Flows	8
	Notes to Consolidated Financial Statements	9
	1. Accounting Policies	9
	2. Investment Securities	18
	3. Farmer Mac Guaranteed Securities and USDA Securities	21
	4. Financial Derivatives	24
	5. Loans and Allowance for Losses	28
	6. Guarantees and Long-Term Standby Purchase Commitments	41
	7. Equity	42
	8. Fair Value Disclosures	44
	9. Business Segment Reporting	54
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	58
	Forward-Looking Statements	58
	Overview	60
	Use of Non-GAAP Measures	64
	Results of Operations	66
	Outlook	82
	Balance Sheet Review	85
	Off-Balance Sheet Arrangements	85
	Risk Management	87
	Liquidity and Capital Resources	106
	Regulatory Matters	108
	Other Matters	108
	Supplemental Information	109
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	114
Item 4.	Controls and Procedures	114
PART II - Other Information		114
Item 1.	Legal Proceedings	114
Item 1A.	Risk Factors	114
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	115
Item 3.	Defaults Upon Senior Securities	115
Item 4.	Mine Safety Disclosures	115
Item 5.	Other Information	115
Item 6.	Exhibits and Financial Statements Schedules	115
Signatures		117

2

PART I

Item 1. Financial Statements

3

FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(unaudited)

	As of
	September 30, 2017			December 31, 2016
	(in thousands)
Assets:
Cash and cash equivalents	$	366,764		$	265,229
Investment securities:
Available-for-sale, at fair value	2,234,966			2,515,851
Farmer Mac Guaranteed Securities:
Available-for-sale, at fair value	5,443,746			4,853,685
Held-to-maturity, at amortized cost	2,158,810			1,149,231
Total Farmer Mac Guaranteed Securities	7,602,556			6,002,916
USDA Securities:
Trading, at fair value	14,864			20,388
Held-to-maturity, at amortized cost	2,092,285			2,009,225
Total USDA Securities	2,107,149			2,029,613
Loans:
Loans held for investment, at amortized cost	3,804,966			3,379,884
Loans held for investment in consolidated trusts, at amortized cost	1,329,212			1,132,966
Allowance for loan losses	(6,408		)	(5,415		)
Total loans, net of allowance	5,127,770			4,507,435
Real estate owned, at lower of cost or fair value	1,086			1,528
Financial derivatives, at fair value	2,020			23,182
Interest receivable (includes $10,625 and $12,584, respectively, related to consolidated trusts)	110,175			122,782
Guarantee and commitment fees receivable	36,679			38,871
Deferred tax asset, net	4,293			12,291
Prepaid expenses and other assets	96,780			86,322
Total Assets	$	17,690,238		$	15,606,020
Liabilities and Equity:
Liabilities:
Notes payable:
Due within one year	$	8,112,928		$	8,440,123
Due after one year	7,399,961			5,222,977
Total notes payable	15,512,889			13,663,100
Debt securities of consolidated trusts held by third parties	1,333,417			1,142,704
Financial derivatives, at fair value	30,595			58,152
Accrued interest payable (includes $8,874 and $10,881, respectively, related to consolidated trusts)	61,804			49,700
Guarantee and commitment obligation	35,316			37,282
Accounts payable and accrued expenses	19,971			9,415
Reserve for losses	2,080			2,020
Total Liabilities	16,996,072			14,962,373
Commitments and Contingencies (Note 6)
Equity:
Preferred stock:
Series A, par value $25 per share, 2,400,000 shares authorized, issued and outstanding	58,333			58,333
Series B, par value $25 per share, 3,000,000 shares authorized, issued and outstanding	73,044			73,044
Series C, par value $25 per share, 3,000,000 shares authorized, issued and outstanding	73,382			73,382
Common stock:
Class A Voting, $1 par value, no maximum authorization, 1,030,780 shares outstanding	1,031			1,031
Class B Voting, $1 par value, no maximum authorization, 500,301 shares outstanding	500			500
Class C Non-Voting, $1 par value, no maximum authorization, 9,082,335 shares and 9,007,481 shares outstanding, respectively	9,082			9,008
Additional paid-in capital	119,130			118,655
Accumulated other comprehensive income, net of tax	40,795			33,758
Retained earnings	318,869			275,714
Total Stockholders' Equity	694,166			643,425
Non-controlling interest	—			222
Total Equity	694,166			643,647
Total Liabilities and Equity	$	17,690,238		$	15,606,020

The accompanying notes are an integral part of these consolidated financial statements.

4

FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

	For the Three Months Ended						For the Nine Months Ended
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
	(in thousands, except per share amounts)
Interest income:
Investments and cash equivalents	$	9,223		$	6,994		$	24,834		$	20,235
Farmer Mac Guaranteed Securities and USDA Securities	54,350			38,129			146,978			110,938
Loans	40,924			34,409			117,349			99,486
Total interest income	104,497			79,532			289,161			230,659
Total interest expense	64,935			43,969			172,797			127,098
Net interest income	39,562			35,563			116,364			103,561
Provision for loan losses	(270		)	(191		)	(1,234		)	(604		)
Net interest income after provision for loan losses	39,292			35,372			115,130			102,957
Non-interest income:
Guarantee and commitment fees	3,314			3,798			10,630			11,079
Gains/(losses) on financial derivatives and hedging activities	661			(1,601		)	2,530			(13,079		)
Gains/(losses) on trading securities	—			1,182			(84		)	1,934
Gains/(losses) on sale of available-for-sale investment securities	89			—			89			(9		)
Gains on sale of real estate owned	32			15			784			15
Other income	203			707			890			1,221
Non-interest income	4,299			4,101			14,839			1,161
Non-interest expense:
Compensation and employee benefits	5,987			5,438			18,986			16,823
General and administrative	3,890			3,474			11,611			10,757
Regulatory fees	625			613			1,875			1,838
Real estate owned operating costs, net	—			—			23			39
Provision for/(release of) reserve for losses	114			(222		)	60			(114		)
Non-interest expense	10,616			9,303			32,555			29,343
Income before income taxes	32,975			30,170			97,414			74,775
Income tax expense	11,193			10,529			33,103			26,264
Net income	21,782			19,641			64,311			48,511
Less: Net loss attributable to non-controlling interest	—			18			165			62
Net income attributable to Farmer Mac	21,782			19,659			64,476			48,573
Preferred stock dividends	(3,295		)	(3,295		)	(9,886		)	(9,886		)
Net income attributable to common stockholders	$	18,487		$	16,364		$	54,590		$	38,687
Earnings per common share and dividends:
Basic earnings per common share	$	1.74		$	1.56		$	5.16		$	3.70
Diluted earnings per common share	$	1.71		$	1.54		$	5.06		$	3.60
Common stock dividends per common share	$	0.36		$	0.26		$	1.08		$	0.78

The accompanying notes are an integral part of these consolidated financial statements.

5

FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited)

	For the Three Months Ended						For the Nine Months Ended
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
	(in thousands)
Net income	$	21,782		$	19,641		$	64,311		$	48,511
Other comprehensive income before taxes:
Net unrealized (losses)/gains on available-for-sale securities	(886		)	552			19,283			46,305
Net changes in held-to-maturity securities	(1,879		)	(73		)	(7,491		)	(2,081		)
Net unrealized gains/(losses) on cash flow hedges	253			1,336			(966		)	(6,403		)
Other comprehensive (loss)/income before tax	(2,512		)	1,815			10,826			37,821
Income tax expense related to other comprehensive (loss)/income	879			(635		)	(3,789		)	(13,238		)
Other comprehensive (loss)/income net of tax	(1,633		)	1,180			7,037			24,583
Comprehensive income	20,149			20,821			71,348			73,094
Less: comprehensive loss attributable to non-controlling interest	—			18			165			62
Comprehensive income attributable to Farmer Mac	$	20,149		$	20,839		$	71,513		$	73,156

The accompanying notes are an integral part of these consolidated financial statements.

6

FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EQUITY

(unaudited)

												Accumulated
									Additional			Other
	Preferred Stock			Common Stock					Paid-In			Comprehensive			Retained			Non-controlling			Total
	Shares	Amount		Shares		Amount			Capital			Income/(Loss)			Earnings			Interest			Equity
	(in thousands)
Balance as of December 31, 2015	8,400	$	204,759	10,687		$	10,687		$	117,862		$	(11,019	)	$	231,228		$	203		$	553,720
Net income/(loss):
Attributable to Farmer Mac	—	—		—		—			—			—			48,573			—			48,573
Attributable to non-controlling interest	—	—		—		—			—			—			—			(62		)	(62		)
Other comprehensive income, net of tax	—	—		—		—			—			24,583			—			—			24,583
Cash dividends:
Preferred stock	—	—		—		—			—			—			(9,886		)	—			(9,886		)
Common stock	—	—		—		—			—			—			(8,145		)	—			(8,145		)
Issuance of Class C Common Stock	—	—		101		101			390			—			—			—			491
Repurchase of Class C Common Stock	—	—		(307	)	(307		)	—			—			(8,781		)	—			(9,088		)
Stock-based compensation cost	—	—		—		—			2,566			—			—			—			2,566
Other stock-based award activity	—	—		—		—			(1,921		)	—			—			—			(1,921		)
Investment in subsidiary - non-controlling interest	—	—		—		—			—			—			—			53			53
Balance as of September 30, 2016	8,400	$	204,759	10,481		$	10,481		$	118,897		$	13,564		$	252,989		$	194		$	600,884
Balance as of December 31, 2016	8,400	$	204,759	10,539		$	10,539		$	118,655		$	33,758		$	275,714		$	222		$	643,647
Net income/(loss):
Attributable to Farmer Mac	—	—		—		—			—			—			64,476			—			64,476
Attributable to non-controlling interest	—	—		—		—			—			—			—			(165		)	(165		)
Other comprehensive income, net of tax	—	—		—		—			—			7,037			—			—			7,037
Cash dividends:
Preferred stock	—	—		—		—			—			—			(9,886		)	—			(9,886		)
Common stock	—	—		—		—			—			—			(11,435		)	—			(11,435		)
Issuance of Class C Common Stock	—	—		74		74			228			—			—			—			302
Stock-based compensation cost	—	—		—		—			2,597			—			—			—			2,597
Other stock-based award activity	—	—		—		—			(2,350		)	—			—			—			(2,350		)
Redemption of interest in subsidiary	—	—		—		—			—			—			—			(57		)	(57		)
Balance as of September 30, 2017	8,400	$	204,759	10,613		$	10,613		$	119,130		$	40,795		$	318,869		$	—		$	694,166

The accompanying notes are an integral part of these consolidated financial statements.

7

FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

	For the Nine Months Ended
	September 30, 2017			September 30, 2016
	(in thousands)
Cash flows from operating activities:
Net income	$	64,311		$	48,511
Adjustments to reconcile net income to net cash provided by operating activities:
Net amortization of deferred gains, premiums, and discounts on loans, investments, Farmer Mac Guaranteed Securities, and USDA Securities	1,701			1,343
Amortization of debt premiums, discounts and issuance costs	17,078			24,789
Net change in fair value of trading securities, hedged assets, and financial derivatives	(12,232		)	1,672
Gains on sale of real estate owned	(784		)	(15		)
Total provision for losses	1,294			490
Excess tax benefits related to stock-based awards	1,170			—
Deferred income taxes	1,910			(1,270		)
Other	11			9
Stock-based compensation expense	2,597			2,565
Proceeds from repayment of trading investment securities	—			2,212
Proceeds from repayment of loans purchased as held for sale	54,919			67,506
Net change in:
Interest receivable	12,678			26,172
Guarantee and commitment fees receivable	226			534
Other assets	(109		)	(46,832		)
Accrued interest payable	12,104			(7,351		)
Other liabilities	435			507
Net cash provided by operating activities	157,309			120,842
Cash flows from investing activities:
Purchases of available-for-sale investment securities	(614,423		)	(1,365,314		)
Purchases of Farmer Mac Guaranteed Securities and USDA Securities	(2,580,229		)	(2,203,574		)
Purchases of loans held for investment	(1,047,001		)	(762,018		)
Purchases of defaulted loans	(3,458		)	(2,516		)
Proceeds from repayment of available-for-sale investment securities	895,497			957,973
Proceeds from repayment of Farmer Mac Guaranteed Securities and USDA Securities	787,743			1,467,052
Proceeds from repayment of loans purchased as held for investment	368,826			333,920
Proceeds from sale of available-for-sale investment securities	5,089			186,769
Proceeds from sale of Farmer Mac Guaranteed Securities	404,246			457,369
Proceeds from sale of real estate owned	6,464			295
Net cash used by investing activities	(1,777,246		)	(930,044		)
Cash flows from financing activities:
Proceeds from issuance of discount notes	40,262,122			77,411,229
Proceeds from issuance of medium-term notes	7,160,298			4,763,631
Payments to redeem discount notes	(42,174,697		)	(79,058,129		)
Payments to redeem medium-term notes	(3,416,300		)	(3,103,800		)
Excess tax benefits related to stock-based awards	—			408
Payments to third parties on debt securities of consolidated trusts	(86,582		)	(71,806		)
Proceeds from common stock issuance	235			405
Tax payments related to share-based awards	(2,283		)	(1,975		)
Common stock repurchased	—			(9,286		)
Investment in subsidiary - non-controlling interest	—			53
Dividends paid on common and preferred stock	(21,321		)	(18,031		)
Net cash provided/(used) by financing activities	1,721,472			(87,301		)
Net increase in cash and cash equivalents	101,535			(896,503		)
Cash and cash equivalents at beginning of period	265,229			1,210,084
Cash and cash equivalents at end of period	$	366,764		$	313,581

  The accompanying notes are an integral part of these consolidated financial statements.

8

FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The interim unaudited consolidated financial statements of the Federal Agricultural Mortgage Corporation ("Farmer Mac") and subsidiaries have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). These interim unaudited consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary to present a fair statement of the financial position and the results of operations and cash flows of Farmer Mac and subsidiaries for the interim periods presented. Certain information and footnote disclosures normally included in the annual consolidated financial statements have been omitted as permitted by SEC rules and regulations. The December 31, 2016 consolidated balance sheet presented in this report has been derived from Farmer Mac's audited 2016 consolidated financial statements. Management believes that the disclosures are adequate to present fairly the consolidated financial statements as of the dates and for the periods presented. These interim unaudited consolidated financial statements should be read in conjunction with the 2016 consolidated financial statements of Farmer Mac and subsidiaries included in Farmer Mac's Annual Report on Form 10-K for the year ended December 31, 2016 filed with the SEC on March 9, 2017. That Form 10-K describes Farmer Mac's significant accounting policies, which include its policies on Principles of Consolidation; Cash and Cash Equivalents and Statements of Cash Flows; Transfers of Financial Assets and Liabilities; Investment Securities, Farmer Mac Guaranteed Securities, and USDA Securities; Loans; Securitization of Loans; Real Estate Owned; Financial Derivatives; Notes Payable; Allowance for Loan Losses and Reserve for Losses; Earnings Per Common Share; Income Taxes; Stock-Based Compensation; Comprehensive Income; Long-Term Standby Purchase Commitments; Fair Value Measurement; and Consolidation of Variable Interest Entities ("VIEs"). Results for interim periods are not necessarily indicative of those that may be expected for the fiscal year. Presented below are Farmer Mac's significant accounting policies that contain updated information for the three months ended September 30, 2017.

Principles of Consolidation

The consolidated financial statements include the accounts of Farmer Mac and its three subsidiaries during the quarter: (1) Farmer Mac Mortgage Securities Corporation ("FMMSC"), whose principal activities are to facilitate the purchase and issuance of Farmer Mac Guaranteed Securities; (2) Farmer Mac II LLC, whose principal activity is the operation of substantially all of the business related to the USDA Guarantees line of business – primarily the acquisition of USDA Securities; and (3) Contour Valuation Services, LLC (which began doing business as AgVisory during first quarter 2016), whose principal activity is to appraise agricultural real estate. On May 1, 2017, Farmer Mac transferred its entire 65% ownership interest in AgVisory back to the limited liability company as a company redemption in exchange for $5,000. Farmer Mac recognized a loss of approximately $0.1 million after-tax upon the transfer. The consolidated financial statements also include the accounts of VIEs in which Farmer Mac determined itself to be the primary beneficiary.

9

The following tables present, by line of business, details about the consolidation of VIEs:

Table 1.1

	Consolidation of Variable Interest Entities
	As of September 30, 2017
	Farm & Ranch		USDA Guarantees		Rural Utilities		Institutional Credit		Corporate		Total
	(in thousands)
On-Balance Sheet:
Consolidated VIEs:
Loans held for investment in consolidated trusts, at amortized cost	$	1,329,212	$	—	$	—	$	—	$	—	$	1,329,212
Debt securities of consolidated trusts held by third parties (1)	1,333,417		—		—		—		—		1,333,417
Unconsolidated VIEs:
Farmer Mac Guaranteed Securities:
Carrying value (2)	—		31,003		—		—		—		31,003
Maximum exposure to loss (3)	—		30,688		—		—		—		30,688
Investment securities:
Carrying value (4)	—		—		—		—		783,665		783,665
Maximum exposure to loss (3) (4)	—		—		—		—		781,755		781,755
Off-Balance Sheet:
Unconsolidated VIEs:
Farmer Mac Guaranteed Securities:
Maximum exposure to loss (3) (5)	354,823		226,802		—		—		—		581,625

⁽¹⁾  Includes borrower remittances of $4.2 million. The borrower remittances had not been passed through to third party investors as of September 30, 2017.

⁽²⁾  Includes $0.3 million of unamortized premiums and discounts and fair value adjustments related to the USDA Guarantees line of business.

⁽³⁾  Farmer Mac uses unpaid principal balance and outstanding face amount of investment securities to represent maximum exposure to loss.

⁽⁴⁾  Includes auction-rate certificates, asset-backed securities, and government-sponsored enterprise ("GSE")-guaranteed mortgage-backed securities.

⁽⁵⁾  The amount under the Farm & Ranch line of business relates to unconsolidated trusts where Farmer Mac determined it was not the primary beneficiary due to shared power with an unrelated party.

10

	Consolidation of Variable Interest Entities
	As of December 31, 2016
	Farm & Ranch		USDA Guarantees		Rural Utilities		Institutional Credit		Corporate		Total
	(in thousands)
On-Balance Sheet:
Consolidated VIEs:
Loans held for investment in consolidated trusts, at amortized cost	$	1,132,966	$	—	$	—	$	—	$	—	$	1,132,966
Debt securities of consolidated trusts held by third parties (1)	1,142,704		—		—		—		—		1,142,704
Unconsolidated VIEs:
Farmer Mac Guaranteed Securities:
Carrying value (2)	—		36,042		—		30,347		—		66,389
Maximum exposure to loss (3)	—		35,599		—		30,000		—		65,599
Investment securities:
Carrying value (4)	—		—		—		—		827,874		827,874
Maximum exposure to loss (3) (4)	—		—		—		—		825,909		825,909
Off-Balance Sheet:
Unconsolidated VIEs:
Farmer Mac Guaranteed Securities:
Maximum exposure to loss (3) (5)	415,441		103,976		—		970,000		—		1,489,417

⁽¹⁾  Includes borrower remittances of $9.7 million, which have not been passed through to third party investors as of December 31, 2016.

⁽²⁾  Includes $0.4 million of unamortized premiums and discounts and fair value adjustments related to the USDA Guarantees line of business. Includes fair value adjustments related to the Institutional Credit line of business of $0.3 million.

⁽³⁾  Farmer Mac uses unpaid principal balance and the outstanding face amount of investment securities to represent maximum exposure to loss.

⁽⁴⁾  Includes auction-rate certificates, asset-backed securities, and GSE-guaranteed mortgage-backed securities.

⁽⁵⁾  The amount under the Farm & Ranch line of business relates to unconsolidated trusts where Farmer Mac determined it was not the primary beneficiary due to shared power with an unrelated party.

(a) Statements of Cash Flows

The following table sets forth information regarding certain cash and non-cash transactions for the nine months endedSeptember 30, 2017 and 2016:

Table 1.2

	For the Nine Months Ended
	September 30, 2017	September 30, 2016
	(in thousands)
Non-cash activity:
Real estate owned acquired through loan liquidation	5,261	—
Loans acquired and securitized as Farmer Mac Guaranteed Securities	404,246	457,369
Consolidation of Farm & Ranch Guaranteed Securities from off-balance sheet to loans held for investment in consolidated trusts and to debt securities of consolidated trusts held by third parties	277,307	402,841
Purchases of securities - traded not yet settled	9,987	25,000

11

(b) Earnings Per Common Share

Basic earnings per common share ("EPS") is based on the weighted-average number of shares of common stock outstanding.  Diluted earnings per common share is based on the weighted-average number of shares of common stock outstanding adjusted to include all potentially dilutive common stock options, stock appreciation rights ("SARs"), and non-vested restricted stock awards.  The following schedule reconciles basic and diluted EPS for the three and nine months ended September 30, 2017 and 2016:

Table 1.3

	For the Three Months Ended
	September 30, 2017(1)						September 30, 2016
	Net Income		Weighted-Average Shares	$ per Share			Net Income		Weighted-Average Shares	$ per Share
	(in thousands, except per share amounts)
Basic EPS
Net income attributable to common stockholders	$	18,487	10,605	$	1.74		$	16,364	10,473	$	1.56
Effect of dilutive securities(2)
Stock options, SARs and restricted stock	—		210	(0.03		)	—		176	(0.02		)
Diluted EPS	$	18,487	10,815	$	1.71		$	16,364	10,649	$	1.54

⁽¹⁾  For the effect of the adoption of the new Accounting Standard Update 2016-09, "Improvements to Employee Share-Based Payment Accounting," on Basic and Diluted EPS, see Note 1(d) "New Accounting Standards."

⁽²⁾  For the three months ended September 30, 2017 and 2016, stock options and SARs of 24,657 and 54,709, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because they were anti-dilutive. For the three months ended September 30, 2017 and 2016, contingent shares of non-vested restricted stock of 32,892, and 37,284, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because performance conditions had not yet been met.

	For the Nine Months Ended
	September 30, 2017(1)						September 30, 2016
	Net Income		Weighted-Average Shares	$ per Share			Net Income		Weighted-Average Shares	$ per Share
	(in thousands, except per share amounts)
Basic EPS
Net income attributable to common stockholders	$	54,590	10,586	$	5.16		$	38,687	10,464	$	3.70
Effect of dilutive securities(2)
Stock options, SARs and restricted stock	—		208	(0.10		)	—		291	(0.10		)
Diluted EPS	$	54,590	10,794	$	5.06		$	38,687	10,755	$	3.60

⁽¹⁾  For the effect of the adoption of the new Accounting Standard Update 2016-09, "Improvements to Employee Share-Based Payment Accounting," on Basic and Diluted EPS, see Note 1(d) "New Accounting Standards."

⁽²⁾  For the nine months ended September 30, 2017 and 2016, stock options and SARs of 33,440 and 115,875, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because they were anti-dilutive. For the nine months ended September 30, 2017 and 2016, contingent shares of non-vested restricted stock of 32,892, and 37,284, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because performance conditions had not yet been met.

(c) Comprehensive Income

Comprehensive income represents all changes in stockholders' equity except those resulting from investments by or distributions to stockholders, and is comprised of net income and unrealized gains and losses on available-for-sale securities, certain held-to-maturity securities transferred from the available-for-sale classification, and cash flow hedges, net of related taxes.

12

The following table presents the changes in accumulated other comprehensive income ("AOCI"), net of tax, by component for the three and nine months ended September 30, 2017 and 2016:

Table 1.4

	As of September 30, 2017												As of September 30, 2016
	Available-for-Sale Securities			Held-to-Maturity Securities			Cash Flow Hedges			Total			Available-for-Sale Securities			Held-to-Maturity Securities			Cash Flow Hedges			Total
	(in thousands)
For the Three Months Ended:
Beginning Balance	$	(1,276	)	$	42,104		$	1,600		$	42,428		$	19,704		$	(1,781	)	$	(5,539	)	$	12,384
Other Comprehensive Income Before Reclassifications	2,298			—			(97		)	2,201			2,746			—			527			3,273
Amounts reclassified from AOCI	(2,875		)	(1,221		)	262			(3,834		)	(2,388		)	(47		)	342			(2,093		)
Net Comprehensive (Loss)/Income	(577		)	(1,221		)	165			(1,633		)	358			(47		)	869			1,180
Ending Balance	$	(1,853	)	$	40,883		$	1,765		$	40,795		$	20,062		$	(1,828	)	$	(4,670	)	$	13,564
For the Nine Months Ended:
Beginning Balance	$	(14,387	)	$	45,752		$	2,393		$	33,758		$	(10,035	)	$	(476	)	$	(508	)	$	(11,019	)
Other Comprehensive Income Before Reclassifications	20,711			—			(1,522		)	19,189			37,446			—			(5,136		)	32,310
Amounts reclassified from AOCI	(8,177		)	(4,869		)	894			(12,152		)	(7,349		)	(1,352		)	974			(7,727		)
Net Comprehensive Income/(Loss)	12,534			(4,869		)	(628		)	7,037			30,097			(1,352		)	(4,162		)	24,583
Ending Balance	$	(1,853	)	$	40,883		$	1,765		$	40,795		$	20,062		$	(1,828	)	$	(4,670	)	$	13,564

13

The following table presents other comprehensive income activity, the impact on net income of amounts reclassified from each component of AOCI, and the related tax impact for the three and nine months ended September 30, 2017 and 2016:

Table 1.5

	For the Three Months Ended
	September 30, 2017									September 30, 2016
	Before Tax			Provision (Benefit)			After Tax			Before Tax			Provision (Benefit)			After Tax
	(in thousands)
Other comprehensive income:
Available-for-sale-securities:
Unrealized holding gains on available-for-sale-securities	$	3,536		$	1,238		$	2,298		$	4,225		$	1,479		$	2,746
Less reclassification adjustments included in:
Gains/(losses) on financial derivatives and hedging activities(1)	(4,326		)	(1,514		)	(2,812		)	(3,652		)	(1,278		)	(2,374		)
Gains/(losses) on sale of available-for-sale investment securities(2)	(89		)	(31		)	(58		)	—			—			—
Other income(2)	(7		)	(2		)	(5		)	(21		)	(7		)	(14		)
Total	$	(886	)	$	(309	)	$	(577	)	$	552		$	194		$	358
Held-to-maturity securities:
Less reclassification adjustments included in:
Net interest income(3)	$	(1,879	)	$	(658	)	$	(1,221	)	$	(73	)	$	(26	)	$	(47	)
Total	$	(1,879	)	$	(658	)	$	(1,221	)	$	(73	)	$	(26	)	$	(47	)
Cash flow hedges
Unrealized (losses)/gains on cash flow hedges	$	(150	)	$	(53	)	$	(97	)	$	810		$	283		$	527
Less reclassification adjustments included in:
Net interest income(4)	403			141			262			526			184			342
Total	$	253		$	88		$	165		$	1,336		$	467		$	869
Other comprehensive (loss)/income	$	(2,512	)	$	(879	)	$	(1,633	)	$	1,815		$	635		$	1,180

⁽¹⁾  Relates to the amortization of unrealized gains on hedged items prior to the application of fair value hedge accounting.

⁽²⁾  Represents amortization of deferred gains related to certain available-for-sale USDA Securities and Farmer Mac Guaranteed USDA Securities.

⁽³⁾  Relates to the amortization of unrealized gains or losses prior to the reclassification of these securities from available-for-sale to held-to-maturity. The amortization of unrealized gains or losses reported in AOCI for held-to-maturity securities will be offset by the amortization of the premium or discount created from the transfer into held-to-maturity securities, which occurred at fair value. These unrealized gains or losses will be recorded over the remaining life of the security with no impact on future net income.

⁽⁴⁾  Relates to the recognition of unrealized gains and losses on cash flow hedges recorded in AOCI.

14

	For the Nine Months Ended
	September 30, 2017									September 30, 2016
	Before Tax			Provision (Benefit)			After Tax			Before Tax			Provision (Benefit)			After Tax
	(in thousands)
Other comprehensive income:
Available-for-sale-securities:
Unrealized holding gains on available-for-sale-securities	$	31,863		$	11,152		$	20,711		$	57,610		$	20,164		$	37,446
Less reclassification adjustments included in:
Gains/(losses) on financial derivatives and hedging activities(1)	(12,470		)	(4,365		)	(8,105		)	(11,591		)	(4,056		)	(7,535		)
Gains/(losses) on sale of available-for-sale investment securities(2)	(89		)	(31		)	(58		)	9			3			6
Other income(3)	(21		)	(7		)	(14		)	277			97			180
Total	$	19,283		$	6,749		$	12,534		$	46,305		$	16,208		$	30,097
Held-to-maturity securities:
Less reclassification adjustments included in:
Net interest income(4)	$	(7,491	)	$	(2,622	)	$	(4,869	)	$	(2,081	)	$	(729	)	$	(1,352	)
Total	$	(7,491	)	$	(2,622	)	$	(4,869	)	$	(2,081	)	$	(729	)	$	(1,352	)
Cash flow hedges
Unrealized losses on cash flow hedges	(2,342		)	(820		)	$	(1,522	)	$	(7,901	)	$	(2,765	)	$	(5,136	)
Less reclassification adjustments included in:
Net interest income(5)	1,376			482			894			1,498			524			974
Total	$	(966	)	$	(338	)	$	(628	)	$	(6,403	)	$	(2,241	)	$	(4,162	)
Other comprehensive income	$	10,826		$	3,789		$	7,037		$	37,821		$	13,238		$	24,583

⁽¹⁾  Relates to the amortization of unrealized gains on hedged items prior to the application of fair value hedge accounting.

⁽²⁾  Represents unrealized losses on sales of available-for-sale investment securities.

⁽³⁾  Represents amortization of deferred gains related to certain available-for-sale USDA Securities and Farmer Mac Guaranteed USDA Securities.

⁽⁴⁾  Relates to the amortization of unrealized gains or losses prior to the reclassification of these securities from available-for-sale to held-to-maturity. The amortization of unrealized gains or losses reported in AOCI for held-to-maturity securities will be offset by the amortization of the premium or discount created from the transfer into held-to-maturity securities, which occurred at fair value. These unrealized gains or losses will be recorded over the remaining life of the security with no impact on future net income.

⁽⁵⁾  Relates to the recognition of unrealized gains and losses on cash flow hedges recorded in AOCI.

15

(d) New Accounting Standards

In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which provides new guidance intended to simplify several aspects of accounting and presentation for employee share-based payment transactions. The ASU became effective for Farmer Mac on January 1, 2017. The adoption of the new guidance had the following effect on Farmer Mac's financial position, results of operations, and cash flows:

• Consolidated Statements of Operations - The ASU requires the recognition of all net tax benefits related to share-based compensation awards in the income tax provision. Previously, these amounts were recognized in additional paid-in capital. Net tax benefits related to share-based compensation awards of $0.3 million and $1.2 million, respectively, were recognized as a reduction to income tax expense in the three and nine months ended September 30, 2017 in the consolidated statement of operations. Net tax benefits result from the excess of the tax deduction over the compensation expense recognized under GAAP for share-based compensation awards. That excess arises because the tax deduction is based upon the value of share-based awards upon their exercise (or vesting, in the case of restricted stock units), whereas the compensation expense under GAAP is based upon the value of the share-based awards upon their grant date.

The ASU also changed the calculation of diluted earnings per share. GAAP requires the "treasury stock method" to determine the number of dilutive securities in calculating diluted earnings per share. The ASU changed the calculation of "assumed proceeds" under the treasury stock method to exclude the amount of net tax benefits that would have been recognized in additional paid-in capital under the previous accounting standard. This change in the calculation reduces the amount of shares assumed to have been repurchased under the treasury stock method, thus increasing the number of dilutive shares.

Both of these changes in the guidance were applied prospectively beginning January 1, 2017 and for the three and nine months ended September 30, 2017. For the three months ended September 30, 2017, the change in the recognition of all net tax benefits related to share-based compensation awards in the income tax provision resulted in an increase of $0.03 in basic earnings per share and $0.02 in diluted earnings per share for the three months ended September 30, 2017. For the nine months ended September 30, 2017, the change in the recognition of all net tax benefits related to share-based compensation awards in the income tax provision resulted in an increase of $0.11 in basic earnings per share and $0.09 in diluted earnings per share. The change in the guidance for the calculation of diluted earnings per share had an immaterial impact on diluted earnings per share.

Additionally, the ASU allows companies to choose to either include an estimate of forfeitures expected to occur in share-based compensation expense or account for them as they occur. Previously, GAAP required companies to include an estimate of forfeitures expected to occur in their share-based compensations expense. Farmer Mac has elected to account for forfeitures in compensation expense as they occur. The cumulative impact of the change in the treatment of forfeitures was not material for the three and nine months ended September 30, 2017.

• Consolidated Statements of Cash Flows - The ASU requires excess tax benefits from share-based employee awards to be reported within operating activities. Previously, these cash flows were

16

reported within financing activities. Farmer Mac has applied this guidance prospectively, resulting in an increase in net cash provided by operating activities and a corresponding decrease in net cash provided by financing activities of $0.3 million and $1.2 million, respectively, for the three and nine months ended September 30, 2017.

The ASU requires employee taxes paid when an employer withholds shares for tax purposes to be reported within financing activities. Under the previous guidance, these cash flows were included in operating activities. These changes were required to be applied on a retrospective basis. As a result, the consolidated statement of cash flows for prior periods was revised, resulting in an increase in net cash provided by operating activities and a decrease in net cash provided by financing activities of $2.0 million for the nine months ended September 30, 2016, compared to previously reported amounts. The amount of employee taxes paid for shares withheld was $2.3 million for the nine months ended September 30, 2017.

In June 2016, the FASB issued ASU 2016-13, "Financial Instruments—Credit Losses," which will require entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts.  Entities will be required to use forward-looking information to form their credit loss estimates.  The ASU will also require enhanced disclosures to help users of financial statements better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio.  The new standard is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019.   Early application will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018.  Farmer Mac is currently evaluating the impact that the new guidance will have on its consolidated financial statements. That impact will primarily be from the new requirement to recognize all expected losses rather than just incurred losses as of the reporting date. 

In March 2017, the FASB issued ASU 2017-08, "Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities," which shortens the amortization period for certain callable debt securities held at a premium by requiring the premium to be amortized to the earliest call date. The ASU does not require an accounting change for securities held at a discount. The new standard is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019. Farmer Mac does not expect that adoption of the new guidance will have a material effect on Farmer Mac's financial position, results of operations, or cash flows.

In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities," which amends hedge accounting recognition and presentation requirements to better align a reporting entity's risk management activities and hedge accounting. The new guidance reduces the complexity and simplifies the application of hedge accounting by eliminating the requirement to separately measure and report hedge ineffectiveness and by requiring the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The new standard is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018. Early adoption of the new guidance is permitted in any interim or annual period after issuance of the ASU. Farmer Mac is planning to adopt the new guidance as of January 1, 2018 and does not expect the adoption of the new guidance to have a material effect on Farmer Mac's financial position, results of operation, or cash flow upon the adoption of the new guidance.

17

2. INVESTMENT SECURITIES

The following tables set forth information about Farmer Mac's investment securities as of September 30, 2017 and December 31, 2016:

Table 2.1

	As of September 30, 2017
	Amount Outstanding		Unamortized Premium/(Discount)			Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	19,700	$	—		$	19,700	$	—	$	(1,182	)	$	18,518
Floating rate asset-backed securities	35,870		(165		)	35,705		20		(123		)	35,602
Floating rate Government/GSE guaranteed mortgage-backed securities	1,308,236		2,386			1,310,622		2,858		(1,276		)	1,312,204
Fixed rate GSE guaranteed mortgage-backed securities(1)	468		2,247			2,715		2,250		—			4,965
Fixed rate senior agency debt	100,000		(8		)	99,992		—		(121		)	99,871
Fixed rate U.S. Treasuries	765,318		(1,054		)	764,264		—		(458		)	763,806
Total available-for-sale	2,229,592		3,406			2,232,998		5,128		(3,160		)	2,234,966
Total investment securities	$	2,229,592	$	3,406		$	2,232,998	$	5,128	$	(3,160	)	$	2,234,966

⁽¹⁾  Fair value includes $4.5 million of an interest-only security with a notional amount of $144.3 million.

	As of December 31, 2016
	Amount Outstanding		Unamortized Premium/(Discount)			Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	19,700	$	—		$	19,700	$	—	$	(1,970	)	$	17,730
Floating rate asset-backed securities	44,442		(202		)	44,240		1		(390		)	43,851
Floating rate corporate debt securities	10,000		—			10,000		41		—			10,041
Floating rate Government/GSE guaranteed mortgage-backed securities	1,359,700		2,827			1,362,527		1,768		(3,266		)	1,361,029
Fixed rate GSE guaranteed mortgage-backed securities(1)	538		2,582			3,120		4,505		—			7,625
Floating rate GSE subordinated debt	70,000		—			70,000		—		(3,047		)	66,953
Fixed rate senior agency debt	187,295		106			187,401		—		(268		)	187,133
Fixed rate U.S. Treasuries	821,619		359			821,978		47		(536		)	821,489
Total available-for-sale	2,513,294		5,672			2,518,966		6,362		(9,477		)	2,515,851
Total investment securities	$	2,513,294	$	5,672		$	2,518,966	$	6,362	$	(9,477	)	$	2,515,851

⁽¹⁾  Fair value includes $7.0 million of an interest-only security with a notional amount of $146.1 million.

During the three months ended September 30, 2017, Farmer Mac received proceeds of $5.1 million from the sale of securities from its available-for-sale investment portfolio, resulting in gross realized gains of $0.1 million. Farmer Mac did not sell any securities from its available-for-sale investment portfolio during the three months ended September 30, 2016. During the nine months ended September 30, 2017, Farmer Mac received proceeds of $5.1 million from the sale of securities from its available-for-sale investment portfolio, resulting in gross realized gains of $0.1 million, compared to proceeds of $186.8

18

million for the same period in 2016, resulting in gross realized gains of $0.1 million and gross realized losses of $0.1 million.

As of September 30, 2017 and December 31, 2016, unrealized losses on available-for-sale investment securities were as follows:

Table 2.2

	As of September 30, 2017
	Available-for-Sale Securities
	Unrealized loss position for less than 12 months					Unrealized loss position for more than 12 months
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(in thousands)
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	—	$	—		$	18,518	$	(1,182	)
Floating rate asset-backed securities	—		—			24,089		(123		)
Floating rate Government/GSE guaranteed mortgage-backed securities	131,772		(220		)	277,196		(1,056		)
Fixed rate U.S. Treasuries	738,815		(431		)	24,991		(27		)
Fixed rate senior agency debt	49,929		(73		)	49,943		(48		)
Total	$	920,516	$	(724	)	$	394,737	$	(2,436	)

	As of December 31, 2016
	Available-for-Sale Securities
	Unrealized loss position for less than 12 months					Unrealized loss position for more than 12 months
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(in thousands)
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	—	$	—		$	17,730	$	(1,970	)
Floating rate asset-backed securities	4,654		(10		)	38,077		(380		)
Floating rate Government/GSE guaranteed mortgage-backed securities	384,586		(1,030		)	442,041		(2,236		)
Floating rate GSE subordinated debt	—		—			66,953		(3,047		)
Fixed rate U.S. Treasuries	732,371		(536		)	—		—
Fixed rate senior agency debt	187,133		(268		)	—		—
Total	$	1,308,744	$	(1,844	)	$	564,801	$	(7,633	)

The unrealized losses presented above are principally due to a general widening of market spreads and an increase in the levels of interest rates from the dates of acquisition to September 30, 2017 and December 31, 2016, as applicable. The resulting decrease in fair values reflects an increase in the perceived risk by the financial markets related to those securities. As of September 30, 2017, all of the investment securities in an unrealized loss position either were backed by the full faith and credit of the U.S. government or had credit ratings of at least "AA+." As of December 31, 2016, all of the investment securities in an unrealized loss position either were backed by the full faith and credit of the U.S. government or had credit ratings of at least "AA+," except one that was rated "A-." The unrealized losses were on 81 and 97 individual investment securities as of September 30, 2017 and December 31, 2016, respectively.

19

As of September 30, 2017, 44 of the securities in loss positions had been in loss positions for more than 12 months and had a total unrealized loss of $2.4 million. As of December 31, 2016, 36 of the securities in loss positions had been in loss positions for more than 12 months and had a total unrealized loss of $7.6 million.  Securities in unrealized loss positions for 12 months or longer have a fair value as of September 30, 2017 that is, on average, approximately 99 percent of their amortized cost basis. Farmer Mac believes that all of these unrealized losses are recoverable within a reasonable period of time by way of maturity or changes in credit spreads. Accordingly, Farmer Mac has concluded that none of the unrealized losses on these available-for-sale investment securities are other-than-temporary impairment as of September 30, 2017 and December 31, 2016.

Farmer Mac did not own any held-to-maturity or trading investment securities as of September 30, 2017 and December 31, 2016.

The amortized cost, fair value, and weighted-average yield of available-for-sale investment securities by remaining contractual maturity as of September 30, 2017 are set forth below. Asset-backed and mortgage-backed securities are included based on their final maturities, although the actual maturities may differ due to prepayments of the underlying assets.

Table 2.3

	As of September 30, 2017
	Available-for-Sale Securities
	Amortized Cost		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	798,153	$	797,630	0.92%
Due after one year through five years	363,861		364,132		1.62%
Due after five years through ten years	279,192		281,792		1.75%
Due after ten years	791,792		791,412		1.86%
Total	$	2,232,998	$	2,234,966	1.47%

20

3. FARMER MAC GUARANTEED SECURITIES AND USDA SECURITIES

The following tables set forth information about on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities as of September 30, 2017 and December 31, 2016:

Table 3.1

	As of September 30, 2017
	Unpaid Principal Balance		Unamortized Premium/(Discount)			Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Held-to-maturity:
AgVantage	$	2,128,974	$	(1,166	)	$	2,127,808	$	5,091	$	(6,073	)	$	2,126,826
Farmer Mac Guaranteed USDA Securities	30,688		314			31,002		86		(284		)	30,804
Total Farmer Mac Guaranteed Securities	2,159,662		(852		)	2,158,810		5,177		(6,357		)	2,157,630
USDA Securities	2,027,261		65,024			2,092,285		—		(64,741		)	2,027,544
Total held-to-maturity	$	4,186,923	$	64,172		$	4,251,095	$	5,177	$	(71,098	)	$	4,185,174
Available-for-sale:
AgVantage	$	5,459,655	$	(141	)	$	5,459,514	$	30,811	$	(46,579	)	$	5,443,746
Trading:
USDA Securities	$	14,204	$	1,092		$	15,296	$	31	$	(463	)	$	14,864

	As of December 31, 2016
	Unpaid Principal Balance		Unamortized Premium/(Discount)			Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Held-to-maturity:
AgVantage	$	1,115,465	$	(2,276	)	$	1,113,189	$	7,187	$	(3,175	)	$	1,117,201
Farmer Mac Guaranteed USDA Securities	35,599		443			36,042		5		(239		)	35,808
Total Farmer Mac Guaranteed Securities	1,151,064		(1,833		)	1,149,231		7,192		(3,414		)	1,153,009
USDA Securities	1,935,440		73,785			2,009,225		—		(95,590		)	1,913,635
Total held-to-maturity	$	3,086,504	$	71,952		$	3,158,456	$	7,192	$	(99,004	)	$	3,066,644
Available-for-sale:
AgVantage	$	4,889,007	$	(103	)	$	4,888,904	$	28,715	$	(63,934	)	$	4,853,685
Trading:
USDA Securities	$	19,360	$	1,377		$	20,737	$	41	$	(390	)	$	20,388

On October 1, 2016, Farmer Mac transferred $2.0 billion of USDA Securities and $32.8 million of Farmer Mac Guaranteed USDA Securities from available-for-sale to held-to-maturity to reflect Farmer Mac’s positive intent and ability to hold these securities until maturity or payoff. Farmer Mac transferred these securities at fair value as of the date of the transfer, which included a cost basis adjustment of unrealized appreciation in the amount of $73.1 million for the USDA Securities and $0.7 million for the Farmer Mac Guaranteed USDA Securities. The accumulated unrealized appreciation was retained in accumulated other comprehensive income in the amount of $73.8 million, before tax. Farmer Mac accounts for held-to-maturity securities at amortized cost. Both the cost basis adjustment and accumulated unrealized appreciation will be amortized as an adjustment to the yield on the held-to-maturity USDA Securities over the remaining term of the transferred securities.

21

As of September 30, 2017 and December 31, 2016, unrealized losses on held-to-maturity and available-for-sale on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities were as follows:

Table 3.2

	As of September 30, 2017
	Held-to-Maturity and Available-for-Sale Securities
	Unrealized loss position for less than 12 months					Unrealized loss position for more than 12 months
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(in thousands)
Held-to-maturity:
AgVantage	$	1,249,774	$	(3,888	)	$	247,815	$	(2,185	)
Farmer Mac Guaranteed USDA Securities	25,201		(284		)	—		—
USDA Securities	1,940,984		(64,696		)	86,619		(45		)
Total held-to-maturity	$	3,215,959	$	(68,868	)	$	334,434	$	(2,230	)
Available-for-sale:
AgVantage	$	1,293,478	$	(14,376	)	$	1,424,602	$	(32,203	)

	As of December 31, 2016
	Available-for-Sale Securities
	Unrealized loss position for less than 12 months					Unrealized loss position for more than 12 months
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(in thousands)
Held-to-maturity:
AgVantage	$	358,575	$	(3,175	)	$	—	$	—
Farmer Mac Guaranteed USDA Securities	30,575		(239		)	—		—
USDA Securities	1,816,366		(95,582		)	97,270		(8		)
Total held-to-maturity	$	2,205,516	$	(98,996	)	$	97,270	$	(8	)
Available-for-sale:
AgVantage	$	982,538	$	(18,482	)	$	1,131,930	$	(45,452	)

The unrealized losses presented above are principally due to higher interest rates from the date of acquisition to September 30, 2017 and December 31, 2016, as applicable. In addition, the unrealized losses on the held-to-maturity USDA Securities as of both September 30, 2017 and December 31, 2016 reflect their increased cost basis resulting from their transfer to held-to-maturity as of October 1, 2016, as described above. The credit exposure related to Farmer Mac's USDA Guarantees line of business is covered by the full faith and credit guarantee of the United States. The unrealized losses from AgVantage securities were on 30 available-for-sale securities as of September 30, 2017. There were 18 held-to-maturity AgVantage securities with an unrealized loss as of September 30, 2017. The unrealized losses from AgVantage securities were on 22 available-for-sale securities as of December 31, 2016. There were 7 unrealized losses from held-to-maturity securities as of December 31, 2016. As of September 30, 2017, 12 available-for-sale AgVantage securities had been in a loss position for more than 12 months with a total

22

unrealized loss of $32.2 million. As of December 31, 2016, 10 available-for-sale AgVantage securities had been in a loss position for more than 12 months with a total unrealized loss of $45.5 million. Farmer Mac has concluded that none of the unrealized losses on its held-to-maturity Farmer Mac Guaranteed Securities and USDA Securities and available-for-sale Farmer Mac Guaranteed Securities are other-than-temporary impairment as of either September 30, 2017 or December 31, 2016.  Farmer Mac does not intend to sell these securities, and it is not more likely than not that Farmer Mac will be required to sell the securities before recovery of the amortized cost basis.

During the three and nine months ended September 30, 2017 and 2016, Farmer Mac realized no gains or losses from the sale of Farmer Mac Guaranteed Securities and USDA Securities.

The amortized cost, fair value, and weighted-average yield of available-for-sale and held-to-maturity Farmer Mac Guaranteed Securities and USDA Securities by remaining contractual maturity as of September 30, 2017 are set forth below. The balances presented are based on their final maturities, although the actual maturities may differ due to prepayments of the underlying assets.

Table 3.3

	As of September 30, 2017
	Available-for-Sale Securities
	Amortized Cost		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	1,000,000	$	1,001,537	1.90	%
Due after one year through five years	2,696,001		2,706,480		2.14	%
Due after five years through ten years	745,701		750,299		2.87	%
Due after ten years	1,017,812		985,430		1.98	%
Total	$	5,459,514	$	5,443,746	2.17	%

	As of September 30, 2017
	Held-to-Maturity Securities
	Amortized Cost		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	926,747	$	925,935	1.78	%
Due after one year through five years	1,260,842		1,258,848		2.27	%
Due after five years through ten years	208,034		201,899		3.07	%
Due after ten years	1,855,472		1,798,492		3.35	%
Total	$	4,251,095	$	4,185,174	2.66	%

As of September 30, 2017, Farmer Mac owned trading USDA Securities with an amortized cost of $15.3 million, a fair value of $14.9 million, and a weighted-average yield of 5.36 percent. As of December 31, 2016, Farmer Mac owned trading USDA Securities with an amortized cost of $20.7 million, a fair value of $20.4 million, and a weighted-average yield of 5.44 percent.  

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4. FINANCIAL DERIVATIVES

Farmer Mac enters into financial derivative transactions principally to protect against risk from the effects of market price or interest rate movements on the value of certain assets, future cash flows, or debt issuance, and not for trading or speculative purposes.  Certain financial derivatives are designated as fair value hedges of fixed rate assets, primarily classified as available-for-sale, to protect against fair value changes in the assets related to a benchmark interest rate (i.e., LIBOR). Other financial derivatives are designated as cash flow hedges to mitigate the volatility of future interest rate payments on floating rate debt.

All financial derivatives are recorded on the balance sheet at fair value as a freestanding asset or liability. Changes in the fair values of financial derivatives not designated as cash flow hedges are reported in "Gains/(losses) on financial derivatives and hedging activities" in the consolidated statements of operations. For financial derivatives designated in fair value hedge accounting relationships, changes in the fair values of the hedged items, which are primarily fixed rate AgVantage securities and fixed rate medium-term notes, related to the risk being hedged are also reported in "Gains/(losses) on financial derivatives and hedging activities" in the consolidated statements of operations. Interest accruals on derivatives designated in fair value hedge accounting relationships are recorded in "Net interest income" in the consolidated statements of operations. For the three and nine months ended September 30, 2017 the amount of interest expense recognized on those derivatives was $1.9 millionand $6.9 million, respectively. For the three and nine months ended September 30, 2016, the amount of interest expense recognized on those derivatives was $4.0 million and $12.9 million, respectively. For financial derivatives designated in cash flow hedge accounting relationships, the effective portion of the derivative gain/loss is recorded in other comprehensive income and any ineffective portion is recognized immediately in "Gains/(losses) on financial derivatives and hedging activities" in the consolidated statements of operations. Because the hedging instrument is an interest rate swap and the hedged forecasted transactions are future interest payments on variable-rate debt, amounts recorded in accumulated other comprehensive income are reclassified to "Total interest expense" in conjunction with the recognition of interest expense on the debt. For the three and nine months ended September 30, 2017, $0.4 million and $1.4 million, respectively, was reclassified out of accumulated other comprehensive income into interest expense. For the three and nine months ended September 30, 2016, $0.5 million and $1.5 million, respectively, was reclassified out of accumulated other comprehensive income into interest expense. As of September 30, 2017, Farmer Mac expects to reclassify $1.2 million pretax, or $0.8 million after-tax, from accumulated other comprehensive income, net of tax, to earnings over the next twelve months. This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations, and the addition of other hedges subsequent to September 30, 2017. During the three and nine months ended September 30, 2017 and 2016, there were no gains or losses from interest rate swaps designated as cash flow hedges reclassified to earnings because it became probable the original forecasted transaction would not occur.

Fees that Farmer Mac receives upon the inception of swaps are also reported in "Gains/(losses) on financial derivatives and hedging activities" in the consolidated statements of operations. These fees are offset dollar-for-dollar by the discount on the associated hedged debt. However, the swap fees are recognized immediately in Gains/(losses) on financial derivatives and hedging activities, whereas the offsetting discount on the hedged debt is amortized over the term of the debt as an adjustment to its yield. Thus, there is a timing difference between the recognition of the swap fees in Gains/(losses) on financial derivatives and hedging activities and the recognition of the discount in interest expense. There is also a presentation difference because the swap fees are included in Gains/(losses) on financial derivatives and

24

hedging activities, whereas the amortization of the discount is included in interest expense. Additionally, the amount of swap fees varies depending upon the number of swaps initiated during a quarter.

The following tables summarize information related to Farmer Mac's financial derivatives on a gross basis without giving consideration to master netting arrangements as of September 30, 2017 and December 31, 2016 and the effects of financial derivatives on the consolidated statements of operations for the three and nine months ended September 30, 2017 and 2016:

Table 4.1

	As of September 30, 2017
			Fair Value						Weighted- Average Pay Rate	Weighted- Average Receive Rate	Weighted- Average Forward Price	Weighted- Average Remaining Life (in years)
	Notional Amount		Asset			(Liability)
	(dollars in thousands)
Fair value hedges:
Interest rate swaps:
Pay fixed non-callable	$	2,040,854	$	744		$	(8,768	)	1.83%	1.31%		5.42
Receive fixed non-callable	1,431,700		64			(1,985		)	1.23%	1.42%		1.74
Cash flow hedges:
Interest rate swaps:
Pay fixed non-callable	349,000		960			(555		)	2.19%	1.55%		6.32
No hedge designation:
Interest rate swaps:
Pay fixed non-callable	348,040		166			(19,318		)	3.80%	1.31%		6.88
Receive fixed non-callable	3,389,116		—			—			1.12%	1.10%		0.85
Basis swaps	1,225,000		42			(63		)	1.20%	1.22%		0.95
Treasury futures	7,400		50			—					125.99
Credit valuation adjustment			(6		)	94
Total financial derivatives	$	8,791,110	$	2,020		$	(30,595	)
Collateral pledged			—			25,079
Net amount			$	2,020		$	(5,516	)

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	As of December 31, 2016
			Fair Value						Weighted- Average Pay Rate	Weighted- Average Receive Rate	Weighted- Average Forward Price	Weighted- Average Remaining Life (in years)
	Notional Amount		Asset			(Liability)
	(dollars in thousands)
Fair value hedges:
Interest rate swaps:
Pay fixed non-callable	$	1,642,609	$	18,508		$	(18,909	)	1.73%	0.90%		4.70
Cash flow hedges:
Interest rate swaps:
Pay fixed non-callable	207,000		3,706			(955		)	2.18%	1.11%		7.28
No hedge designation:
Interest rate swaps:
Pay fixed non-callable	435,827		339			(32,951		)	4.06%	0.89%		5.90
Receive fixed non-callable	4,991,821		607			(5,064		)	0.74%	0.75%		0.60
Receive fixed callable	30,000		—			(33		)	0.82%	0.58%		0.33
Basis swaps	765,000		36			(243		)	0.78%	0.78%		0.87
Treasury futures	28,000		—			(155		)			123.73
Credit valuation adjustment			(14		)	158
Total financial derivatives	$	8,100,257	$	23,182		$	(58,152	)
Collateral pledged			—			25,643
Net amount			$	23,182		$	(32,509	)

Table 4.2

	Gains/(losses) on financial derivatives and hedging activities
	For the Three Months Ended						For the Nine Months Ended
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
	(in thousands)
Fair value hedges:
Interest rate swaps(1)	$	1,576		$	11,276		$	(5,466	)	$	(30,062	)
Hedged items	166			(10,550		)	4,750			35,778
Gains/(losses) on fair value hedges	1,742			726			(716		)	5,716
Cash flow hedges:
Loss recognized (ineffective portion)	(191		)	(68		)	(365		)	(322		)
Losses on cash flow hedges	(191		)	(68		)	(365		)	(322		)
No hedge designation:
Interest rate swaps	(1,031		)	(2,333		)	4,006			(16,820		)
Agency forwards	—			79			(588		)	(789		)
Treasury futures	141			(5		)	193			(864		)
(Losses)/gains on financial derivatives not designated in hedging relationships	(890		)	(2,259		)	3,611			(18,473		)
Gains/(losses) on financial derivatives and hedging activities	$	661		$	(1,601	)	$	2,530		$	(13,079	)

⁽¹⁾  Included in the assessment of hedge effectiveness as of September 30, 2017, but excluded from the amounts in the table, were losses of $1.6 million and gains of $0.7 million, respectively, for the three and nine months ended September 30, 2017, attributable to the fair value of the swaps at the inception of the hedging relationship. Accordingly, the amounts recognized as hedge ineffectiveness for three and nine months ended September 30, 2017 were gains of $0.1 million and zero, respectively. The comparable amounts as of September 30, 2016 were losses of $1.0 million and $4.2 million for the three and nine months ended September 30, 2016, attributable to the fair value of the swaps at the inception of the hedging relationship and, accordingly, losses of $0.2 million and gains of $1.5 million for the three and nine months ended September 30, 2016, attributable to hedge ineffectiveness.

26

As of September 30, 2017 and December 31, 2016, Farmer Mac's credit exposure to interest rate swap counterparties, excluding netting arrangements and any adjustment for nonperformance risk, but including accrued interest, was $24.6 million and $24.5 million, respectively; however, including netting arrangements and accrued interest, Farmer Mac's credit exposure was $0.1 million and $0.2 million as of September 30, 2017 and December 31, 2016, respectively. As of September 30, 2017, Farmer Mac held no cash as collateral for its derivatives in net asset positions resulting in uncollateralized net asset positions of $0.1 million. As of December 31, 2016, Farmer Mac held no cash collateral for its derivatives in net asset positions, resulting in uncollateralized net asset positions of $0.2 million.

As of September 30, 2017 and December 31, 2016, the fair value of Farmer Mac's derivatives in a net liability position including accrued interest but excluding netting arrangements and any adjustment for nonperformance risk, was $61.1 million and $65.7 million, respectively; however, including netting arrangements and accrued interest, the fair value of Farmer Mac's derivatives in a net liability position at the counterparty level was $27.3 million and $41.4 million as of September 30, 2017 and December 31, 2016, respectively.  Farmer Mac posted cash of $0.1 million and $25.0 million of investment securities as of September 30, 2017 and posted cash of $1.0 million and $24.6 million investment securities as of December 31, 2016.  Farmer Mac records posted cash as a reduction in the outstanding balance of cash and cash equivalents and an increase in the balance of prepaid expenses and other assets. Any investment securities posted as collateral are included in the investment securities balances on the consolidated balance sheets.  If Farmer Mac had breached certain provisions of the derivative contracts as of September 30, 2017 and December 31, 2016, it could have been required to settle its obligations under the agreements or post additional collateral of $2.3 millionand $15.8 million, respectively. As of September 30, 2017 and December 31, 2016, there were no financial derivatives in a net payable position where Farmer Mac was required to pledge collateral which the counterparty had the right to sell or repledge.

For certain derivatives, Farmer Mac clears interest rate swaps through a clearinghouse, the Chicago Mercantile Exchange ("CME"). Farmer Mac posts initial and variation margins to this clearinghouse through which centrally-cleared derivatives and futures contracts are traded. These collateral postings expose Farmer Mac to institutional credit risk in the event that either the clearinghouse or the futures commission merchant that Farmer Mac uses to post collateral to the clearinghouse fails to meet its obligations. Conversely, the use of centrally-cleared derivatives mitigates Farmer Mac's credit risk to individual counterparties because clearinghouses assume the credit risk among counterparties in centrally-cleared derivatives transactions. Of Farmer Mac's $8.8 billion notional amount of interest rate swaps outstanding as of September 30, 2017, $7.7 billion were cleared through swap clearinghouses. Of Farmer Mac's $8.1 billion notional amount of interest rate swaps outstanding as of December 31, 2016, $6.9 billion were cleared through swap clearinghouses.

Effective January 3, 2017, the CME implemented a change in its rules related to the exchange of variation margin. Specifically, the exchange of variation margin between derivatives counterparties is now deemed by CME to be a partial settlement of each respective derivative contract rather than as collateral pledged by a counterparty. Accordingly, beginning in first quarter 2017, Farmer Mac presented its cleared derivatives portfolio net of variation margin payments on its consolidated balance sheets and recognized realized gains or losses as a result of these payments within "Gains/(losses) on financial derivatives and hedging activities" on its consolidated statements of operations. Prior to first quarter 2017, Farmer Mac accounted for variation margin as collateral and associated unrealized gains or losses on those centrally cleared derivative contracts. Farmer Mac included those unrealized gains or losses within "Gains/(losses) on financial derivatives and hedging activities" in its consolidated statements of operations prior to first

27

quarter 2017. See Note 9 for information about the effect of this rule change on the calculation of core earnings beginning in 2017.

5. LOANS AND ALLOWANCE FOR LOSSES

Loans

Farmer Mac classifies loans as either held for investment or held for sale. Loans held for investment are recorded at the unpaid principal balance, net of unamortized premium or discount and other cost adjustments. Loans held for sale are reported at the lower of cost or fair value determined on a pooled basis. As of September 30, 2017 and December 31, 2016, Farmer Mac had no loans held for sale. The following table displays the composition of the loan balances as of September 30, 2017 and December 31, 2016:

Table 5.1

	As of September 30, 2017									As of December 31, 2016
	Unsecuritized			In Consolidated Trusts			Total			Unsecuritized			In Consolidated Trusts			Total
	(in thousands)
Farm & Ranch	$	2,739,681		$	1,329,212		$	4,068,893		$	2,381,488		$	1,132,966		$	3,514,454
Rural Utilities	1,066,482			—			1,066,482			999,512			—			999,512
Total unpaid principal balance(1)	3,806,163			1,329,212			5,135,375			3,381,000			1,132,966			4,513,966
Unamortized premiums, discounts and other cost basis adjustments	(1,197		)	—			(1,197		)	(1,116		)	—			(1,116		)
Total loans	3,804,966			1,329,212			5,134,178			3,379,884			1,132,966			4,512,850
Allowance for loan losses	(5,195		)	(1,213		)	(6,408		)	(4,437		)	(978		)	(5,415		)
Total loans, net of allowance	$	3,799,771		$	1,327,999		$	5,127,770		$	3,375,447		$	1,131,988		$	4,507,435

⁽¹⁾  Unpaid principal balance is the basis of presentation in disclosures of outstanding balances for Farmer Mac's lines of business.

Allowance for Losses

Farmer Mac maintains an allowance for losses presented in two components on its consolidated balance sheets: (1) an allowance for loan losses to account for estimated probable losses on loans held, and (2) a reserve for losses to account for estimated probable losses on loans underlying LTSPCs and off-balance sheet Farmer Mac Guaranteed Securities (excluding AgVantage securities).  Farmer Mac's total allowance for losses was $8.5 million as of September 30, 2017 and $7.4 million as of December 31, 2016. See Note 6 for more information about off-balance sheet Farmer Mac Guaranteed Securities and LTSPCs.  

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The following is a summary of the changes in the total allowance for losses for the three and nine months ended September 30, 2017 and 2016:

Table 5.2

	As of September 30, 2017								As of September 30, 2016
	Allowance for Loan Losses			Reserve for Losses		Total Allowance for Losses			Allowance for Loan Losses			Reserve for Losses			Total Allowance for Losses
	(in thousands)
For the Three Months Ended:
Beginning Balance	$	6,138		$	1,966	$	8,104		$	4,893		$	2,191		$	7,084
Provision for/(release of) losses	270			114		384			191			(222		)	(31		)
Charge-offs	—			—		—			(130		)	—			(130		)
Ending Balance	$	6,408		$	2,080	$	8,488		$	4,954		$	1,969		$	6,923
For the Nine Months Ended:
Beginning Balance	$	5,415		$	2,020	$	7,435		$	4,480		$	2,083		$	6,563
Provision for/(release of) losses	1,234			60		1,294			604			(114		)	490
Charge-offs	(241		)	—		(241		)	(130		)	—			(130		)
Ending Balance	$	6,408		$	2,080	$	8,488		$	4,954		$	1,969		$	6,923

During third quarter 2017, Farmer Mac recorded net provisions to its allowance for loan losses and reserve for losses of $0.3 million and $0.1 million, respectively. The net provisions to the allowance for loan losses recorded during third quarter 2017 were primarily attributable to (1) an increase in the specific allowance for certain impaired on-balance sheet crop and permanent planting loans resulting from both an increase in the outstanding balance of such loans and downgrades in risk ratings on certain of those loans, and (2) an increase in the general allowance due to overall net volume growth in on-balance sheet Farm & Ranch loans. The net provision to the reserve for losses recorded during the third quarter 2017 was primarily attributable to an increase in the general reserve due to downgrades in risk ratings on certain unimpaired Agricultural Storage and Processing loans underlying LTSPCs. Farmer Mac recorded no charge-offs to its allowance for loan losses during third quarter 2017.

During third quarter 2016, Farmer Mac recorded net provisions to its allowance for loan losses of $0.2 million and net releases to its reserve for losses of $0.2 million. The net provisions to the allowance for loan losses recorded during third quarter 2016 were attributable to an increase in the general allowance due to overall net volume growth in on-balance sheet Farm & Ranch loans and downgrades in risk ratings for a small number of loans. The net releases to the reserve for losses recorded during the three months ended September 30, 2016 were attributable to the release of a specific reserve on an impaired livestock loan underlying an LTSPC that was required to be removed from the LTSPC pool by the originator during third quarter 2016. Farmer Mac recorded $0.1 million charge-offs to its allowance for loan losses during third quarter 2016.

29

The following tables present the changes in the total allowance for losses for the three and nine months ended September 30, 2017 and 2016 by commodity type:

Table 5.3

	September 30, 2017
	Crops			Permanent Plantings		Livestock			Part-time Farm			Ag. Storage and Processing		Other			Total
	(in thousands)
For the Three Months Ended:
Beginning Balance	$	3,735		$	2,164	$	1,234		$	397		$	558	$	16		$	8,104
Provision for/(release of) losses	115			162		35			4			72		(4		)	384
Ending Balance	$	3,850		$	2,326	$	1,269		$	401		$	630	$	12		$	8,488
For the Nine Months Ended:
Beginning Balance	$	3,365		$	1,723	$	1,375		$	405		$	533	$	34		$	7,435
Provision for/(release of) losses	713			603		(93		)	(4		)	97		(22		)	1,294
Charge-offs	(228		)	—		(13		)	—			—		—			(241		)
Ending Balance	$	3,850		$	2,326	$	1,269		$	401		$	630	$	12		$	8,488

	September 30, 2016
	Crops		Permanent Plantings		Livestock			Part-time Farm			Ag. Storage and Processing			Other			Total
	(in thousands)
For the Three Months Ended:
Beginning Balance	$	3,111	$	1,144	$	1,906		$	447		$	473		$	3		$	7,084
Provision for/(release of) losses	103		198		(354		)	36			(13		)	(1		)	(31		)
Charge-offs	—		—		—			(130		)	—			—			(130		)
Ending Balance	$	3,214	$	1,342	$	1,552		$	353		$	460		$	2		$	6,923
For the Nine Months Ended:
Beginning Balance	$	2,791	$	931	$	1,781		$	408		$	649		$	3		$	6,563
Provision for/(release of) losses	423		411		(229		)	75			(189		)	(1		)	490
Charge-offs	—		—		—			(130		)	—			—			(130		)
Ending Balance	$	3,214	$	1,342	$	1,552		$	353		$	460		$	2		$	6,923

30

The following tables present the unpaid principal balances of loans held and loans underlying LTSPCs and off-balance sheet Farmer Mac Guaranteed Securities (excluding AgVantage securities) and the related total allowance for losses by impairment method and commodity type as of September 30, 2017 and December 31, 2016:

Table 5.4

	As of September 30, 2017
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Ending Balance:
Collectively evaluated for impairment:
On-balance sheet	$	2,278,701	$	767,275	$	623,499	$	246,416	$	13,248	$	9,004	$	3,938,143
Off-balance sheet	1,237,846		373,496		668,280		153,278		34,820		3,849		2,471,569
Total	$	3,516,547	$	1,140,771	$	1,291,779	$	399,694	$	48,068	$	12,853	$	6,409,712
Individually evaluated for impairment:
On-balance sheet	$	68,322	$	41,201	$	13,516	$	7,069	$	—	$	642	$	130,750
Off-balance sheet	8,847		2,249		4,448		945		—		79		16,568
Total	$	77,169	$	43,450	$	17,964	$	8,014	$	—	$	721	$	147,318
Total Farm & Ranch loans:
On-balance sheet	$	2,347,023	$	808,476	$	637,015	$	253,485	$	13,248	$	9,646	$	4,068,893
Off-balance sheet	1,246,693		375,745		672,728		154,223		34,820		3,928		2,488,137
Total	$	3,593,716	$	1,184,221	$	1,309,743	$	407,708	$	48,068	$	13,574	$	6,557,030
Allowance for Losses:
Collectively evaluated for impairment:
On-balance sheet	$	1,868	$	973	$	748	$	219	$	87	$	6	$	3,901
Off-balance sheet	560		285		212		46		543		4		1,650
Total	$	2,428	$	1,258	$	960	$	265	$	630	$	10	$	5,551
Individually evaluated for impairment:
On-balance sheet	$	1,193	$	1,010	$	192	$	112	$	—	$	—	$	2,507
Off-balance sheet	229		58		117		24		—		2		430
Total	$	1,422	$	1,068	$	309	$	136	$	—	$	2	$	2,937
Total Farm & Ranch loans:
On-balance sheet	$	3,061	$	1,983	$	940	$	331	$	87	$	6	$	6,408
Off-balance sheet	789		343		329		70		543		6		2,080
Total	$	3,850	$	2,326	$	1,269	$	401	$	630	$	12	$	8,488

31

	As of December 31, 2016
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Ending Balance:
Collectively evaluated for impairment:
On-balance sheet	$	2,115,450	$	569,360	$	537,859	$	183,660	$	11,545	$	8,894	$	3,426,768
Off-balance sheet	1,241,851		437,575		752,473		131,889		36,506		4,503		2,604,797
Total	$	3,357,301	$	1,006,935	$	1,290,332	$	315,549	$	48,051	$	13,397	$	6,031,565
Individually evaluated for impairment:
On-balance sheet	$	41,648	$	27,770	$	10,658	$	7,610	$	—	$	—	$	87,686
Off-balance sheet	11,549		2,735		4,854		915		—		—		20,053
Total	$	53,197	$	30,505	$	15,512	$	8,525	$	—	$	—	$	107,739
Total Farm & Ranch loans:
On-balance sheet	$	2,157,098	$	597,130	$	548,517	$	191,270	$	11,545	$	8,894	$	3,514,454
Off-balance sheet	1,253,400		440,310		757,327		132,804		36,506		4,503		2,624,850
Total	$	3,410,498	$	1,037,440	$	1,305,844	$	324,074	$	48,051	$	13,397	$	6,139,304
Allowance for Losses:
Collectively evaluated for impairment:
On-balance sheet	$	2,000	$	652	$	735	$	193	$	22	$	28	$	3,630
Off-balance sheet	420		281		241		54		511		6		1,513
Total	$	2,420	$	933	$	976	$	247	$	533	$	34	$	5,143
Individually evaluated for impairment:
On-balance sheet	$	613	$	770	$	270	$	132	$	—	$	—	$	1,785
Off-balance sheet	332		20		129		26		—		—		507
Total	$	945	$	790	$	399	$	158	$	—	$	—	$	2,292
Total Farm & Ranch loans:
On-balance sheet	$	2,613	$	1,422	$	1,005	$	325	$	22	$	28	$	5,415
Off-balance sheet	752		301		370		80		511		6		2,020
Total	$	3,365	$	1,723	$	1,375	$	405	$	533	$	34	$	7,435

32

The following tables present by commodity type the unpaid principal balances, recorded investment, and specific allowance for losses related to impaired loans and the recorded investment in loans on nonaccrual status as of September 30, 2017 and December 31, 2016:

Table 5.5

	As of September 30, 2017
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Impaired Loans:
With no specific allowance:
Recorded investment	$	11,909	$	4,963	$	3,942	$	1,939	$	—	$	644	$	23,397
Unpaid principal balance	11,885		4,953		3,935		1,936		—		643		23,352
With a specific allowance:
Recorded investment(1)	65,391		38,565		14,048		6,088		—		78		124,170
Unpaid principal balance	65,284		38,497		14,029		6,078		—		78		123,966
Associated allowance	1,422		1,068		309		136		—		2		2,937
Total:
Recorded investment	77,300		43,528		17,990		8,027		—		722		147,567
Unpaid principal balance	77,169		43,450		17,964		8,014		—		721		147,318
Associated allowance	1,422		1,068		309		136		—		2		2,937
Recorded investment of loans on nonaccrual status(2)	$	29,535	$	25,653	$	2,819	$	5,037	$	—	$	—	$	63,044

⁽¹⁾  Impairment analysis was performed in the aggregate in consideration of similar risk characteristics of the assets and historical statistics on $123.3 million (84 percent) of impaired loans as of September 30, 2017, which resulted in a specific allowance of $2.7 million.

⁽²⁾  Includes no loans that are less than 90 days delinquent but which have not met Farmer Mac's performance criteria for returning to accrual status.

	As of December 31, 2016
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Impaired Loans:
With no specific allowance:
Recorded investment	$	20,761	$	3,683	$	1,054	$	1,970	$	—	$	—	$	27,468
Unpaid principal balance	20,816		3,688		1,055		1,975		—		—		27,534
With a specific allowance:
Recorded investment(1)	32,326		26,748		14,322		6,535		—		—		79,931
Unpaid principal balance	32,381		26,817		14,457		6,550		—		—		80,205
Associated allowance	945		790		399		158		—		—		2,292
Total:
Recorded investment	53,087		30,431		15,376		8,505		—		—		107,399
Unpaid principal balance	53,197		30,505		15,512		8,525		—		—		107,739
Associated allowance	945		790		399		158		—		—		2,292
Recorded investment of loans on nonaccrual status(2)	$	13,405	$	10,785	$	2,696	$	5,256	$	—	$	—	$	32,142

⁽¹⁾  Impairment analysis was performed in the aggregate in consideration of similar risk characteristics of the assets and historical statistics on $76.5 million (71 percent) of impaired loans as of December 31, 2016, which resulted in a specific allowance of $1.6 million.

⁽²⁾  Includes $12.4 million of loans that are less than 90 days delinquent but which have not met Farmer Mac's performance criteria for returning to accrual status.

33

The following table presents by commodity type the average recorded investment and interest income recognized on impaired loans for the three and nine months ended September 30, 2017 and 2016:

Table 5.6

	September 30, 2017
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
For the Three Months Ended:
Average recorded investment in impaired loans	$	72,180	$	38,396	$	15,582	$	7,944	$	—	$	401	$	134,503
Income recognized on impaired loans	101		244		13		61		—		—		419
For the Nine Months Ended:
Average recorded investment in impaired loans	$	65,244	$	35,101	$	14,620	$	8,096	$	—	$	201	$	123,262
Income recognized on impaired loans	563		464		212		235		—		—		1,474

	September 30, 2016
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
For the Three Months Ended:
Average recorded investment in impaired loans	$	33,032	$	22,980	$	12,120	$	8,172	$	—	$	—	$	76,304
Income recognized on impaired loans	46		236		81		74		—		—		437
For the Nine Months Ended:
Average recorded investment in impaired loans	$	28,293	$	25,277	$	13,704	$	8,654	$	4,668	$	—	$	80,596
Income recognized on impaired loans	108		789		229		251		—		—		1,377

For the three months ended September 30, 2017, there were no troubled debt restructurings ("TDRs"). For the nine months ended September 30, 2017, the recorded investment of loans determined to be TDRs was$0.2 million both before and after restructuring. For the three and nine months ended September 30, 2016, there were no TDRs. As of September 30, 2017 and 2016, there were no TDRs identified during the previous 12 months that were in default under the modified terms. The impact of TDRs on Farmer Mac's allowance for loan losses was immaterial for the three and nine months ended September 30, 2017 and 2016.

When particular criteria are met, such as the default of the borrower, Farmer Mac becomes entitled to purchase the defaulted loans underlying Farmer Mac Guaranteed Securities (commonly referred to as "removal-of-account" provisions).  Farmer Mac records all such defaulted loans at their unpaid principal balance during the period in which Farmer Mac becomes entitled to purchase the loans and, therefore, regains effective control over the transferred loans. In accordance with the terms of all LTSPCs, Farmer Mac acquires loans that are either 90 days or 120 days delinquent (depending on the provisions of the applicable agreement) upon the request of the counterparty. Subsequent to the purchase, these defaulted loans are treated as nonaccrual loans and, therefore, interest is accounted for on the cash basis. Any decreases in expected cash flows are recognized as impairment.

34

The following tables present information related to Farmer Mac's acquisition of defaulted loans for the three and nine months ended September 30, 2017 and 2016 and the outstanding balances and carrying amounts of all such loans as of September 30, 2017 and December 31, 2016:

Table 5.7

	For the Three Months Ended				For the Nine Months Ended
	September 30, 2017		September 30, 2016		September 30, 2017		September 30, 2016
	($ in thousands)
Unpaid principal balance at acquisition date:
Loans underlying LTSPCs	$	—	$	852	$	311	$	2,118
Loans underlying off-balance sheet Farmer Mac Guaranteed Securities (excluding AgVantage securities)	3,043		250		3,147		398
Total unpaid principal balance at acquisition date	3,043		1,102		3,458		2,516
Contractually required payments receivable	3,073		1,109		3,490		2,544
Impairment recognized subsequent to acquisition	—		—		—		208
Recovery/release of allowance for all outstanding acquired defaulted loans	29		21		171		31
Number of defaulted loans purchased	6		3		10		8

	As of
	September 30, 2017		December 31, 2016
	(in thousands)
Outstanding balance	$	16,514	$	14,669
Carrying amount	15,379		13,069

35

Net credit losses and 90-day delinquencies as of and for the periods indicated for loans held and loans underlying off-balance sheet securities representing interests in pools of eligible Farm & Ranch loans ("Farm & Ranch Guaranteed Securities") and LTSPCs are presented in the table below.  As of September 30, 2017, there were no delinquencies and no probable losses inherent in Farmer Mac's Rural Utilities loan portfolio and Farmer Mac had not experienced credit losses on any Rural Utilities loans.

Table 5.8

	90-Day Delinquencies(1)				Net Credit (Recoveries)/Losses
	As of				For the Nine Months Ended
	September 30, 2017		December 31, 2016		September 30, 2017			September 30, 2016
	(in thousands)
On-balance sheet assets:
Farm & Ranch:
Loans	$	65,105	$	19,757	$	(520	)	$	154
Total on-balance sheet	$	65,105	$	19,757	$	(520	)	$	154
Off-balance sheet assets:
Farm & Ranch:
LTSPCs	$	1,276	$	1,281	$	—		$	—
Total off-balance sheet	$	1,276	$	1,281	$	—		$	—
Total	$	66,381	$	21,038	$	(520	)	$	154

⁽¹⁾  Includes loans and loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs that are 90 days or more past due, in foreclosure, or in bankruptcy with at least one missed payment, excluding loans performing under either their original loan terms or a court-approved bankruptcy plan.

Of the $65.1 million of on-balance sheet loans reported as 90-day delinquencies as of September 30, 2017, $11,000 were loans subject to "removal-of-account" provisions. Of the $19.8 million of on-balance sheet loans reported as 90-day delinquencies as of December 31, 2016, $0.1 million were loans subject to "removal-of-account" provisions.

36

Credit Quality Indicators

The following tables present credit quality indicators related to Farm & Ranch loans held and loans underlying LTSPCs and off-balance sheet Farm & Ranch Guaranteed Securities as of September 30, 2017 and December 31, 2016:  

Table 5.9

	As of September 30, 2017
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Credit risk profile by internally assigned grade(1)
On-balance sheet:
Acceptable	$	2,240,054	$	760,251	$	603,653	$	241,208	$	13,248	$	9,004	$	3,867,418
Special mention(2)	38,647		7,024		19,846		5,208		—		—		70,725
Substandard(3)	68,322		41,201		13,516		7,069		—		642		130,750
Total on-balance sheet	$	2,347,023	$	808,476	$	637,015	$	253,485	$	13,248	$	9,646	$	4,068,893
Off-Balance Sheet:
Acceptable	$	1,133,150	$	336,780	$	627,220	$	148,085	$	31,502	$	3,213	$	2,279,950
Special mention(2)	77,671		8,359		31,264		1,832		—		169		119,295
Substandard(3)	35,872		30,606		14,244		4,306		3,318		546		88,892
Total off-balance sheet	$	1,246,693	$	375,745	$	672,728	$	154,223	$	34,820	$	3,928	$	2,488,137
Total Ending Balance:
Acceptable	$	3,373,204	$	1,097,031	$	1,230,873	$	389,293	$	44,750	$	12,217	$	6,147,368
Special mention(2)	116,318		15,383		51,110		7,040		—		169		190,020
Substandard(3)	104,194		71,807		27,760		11,375		3,318		1,188		219,642
Total	$	3,593,716	$	1,184,221	$	1,309,743	$	407,708	$	48,068	$	13,574	$	6,557,030
Commodity analysis of past due loans(1)
On-balance sheet	$	31,413	$	22,330	$	7,367	$	3,352	$	—	$	643	$	65,105
Off-balance sheet	862		—		—		414		—		—		1,276
90 days or more past due	$	32,275	$	22,330	$	7,367	$	3,766	$	—	$	643	$	66,381

⁽¹⁾  Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans. 

⁽²⁾  Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.  

⁽³⁾  Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected.

37

	As of December 31, 2016
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Credit risk profile by internally assigned grade(1)
On-balance sheet:
Acceptable	$	2,080,227	$	568,221	$	504,784	$	179,288	$	11,545	$	8,894	$	3,352,959
Special mention(2)	35,223		1,139		33,075		4,372		—		—		73,809
Substandard(3)	41,648		27,770		10,658		7,610		—		—		87,686
Total on-balance sheet	$	2,157,098	$	597,130	$	548,517	$	191,270	$	11,545	$	8,894	$	3,514,454
Off-Balance Sheet
Acceptable	$	1,201,144	$	403,256	$	724,056	$	125,440	$	34,537	$	3,916	$	2,492,349
Special mention(2)	20,422		16,881		15,341		2,344		—		6		54,994
Substandard(3)	31,834		20,173		17,930		5,020		1,969		581		77,507
Total off-balance sheet	$	1,253,400	$	440,310	$	757,327	$	132,804	$	36,506	$	4,503	$	2,624,850
Total Ending Balance:
Acceptable	$	3,281,371	$	971,477	$	1,228,840	$	304,728	$	46,082	$	12,810	$	5,845,308
Special mention(2)	55,645		18,020		48,416		6,716		—		6		128,803
Substandard(3)	73,482		47,943		28,588		12,630		1,969		581		165,193
Total	$	3,410,498	$	1,037,440	$	1,305,844	$	324,074	$	48,051	$	13,397	$	6,139,304
Commodity analysis of past due loans(1)
On-balance sheet	$	13,449	$	3,245	$	669	$	2,394	$	—	$	—	$	19,757
Off-balance sheet	373		407		38		463		—		—		1,281
90 days or more past due	$	13,822	$	3,652	$	707	$	2,857	$	—	$	—	$	21,038

⁽¹⁾  Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.  

⁽²⁾  Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.  

⁽³⁾  Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected.

38

Concentrations of Credit Risk

The following table sets forth the geographic and commodity/collateral diversification, the range of original loan-to-value ratios, and the range in the size of borrower exposure for all Farm & Ranch loans held and loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs as of September 30, 2017 and December 31, 2016:

Table 5.10

	As of
	September 30, 2017		December 31, 2016
	(in thousands)
By commodity/collateral type:
Crops	$	3,593,716	$	3,410,498
Permanent plantings	1,184,221		1,037,440
Livestock	1,309,743		1,305,844
Part-time farm	407,708		324,074
Ag. Storage and Processing	48,068		48,051
Other	13,574		13,397
Total	$	6,557,030	$	6,139,304
By geographic region(1):
Northwest	$	723,616	$	657,403
Southwest	1,917,692		1,791,745
Mid-North	2,205,750		2,104,867
Mid-South	899,293		837,121
Northeast	290,655		229,679
Southeast	520,024		518,489
Total	$	6,557,030	$	6,139,304
By original loan-to-value ratio(2):
0.00% to 40.00%	$	1,274,050	$	1,220,432
40.01% to 50.00%	1,622,767		1,466,047
50.01% to 60.00%	2,268,852		2,078,099
60.01% to 70.00%	1,130,748		1,167,395
70.01% to 80.00%	233,963		191,664
80.01% to 90.00%	26,650		15,667
Total	$	6,557,030	$	6,139,304
By size of borrower exposure(3):
Less than $1,000,000	$	2,297,648	$	2,195,103
$1,000,000 to $4,999,999	2,500,101		2,398,843
$5,000,000 to $9,999,999	815,411		782,171
$10,000,000 to $24,999,999	568,471		469,681
$25,000,000 to $50,000,000	375,399		293,506
Total	$	6,557,030	$	6,139,304

⁽¹⁾  Geographic regions:  Northwest (AK, ID, MT, OR, WA, WY); Southwest (AZ, CA, CO, HI, NM, NV, UT); Mid-North (IA, IL, IN, MI, MN, NE, ND, SD, WI); Mid-South (AR, KS, LA, MO, OK, TX); Northeast (CT, DE, KY, MA, MD, ME, NH, NJ, NY, OH, PA, RI, VA, VT, WV); Southeast (AL, FL, GA, MS, NC, SC, TN).

⁽²⁾  As of second quarter 2017, Farmer Mac revised its calculation of the original loan-to-value ratio of a loan to combine for any cross-collateralized loans: (i) the original loan principal balance amounts in the numerator and (ii) the original appraised property values in the denominator. In previous periods, the ratio was calculated on a loan-by-loan basis without considering the effects of any cross-collateralization. Prior period information has been reclassified to conform to the current period calculation and presentation.

⁽³⁾  Includes multiple loans to the same borrower or borrower-related entities.

39

The original loan-to-value ratio is calculated by dividing the loan principal balance at the time of guarantee, purchase, or commitment by the appraised value at the date of loan origination or, when available, the updated appraised value at the time of guarantee, purchase, or commitment.  Current loan-to-value ratios may be higher or lower than the original loan-to-value ratios.

40

6. GUARANTEES AND LONG-TERM STANDBY PURCHASE COMMITMENTS

Farmer Mac offers two credit enhancement alternatives to direct loan purchases that allow approved lenders the ability to retain the cash flow benefits of their loans and increase their liquidity and lending capacity: (1) Farmer Mac Guaranteed Securities, which are available through each of the Farm & Ranch, USDA Guarantees, Rural Utilities, and Institutional Credit lines of business, and (2) LTSPCs, which are available through the Farm & Ranch or the Rural Utilities lines of business.

The following table presents the maximum principal amount of potential undiscounted future payments that Farmer Mac could be required to make under all off-balance sheet Farmer Mac Guaranteed Securities as of September 30, 2017 and December 31, 2016, not including offsets provided by any recourse provisions, recoveries from third parties, or collateral for the underlying loans:

Table 6.1

Outstanding Balance of Off-Balance Sheet Farmer Mac Guaranteed Securities
	As of September 30, 2017		As of December 31, 2016
	(in thousands)
Farm & Ranch:
Guaranteed Securities	$	354,823	$	415,441
USDA Guarantees:
Farmer Mac Guaranteed USDA Securities	226,802		103,976
Institutional Credit:
AgVantage Securities	13,214		983,214
Revolving floating rate AgVantage facility(1)	300,000		300,000
Total off-balance sheet Farmer Mac Guaranteed Securities	$	894,839	$	1,802,631

⁽¹⁾  Relates to a revolving floating rate AgVantage facility subject to specified contractual terms. Farmer Mac receives a fixed fee based on the full dollar amount of the facility.

Eligible loans and other eligible assets may be placed into trusts that are used as vehicles for the securitization of the transferred assets and the Farmer Mac-guaranteed beneficial interests in the trusts are sold to investors.  The following table summarizes the significant cash flows received from and paid to trusts used for Farmer Mac securitizations:

Table 6.2

	For the Nine Months Ended
	September 30, 2017			September 30, 2016
	(in thousands)
Proceeds from new securitizations	$	404,246		$	457,369
Guarantee fees received	2,141			2,333
Purchases of assets from the trusts	(3,147		)	(2,118		)

Farmer Mac has recorded a liability for its obligation to stand ready under the guarantee in the guarantee and commitment obligation on the consolidated balance sheets.  This liability approximated $3.8 million as of September 30, 2017 and $5.5 million as of December 31, 2016. As of September 30, 2017 and December 31, 2016, the weighted-average remaining maturity of all loans underlying off-balance sheet Farmer Mac Guaranteed Securities, excluding AgVantage securities, was 10.1 years and 10.7 years, respectively. As of September 30, 2017 and December 31, 2016, the weighted-average remaining maturity of the off-balance sheet AgVantage securities was 1.1 years and 0.7 years, respectively.

41

Long-Term Standby Purchase Commitments

An LTSPC is a commitment by Farmer Mac to purchase eligible loans from an identified pool of loans under specified circumstances set forth in the applicable agreement, either for cash or in exchange for Farmer Mac Guaranteed Securities, on one or more undetermined future dates.  As consideration for its assumption of the credit risk on loans underlying an LTSPC, Farmer Mac receives a commitment fee payable monthly in arrears in an amount approximating what would have been the guarantee fee if the transaction were structured as a swap for Farmer Mac Guaranteed Securities.

The maximum principal amount of potential undiscounted future payments that Farmer Mac could be requested to make under all LTSPCs, not including offsets provided by any recourse provisions, recoveries from third parties, or collateral for the underlying loans, was $3.0 billion as of September 30, 2017 and $3.1 billion as of December 31, 2016.

As of both September 30, 2017 and December 31, 2016, the weighted-average remaining maturity of all loans underlying LTSPCs was 15.2 years and 15.1 years, respectively.  For those LTSPCs issued or modified on or after January 1, 2003, Farmer Mac has recorded a liability for its obligation to stand ready under the commitment in the guarantee and commitment obligation on the consolidated balance sheets.  This liability approximated $31.5 million as of September 30, 2017 and $31.8 million as of December 31, 2016.

7. EQUITY

Common Stock

For each of the first, second, and third quarters in 2017, Farmer Mac paid a quarterly dividend of $0.36 per share on all classes of its common stock. For each quarter in 2016, Farmer Mac paid a quarterly dividend of $0.26 per share on all classes of its common stock.

On September 8, 2015, Farmer Mac's board of directors approved a share repurchase program authorizing Farmer Mac to repurchase up to $25 million of its outstanding Class C non-voting common stock through September 8, 2017. As of September 30, 2017, Farmer Mac had repurchased approximately 668,000 shares of Class C non-voting common stock at a cost of approximately $19.6 million pursuant to the share repurchase program. In August 2017, Farmer Mac's board of directors approved the continuation of the share repurchase program on its existing terms through August 2019 for the repurchase of up to $5.4 million of Farmer Mac's outstanding Class C non-voting common stock, which is the amount currently remaining under the share repurchase program originally authorized in third quarter 2015.

Preferred Stock

For each of the first, second, and third quarters in 2017 and for each quarter in 2016, Farmer Mac paid the following quarterly dividends on its outstanding preferred stock:

• $0.3672 per share on its 5.875% Non-Cumulative Preferred Stock, Series A;

• $0.4297 per share on its 6.875% Non-Cumulative Preferred Stock, Series B; and

• $0.3750 per share on its 6.000% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C.

42

Capital Requirements

Farmer Mac is subject to the following capital requirements:

• Statutory minimum capital requirement – Farmer Mac's statutory minimum capital level is an amount of core capital (stockholders' equity less accumulated other comprehensive income) equal to the sum of 2.75 percent of Farmer Mac's aggregate on-balance sheet assets, as calculated for regulatory purposes, plus 0.75 percent of the aggregate off-balance sheet obligations of Farmer Mac, specifically including:   

◦ the unpaid principal balance of outstanding Farmer Mac Guaranteed Securities;

◦ instruments issued or guaranteed by Farmer Mac that are substantially equivalent to Farmer Mac Guaranteed Securities, including LTSPCs; and

◦ other off-balance sheet obligations of Farmer Mac.

• Statutory critical capital requirement – Farmer Mac's critical capital level is an amount of core capital equal to 50 percent of the total minimum capital requirement at that time.

• Risk-based capital requirement – Farmer Mac's charter directs the Farm Credit Administration ("FCA"), an independent agency in the executive branch of the United States government that regulates Farmer Mac, to establish a risk-based capital stress test for Farmer Mac, using specified stress-test parameters.

Farmer Mac is required to comply with the higher of the minimum capital requirement and the risk-based capital requirement. As of both September 30, 2017 and December 31, 2016, the minimum capital requirement was greater than the risk-based capital requirement. Farmer Mac's ability to declare and pay dividends could be restricted if it fails to comply with applicable capital requirements.

As of September 30, 2017, Farmer Mac's minimum capital requirement was $515.8 million and its core capital level was $653.4 million, which was $137.6 million above the minimum capital requirement as of that date. As of December 31, 2016, Farmer Mac's minimum capital requirement was $466.5 million and its core capital level was $609.7 million, which was $143.2 million above the minimum capital requirement as of that date.

In accordance with FCA's rule on Farmer Mac's capital planning, and as part of Farmer Mac's capital plan, Farmer Mac has adopted a policy for maintaining a sufficient level of Tier 1 capital (consisting of retained earnings, paid-in-capital, common stock, and qualifying preferred stock) and imposing restrictions on Tier 1-eligible dividends and any discretionary bonus payments in the event that this capital falls below specified thresholds.

43

8. FAIR VALUE DISCLOSURES

As of September 30, 2017, Farmer Mac's assets and liabilities recorded at fair value included financial instruments valued at $5.5 billion whose fair values were estimated by management in the absence of readily determinable fair values (i.e., level 3).  These financial instruments measured as level 3 represented 31 percent of total assets and 71 percent of financial instruments measured at fair value as of September 30, 2017. As of December 31, 2016, Farmer Mac's assets and liabilities recorded at fair value included financial instruments valued at $4.9 billion whose fair values were estimated by management in the absence of readily determinable fair values.  These financial instruments measured as level 3 represented 31 percent of total assets and 65 percent of financial instruments measured at fair value as of December 31, 2016.

Transfers in and/or out of the different levels within the fair value hierarchy are based on the fair values of the assets and liabilities as of the beginning of the reporting period. During the first half of 2017 there was one transfer within fair value hierarchy from Level 2 to Level 3 for the fair value measurement of a fixed-rate GSE guaranteed mortgage-backed security (interest only strip). The transfer to Level 3 was because unobservable inputs became significant to the overall estimate of the fair value of the security as of March 31, 2017. There were no transfers within the fair value hierarchy for fair value measurements of Farmer Mac's investment securities, Farmer Mac Guaranteed Securities, USDA Securities, and financial derivatives during the first nine months of 2016. See Note 3 for information about the transfer of available-for-sale USDA and Farmer Mac Guaranteed USDA securities to held-to-maturity as of October 1, 2016.

44

The following tables present information about Farmer Mac's assets and liabilities measured at fair value on a recurring and non-recurring basis as of September 30, 2017 and December 31, 2016, respectively, and indicate the fair value hierarchy of the valuation techniques used by Farmer Mac to determine such fair value:

Table 8.1

Assets and Liabilities Measured at Fair Value as of September 30, 2017
	Level 1		Level 2		Level 3		Total
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	—	$	—	$	18,518	$	18,518
Floating rate asset-backed securities	—		35,602		—		35,602
Floating rate Government/GSE guaranteed mortgage-backed securities	—		1,312,204		—		1,312,204
Fixed rate GSE guaranteed mortgage-backed securities	—		507		4,458		4,965
Fixed rate senior agency debt	—		99,871		—		99,871
Fixed rate U.S. Treasuries	763,806		—		—		763,806
Total Investment Securities	763,806		1,448,184		22,976		2,234,966
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	—		—		5,443,746		5,443,746
Total Farmer Mac Guaranteed Securities	—		—		5,443,746		5,443,746
USDA Securities:
Trading	—		—		14,864		14,864
Total USDA Securities	—		—		14,864		14,864
Financial derivatives	50		1,970		—		2,020
Total Assets at fair value	$	763,856	$	1,450,154	$	5,481,586	$	7,695,596
Liabilities:
Financial derivatives	$	—	$	30,595	$	—	$	30,595
Total Liabilities at fair value	$	—	$	30,595	$	—	$	30,595
Non-recurring:
Assets:
Loans held for investment	$	—	$	—	$	636	$	636
REO	—		—		455		455
Total Non-recurring Assets at fair value	$	—	$	—	$	1,091	$	1,091

45

Assets and Liabilities Measured at Fair Value as of December 31, 2016
	Level 1		Level 2		Level 3		Total
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	—	$	—	$	17,730	$	17,730
Floating rate asset-backed securities	—		43,851		—		43,851
Floating rate corporate debt securities	—		10,041		—		10,041
Floating rate Government/GSE guaranteed mortgage-backed securities	—		1,361,029		—		1,361,029
Fixed rate GSE guaranteed mortgage-backed securities	—		7,625		—		7,625
Floating rate GSE subordinated debt	—		66,953		—		66,953
Fixed rate senior agency debt	—		187,133		—		187,133
Fixed rate U.S. Treasuries	821,489		—		—		821,489
Total Investment Securities	821,489		1,676,632		17,730		2,515,851
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	—		—		4,853,685		4,853,685
Total Farmer Mac Guaranteed Securities	—		—		4,853,685		4,853,685
USDA Securities:
Trading	—		—		20,388		20,388
Total USDA Securities	—		—		20,388		20,388
Financial derivatives	—		23,182		—		23,182
Total Assets at fair value	$	821,489	$	1,699,814	$	4,891,803	$	7,413,106
Liabilities:
Financial derivatives	$	155	$	57,997	$	—	$	58,152
Total Liabilities at fair value	$	155	$	57,997	$	—	$	58,152
Non-recurring:
Assets:
Loans held for investment	$	—	$	—	$	2,799	$	2,799
REO	—		—		349		349
Total Non-recurring Assets at fair value	$	—	$	—	$	3,148	$	3,148

46

The following tables present additional information about assets and liabilities measured at fair value on a recurring basis for which Farmer Mac has used significant unobservable inputs to determine fair value. Net transfers in and/or out of level 3 are based on the fair values of the assets and liabilities as of the beginning of the reporting period. There were no liabilities measured at fair value using significant unobservable inputs during the three and nine months ended September 30, 2017 and 2016.

Table 8.2

Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended September 30, 2017
	Beginning Balance		Purchases		Sales			Settlements			Realized and Unrealized Gains/(Losses) included in Income			Unrealized Gains/(Losses) included in Other Comprehe- nsive Income			Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	18,518	$	—	$	—		$	—		$	—		$	—		$	18,518
Fixed rate GSE guaranteed mortgage-backed securities	4,651		—		—			(111		)	—			(82		)	4,458
Total available-for-sale	23,169		—		—			(111		)	—			(82		)	22,976
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	5,282,562		193,800		—			(29,851		)	(1,171		)	(1,594		)	5,443,746
Total available-for-sale	5,282,562		193,800		—			(29,851		)	(1,171		)	(1,594		)	5,443,746
USDA Securities:
Available-for-sale	—		40,844		(40,844		)	—			—			—			—
Trading(1)	16,294		—		—			(1,430		)	—			—			14,864
Total USDA Securities	16,294		40,844		(40,844		)	(1,430		)	—			—			14,864
Total Assets at fair value	$	5,322,025	$	234,644	$	(40,844	)	$	(31,392	)	$	(1,171	)	$	(1,676	)	$	5,481,586

⁽¹⁾  Includes unrealized gains of $34,000 attributable to assets still held as of September 30, 2017 that are recorded in "Gains/(losses) on trading securities."

47

Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended September 30, 2016
	Beginning Balance		Purchases		Sales			Settlements			Realized and Unrealized Gains included in Income			Unrealized Gains included in Other Comprehe-nsive Income			Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	17,730	$	—	$	—		$	—		$	—		$	(148	)	$	17,582
Total available-for-sale	17,730		—		—			—			—			(148		)	17,582
Trading:
Floating rate asset-backed securities(1)	281		—		—			(1,887		)	1,606			—			—
Total trading	281		—		—			(1,887		)	1,606			—			—
Total Investment Securities	18,011		—		—			(1,887		)	1,606			(148		)	17,582
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	4,697,584		263,196		—			(64,895		)	(10,960		)	19,732			4,904,657
Farmer Mac Guaranteed USDA Securities	33,447		—		—			(504		)	—			(119		)	32,824
Total Farmer Mac Guaranteed Securities	4,731,031		263,196		—			(65,399		)	(10,960		)	19,613			4,937,481
USDA Securities:
Available-for-sale	1,967,759		119,201		(31,866		)	(55,772		)	—			(18,995		)	1,980,327
Trading(2)	24,787		—		—			(874		)	(424		)	—			23,489
Total USDA Securities	1,992,546		119,201		(31,866		)	(56,646		)	(424		)	(18,995		)	2,003,816
Total Assets at fair value	$	6,741,588	$	382,397	$	(31,866	)	$	(123,932	)	$	(9,778	)	$	470		$	6,958,879

⁽¹⁾  Unrealized gains are attributable to assets still held as of September 30, 2016 and are recorded in "Gains/(losses) on trading securities."

⁽²⁾  Includes unrealized losses of $0.4 million attributable to assets still held as of September 30, 2016 that are recorded in "Gains/(losses) on trading securities."

48

Level 3 Assets and Liabilities Measured at Fair Value for the Nine Months Ended September 30, 2017
	Beginning Balance		Transfers in		Purchases		Sales			Settlements			Realized and Unrealized Gains/(Losses) included in Income			Unrealized Gains/(Losses) included in Other Comprehe- nsive Income			Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	17,730	—		$	—	$	—		$	—		$	—		$	788		$	18,518
Fixed rate GSE guaranteed mortgage-backed securities	—		7,041		—		—			(334		)	—			(2,249		)	4,458
Total available-for-sale	17,730		7,041		—		—			(334		)	—			(1,461		)	22,976
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	4,853,685		—		927,615		—			(357,006		)	5,166			14,286			5,443,746
Total available-for-sale	4,853,685		—		927,615		—			(357,006		)	5,166			14,286			5,443,746
USDA Securities:
Available-for-sale	—		—		126,939		(126,939		)	—			—			—			—
Trading(1)	20,388		—		—		—			(5,440		)	(84		)	—			14,864
Total USDA Securities	20,388		—		126,939		(126,939		)	(5,440		)	(84		)	—			14,864
Total Assets at fair value	$	4,891,803	$	7,041	$	1,054,554	$	(126,939	)	$	(362,780	)	$	5,082		$	12,825		$	5,481,586

⁽¹⁾  Includes unrealized gains of $42,000 attributable to assets still held as of September 30, 2017 that are recorded in "Gains/(losses) on trading securities."

49

Level 3 Assets and Liabilities Measured at Fair Value for the Nine Months Ended September 30, 2016
	Beginning Balance		Purchases		Sales			Settlements			Realized and Unrealized Gains included in Income		Unrealized(Losses)/Gains included in Other Comprehe-nsive Income			Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	44,924	$	—	$	(26,806	)	$	—		$	6	$	(542	)	$	17,582
Total available-for-sale	44,924		—		(26,806		)	—			6		(542		)	17,582
Trading:
Floating rate asset-backed securities(1)	491		—		—			(2,213		)	1,722		—			—
Total trading	491		—		—			(2,213		)	1,722		—			—
Total Investment Securities	45,415		—		(26,806		)	(2,213		)	1,728		(542		)	17,582
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	4,121,244		1,342,572		—			(594,124		)	26,475		8,490			4,904,657
Farmer Mac Guaranteed USDA Securities	31,361		4,100		—			(3,240		)	—		603			32,824
Total Farmer Mac Guaranteed Securities	4,152,605		1,346,672		—			(597,364		)	26,475		9,093			4,937,481
USDA Securities:
Available-for-sale	1,888,344		351,914		(58,628		)	(237,262		)	—		35,959			1,980,327
Trading(2)	28,975		—		—			(5,698		)	212		—			23,489
Total USDA Securities	1,917,319		351,914		(58,628		)	(242,960		)	212		35,959			2,003,816
Total Assets at fair value	$	6,115,339	$	1,698,586	$	(85,434	)	$	(842,537	)	$	28,415	$	44,510		$	6,958,879

⁽¹⁾  Unrealized gains are attributable to assets still held as of September 30, 2016 and are recorded in "Gains/(losses) on trading securities."

⁽²⁾  Includes unrealized gains of $0.1 million attributable to assets still held as of September 30, 2016 that are recorded in "Gains/(losses) on trading securities."

50

The following tables present additional information about the significant unobservable inputs, such as discount rates and constant prepayment rates ("CPR"), used in the fair value measurements categorized in level 3 of the fair value hierarchy as of September 30, 2017 and December 31, 2016.

Table 8.3

	As of September 30, 2017
Financial Instruments	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted-Average)
	(in thousands)
Assets:
Investment securities:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	18,518	Indicative bids	Range of broker quotes	94.0% - 94.0% (94.0%)
Fixed rate GSE guaranteed mortgage-backed securities	$	4,458	Discounted cash flow	Discount rate	3.7%
				CPR	0 %
Farmer Mac Guaranteed Securities:
AgVantage	$	5,443,746	Discounted cash flow	Discount rate	2.0% - 3.3% (2.2%)
USDA Securities	$	14,864	Discounted cash flow	Discount rate	3.6% - 5.3% (5.0%)
				CPR	7% - 19% (17%)

	As of December 31, 2016
Financial Instruments	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted-Average)
	(in thousands)
Assets:
Investment securities:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	17,730	Indicative bids	Range of broker quotes	90.0% - 90.0% (90.0%)
Farmer Mac Guaranteed Securities:
AgVantage	$	4,853,685	Discounted cash flow	Discount rate	1.5% - 3.3% (1.9%)
USDA Securities	$	20,388	Discounted cash flow	Discount rate	4.0% - 5.3% (5.0%)
				CPR	13% - 18% (17%)

The significant unobservable inputs used in the fair value measurements of Farmer Mac Guaranteed Securities and USDA Securities are prepayment rates and discount rates commensurate with the risks involved. Typically, significant increases (decreases) in any of these inputs in isolation may result in materially lower (higher) fair value measurements. Generally, in a rising interest rate environment, Farmer Mac would expect average discount rates to increase and would likely expect a corresponding decrease in forecasted prepayment rates. Conversely, in a declining interest rate environment, Farmer Mac would expect average discount rates to decrease and would likely expect a corresponding increase in forecasted prepayment rates. Prepayment rates are not presented in the table above for AgVantage securities because they generally do not pay down principal based on amortization schedules but instead typically have fixed maturity dates when the secured general obligations are due.

51

Disclosures on Fair Value of Financial Instruments

The following table sets forth the estimated fair values and carrying values for financial assets, liabilities, and guarantees and commitments as of September 30, 2017 and December 31, 2016:

Table 8.4

	As of September 30, 2017				As of December 31, 2016
	Fair Value		Carrying Amount		Fair Value		Carrying Amount
	(in thousands)
Financial assets:
Cash and cash equivalents	$	366,764	$	366,764	$	265,229	$	265,229
Investment securities	2,234,966		2,234,966		2,515,851		2,515,851
Farmer Mac Guaranteed Securities	7,601,376		7,602,556		6,006,694		6,002,916
USDA Securities	2,042,408		2,107,149		1,934,023		2,029,613
Loans	5,140,669		5,127,770		4,481,019		4,507,435
Financial derivatives	2,020		2,020		23,182		23,182
Guarantee and commitment fees receivable:
LTSPCs	31,986		32,307		34,720		32,656
Farmer Mac Guaranteed Securities	4,611		4,372		6,197		6,215
Financial liabilities:
Notes payable:
Due within one year	8,108,390		8,112,928		8,439,515		8,440,123
Due after one year	7,450,462		7,399,961		5,260,497		5,222,977
Debt securities of consolidated trusts held by third parties	1,310,240		1,333,417		1,107,513		1,142,704
Financial derivatives	30,595		30,595		58,152		58,152
Guarantee and commitment obligations:
LTSPCs	31,169		31,491		33,860		31,796
Farmer Mac Guaranteed Securities	4,065		3,825		5,467		5,486

The carrying value of cash and cash equivalents is a reasonable estimate of their approximate fair value and is classified as level 1 within the fair value hierarchy. Investment securities primarily are valued based on unadjusted quoted prices in active markets and are classified as level 2 within the fair value hierarchy. Farmer Mac internally models the fair value of its loan portfolio, including loans held for investment and loans held for investment in consolidated trusts, Farmer Mac Guaranteed Securities, and USDA Securities by discounting the projected cash flows of these instruments at projected interest rates. The fair values are based on the present value of expected cash flows using management's best estimate of certain key assumptions, which include prepayment speeds, forward yield curves and discount rates commensurate with the risks involved. These fair value measurements do not take into consideration the fair value of the underlying property and are classified as level 3 within the fair value hierarchy. Financial derivatives primarily are valued using unadjusted counterparty valuations and are classified as level 2 within the fair value hierarchy. The fair value of the guarantee fees receivable/obligation and debt securities of consolidated trusts are estimated based on the present value of expected future cash flows of the underlying mortgage assets using management's best estimate of certain key assumptions, which include prepayments speeds, forward yield curves, and discount rates commensurate with the risks involved and are classified as level 3 within the fair value hierarchy. Notes payable are valued by discounting the expected cash flows of these instruments using a yield curve derived from market prices observed for similar agency securities and are also classified as level 3 within the fair value hierarchy. Because the cash flows of Farmer Mac's financial instruments may be

52

interest rate path dependent, estimated fair values and projected discount rates for level 3 financial instruments are derived using a Monte Carlo simulation model. Different market assumptions and estimation methodologies could significantly affect estimated fair value amounts.

53

9. BUSINESS SEGMENT REPORTING

The following tables present core earnings for Farmer Mac's operating segments and a reconciliation to consolidated net income for the three and nine months ended September 30, 2017 and 2016:

Table 9.1

Core Earnings by Business Segment
For the Three Months Ended September 30, 2017
	Farm & Ranch			USDA Guarantees			Rural  Utilities			Institutional Credit			Corporate			Reconciling Adjustments				Consolidated Net Income
	(in thousands)
Net interest income	$	13,609		$	5,288		$	2,230		$	15,431		$	3,004		$	—			$	39,562
Less: reconciling adjustments(1)(2)(3)	(2,131		)	(433		)	602			(1,068		)	(305		)	3,335				—
Net effective spread	11,478			4,855			2,832			14,363			2,699			3,335				—
Guarantee and commitment fees(2)	4,236			130			476			93						(1,621		)		3,314
Other income/(expense)(3)(4)	214			9			5			—			233			524				985
Non-interest income/(loss)	4,450			139			481			93			233			(1,097		)		4,299
Provision for loan losses	(270		)	—			—			—			—			—				(270		)
Provision for reserve for losses	(114		)													—				(114		)
Other non-interest expense	(4,077		)	(1,080		)	(608		)	(1,670		)	(3,067		)	—				(10,502		)
Non-interest expense(5)	(4,191		)	(1,080		)	(608		)	(1,670		)	(3,067		)	—				(10,616		)
Core earnings before income taxes	11,467			3,914			2,705			12,786			(135		)	2,238			(6)	32,975
Income tax (expense)/benefit	(4,014		)	(1,370		)	(947		)	(4,475		)	396			(783		)		(11,193		)
Core earnings before preferred stock dividends and attribution of income to non-controlling interest	7,453			2,544			1,758			8,311			261			1,455			(6)	21,782
Preferred stock dividends	—			—			—			—			(3,295		)	—				(3,295		)
Segment core earnings/(losses)	$	7,453		$	2,544		$	1,758		$	8,311		$	(3,034	)	$	1,455		(6)	$	18,487
Total assets at carrying value	$	4,128,778		$	2,165,749		$	1,073,525		$	7,612,572		$	2,709,614		$	—			$	17,690,238
Total on- and off-balance sheet program assets at principal balance	$	6,557,030		$	2,298,956		$	1,886,445		$	7,901,842		$	—		$	—			$	18,644,273

⁽¹⁾  Excludes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.

⁽²⁾  Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.

⁽³⁾  Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "Gains/(losses) on financial derivatives and hedging activities" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

⁽⁴⁾  Includes reconciling adjustments for fair value adjustments on financial derivatives and trading assets. Also includes a reconciling adjustment related to the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities. In 2016 and prior periods, fair value adjustments on financial derivatives included variation margin payment amounts because those amounts were considered to be collateral of the related exposure and were accounted for as unrealized gains or losses. However, effective first quarter 2017, CME implemented a change in its rules related to the exchange of variation margin, whereby variation margin payments are considered to be a partial settlement of the respective derivatives contracts rather than as pledged collateral, and accounted for as realized gains and losses. See Note 4 for more information about this rule change. Farmer Mac believes that even though these variation margin amounts are now accounted for as realized gains or losses on financial derivatives and hedging activities as a result of the CME rule change, their economic character will remain the same as they were before the change. This is not expected to have a cumulative net impact on Farmer Mac's financial condition or results of operations reported in accordance with GAAP because the related financial instruments are expected to be held to maturity. Therefore, beginning in 2017, this reconciling adjustment includes realized gains and losses on financial derivatives centrally cleared through CME resulting from the exchange of variation margin. As a result, core earnings subsequent to 2016 will be presented on a consistent basis with core earnings in 2016 and prior periods.

⁽⁵⁾  Includes directly attributable costs and an allocation of indirectly attributable costs based on staffing.

⁽⁶⁾  Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends and attribution of income to non-controlling interest reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.

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Core Earnings by Business Segment
For the Three Months Ended September 30, 2016
	Farm & Ranch			USDA Guarantees			Rural  Utilities			Institutional Credit			Corporate			Reconciling Adjustments				Consolidated Net Income
	(in thousands)
Net interest income	$	12,039		$	5,753		$	2,963		$	12,226		$	2,582		$	—			$	35,563
Less: reconciling adjustments(1)(2)(3)	(1,336		)	(564		)	(320		)	(799		)	(345		)	3,364				—
Net effective spread	10,703			5,189			2,643			11,427			2,237			3,364				—
Guarantee and commitment fees(2)	3,516			29			529			459			—			(735		)		3,798
Other income/(expense)(3)(4)	276			95			—			—			(388		)	320				303
Non-interest income/(loss)	3,792			124			529			459			(388		)	(415		)		4,101
Provision for loan losses	(191		)	—			—			—			—			—				(191		)
Provision for reserve for losses	222			—			—			—			—			—				222
Other non-interest expense	(3,673		)	(933		)	(553		)	(1,253		)	(3,113		)	—				(9,525		)
Non-interest expense(5)	(3,451		)	(933		)	(553		)	(1,253		)	(3,113		)	—				(9,303		)
Core earnings before income taxes	10,853			4,380			2,619			10,633			(1,264		)	2,949			(6)	30,170
Income tax (expense)/benefit	(3,799		)	(1,533		)	(917		)	(3,722		)	474			(1,032		)		(10,529		)
Core earnings before preferred stock dividends and attribution of income to non-controlling interest	7,054			2,847			1,702			6,911			(790		)	1,917			(6)	19,641
Preferred stock dividends	—			—			—			—			(3,295		)	—				(3,295		)
Non-controlling interest	—			—			—			—			18			—				18
Segment core earnings/(losses)	$	7,054		$	2,847		$	1,702		$	6,911		$	(4,067	)	$	1,917		(6)	$	16,364
Total assets at carrying value	$	3,436,641		$	2,062,195		$	1,008,903		$	6,045,227		$	3,447,939		$	—			$	16,000,905
Total on- and off-balance sheet program assets at principal balance	$	6,004,728		$	2,020,834		$	1,867,666		$	7,354,511		$	—		$	—			$	17,247,739

⁽¹⁾  Excludes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.

⁽²⁾  Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.

⁽³⁾  Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "Gains/(losses) on financial derivatives and hedging activities" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

⁽⁴⁾  Includes reconciling adjustments for fair value adjustments on financial derivatives and trading assets. Also includes a reconciling adjustment related to the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities.

⁽⁵⁾  Includes directly attributable costs and an allocation of indirectly attributable costs based on staffing.

⁽⁶⁾  Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends and attribution of income to non-controlling interest reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.

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Core Earnings by Business Segment
For the Nine Months Ended September 30, 2017
	Farm & Ranch			USDA Guarantees			Rural  Utilities			Institutional Credit			Corporate			Reconciling Adjustments				Consolidated Net Income
	(in thousands)
Net interest income	$	39,701		$	15,747		$	8,181		$	44,364		$	8,371		$	—			$	116,364
Less: reconciling adjustments(1)(2)(3)	(6,208		)	(1,508		)	26			(3,025		)	(946		)	11,661				—
Net effective spread	33,493			14,239			8,207			41,339			7,425			11,661				—
Guarantee and commitment fees(2)	12,722			303			1,455			713			—			(4,563		)		10,630
Other income/(expense)(3)(4)	1,402			34			15			—			626			2,132				4,209
Non-interest income/(loss)	14,124			337			1,470			713			626			(2,431		)		14,839
Provision for loan losses	(1,234		)	—			—			—			—			—				(1,234		)
Release of reserve for losses	(60		)	—			—			—			—			—				(60		)
Other non-interest expense	(12,588		)	(3,333		)	(1,838		)	(4,813		)	(9,923		)	—				(32,495		)
Non-interest expense(5)	(12,648		)	(3,333		)	(1,838		)	(4,813		)	(9,923		)	—				(32,555		)
Core earnings before income taxes	33,735			11,243			7,839			37,239			(1,872		)	9,230			(6)	97,414
Income tax (expense)/benefit	(11,806		)	(3,935		)	(2,744		)	(13,033		)	1,646			(3,231		)		(33,103		)
Core earnings before preferred stock dividends and attribution of income to non-controlling interest	21,929			7,308			5,095			24,206			(226		)	5,999			(6)	64,311
Preferred stock dividends	—			—			—			—			(9,886		)	—				(9,886		)
Non-controlling interest	—			—			—			—			165			—				165
Segment core earnings/(losses)	$	21,929		$	7,308		$	5,095		$	24,206		$	(9,947	)	$	5,999		(6)	$	54,590
Total assets at carrying value	$	4,128,778		$	2,165,749		$	1,073,525		$	7,612,572		$	2,709,614		$	—			$	17,690,238
Total on- and off-balance sheet program assets at principal balance	$	6,557,030		$	2,298,956		$	1,886,445		$	7,901,842		$	—		$	—			$	18,644,273

⁽¹⁾  Excludes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.

⁽²⁾  Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.

⁽³⁾  Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "Gains/(losses) on financial derivatives and hedging activities" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

⁽⁴⁾  Includes reconciling adjustments for fair value adjustments on financial derivatives and trading assets. Also includes a reconciling adjustment related to the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities. In 2016 and prior periods, fair value adjustments on financial derivatives included variation margin payment amounts because those amounts were considered to be collateral of the related exposure and were accounted for as unrealized gains or losses. However, effective first quarter 2017, CME implemented a change in its rules related to the exchange of variation margin, whereby variation margin payments are considered to be a partial settlement of the respective derivatives contracts rather than as pledged collateral, and accounted for as realized gains and losses. See Note 4 for more information about this rule change. Farmer Mac believes that even though these variation margin amounts are now accounted for as realized gains or losses on financial derivatives and hedging activities as a result of the CME rule change, their economic character will remain the same as they were before the change. This is not expected to have a cumulative net impact on Farmer Mac's financial condition or results of operations reported in accordance with GAAP because the related financial instruments are expected to be held to maturity. Therefore, beginning in 2017, this reconciling adjustment includes realized gains and losses on financial derivatives centrally cleared through CME resulting from the exchange of variation margin. As a result, core earnings subsequent to 2016 will be presented on a consistent basis with core earnings in 2016 and prior periods.

⁽⁵⁾  Includes directly attributable costs and an allocation of indirectly attributable costs based on staffing.

⁽⁶⁾  Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends and attribution of income to non-controlling interest reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.

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Core Earnings by Business Segment
For the Nine Months Ended September 30, 2016
	Farm & Ranch			USDA Guarantees			Rural  Utilities			Institutional Credit			Corporate			Reconciling Adjustments				Consolidated Net Income
	(in thousands)
Net interest income	$	34,772		$	15,743		$	8,682		$	36,084		$	8,280		$	—			$	103,561
Less: reconciling adjustments(1)(2)(3)	(4,733		)	(1,658		)	(939		)	(2,160		)	(897		)	10,387				—
Net effective spread	30,039			14,085			7,743			33,924			7,383			10,387				—
Guarantee and commitment fees(2)	11,390			50			1,197			1,375			—			(2,933		)		11,079
Other income/(expense)(3)(4)	451			178			—			—			(1,288		)	(9,259		)		(9,918		)
Non-interest income/(loss)	11,841			228			1,197			1,375			(1,288		)	(12,192		)		1,161
Provision for loan losses	(604		)	—			—			—			—			—				(604		)
Provision for reserve for losses	114			—			—			—			—			—				114
Other non-interest expense	(11,946		)	(3,118		)	(2,214		)	(2,330		)	(9,849		)	—				(29,457		)
Non-interest expense(5)	(11,832		)	(3,118		)	(2,214		)	(2,330		)	(9,849		)	—				(29,343		)
Core earnings before income taxes	29,444			11,195			6,726			32,969			(3,754		)	(1,805		)	(6)	74,775
Income tax (expense)/benefit	(10,307		)	(3,918		)	(2,355		)	(11,538		)	1,221			633				(26,264		)
Core earnings before preferred stock dividends and attribution of income to non-controlling interest	19,137			7,277			4,371			21,431			(2,533		)	(1,172		)	(6)	48,511
Preferred stock dividends	—			—			—			—			(9,886		)	—				(9,886		)
Non-controlling interest	—			—			—			—			62			—				62
Segment core earnings/(losses)	$	19,137		$	7,277		$	4,371		$	21,431		$	(12,357	)	$	(1,172	)	(6)	$	38,687
Total assets at carrying value	$	3,436,641		$	2,062,195		$	1,008,903		$	6,045,227		$	3,447,939		$	—			$	16,000,905
Total on- and off-balance sheet program assets at principal balance	$	6,004,728		$	2,020,834		$	1,867,666		$	7,354,511		$	—		$	—			$	17,247,739

⁽¹⁾  Excludes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.

⁽²⁾  Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.

⁽³⁾  Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "Gains/(losses) on financial derivatives and hedging activities" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

⁽⁴⁾  Includes reconciling adjustments for fair value adjustments on financial derivatives and trading assets. Also includes a reconciling adjustment related to the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities.

⁽⁵⁾  Includes directly attributable costs and an allocation of indirectly attributable costs based on staffing.

⁽⁶⁾  Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends and attribution of income to non-controlling interest reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Financial information included in this report is consolidated to include the accounts of Farmer Mac and its three subsidiaries during the quarter – Farmer Mac Mortgage Securities Corporation, Farmer Mac II LLC, and Contour Valuation Services, LLC (which began doing business as AgVisory during first quarter 2016 and in which Farmer Mac redeemed its ownership interest on May 1, 2017) ("AgVisory"). This discussion and analysis of financial condition and results of operations should be read together with: (1) the interim unaudited consolidated financial statements and the related notes that appear elsewhere in this report; and (2) Farmer Mac's Annual Report on Form 10-K for the fiscal year ended December 31, 2016 filed with the SEC on March 9, 2017.

FORWARD-LOOKING STATEMENTS

Some statements made in this report, and in particular in the "Management's Discussion & Analysis of Financial Condition and Results of Operations" section, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 pertaining to management's current expectations as to Farmer Mac's future financial results, business prospects, and business developments.  Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance, or achievements. These statements typically are accompanied by, and identified with, terms such as "anticipates," "believes," "expects," "intends," "plans," "potential," "may," "should," and similar phrases.  This report includes forward-looking statements addressing Farmer Mac's:

• prospects for earnings;

• prospects for growth in business volume;

• trends in net interest income and net effective spread;

• trends in portfolio credit quality, delinquencies, substandard assets, credit losses, and provisions for losses;

• trends in expenses;

• trends in investment securities;

• prospects for asset impairments and allowance for losses;

• changes in capital position;

• future dividend payments; and

• other business and financial matters.

Management's expectations for Farmer Mac's future necessarily involve a number of assumptions and estimates and the evaluation of risks and uncertainties.  Various factors or events, both known and unknown, could cause Farmer Mac's actual results to differ materially from the expectations as expressed or implied by the forward-looking statements, including the factors discussed under "Risk Factors" in Part I, Item 1A of Farmer Mac's Annual Report on Form 10-K for the fiscal period ended December 31, 2016 filed with the SEC on March 9, 2017, and uncertainties regarding:

• the availability to Farmer Mac of debt and equity financing and, if available, the reasonableness of rates and terms;

• legislative or regulatory developments that could affect Farmer Mac, its sources of business, or the agricultural or rural utilities industries;

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• fluctuations in the fair value of assets held by Farmer Mac and its subsidiaries;

• the rate and direction of development of the secondary market for agricultural mortgage and rural utilities loans, including lender interest in Farmer Mac's products and the secondary market provided by Farmer Mac;

• the general rate of growth in agricultural mortgage and rural utilities indebtedness;

• the effect of economic conditions, including the effects of drought and other weather-related conditions and fluctuations in agricultural real estate values, on agricultural mortgage lending and borrower repayment capacity;

• developments in the financial markets, including possible investor, analyst, and rating agency reactions to events involving government-sponsored enterprises, including Farmer Mac;

• changes in the level and direction of interest rates, which could, among other things, affect the value of collateral securing Farmer Mac's agricultural mortgage loan assets;

• the degree to which Farmer Mac is exposed to basis risk, which results from fluctuations in Farmer Mac's borrowing costs relative to market indexes such as LIBOR; and

• volatility in commodity prices relative to costs of production and/or export demand for U.S. agricultural products.

In light of these potential risks and uncertainties, no undue reliance should be placed on any forward-looking statements expressed in this report.  Furthermore, Farmer Mac undertakes no obligation to release publicly the results of revisions to any forward-looking statements that may be made to reflect new information or any future events or circumstances, except as otherwise mandated by the SEC. The information contained in this report is not necessarily indicative of future results.

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Overview

In third quarter 2017, Farmer Mac increased its outstanding business volume by $0.4 billionto $18.6 billion, driven primarily by net portfolio growth of $0.2 billion in Farm & Ranch loan purchases and $0.2 billion in purchases of AgVantage securities. With regard to credit, Farmer Mac's total allowance for losses increased modestly in dollars but remained unchanged as a percentage of the Farm & Ranch portfolio during third quarter 2017 compared to second quarter 2017. As of September 30, 2017, Farmer Mac's substandard assets and 90-day delinquencies increased, in both dollars and as a percentage of the Farm & Ranch portfolio, compared to second quarter 2017 levels. Substandard assets as a percentage of the Farm & Ranch portfolio remained below Farmer Mac's historical average substandard asset rate, while 90-day delinquencies as a percentage of the Farm & Ranch portfolio was in line with Farmer Mac's historical average 90-day delinquency rate.

The discussion below of Farmer Mac's financial information includes certain "non-GAAP measures," which are measures of financial performance that are not presented in accordance with generally accepted accounting principles in the United States ("GAAP"). For more information about the non-GAAP measures Farmer Mac uses, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures."

Net Income and Core Earnings

Farmer Mac's net income attributable to common stockholders for third quarter 2017 was $18.5 million, compared to $17.5 million in second quarter 2017 and $16.4 million in third quarter 2016.

The $1.0 million sequential increase was primarily driven by a $0.5 million after-tax decrease in non-interest expense primarily due to lower compensation and employee benefits expenses. This decrease in compensation and benefits expenses was caused by the absence in third quarter 2017 of payouts of annual variable incentive compensation that occurred during second quarter 2017. Also contributing to the sequential increase was a $0.3 million after-tax increase in gains in fair value of financial derivatives and hedged assets and a $0.2 million increase in tax benefits recognized from exercises of stock-based awards.

The $2.1 million year-over-year increase was driven by an increase in net interest income of $2.6 million, after tax. Also contributing to the year-over-year increase was a $0.8 million after-tax increase in gains in fair value of financial derivatives and hedged assets. The increase was offset in part by a $0.8 million after-tax decrease in unrealized gains in fair value of trading securities and a $0.6 million after-tax increase in non-interest expense. The increase in non-interest expense was primarily attributable to higher general and administrative ("G&A") and compensation and employee benefits expenses.

Farmer Mac's non-GAAP core earnings for third quarter 2017 were $17.0 million, compared to $16.0 million in second quarter 2017 and $14.4 million in third quarter 2016.

The $1.0 million sequential increase in core earnings was primarily driven by an after-tax decrease of $0.5 million in compensation and employee benefits expenses caused by the absence in third quarter 2017 of payouts of annual variable incentive compensation that occurred during second quarter 2017. Also contributing to the sequential increase was a $0.4 million after-tax increase in net effective spread and a $0.4 million after-tax increase in other income, primarily driven by a decrease in hedging costs. The sequential increase was offset in part by a $0.5 million after-tax decrease in net realized gains on the sale of real estate owned properties.

60

The $2.6 million year-over-year increase in core earnings was primarily attributable to (1) a$2.6 million after-tax increase in net effective spread; (2) a $0.3 million increase in tax benefits recognized from exercises of stock-based awards in third quarter 2017 which did not occur in third quarter 2016; and (3) a $0.3 million after-tax increase in other income, primarily driven by a decrease in hedging costs. Partially offsetting the year-over-year increase was a $0.6 million after-tax increase in operating expenses attributable to both an increase in compensation and employee benefits and G&A expenses. The increase in compensation and employee benefits expenses was due primarily to an increase in staffing and related employee health insurance costs and benefits. The increase in G&A expenses was due to higher expenses related to continued technology and business infrastructure investments and expenses related to business development efforts.

For more information about net income attributable to common stockholders, the composition of core earnings, and a reconciliation of net income attributable to common stockholders to core earnings, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations." For more information about the non-GAAP measures Farmer Mac uses, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures."

Net Interest Income and Net Effective Spread

Net interest income was $39.6 millionfor third quarter 2017, compared to $39.7 million for second quarter 2017 and $35.6 million for third quarter 2016. The overall net interest yield was 0.92 percent for third quarter 2017, compared to 0.95 percent for second quarter 2017 and 0.89 percent for third quarter 2016.

The $0.1 million and 3 basis point sequential decreases in net interest income were primarily driven by an increase in net yield adjustments related to amortization of premiums on assets consolidated at fair value.

The $4.0 million year-over-year increase in net interest income was driven by net growth in Farm & Ranch loans, USDA Securities, and on-balance sheet AgVantage securities. Another factor contributing to the increase was the effect of an increase in short-term interest rates on assets and liabilities indexed to LIBOR due to the Federal Reserve's decision to raise the target range for the federal funds rate in December 2016, March 2017, and June 2017. This effect on net interest income occurred because interest expense used to calculate net interest income does not include all the funding expenses related to these assets, specifically the expense on financial derivatives not designated in hedge accounting relationships. This increase in short-term rates on assets and liabilities indexed to LIBOR did not have a similar effect on net effective spread because net effective spread includes interest expense from all funding related to those assets, including interest expense from financial derivatives not designated in hedge accounting relationships. The increase in net interest income was offset in part by an increase in net yield adjustments related to amortization of premiums and discounts on assets consolidated at fair value and a decrease in the amount of cash basis interest income recognized on nonaccrual Farm & Ranch loans. The 3 basis point year-over-year increase in net interest income in percentage terms was primarily attributable to a reduction in the average balance of lower-earning cash and cash equivalents and investment securities.

Net effective spread, a non-GAAP measure, was $36.2 million for third quarter 2017, compared to $35.6 million in second quarter 2017 and $32.2 million in third quarter 2016. In percentage terms, net effective spread for third quarter 2017 was 0.92 percent, compared to 0.92 percent in second quarter 2017 and 0.86

61

percent in third quarter 2016. Farmer Mac uses net effective spread as an alternative measure to net interest income because management believes it is a useful metric that reflects the economics of the net spread between all the assets owned by Farmer Mac and all related funding, including any associated derivatives, some of which may not be included in net interest income.

The $0.6 million sequential increase in net effective spread in dollars was primarily attributable to growth in on-balance sheet AgVantage securities, Farm & Ranch loans, and other business volume, which increased net effective spread by approximately $0.9 million. Net effective spread in percentage terms was flat sequentially, as the effect of a decrease in the average balance of lower-earning investment securities was offset by a decrease in the amount of cash basis interest income recognized on nonaccrual Farm & Ranch loans.

The $4.0 million year-over-year increase in net effective spread in dollars was primarily attributable to (1) growth in on-balance sheet AgVantage securities, Farm & Ranch loans, and other business volume, which increased net effective spread by approximately $4.0 million; and (2) changes in Farmer Mac's funding strategies and LIBOR-based short-term funding costs for floating rate assets indexed to LIBOR that remained favorable throughout most of third quarter 2017, which added approximately $0.8 million. The increase was offset in part by a decrease in the amount of cash basis interest income recognized on nonaccrual Farm & Ranch loans, which reduced net effective spread by $0.5 million. The 6 basis point year-over-year increase in net effective spread in percentage terms was primarily attributable to a significant reduction in the average balance of cash and cash equivalents and lower earning investment securities, which added approximately 6 basis points to net effective spread. Also contributing to the increase were the effects of the changes in Farmer Mac's funding strategy and a favorable LIBOR-based funding market, which added approximately 2 basis points. The increase in percentage terms was offset in part by the effect of the refinancing in second quarter 2017 of a $1.0 billion AgVantage security, $970.0 million of which was previously held by third party investors and reported as off-balance sheet business volume in the Institutional Credit line of business, into three new on-balance sheet AgVantage securities, which reduced net effective spread by approximately 3 basis points.

For more information about Farmer Mac's use of net effective spread as a financial measure, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures." For a reconciliation of net interest income to net effective spread, see Table 6 in "Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations—Net Interest Income."

Business Volume

Farmer Mac added $0.9 billion of new business volume during third quarter 2017. The new business volume included purchases of $298.3 million of newly originated Farm & Ranch loans, purchases of $291.0 million of AgVantage securities, Farm & Ranch loans added under LTSPCs of $102.8 million, purchases of $90.2 million of USDA Securities, purchases of Rural Utilities loans of $70.0 million, and the issuance of $41.1 million of Farmer Mac Guaranteed USDA Securities. Taking into account maturities and paydowns on existing assets, Farmer Mac's outstanding business volume was $18.6 billion as of September 30, 2017, an increase of $0.4 billion from June 30, 2017, and $1.2 billion from December 31, 2016.

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Capital

As of September 30, 2017, Farmer Mac's core capital level was $653.4 million, which was $137.6 million above the minimum capital level required by Farmer Mac's statutory charter.  As of December 31, 2016, Farmer Mac's core capital level was $609.7 million, which was $143.2 million above the minimum capital requirement. The decrease in capital in excess of the minimum capital level was due primarily to an increase in minimum capital required to support the growth of on-balance sheet assets during the first nine months of 2017, which was offset in part by an increase in retained earnings. In particular, the refinancing of a $1.0 billion AgVantage security that matured in April 2017 into three new on-balance sheet AgVantage securities significantly increased Farmer Mac's on-balance sheet assets because $970.0 million of the refinanced security was previously held by third party investors and reported as off-balance sheet business volume.

In August 2017, Farmer Mac's board of directors approved the continuation of a share repurchase program on its existing terms through August 2019 and authorized Farmer Mac to repurchase up to $5.4 million of its outstanding Class C non-voting common stock. This is the amount currently remaining under the share repurchase program that Farmer Mac's board of directors originally authorized in third quarter 2015 for the repurchase of up to $25 million of outstanding Class C non-voting common stock. Farmer Mac did not repurchase shares during the first three quarters of 2017 under this program. Farmer Mac also did not repurchase any shares under this program in the last three quarters of 2016, but did repurchase 307,000 shares in first quarter 2016. As of September 30, 2017, Farmer Mac had repurchased approximately 668,000 shares of Class C non-voting common stock at a cost of approximately $19.6 million under the share repurchase program.

Credit Quality

As of September 30, 2017, Farmer Mac's total allowance for losses were $8.5 million (0.13 percent of the Farm & Ranch portfolio), compared to $8.1 million (0.13 percent of the Farm & Ranch portfolio) as of June 30, 2017 and $7.4 million (0.12 percent of the Farm & Ranch portfolio) as of December 31, 2016. The $0.4 million sequential increase to the provision to the allowance for losses was primarily attributable to downgrades in risk ratings, which caused a net increase to the specific allowance for certain impaired on-balance sheet crop and permanent planting loans. Net volume growth in on-balance sheet Farm & Ranch loans also contributed to the sequential increase in the general allowance for loan losses.

As of September 30, 2017, Farmer Mac's substandard assets were $219.6 million (3.3 percent of the Farm & Ranch portfolio), compared to $192.1 million (3.0 percent of the Farm & Ranch portfolio) as of June 30, 2017 and $165.2 million (2.7 percent of the Farm & Ranch portfolio) as of December 31, 2016. The increase in substandard assets from second quarter 2017 was primarily driven by credit downgrades in on-balance sheet loans.

As of September 30, 2017, Farmer Mac's 90-day delinquencies were $66.4 million (1.01 percent of the Farm & Ranch portfolio), compared to $41.9 million (0.65 percent of the Farm & Ranch portfolio) as of June 30, 2017 and $21.0 million (0.34 percent of the Farm & Ranch portfolio) as of December 31, 2016. The sequential increase in 90-day delinquencies is primarily attributable to an increase in delinquencies in certain crop and permanent planting loans due to factors specific to the borrower and not related to macroeconomic factors in the agricultural economy. The sequential increase in 90-day delinquencies is also consistent with the seasonal pattern of Farmer Mac's 90-day delinquencies fluctuating from quarter to quarter, both in dollars and as a percentage of the outstanding Farm & Ranch portfolio, with higher levels

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generally observed at the end of the first and third quarters and lower levels generally observed at the end of the second and fourth quarters of each year as a result of the annual (January 1st) and semi-annual (January 1st and July 1st) payment terms of most Farm & Ranch loans.

For more information about Farmer Mac's credit metrics, including 90-day delinquencies, the total allowance for losses, and substandard assets, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Risk Management—Credit Risk – Loans and Guarantees."

Use of Non-GAAP Measures

In the accompanying analysis of its financial information, Farmer Mac sometimes uses "non-GAAP measures," which are measures of financial performance that are not presented in accordance with GAAP. Specifically, Farmer Mac uses the following non-GAAP measures: "core earnings," "core earnings per share," and "net effective spread." Farmer Mac uses these non-GAAP measures to measure corporate economic performance and develop financial plans because, in management's view, they are useful alternative measures in understanding Farmer Mac's economic performance, transaction economics, and business trends.

The non-GAAP financial measures that Farmer Mac uses may not be comparable to similarly labeled non-GAAP financial measures disclosed by other companies. Farmer Mac's disclosure of these non-GAAP measures is intended to be supplemental in nature, and is not meant to be considered in isolation from, as a substitute for, or as more important than, the related financial information prepared in accordance with GAAP.

Core Earnings and Core Earnings Per Share

Core earnings and core earnings per share principally differ from net income attributable to common stockholders and earnings per common share, respectively, by excluding the effects of fair value fluctuations. These fluctuations are not expected to have a cumulative net impact on Farmer Mac's financial condition or results of operations reported in accordance with GAAP if the related financial instruments are held to maturity, as is expected. Among other items, these fair value fluctuations have included unrealized gains or losses on financial derivatives and hedging activities. Variation margin is exchanged between Farmer Mac and its counterparties on both its cleared and non-cleared derivatives portfolios. Prior to first quarter 2017, Farmer Mac accounted for variation margin as collateral and associated unrealized gains or losses on its centrally cleared derivative contracts. However, beginning in first quarter 2017, the variation margin amounts exchanged between Farmer Mac and its counterparties on cleared derivatives are considered as settlement rather than collateral as a result of a change in variation margin rules implemented by the Chicago Mercantile Exchange ("CME"), the central clearinghouse used by Farmer Mac. Specifically, effective January 3, 2017, CME began to deem the exchange of variation margin between derivatives counterparties as a partial settlement of each respective derivative contract rather than as collateral pledged by a counterparty. Accordingly, beginning in first quarter 2017, Farmer Mac presents its cleared derivatives portfolio net of variation margin payments on its consolidated balance sheets and recognizes realized gains or losses as a result of these payments on its consolidated statements of operations. In October 2017, the U.S. Commodity Futures Trading Commission ("CFTC") issued an interpretive letter to the CME confirming that, under the Commodity Exchange Act, the exchange of variation margin payments on cleared swap positions constitutes settlement of the outstanding exposure and not collateral against it and that CME rules must reflect this interpretation. However, the CFTC acknowledged the economic equivalence between the settlement of and the pledge of collateral against

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outstanding exposure under a derivatives contract, and Farmer Mac also believes that the economic character of these transactions remains the same as they were before the CME rule change. Even though these variation margin amounts are accounted for as realized gains or losses on financial derivatives and hedging activities as a result of the CME rule change and subsequent CFTC interpretation, this is not expected to have a cumulative net impact on Farmer Mac's financial condition or results of operations reported in accordance with GAAP because the related financial instruments are expected to be held to maturity. Therefore, since the beginning of first quarter 2017, Farmer Mac has excluded the effects of realized gains or losses resulting from the exchange of variation margin on its cleared derivatives portfolio in its calculations of core earnings and core earnings per share to present them on a consistent basis with quarters prior to 2017.

Core earnings and core earnings per share also differ from net income attributable to common stockholders and earnings per common share, respectively, by excluding specified infrequent or unusual transactions that Farmer Mac believes are not indicative of future operating results and that may not reflect the trends and economic financial performance of Farmer Mac's core business. For example, the loss from retirement of the Farmer Mac II LLC Preferred Stock in first quarter 2015 was excluded from core earnings and core earnings per share during that quarter because it was not a frequently occurring transaction and not indicative of future operating results. This is also consistent with Farmer Mac's previous treatment of these types of origination costs associated with securities underwriting that are capitalized and deferred during the life of the security. For a reconciliation of Farmer Mac's net income attributable to common stockholders to core earnings and of earnings per common share to core earnings per share, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations."

Net Effective Spread

Farmer Mac uses net effective spread to measure the net spread Farmer Mac earns between its interest-earning assets and the related net funding costs of these assets. Net effective spread differs from net interest income and net interest yield because it excludes: (1) the amortization of premiums and discounts on assets consolidated at fair value that are amortized as adjustments to yield in interest income over the contractual or estimated remaining lives of the underlying assets; and (2) interest income and interest expense related to consolidated trusts with beneficial interests owned by third parties, which are presented on Farmer Mac's consolidated balance sheets as "Loans held for investment in consolidated trusts, at amortized cost." Farmer Mac excludes from net effective spread the premiums and discounts on assets consolidated at fair value because they either do not reflect actual cash premiums paid for the assets at acquisition or are not expected to have an economic effect on Farmer Mac's financial performance if the assets are held to maturity, as is expected. Farmer Mac also excludes from net effective spread the interest income and interest expense associated with the consolidated trusts and the average balance of the loans underlying these trusts to reflect management's view that the net interest income Farmer Mac earns on the related Farmer Mac Guaranteed Securities owned by third parties is effectively a guarantee fee. Accordingly, the excluded interest income and interest expense associated with consolidated trusts is reclassified to guarantee and commitment fees for purposes of determining Farmer Mac's core earnings.

Net effective spread also principally differs from net interest income and net interest yield because it includes the accrual of income and expense related to the contractual amounts due on financial derivatives that are not designated in hedge accounting relationships ("undesignated financial derivatives").

Farmer Mac uses interest rate swaps to manage its interest rate risk exposure by synthetically modifying the interest rate reset or maturity characteristics of certain assets and liabilities.  The accrual of the

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contractual amounts due on interest rate swaps designated in hedge accounting relationships is included as an adjustment to the yield or cost of the hedged item and is included in net interest income. For undesignated financial derivatives, Farmer Mac records the income or expense related to the accrual of the contractual amounts due in "Gains/(losses) on financial derivatives and hedging activities" on the consolidated statements of operations.  However, the accrual of the contractual amounts due for undesignated financial derivatives are included in Farmer Mac's calculation of net effective spread, which is intended to reflect management's view of the net spread between an asset and all of its related funding, including any associated derivatives, whether or not they are in a hedge accounting relationship. For a reconciliation of net interest income and net interest yield to net effective spread, see Table 6 in "Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations—Net Interest Income."

Results of Operations

Farmer Mac's net income attributable to common stockholders for the three months ended September 30, 2017 was $18.5 million ($1.71 per diluted common share), compared to $16.4 million ($1.54 per diluted common share) for the same period in 2016. For the nine months ended September 30, 2017, Farmer Mac's net income attributable to common stockholders was $54.6 million ($5.06 per diluted common share), compared to $38.7 million ($3.60 per diluted common share) for the same period in 2016. Farmer Mac's non-GAAP core earnings for the three months ended September 30, 2017 were $17.0 million ($1.57 per diluted common share), compared to $14.4 million ($1.36 per diluted common share) for the same period in 2016. Farmer Mac's non-GAAP core earnings for the nine months ended September 30, 2017 were $48.6 million ($4.50 per diluted common share), compared to $39.9 million ($3.71 per diluted common share) for the same period in 2016. For more information about the changes in net income attributable to common stockholders and core earnings, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Overview—Net Income and Core Earnings."

A reconciliation of Farmer Mac's net income attributable to common stockholders to core earnings and core earnings per share are presented in the following tables along with a breakdown of the composition of core earnings:

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Table 1

Reconciliation of Net Income Attributable to Common Stockholders to Core Earnings
	For the Three Months Ended
	September 30, 2017			September 30, 2016
	(in thousands, except per share amounts)
Net income attributable to common stockholders	$	18,487		$	16,364
Less reconciling items:
Gains on financial derivatives and hedging activities due to fair value changes	2,737			1,460
Unrealized gains on trading securities	—			1,182
Amortization of premiums/discounts and deferred gains on assets consolidated at fair value	(954		)	(157		)
Net effects of settlements on agency forward contracts	456			464
Income tax effect related to reconciling items	(784		)	(1,032		)
Sub-total	1,455			1,917
Core earnings	$	17,032		$	14,447
Composition of Core Earnings:
Revenues:
Net effective spread(1)	$	36,227		$	32,199
Guarantee and commitment fees(2)	4,935			4,533
Other(3)	429			(32		)
Total revenues	41,591			36,700
Credit related expense (GAAP):
Provision for/(release of) losses	384			(31		)
REO operating expenses	—			—
Gains on sale of REO	(32		)	(15		)
Total credit related (income)/expense	352			(46		)
Operating expenses (GAAP):
Compensation and employee benefits	5,987			5,438
General and administrative	3,890			3,474
Regulatory fees	625			613
Total operating expenses	10,502			9,525
Net earnings	30,737			27,221
Income tax expense(4)	10,410			9,497
Net loss attributable to non-controlling interest (GAAP)	—			(18		)
Preferred stock dividends (GAAP)	3,295			3,295
Core earnings	$	17,032		$	14,447
Core earnings per share:
Basic	$	1.61		$	1.38
Diluted	1.57			1.36
Weighted-average shares:
Basic	10,605			10,473
Diluted	10,815			10,649

₍₁₎  Net effective spread is a non-GAAP measure. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures—Net Effective Spread" for an explanation of net effective spread. See Table 6 for a reconciliation of net interest income to net effective spread.

⁽²⁾  Includes interest income and interest expense related to consolidated trusts owned by third parties reclassified from net interest income to guarantee and commitment fees to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee on the consolidated Farmer Mac Guaranteed Securities.

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⁽³⁾  Reflects reconciling adjustments for the reclassification to exclude expenses related to interest rate swaps not designated as hedges and fair value adjustments on financial derivatives and trading assets and a reconciling adjustment to exclude the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities. Third quarter 2017 includes $0.4 million of fees received upon the inception of swaps and $0.2 million of hedging losses, compared to no fees received and $0.7 million of hedging losses, respectively, in third quarter 2016.

⁽⁴⁾  Includes the tax impact of non-GAAP reconciling items between net income attributable to common stockholders and core earnings. Third quarter 2017 includes $0.3 million of tax benefits upon the vesting of restricted stock and the exercise of SARs under new accounting guidance for stock-based awards that became effective in first quarter 2017.

Reconciliation of Net Income Attributable to Common Stockholders to Core Earnings
	For the Nine Months Ended
	September 30, 2017			September 30, 2016
	(in thousands, except per share amounts)
Net income attributable to common stockholders	$	54,590		$	38,687
Less reconciling items:
Gains/(losses) on financial derivatives and hedging activities due to fair value changes	9,763			(3,605		)
Unrealized (losses)/gains on trading securities	(84		)	1,934
Amortization of premiums/discounts and deferred gains on assets consolidated at fair value	(1,198		)	(809		)
Net effects of settlements on agency forward contracts	749			675
Income tax effect related to reconciling items	(3,231		)	633
Sub-total	5,999			(1,172		)
Core earnings	$	48,591		$	39,859
Composition of Core Earnings:
Revenues:
Net effective spread(1)	$	104,703		$	93,174
Guarantee and commitment fees(2)	15,194			14,012
Other(3)	1,293			(674		)
Total revenues	121,190			106,512
Credit related expense (GAAP):
Provision for losses	1,294			490
REO operating expenses	23			39
Gains on sale of REO	(784		)	(15		)
Total credit related expense	533			514
Operating expenses (GAAP):
Compensation and employee benefits	18,986			16,823
General and administrative	11,611			10,757
Regulatory fees	1,875			1,838
Total operating expenses	32,472			29,418
Net earnings	88,185			76,580
Income tax expense(4)	29,873			26,897
Net loss attributable to non-controlling interest (GAAP)	(165		)	(62		)
Preferred stock dividends (GAAP)	9,886			9,886
Core earnings	$	48,591		$	39,859
Core earnings per share:
Basic	$	4.59		$	3.81
Diluted	4.50			3.71
Weighted-average shares:
Basic	10,586			10,464
Diluted	10,794			10,755

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₍₁₎  Net effective spread is a non-GAAP measure. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures—Net Effective Spread" for an explanation of net effective spread. See Table 6 for a reconciliation of net interest income to net effective spread.

⁽²⁾  Includes interest income and interest expense related to consolidated trusts owned by third parties reclassified from net interest income to guarantee and commitment fees to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee on the consolidated Farmer Mac Guaranteed Securities.

⁽³⁾  Reflects reconciling adjustments for the reclassification to exclude expenses related to interest rate swaps not designated as hedges and fair value adjustments on financial derivatives and trading assets and a reconciling adjustment to exclude the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities. The first nine months of 2017 includes $1.7 million of fees received upon the inception of swaps and $1.3 million of hedging losses, compared to $0.1 million of fees received and $2.3 million of hedging losses, respectively, in the first nine months of 2016.

⁽⁴⁾  Includes the tax impact of non-GAAP reconciling items between net income attributable to common stockholders and core earnings. The first nine months of 2017 includes $1.2 million of tax benefits upon the vesting of restricted stock and the exercise of SARs under new accounting guidance for stock-based awards that became effective in first quarter 2017.

Table 2

Reconciliation of GAAP Basic Earnings Per Share to Core Earnings Basic Earnings Per Share
	For the Three Months Ended						For the Nine Months Ended
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
	(in thousands, except per share amounts)
GAAP - Basic EPS	$	1.74		$	1.56		$	5.16		$	3.70
Less reconciling items:
Gains/(losses) on financial derivatives and hedging activities due to fair value changes	0.26			0.14			0.92			(0.33		)
Unrealized (losses)/gains on trading securities	—			0.11			(0.01		)	0.18
Amortization of premiums/discounts and deferred gains on assets consolidated at fair value	(0.09		)	(0.01		)	(0.11		)	(0.08		)
Net effects of settlements on agency forward contracts	0.04			0.04			0.07			0.06
Income tax effect related to reconciling items	(0.08		)	(0.10		)	(0.30		)	0.06
Sub-total	0.13			0.18			0.57			(0.11		)
Core Earnings - Basic EPS	$	1.61		$	1.38		$	4.59		$	3.81
Shares used in per share calculation (GAAP and Core Earnings)	10,605			10,473			10,586			10,464

Reconciliation of GAAP Diluted Earnings Per Share to Core Earnings Diluted Earnings Per Share
	For the Three Months Ended						For the Nine Months Ended
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
	(in thousands, except per share amounts)
GAAP - Diluted EPS	$	1.71		$	1.54		$	5.06		$	3.60
Less reconciling items:
Gains/(losses) on financial derivatives and hedging activities due to fair value changes	0.26			0.14			0.91			(0.34		)
Unrealized (losses)/gains on trading securities	—			0.11			(0.01		)	0.18
Amortization of premiums/discounts and deferred gains on assets consolidated at fair value	(0.09		)	(0.01		)	(0.11		)	(0.07		)
Net effects of settlements on agency forward contracts	0.04			0.04			0.07			0.06
Income tax effect related to reconciling items	(0.07		)	(0.10		)	(0.30		)	0.06
Sub-total	0.14			0.18			0.56			(0.11		)
Core Earnings - Diluted EPS	$	1.57		$	1.36		$	4.50		$	3.71
Shares used in per share calculation (GAAP and Core Earnings)	10,815			10,649			10,794			10,755

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The four non-GAAP reconciling items between net income attributable to common stockholders and core earnings are:

1. Gains/(losses) on financial derivatives and hedging activities due to fair value changes. The table below calculates the non-GAAP reconciling item for gains/(losses) on financial derivatives and hedging activities due to fair value changes.

Table 3

Non-GAAP Reconciling Item for Gains/(Losses) on Financial Derivatives and Hedging Activities Due to Fair Value Changes
	For the Three Months Ended				For the Nine Months Ended
	September 30, 2017		September 30, 2016		September 30, 2017			September 30, 2016
	(in thousands)
Fair value hedges:
Gains/(losses) due to fair value changes (see Table 8)	$	1,742	$	726	$	(716	)	$	5,716
No hedge designation:
Gains/(losses) due to fair value changes (see Table 8)	995		734		10,479			(9,321		)
Gains/(losses) on financial derivatives and hedging activities due to fair value changes	$	2,737	$	1,460	$	9,763		$	(3,605	)

2. Unrealized (losses)/gains on trading securities. The unrealized (losses)/gains on trading securities are reported on Farmer Mac's consolidated statements of operations, which represent changes during the period in fair values for trading assets remaining on Farmer Mac's balance sheet as of the end of the reporting period.

3. Amortization of premiums/discounts and deferred gains on assets consolidated at fair value. The amount of this non-GAAP reconciling item is the recorded amount of premium, discount, or deferred gain amortization during the reporting period on those assets for which the premium, discount, or deferred gain was based on the application of an accounting principle (e.g., consolidation of variable interest entities) rather than on a cash transaction (e.g., a purchase price premium or discount).

4. The net effect of settlements on agency forward contracts. These agency forward contracts are used as a short-term economic hedge of the issuance of debt. For GAAP purposes, realized gains or losses on settlements of agency forward contracts used as a short-term hedge of the issuance of debt are reported in the consolidated statements of operations in the period in which they occur. For core earnings purposes, these realized gains or losses on settlements of agency forward contracts are deferred and amortized as net yield adjustments over the term of the related debt, which generally ranges from 3 to 15 years.

The following sections provide more detail regarding specific components of Farmer Mac's results of operations.

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Net Interest Income.  The following table provides information regarding interest-earning assets and funding for the nine months ended September 30, 2017 and 2016.  The average balance of non-accruing loans is included in the average balance of loans, Farmer Mac Guaranteed Securities, and USDA Securities presented, though the related income is accounted for on a cash basis.  Therefore, as the average balance of non-accruing loans and the income received increases or decreases, the net interest income and yield will fluctuate accordingly.  The average balance of loans in consolidated trusts with beneficial interests owned by third parties is disclosed in the net effect of consolidated trusts and is not included in the average balances of interest-earning assets and interest-bearing liabilities.  The interest income and expense associated with these trusts are shown in the net effect of consolidated trusts. 

Table 4

	For the Nine Months Ended
	September 30, 2017						September 30, 2016
	Average Balance		Income/ Expense		Average Rate		Average Balance		Income/ Expense		Average Rate
	(dollars in thousands)
Interest-earning assets:
Cash and investments	$	2,746,902	$	24,834	1.21	%	$	3,726,766	$	20,235	0.72	%
Loans, Farmer Mac Guaranteed Securities and USDA Securities(1)	12,496,888		231,852		2.47	%	11,001,241		187,466		2.27	%
Total interest-earning assets	15,243,790		256,686		2.25	%	14,728,007		207,701		1.88	%
Funding:
Notes payable due within one year	5,409,742		36,526		0.90	%	7,481,541		27,380		0.49	%
Notes payable due after one year(2)	9,205,917		108,359		1.57	%	6,826,348		79,693		1.56	%
Total interest-bearing liabilities(3)	14,615,659		144,885		1.32	%	14,307,889		107,073		1.00	%
Net non-interest-bearing funding	628,131		—				420,118		—
Total funding	15,243,790		144,885		1.27	%	14,728,007		107,073		0.97	%
Net interest income/yield prior to consolidation of certain trusts	15,243,790		111,801		0.98	%	14,728,007		100,628		0.91	%
Net effect of consolidated trusts(4)	1,211,419		4,563		0.50	%	848,344		2,933		0.46	%
Net interest income/yield	$	16,455,209	$	116,364	0.94	%	$	15,576,351	$	103,561	0.89	%

⁽¹⁾  Excludes interest income of $32.5 million and $23.0 million in the first nine months of 2017 and 2016, respectively, related to consolidated trusts with beneficial interests owned by third parties.

⁽²⁾  Includes current portion of long-term notes.

⁽³⁾  Excludes interest expense of $27.9 million and $20.0 million in the first nine months of 2017 and 2016, respectively, related to consolidated trusts with beneficial interests owned by third parties.

⁽⁴⁾  Includes the effect of consolidated trusts with beneficial interests owned by third parties.

Net interest income was $116.4 millionfor the nine months ended September 30, 2017, compared to $103.6 million for the same period in 2016. The overall net interest yield was 0.94 percent for the nine months ended September 30, 2017, compared to 0.89 percent for the same period in 2016.

The $12.8 million increase in net interest income for the nine months ended September 30, 2017 compared to the same period in 2016 was driven by net growth in Farm & Ranch loans, AgVantage securities, and other business volume. Another factor contributing to the increase was the effect of an increase in short-term interest rates on assets and liabilities indexed to LIBOR due to the Federal Reserve's decision to raise the target range for the federal funds rate in December 2016, March 2017, and June 2017. This effect on net interest income occurred because interest expense used to calculate net interest income does not include all the funding expenses related to these assets, specifically the expense on financial derivatives not designated in hedge accounting relationships. This increase in short-term rates on assets and liabilities indexed to LIBOR did not have a similar effect on net effective spread because net effective spread includes interest expense from all funding related to those assets, including interest expense from financial derivatives not designated in hedge accounting relationships. Also contributing to the year-over-

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year increase was an increase in the net effect of consolidated trusts resulting from an increase in securitization of Farm & Ranch loans throughout 2016 and the first nine months of 2017. Farmer Mac earns the difference between the interest income recognized on loans in consolidated trusts and the related interest expense recognized on debt securities of consolidated trusts held by third parties. The year-over-year increase in net interest income was offset in part by (1) an increase in net yield adjustments related to amortization of premiums on assets consolidated at fair value and (2) a decrease in the amount of cash basis interest income recognized on nonaccrual Farm & Ranch loans. Typically, interest income from Farm & Ranch loans on nonaccrual status is recognized when cash is received.

The 5 basis point increase in net interest yield for the nine months ended September 30, 2017 compared to the same period in 2016 was primarily driven by a reduction in the average balance of lower-earning cash and cash equivalents and investment securities.

The following table sets forth information regarding changes in the components of Farmer Mac's net interest income prior to consolidation of certain trusts for the periods indicated.  For each category, information is provided on changes attributable to changes in volume (change in volume multiplied by old rate) and changes in rate (change in rate multiplied by old volume).  Combined rate/volume variances, the third element of the calculation, are allocated based on their relative size.  

Table 5

	For the Nine Months Ended September 30, 2017 Compared to Same Period in 2016
	Increase/(Decrease) Due to
	Rate			Volume			Total
	(in thousands)
Income from interest-earning assets:
Cash and investments	$	10,921		$	(6,322	)	$	4,599
Loans, Farmer Mac Guaranteed Securities and USDA Securities	17,532			26,854			44,386
Total	28,453			20,532			48,985
Expense from other interest-bearing liabilities	35,462			2,350			37,812
Change in net interest income prior to consolidation of certain trusts(1)	$	(7,009	)	$	18,182		$	11,173

⁽¹⁾  Excludes the effect of debt in consolidated trusts with beneficial interests owned by third parties.

The following table presents a reconciliation of net interest income and net yield to net effective spread.  Net effective spread is measured by including income or expense related to contractual amounts due on financial derivatives not designated in hedge accounting relationships (the income or expense related to financial derivatives designated in hedge accounting relationships is already included in net interest income) and excluding the amortization of premiums and discounts on assets consolidated at fair value and the net effects of consolidated trusts with beneficial interests owned by third parties.

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Table 6

	For the Three Months Ended										For the Nine Months Ended
	September 30, 2017					September 30, 2016					September 30, 2017					September 30, 2016
	Dollars			Yield		Dollars			Yield		Dollars			Yield		Dollars			Yield
	(dollars in thousands)
Net interest income/yield	$	39,562		0.92	%	$	35,563		0.89	%	$	116,364		0.94	%	$	103,561		0.89	%
Net effects of consolidated trusts	(1,621		)	0.04	%	(735		)	0.04	%	(4,563		)	0.04	%	(2,933		)	0.02	%
Expense related to undesignated financial derivatives	(2,675		)	(0.07	)%	(2,807		)	(0.08	)%	(8,317		)	(0.07	)%	(7,985		)	(0.07	)%
Amortization of premiums/discounts on assets consolidated at fair value	961			0.03	%	178			0.01	%	1,219			0.01	%	531			—	%
Net effective spread	$	36,227		0.92	%	$	32,199		0.86	%	$	104,703		0.92	%	$	93,174		0.84	%

Net effective spread was $36.2 million and $104.7 million for the three and nine months ended September 30, 2017 compared to $32.2 million and $93.2 million for the same periods in 2016, respectively. In percentage terms, net effective spread for both the three and nine months ended September 30, 2017 was 0.92 percent, compared to 0.86 percent and 0.84 percent for the same periods in 2016, respectively.

For the first nine months of 2017 compared to the same period in 2016, the $11.5 million increase in net effective spread in dollars was primarily attributable to (1) growth in AgVantage securities, Farm & Ranch loans, and other business volume, which increased net effective spread by approximately $10.3 million; and (2) changes in Farmer Mac's funding strategies and favorable LIBOR-based short-term funding costs for floating rate assets indexed to LIBOR, which added approximately $2.7 million. This increase was offset in part by a $1.4 million decrease in the amount of cash basis interest income recognized on nonaccrual Farm & Ranch loans. The 8 basis point year-over-year increase in net effective spread in percentage terms was primarily attributable to a significant reduction in the average balance of cash and cash equivalents and investment securities, which added approximately 5 basis points to net effective spread. Also contributing to the increase were the effects of the aforementioned changes in Farmer Mac's funding strategy and a favorable LIBOR-based funding market, which added approximately 3 basis points. This increase was offset in part by the effect of the refinancing of a $1.0 billion AgVantage security at an average spread that was less than the overall average net effective spread percentage, which reduced net effective spread by approximately 2 basis points.

See Note 9 to the consolidated financial statements for more information regarding net interest income and net effective spread from Farmer Mac's individual business segments. See "—Supplemental Information" for quarterly net effective spread by line of business.

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Provision for and Release of Allowance for Loan Losses and Reserve for Losses. The following table summarizes the components of Farmer Mac's total allowance for losses for the three and nine months ended September 30, 2017 and 2016:

Table 7

	As of September 30, 2017								As of September 30, 2016
	Allowance for Loan Losses			Reserve for Losses		Total Allowance for Losses			Allowance for Loan Losses			Reserve for Losses			Total Allowance for Losses
	(in thousands)
For the Three Months Ended:
Beginning Balance	$	6,138		$	1,966	$	8,104		$	4,893		$	2,191		$	7,084
Provision for losses	270			114		384			191			(222		)	(31		)
Charge-offs	—			—		—			(130		)	—			(130		)
Ending Balance	$	6,408		$	2,080	$	8,488		$	4,954		$	1,969		$	6,923
For the Nine Months Ended:
Beginning Balance	$	5,415		$	2,020	$	7,435		$	4,480		$	2,083		$	6,563
Provision for/(release of) losses	1,234			60		1,294			604			(114		)	490
Charge-offs	(241		)	—		(241		)	(130		)	—			(130		)
Ending Balance	$	6,408		$	2,080	$	8,488		$	4,954		$	1,969		$	6,923

The increase in the provision to the allowance for loan losses recorded during the three and nine months ended September 30, 2017 as compared to the same time periods in 2016, was attributable to (1) an increase in the specific allowance for certain impaired on-balance sheet crop and permanent planting loans resulting from both an increase in the outstanding balance of such loans and downgrades in risk ratings on certain of those loans, and (2) an increase in the general allowance due to overall net volume growth in on-balance sheet Farm & Ranch loans. The increase in the provision was offset in part by a modest decline in loss rates used to estimate probable losses. The increase in the provision to the reserve for losses recorded during the three and nine months ended September 30, 2017 as compared to the same time periods in 2016, was primarily attributable to an increase in the general reserve due to downgrades in risk ratings on certain unimpaired Agricultural Storage and Processing loans underlying LTSPCs. The increase in the provision to the reserve for losses was offset in part by a net decrease in the balance of loans underlying LTSPCs and off-balance sheet Farmer Mac Guaranteed Securities. The charge-offs recorded during the first nine months of 2017 were primarily related to two impaired crop loans with one borrower that were foreclosed and transitioned to REO during first quarter 2017. Farmer Mac had previously recorded a specific allowance of $0.2 million on these impaired crop loans as of December 31, 2016. During second quarter 2017, Farmer Mac sold the related properties for $5.4 million and recognized a $0.8 million gain on sale of REO.

As of December 31, 2016, Farmer Mac's allowance for loan losses was $5.4 million and its reserve for losses was $2.0 million. See Note 5 to the consolidated financial statements and "Management's Discussion and Analysis of Financial Condition and Results of Operations—Risk Management—Credit Risk – Loans and Guarantees."

Guarantee and Commitment Fees.  Guarantee and commitment fees, which compensate Farmer Mac for assuming the credit risk on loans underlying off-balance sheet Farmer Mac Guaranteed Securities and LTSPCs, were $3.3 million and $10.6 million for the three and nine months ended September 30, 2017,

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respectively, compared to$3.8 million and $11.1 million for the same periods in 2016, respectively. The decrease in guarantee and commitment fees for both the three and nine months ended September 30, 2017 compared to the same periods last year was attributable to the refinancing of a $1.0 billion AgVantage security with Metropolitan Life Insurance Company ("MetLife") in April 2017 into three new on-balance sheet AgVantage securities. Previously, $970.0 million of the $1.0 billion AgVantage security that matured in April 2017 had been sold to third parties and reported as off-balance sheet business volume in the Institutional Credit line of business on which Farmer Mac earned a guarantee fee. Also contributing to the decrease was a lower average outstanding balance of loans underlying LTSPCS. The decrease was offset in part by an increase in the average outstanding balance of off-balance sheet Farmer Mac Guaranteed USDA Securities and, for the nine months ended September 30, 2017, and an increase in the average outstanding balance of Rural Utilities loans underlying LTSPCs.

Gains/(losses) on Financial Derivatives and Hedging Activities.  The effect of unrealized and realized gains and losses on Farmer Mac's financial derivatives and hedging activities was net gains of $0.7 million and $2.5 million for the three and nine months ended September 30, 2017, respectively, compared to net losses of $1.6 million and $13.1 million for the same periods in 2016, respectively.

The components of gains and losses on financial derivatives and hedging activities for the three and nine months ended September 30, 2017 and 2016 are summarized in the following table:

Table 8

	For the Three Months Ended						For the Nine Months Ended
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
	(in thousands)
Fair value hedges:
Gains/(losses) due to fair value changes:
Financial derivatives(1)	$	1,576		$	11,276		$	(5,466	)	$	(30,062	)
Hedged items	166			(10,550		)	4,750			35,778
Gains/(losses) on fair value hedging activities	1,742			726			(716		)	5,716
Cash flow hedges:
Loss recognized (ineffective portion)	(191		)	(68		)	(365		)	(322		)
Losses on cash flow hedges	(191		)	(68		)	(365		)	(322		)
No hedge designation:
Gains/(losses) due to fair value changes	995			734			10,479			(9,321		)
Accrual of contractual payments	(2,484		)	(2,739		)	(7,952		)	(7,663		)
Gains/(losses) due to terminations or net settlements	599			(254		)	1,084			(1,489		)
Losses/(gains) on financial derivatives not designated in hedging relationships	(890		)	(2,259		)	3,611			(18,473		)
Gains/(losses) on financial derivatives and hedging activities	$	661		$	(1,601	)	$	2,530		$	(13,079	)

⁽¹⁾  Included in the assessment of hedge effectiveness as of September 30, 2017, but excluded from the amounts in the table, were losses of $1.6 million and gains of $0.7 million for the three and nine months ended September 30, 2017, attributable to the fair value of the swaps at the inception of the hedging relationship. Accordingly, the amounts recognized as hedge ineffectiveness for three and nine months ended September 30, 2017 were gains of $0.1 million and losses of zero, respectively. The comparable amounts as of September 30, 2016 were losses of $1.0 million and $4.2 million for the three and nine months ended September 30, 2016, attributable to the fair value of the swaps at the inception of the hedging relationship and, accordingly, gains of $0.2 million and $1.5 million for the three and nine months ended September 30, 2016, attributable to hedge ineffectiveness.

Changes in the fair values of Farmer Mac's open derivative positions for both designated and undesignated hedges are captured in the table above in gains/(losses) due to fair value changes and are primarily the result of fluctuations in long-term interest rates. For financial derivatives designated in fair value hedge accounting relationships, changes in the fair values of the hedged items attributable to the hedged risk are

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also included in the table above in gains/(losses) due to fair value changes. For financial derivatives designated in cash flow hedge accounting relationships, the ineffective portion of changes in fair value are included as losses on cash flow hedges. The accrual of periodic cash settlements for interest paid or received from Farmer Mac's interest rate swaps that are not designated in hedge accounting relationships is shown as expense related to financial derivatives.  Payments or receipts to terminate derivative positions or net cash settled forward sales contracts on the debt of other GSEs and U.S. Treasury futures that are not designated in hedge accounting relationships and fees received upon the inception of swaps are included in gains/(losses) due to terminations or net settlements. Fees that Farmer Mac receives upon the inception of swaps are offset dollar-for-dollar by the discount on the associated hedged debt. However, the swap fees are recognized immediately in Gains/(losses) on financial derivatives and hedging activities, whereas the offsetting discount on the hedged debt is amortized over the term of the debt as an adjustment to its yield. Thus, there is a timing difference between the recognition of the swap fees in Gains/(losses) on financial derivatives and hedging activities and the recognition of the discount in interest expense. There is also a presentation difference because the swap fees are included in Gains/(losses) on financial derivatives and hedging activities, whereas the amortization of the discount is included in interest expense. Additionally, the amount of swap fees varies depending upon the number of swaps initiated during a quarter.

Gains/(losses) on Trading Securities.  During the three and nine months ended September 30, 2017, Farmer Mac recorded unrealized losses on trading securities of zero and $0.1 million, respectively, compared to unrealized gains of $1.2 million and $1.9 million during the same periods in 2016, respectively. During the three and nine months ended September 30, 2017, all of the unrealized losses were related to financial assets that had been selected to be carried at fair value with the related changes in fair value included in earnings (i.e., the "fair value option"), compared to $0.4 million of unrealized losses and $0.2 million of unrealized gains under the fair value option for the same periods last year.

Gains on Sale of Real Estate Owned. During the three and nine months ended September 30, 2017, Farmer Mac realized net gains of $32,000 and $0.8 million, respectively, on sales of real estate owned properties compared to $15,000 for the same periods last year.

Other Income. Other income totaled $0.2 million and $0.9 million for the three and nine months ended September 30, 2017, respectively, compared to $0.7 million and $1.2 million for the same periods in 2016, respectively. Other income during the three and nine months ended September 30, 2017 included the recognition of zero and $0.4 million, respectively, of appraisal fees received by Farmer Mac's consolidated appraisal company subsidiary, AgVisory, compared to $0.3 million and $0.8 million for the same period last year. As of May 1, 2017, Farmer Mac transferred its entire 65% ownership interest in AgVisory back to the limited liability company in exchange for $5,000. Farmer Mac recognized a loss of approximately $0.1 million upon the transfer. Other income during the three and nine months ended September 30, 2017 included the recognition of $7,000 and $20,000 of losses previously deferred in accumulated other comprehensive income related to fair value changes of certain available-for-sale securities contributed to Farmer Mac II LLC in 2010 and other miscellaneous items, compared to the recognition of $0.1 million and $0.3 million, respectively, of previously deferred losses for the same periods in 2016.

Compensation and Employee Benefits. Compensation and employee benefits were $6.0 million and $19.0 million, for the three and nine months ended September 30, 2017, respectively, compared to $5.4 million and $16.8 million, for the same periods in 2016, respectively. The year-over-year increase in compensation and employee benefits for both the three and nine months ended September 30, 2017 compared to the same periods last year was due primarily to an increase in staffing and related employee

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health insurance costs and benefits. The increase for the nine months ended September 30, 2017 compared to the same period in 2016 was also due to higher payouts of variable incentive compensation resulting from actual performance exceeding certain performance target amounts during second quarter 2017.

General and Administrative Expenses.  General and administrative expenses were $3.9 million and $11.6 million, for the three and nine months ended September 30, 2017, respectively, compared to $3.5 million and $10.8 million for the same periods in 2016, respectively. The increase in general and administrative expenses for both the three and nine months ended September 30, 2017 compared to the same periods last year was due primarily to higher expenses related to continued technology and business infrastructure investments and expenses related to business development efforts.

Regulatory Fees.  Regulatory fees, which consist of the fees paid to the Farm Credit Administration ("FCA"), an independent agency in the executive branch of the United States government that regulates Farmer Mac, were $0.6 million and $1.9 million for the three and nine months ended September 30, 2017, respectively, compared to $0.6 million and $1.8 million for the same periods in 2016, respectively. FCA advised Farmer Mac that its estimated fees for the federal fiscal year ending September 30, 2018 would remain at $2.5 million ($0.625 million per federal fiscal quarter), the same amount as compared to the prior federal fiscal year.  After the end of a federal government fiscal year, FCA may revise its prior year estimated assessments to reflect actual costs incurred, and has issued both additional assessments and refunds in the past.

Income Tax Expense.  Income tax expense totaled $11.2 million and $33.1 million for the three and nine months ended September 30, 2017, respectively, compared to $10.5 million and $26.3 million for the same periods in 2016, respectively. The increase in income tax expense in the first nine months of 2017 compared to the same period last year was due to higher pre-tax income. Income tax expense for the three and nine months ended September 30, 2017 reflected $0.3 million and $1.2 million, respectively, of tax benefits associated with stock compensation activity that was subject to ASU 2016-09 accounting guidance, “Improvements to Employee Share-Based Payment Accounting,” adopted in first quarter 2017. The adoption of this guidance was also the primary reason why Farmer Mac's effective tax rate was lower than the statutory rate in the first nine months of 2017. More information about the adoption of ASU 2016-09and the effect on Farmer Mac's financial position, results of operations, and cash flows is included in Note 1(d) to the consolidated financial statements.

Business Volume.  During third quarter 2017, Farmer Mac added $0.9 billion of new business volume, compared to $1.1 billion in third quarter 2016. Specifically, Farmer Mac:

• purchased $298.3 million of newly originated Farm & Ranch loans;

• purchased $291.0 million of AgVantage securities;

• added $102.8 million of Farm & Ranch loans under LTSPCs;

• purchased $90.2 million of USDA Securities;

• purchased $70.0 million of Rural Utilities loans; and

• issued $41.1 million of Farmer Mac Guaranteed USDA Securities.

Farmer Mac's outstanding business volume was $18.6 billion as of September 30, 2017, an increase of $385.4 million from June 30, 2017. The increase in Farmer Mac's outstanding business volume was driven by broad-based portfolio growth across most of Farmer Mac's products and lines of business, including Farm & Ranch loans, AgVantage securities, USDA Securities, and Rural Utilities loans.

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The $190.4 million net increase in AgVantage securities for third quarter 2017 resulted from purchases of $225.0 million from Rabo AgriFinance LLC ("Rabo") and of $66.0 million from smaller institutional customers, including first-time transactions with two new counterparties. The purchases from Rabo resulted in net portfolio growth of $175.0 million and reflect the first time that Rabo has used Farmer Mac's AgVantage funding for its shorter-term (less than one year) funding needs. Farmer Mac grew its Farm & Ranch loan portfolio by $186.4 million during third quarter 2017, which was primarily driven by an increase in the average size of loans purchased, including several large loans with large borrowers. This growth outpaced the seasonally large amount of repayments that resulted from a July 1 payment date on most loans within the Farm & Ranch portfolio. The $61.9 million net increase in USDA Securities reflected an increase in USDA Securities securitized and sold to lenders in the form of Farmer Mac Guaranteed USDA Securities. Farmer Mac grew its Rural Utilities loan portfolio by $42.4 million, which was primarily due to the purchases of a few larger loans in competitive situations as a result of an improvement in Farmer Mac's pricing on these types of loans. For more information about potential growth opportunities, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Outlook" in this report.

The following table sets forth purchases of non-delinquent eligible loans, new loans added under LTSPCs, and new guarantees during the periods indicated in the Farm & Ranch, USDA Guarantees, and Rural Utilities lines of business, as well as purchases of AgVantage securities in the Institutional Credit line of business:

Table 9

New Business Volume – Farmer Mac Loan Purchases, Guarantees, LTSPCs, and AgVantage Securities
	For the Three Months Ended				For the Nine Months Ended
	September 30, 2017		September 30, 2016		September 30, 2017		September 30, 2016
	(in thousands)
Farm & Ranch:
Loans	$	298,274	$	282,690	$	924,628	$	722,331
LTSPCs	102,774		155,657		271,934		281,830
USDA Guarantees:
USDA Securities	90,229		87,335		298,539		293,286
Farmer Mac Guaranteed USDA Securities	41,069		31,866		133,121		58,628
Rural Utilities:
Loans	70,000		20,000		122,341		39,691
LTSPCs	—		—		—		421,404
Institutional Credit:
AgVantage Securities	290,995		528,234		2,149,159		1,851,698
Total purchases, guarantees, LTSPCs, and AgVantage Securities	$	893,341	$	1,105,782	$	3,899,722	$	3,668,868

New business volume for loans purchased within the Farm & Ranch line of business for the first nine months of 2017 was substantially greater than the same period in 2016. This was primarily due to an increase in borrower demand for long-term real estate financing, as farmers used equity in farmland assets to increase sources of operating capital, and an increase in the average size of loans purchased, including several large loans with large borrowers. New business volume for loans added under LTSPCs within the Farm & Ranch line of business for the first nine months of 2017 compared to the same period in 2016 reflected a modest decrease in demand among Farm Credit System institutions for the LTSPC product,

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which was offset in part by an increase in the average size of loans added under LTSPCs. The increase in new business volume in the USDA Guarantees line of business for the first nine months of 2017 compared to the same period in 2016 reflected an increase in lender usage of USDA guaranteed loan programs due to available federal funding for those programs. Loan purchase volume in the Rural Utilities line of business increased for the first nine months of 2017 compared to the same period in 2016 primarily as a result of an improvement in Farmer Mac's pricing for larger, more competitive loans to rural utilities borrowers and because the National Rural Utilities Cooperative Finance Corporation ("CFC"), Farmer Mac's only current rural utilities counterparty, is increasingly partnering with Farmer Mac in these more competitive situations. Changes in AgVantage securities volume are primarily driven by the generally larger transaction sizes for that product and the fluctuating funding and liquidity needs of Farmer Mac's customer network and scheduled maturity amounts. The volume of new AgVantage securities was higher for the first nine months of 2017 compared to the same period in 2016 primarily due to the scheduled maturities for those periods and related refinancing activity, as Farmer Mac refinanced $1.4 billion of maturing AgVantage securities during the first nine months of 2017 compared to $1.2 billion in the same period in 2016.

Based on market conditions, Farmer Mac either retains the loans it purchases or securitizes them and retains or sells Farmer Mac Guaranteed Securities backed by those loans.  The weighted-average age of the Farm & Ranch non-delinquent eligible loans purchased and retained (excluding the purchases of defaulted loans) during both third quarter 2017 and 2016 was less than one year. Of those loans, 73 percentand 82 percent had principal amortization periods longer than the maturity date, resulting in balloon payments at maturity, with a weighted-average remaining term to maturity of 19.1 years and 18.2 years, respectively.

During third quarter 2017 and 2016, Farmer Mac securitized some of the Farm & Ranch loans it had purchased and sold the resulting Farmer Mac Guaranteed Securities in the amounts of $115.4 million and $147.1 million, respectively. Farmer Mac consolidates these loans and presents them as "Loans held for investment in consolidated trusts, at amortized cost" on the consolidated balance sheets. For the three and nine months ended September 30, 2017, $46.0 millionand $102.5 million of Farmer Mac Guaranteed Securities were sold to Zions First National Bank, which is a related party to Farmer Mac compared to $81.9 million and $231.4 million of sales for the three and nine months ended September 30, 2016, respectively.

The following table sets forth information regarding the Farmer Mac Guaranteed Securities issued during the periods indicated:

Table 10

	For the Three Months Ended				For the Nine Months Ended
	September 30, 2017		September 30, 2016		September 30, 2017		September 30, 2016
	(in thousands)
Loans securitized and sold as Farm & Ranch Guaranteed Securities	$	115,427	$	147,060	$	277,307	$	402,841
Farmer Mac Guaranteed USDA Securities	41,069		31,866		127,164		54,528
AgVantage Securities	290,995		528,234		2,149,159		1,851,698
Total Farmer Mac Guaranteed Securities issuances	$	447,491	$	707,160	$	2,553,630	$	2,309,067

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The following table sets forth information regarding outstanding volume in each of Farmer Mac's four lines of business as of the dates indicated:

Table 11

Lines of Business - Outstanding Business Volume
	As of September 30, 2017		As of December 31, 2016
	(in thousands)
On-balance sheet:
Farm & Ranch:
Loans	$	2,739,681	$	2,381,488
Loans held in trusts:
Beneficial interests owned by third party investors	1,329,212		1,132,966
USDA Guarantees:
USDA Securities	2,041,466		1,954,800
Farmer Mac Guaranteed USDA Securities	30,688		35,599
Rural Utilities:
Loans	1,066,482		999,512
Institutional Credit
AgVantage Securities(1)	7,588,628		6,004,472
Total on-balance sheet	$	14,796,157	$	12,508,837
Off-balance sheet:
Farm & Ranch:
LTSPCs	2,133,314		2,209,409
Guaranteed Securities	354,823		415,441
USDA Guarantees:
Farmer Mac Guaranteed USDA Securities	226,802		103,976
Rural Utilities:
LTSPCs(2)	819,963		878,598
Institutional Credit:
AgVantage Securities(1)	13,214		983,214
AgVantage Revolving Line of Credit Facility(3)	300,000		300,000
Total off-balance sheet	$	3,848,116	$	4,890,638
Total	$	18,644,273	$	17,399,475

⁽¹⁾  In April 2017, Farmer Mac purchased and retained $1.0 billion in AgVantage securities from MetLife. MetLife used the proceeds from Farmer Mac's purchase of $1.0 billion in AgVantage securities to refinance an AgVantage security of the same amount that matured in April 2017. Previously, $970.0 million of the maturing $1.0 billion AgVantage security had been sold to third parties and reported as off-balance sheet business volume in the Institutional Credit line of business.

⁽²⁾  As of both September 30, 2017 and December 31 2016, includes $20.0 million related to one-year loan purchase commitments on which Farmer Mac receives a nominal unused commitment fee.

⁽³⁾  During the first nine months of 2017, $100.0 million of this facility was drawn and subsequently repaid. As of December 31, 2016, this facility had not been utilized. Farmer Mac receives a fixed fee based on the full dollar amount of the facility. If the counterparty draws on the facility, the amounts drawn will be in the form of AgVantage securities, and Farmer Mac will earn interest income on those securities.

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The following table summarizes by maturity date the scheduled principal amortization of loans held, loans underlying off-balance sheet Farmer Mac Guaranteed Securities (excluding AgVantage securities) and LTSPCs, USDA Securities, and Farmer Mac Guaranteed USDA Securities as of September 30, 2017:

Table 12

Schedule of Principal Amortization as of September 30, 2017
	Loans Held		Loans Underlying Off-Balance Sheet Farmer Mac Guaranteed Securities and LTSPCs		USDA Securities and Farmer Mac Guaranteed USDA Securities		Total
	(in thousands)
2017	$	52,237	$	63,989	$	24,298	$	140,524
2018	227,870		674,722		102,322		1,004,914
2019	230,639		213,292		101,850		545,781
2020	221,131		201,904		102,904		525,939
2021	241,821		213,623		106,844		562,288
Thereafter	4,161,677		1,940,570		1,860,738		7,962,985
Total	$	5,135,375	$	3,308,100	$	2,298,956	$	10,742,431

Of the $18.6 billion outstanding principal balance of volume included in Farmer Mac's four lines of business as of September 30, 2017, $7.9 billion were AgVantage securities included in the Institutional Credit line of business.  Unlike business volume in the form of purchased loans, USDA Securities, and loans underlying LTSPCs and non-AgVantage Farmer Mac Guaranteed Securities, most AgVantage securities do not require periodic payments of principal based on amortization schedules and instead have fixed maturity dates when the secured general obligation is due. The following table summarizes by maturity date the outstanding principal amount of both on- and off-balance sheet AgVantage securities as of September 30, 2017:

Table 13

AgVantage Balances by Year of Maturity
	As of
	September 30, 2017
	(in thousands)
2017	$	220,337
2018(1)	2,309,582
2019	1,113,211
2020	1,147,851
2021	1,063,740
Thereafter(2)	2,047,121
Total	$	7,901,842

⁽¹⁾  Includes the expiration of the $300.0 million revolving floating rate AgVantage facility.

⁽²⁾  Includes various maturities ranging from 2022 to 2044.

The weighted-average remaining maturity of the outstanding AgVantage securities shown in the table above was 4.0 years as of September 30, 2017.  

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As part of fulfilling its guarantee obligations for Farm & Ranch Guaranteed Securities and commitments to purchase eligible loans underlying LTSPCs, Farmer Mac purchases defaulted loans, all of which are at least 90 days delinquent or in material non-monetary default at the time of purchase, out of the loan pools underlying those securities and LTSPCs, and records the purchased loans as such on its balance sheet.  The purchase price for a defaulted loan purchased out of a pool of loans backing Farm & Ranch Guaranteed Securities is the then-current outstanding principal balance of the loan plus accrued and unpaid interest.  The purchase price for a defaulted loan purchased under an LTSPC is the then-current outstanding principal balance of the loan, with accrued and unpaid interest on the defaulted loan payable out of any future loan payments or liquidation proceeds as received.  The purchase price of a defaulted loan is not an indicator of the expected loss on that loan; many other factors affect expected loss, if any, on any loan so purchased. The delinquent loans purchased out of securitized pools during third quarter 2017 had a weighted-average age of 5 years. The delinquent loans purchased out of securitized pools and LTSPCs during third quarter 2016 had a weighted-average age of 9 years. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Risk Management—Credit Risk – Loans and Guarantees."

The following table presents Farmer Mac's purchases of defaulted loans underlying Farm & Ranch Guaranteed Securities and LTSPCs for the periods indicated:

Table 14

	For the Three Months Ended				For the Nine Months Ended
	September 30, 2017		September 30, 2016		September 30, 2017		September 30, 2016
	(in thousands)
Defaulted loans purchased underlying Farm & Ranch Guaranteed Securities owned by third party investors	$	3,043	$	250	$	3,147	$	398
Defaulted loans purchased underlying LTSPCs	—		852		311		2,118
Total loan purchases	$	3,043	$	1,102	$	3,458	$	2,516

Outlook

Farmer Mac continues to provide a stable source of liquidity, capital, and risk management tools as the secondary market that helps meet the financing needs of rural America. While the pace of Farmer Mac's growth will depend on the capital and liquidity needs of the participants in the rural financing business, Farmer Mac foresees opportunities for continued growth across all four of its lines of business, driven by several key factors:

• As agricultural and rural utilities lenders face increased equity capital requirements under regulatory frameworks or rating agency requirements, or seek to reduce exposure due to lending limits or concentration limits, Farmer Mac can provide relief for those institutions through loan purchases, guarantees, or LTSPCs.

• While lending opportunities in the rural utilities industry generally remain moderate, Farmer Mac believes there is opportunity for growth among larger rural utilities borrowers because CFC, the only lender that currently participates in Farmer Mac's Rural Utilities line of business, increasingly partners with Farmer Mac to provide competitive pricing for transactions with these borrowers. Farmer Mac also believes that there are growth opportunities within its Institutional Credit line of business because it provides a competitive source of debt funding for CFC.

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• As a result of targeted marketing and product development efforts, Farmer Mac's lender network and Institutional Credit customer base continues to expand, which may generate additional demand for Farmer Mac's products from new sources.

• Consolidation, expansion, and vertical integration occurring across virtually all sectors of the agricultural industry and similar consolidation trends occurring in agricultural banking, coupled with Farmer Mac's new and expanded business relationships with larger regional and national lenders, has led to an increase in Farmer Mac's loan purchase volume and the average transaction size within Farmer Mac's Farm & Ranch line of business.

Farmer Mac believes that these growth opportunities will be important in replacing income earned on the loans and other assets as they mature, pay down, or are reinvested at potentially lower spreads.

Agricultural Industry. The agricultural industry includes many diverse sectors that respond in different ways to changes in economic conditions. Those individual sectors often are affected differently, sometimes positively and sometimes negatively, by prevailing domestic and global economic factors and regional weather conditions. This results in cycles where one or more sectors may be under stress at the same time that others are not. The profitability of agricultural sectors is also affected by commodity inventories and their associated market prices, which can vary largely as a result of global production trends, weather patterns, access to water supply, and harvest conditions that may affect both domestic and global supplies.

Agricultural export demand also depends significantly on exchange rates. A strengthening U.S. dollar relative to other worldwide currencies causes American agricultural commodities to be less competitive globally, thereby diminishing their global demand and driving down producer profits. Conversely, a weakening U.S. dollar reduces the cost of American agricultural commodities worldwide, causing them to be more competitive in global markets. The U.S. dollar has weakened by more than 8 percent during the first three quarters of 2017 as measured by the U.S. Dollar Index, which has recently enhanced the competitiveness of U.S. agricultural exports. However, a slowdown in global economic growth or changes in trade policies could adversely affect the demand for certain U.S. agricultural exports, which may result in some producers receiving lower commodity prices.

Net cash income, as reported by the USDA and one of its benchmark measures of economic activity in the agricultural industry, has declined significantly since reaching a cyclical peak in 2013. However, changes in farm income levels are largely localized and depend on producer region and commodity production type. The USDA projects that net cash income levels in the aggregate will rise in 2017 due to higher commodity quantities sold and stabilizing commodity prices. Farmland values have weakened slightly in the Midwest region, where producers are most exposed to changes in the grain markets. In this region, data released by the USDA indicates a decline in farmland values of between 0.5 percent and 1.8 percent in 2017. In all other regions, farmland values appear to be flat to increasing. For example, data released by the USDA indicates that Pacific state land values increased an average of 8.7 percent in 2017.

In recent years, the 90-day delinquencies and credit losses in Farmer Mac's portfolio have remained low compared to their historical averages. However, some indications of stress have emerged, as the volume of Farmer Mac's substandard assets have sequentially increased since second quarter 2016 and 90-day delinquencies have generally increased since third quarter 2016. Both of these measures have increased compared to the historically favorable levels observed in recent years. To date, the increases in these two measures have not yet translated into rising credit losses. Farmer Mac believes that any losses associated with the current agricultural credit cycle will be moderated by the strength and diversity of its portfolio,

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which Farmer Mac believes is adequately collateralized. Farmer Mac believes that its portfolio remains sufficiently diversified, both geographically and by commodity, and that its portfolio has been underwritten to high credit quality standards. Accordingly, Farmer Mac believes that its portfolio is well-positioned to endure reasonably foreseeable volatility in farmland values and commodity prices. Farmer Mac also continues to closely monitor sector profitability, economic and weather conditions, and agricultural land value and geographic trends to tailor underwriting practices to changing conditions. Although severe weather events and natural disasters may damage a borrower’s property used in agricultural production, that damage may not negatively affect a borrower’s ability to repay its obligations due to risk mitigating payments available in many cases from property and casualty insurance, crop insurance, and government disaster relief. Based on an analysis of Farmer Mac’s portfolio in relation to the Hurricane Harvey disaster area in Texas, the path of Hurricane Irma in Florida, and the area of the recent California wild fires, Farmer Mac has determined that its potential exposure to these events is not material. Farmer Mac is not aware of any loans in its portfolio that are currently experiencing distress due to these events and believes that these events are not likely to have a material impact on the quality or performance of Farmer Mac’s loan portfolio. For more information about the loan balances, loan-to-value ratios, 90-day delinquencies, and substandard asset rate for the Farm & Ranch loans in Farmer Mac's portfolio as of September 30, 2017, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Risk Management—Credit Risk – Loans and Guarantees."

Farmer Mac continues to monitor the establishment and evolution of legislation and regulations, as well as the status of various international trade agreements and partnerships, that could affect farmers, ranchers, rural lenders, and rural America in general.  As the Trump administration and the U.S. Congress begin their review of existing regulations and the promotion of new legislative or regulatory proposals and policies, Farmer Mac will monitor the effects that any changes in legislation or regulation could have on Farmer Mac or its customers.

Farmer Mac's marketing efforts directed towards the Farm & Ranch line of business focus on lenders that have demonstrated a commitment to agricultural lending based on their lending history. Farmer Mac directs its outreach efforts to these lenders through direct personal contact, which is facilitated through Farmer Mac's frequent participation in state and national banking conferences, its alliances with the American Bankers Association and the Independent Community Bankers of America, and its business relationships with members of the Farm Credit System. In the Farm & Ranch line of business, Farmer Mac is experiencing stronger demand for its loan products. Demand for Farmer Mac's secondary market tools could also increase as rural lenders adapt to new and changing regulations, which may require lenders to obtain more liquidity and capital to continue their lending practices.

Farmer Mac also directs marketing efforts towards the agricultural industry by trying to identify and develop relationships with potential issuers of AgVantage securities, including insurance company agricultural lenders, agricultural finance companies, and bank and non-bank agricultural lenders such as agricultural mortgage funds, who can pledge loans as collateral to obtain financing as part of Farmer Mac's Institutional Credit line of business. As part of these efforts, Farmer Mac has increased its focus on wholesale financing for institutional investors in agricultural assets that qualify as eligible collateral under Farmer Mac's charter. Farmer Mac has tailored a version of its AgVantage product to this type of issuer, which is referred to as the Farm Equity AgVantage product. Farmer Mac also offers other AgVantage products tailored to fund investors in agricultural mortgages. Farmer Mac directs its outreach efforts to these potential issuers through its business relationships within the agricultural community and through executive outreach to institutions whose profile presents opportunity to benefit from wholesale financing. As institutional investment in agricultural assets continues to grow, Farmer Mac believes that it is in a unique position to help increase access to capital for these types of counterparties and thereby provide a

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new source of capital to benefit rural America. Farmer Mac designed the Farm Equity AgVantage product to provide an efficient, low-cost source of financing tailored to meet the needs of institutional investors that can be adapted to many different types of organizational structures and for both public and private institutional investors. Farmer Mac believes there is opportunity to expand this type of business as both the trend toward institutional investment in agricultural assets and awareness of the Farm Equity AgVantage and other AgVantage product offerings continue to grow.For more information about the Farm Equity AgVantage product, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Risk Management—Credit Risk – Institutional" in this report.

Rural Utilities Industry. Demand for capital within the rural utilities industry generally remains moderate, which has resulted in an ongoing high level of competition between rural utilities cooperative lenders that could suppress loan growth opportunities for those lenders, including lenders that participate in Farmer Mac's Rural Utilities line of business. Although competitive pressures remain within the rural utilities lending industry, Farmer Mac believes there is opportunity for growth among larger rural utilities borrowers because CFC increasingly partners with Farmer Mac to provide competitive pricing for transactions with these borrowers. Farmer Mac also believes there are growth opportunities within its Institutional Credit line of business because the wholesale funding rates that Farmer Mac provides may be highly competitive compared to other available sources of debt funding for rural utilities cooperative lenders.

Balance Sheet Review

Assets.  Farmer Mac's total assets as of September 30, 2017 were $17.7 billion, compared to $15.6 billion as of December 31, 2016.  The increase in total assets was primarily attributable to an increase in total Farmer Mac Guaranteed Securities and total loans, net of allowance.

As of September 30, 2017, Farmer Mac had $0.4 billion of cash and cash equivalents and $2.2 billion of investment securities compared to $0.3 billion of cash and cash equivalents and $2.5 billion of investment securities. As of September 30, 2017, Farmer Mac had $7.6 billion of Farmer Mac Guaranteed Securities, $5.1 billion of loans, net of allowance, and $2.1 billion of USDA Securities. This compares to $6.0 billion of Farmer Mac Guaranteed Securities, $4.5 billion of loans, net of allowance, and $2.0 billion of USDA Securities as of December 31, 2016.

Liabilities.  Farmer Mac's total liabilities were $17.0 billion as of September 30, 2017, compared to $15.0 billion as of December 31, 2016.  The increase in total liabilities was primarily attributable to an increase in total notes payable.

Equity.  As of September 30, 2017, Farmer Mac had total equity of $694.2 million, which is comprised entirely of stockholders' equity.  As of December 31, 2016, Farmer Mac had total equity of $643.6 million, comprised of stockholders' equity of $643.4 million and non-controlling interest of $0.2 million. As of May 1, 2017, Farmer Mac transferred its entire 65% ownership interest in AgVisory back to the limited liability company as a company redemption in exchange for $5,000. Farmer Mac recognized a loss of approximately $0.1 million, after-tax, upon the transfer. The increase in total equity during the first nine months of 2017 was a result of an increase in retained earnings and accumulated other comprehensive income. The increase in accumulated other comprehensive income was due to increases in fair value on certain floating-rate AgVantage securities.

Off-Balance Sheet Arrangements 

Farmer Mac offers approved lenders two credit enhancement alternatives to increase their liquidity or lending capacity while retaining the cash flow benefits of their loans: (1) Farmer Mac Guaranteed Securities, which are available through each of the Farm & Ranch, USDA Guarantees, Rural Utilities, and Institutional Credit lines of business; and (2) LTSPCs, which are available through the Farm & Ranch and Rural Utilities lines of business. For securitization trusts in which Farmer Mac is the primary beneficiary, the trust assets and liabilities are included on Farmer Mac's consolidated balance sheet. For the remainder of these transactions, and in the event of de-consolidation, both of these alternatives result in the creation

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of off-balance sheet obligations for Farmer Mac. See Note 6 to the consolidated financial statements for more information about consolidation and Farmer Mac's off-balance sheet business activities.

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Risk Management

Credit Risk – Loans and Guarantees.  Farmer Mac is exposed to credit risk resulting from the inability of borrowers to repay their loans in conjunction with a deficiency in the value of the collateral relative to the outstanding balance of the loan and the costs of liquidation.  Farmer Mac is exposed to credit risk on:

• loans held;

• loans underlying Farmer Mac Guaranteed Securities; and

• loans underlying LTSPCs.

Farmer Mac generally assumes 100 percent of the credit risk on loans held and loans underlying LTSPCs in the Farm & Ranch and Rural Utilities lines of business and loans underlying Farm & Ranch Guaranteed Securities. Farmer Mac has direct credit exposure to the loans in non-AgVantage transactions but only indirect credit exposure to loans that secure AgVantage transactions because AgVantage securities represent a general obligation of an issuer that is, in turn, secured by eligible loans. Non-AgVantage transactions like loan purchases, LTSPCs, and "pass-through" guaranteed securities that represent beneficial interests in the underlying loans do not include a general obligation of a counterparty as a separate source of repayment. For the reasons described in more detail below, Farmer Mac excludes its assets in the USDA Guarantees line of business, the loans in the Rural Utilities line of business, and AgVantage securities in the Institutional Credit line of business from the loan-level credit risk metrics it discloses.

Farmer Mac's direct credit exposure to Farm & Ranch loans held and loans underlying Farm & Ranch Guaranteed Securities and LTSPCs as of September 30, 2017 was $6.6 billion across 48 states. Farmer Mac has established underwriting, collateral valuation, and documentation standards for agricultural real estate mortgage loans and believes that these standards mitigate the risk of loss from borrower defaults and provide guidance about the management, administration, and conduct of underwriting and appraisals to all participating and potential lenders.  These standards were developed based on industry practices for agricultural real estate mortgage loans and are designed to assess the creditworthiness of the borrower, as well as the value of the collateral securing the loan.  Farmer Mac evaluates and adjusts these standards on an ongoing basis based on current and anticipated market conditions.  For more information about Farmer Mac's underwriting and collateral valuation standards for Farm & Ranch loans, see "Business—Farmer Mac's Lines of Business—Farm & Ranch—Underwriting and Collateral Valuation (Appraisal) Standards" in Farmer Mac's Annual Report on Form 10-K for the fiscal year ended December 31, 2016 filed with the SEC on March 9, 2017.

Farmer Mac's direct credit exposure to Rural Utilities loans held and loans underlying LTSPCs as of September 30, 2017 was $1.9 billion across 39 states, of which $1.5 billion were loans to electric distribution cooperatives and $0.4 billion were loans to generation and transmission ("G&T") cooperatives. Farmer Mac has developed different underwriting standards for rural utilities loans that depend on whether direct or indirect credit exposure is assumed on a loan and whether the borrower is an electric distribution cooperative or a G&T cooperative. See "Business—Farmer Mac's Lines of Business—Rural Utilities—Underwriting" in Farmer Mac's Annual Report on Form 10-K for the fiscal year ended December 31, 2016 filed with the SEC on March 9, 2017. As of September 30, 2017, there were no delinquencies in Farmer Mac's portfolio of Rural Utilities loans, and Farmer Mac has not experienced any credit losses on Rural Utilities loans since Congress authorized Farmer Mac's Rural Utilities line of business in 2008. Based on this performance, Farmer Mac excludes the loans in the Rural Utilities line of business from the credit risk metrics it discloses.

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Farmer Mac has indirect credit exposure to the Farm & Ranch loans and Rural Utilities loans that secure AgVantage securities included in the Institutional Credit line of business. Farmer Mac's AgVantage securities are general obligations of institutions approved by Farmer Mac and are secured by current loans in an amount at least equal to the outstanding principal amount of the related security. Accordingly, Farmer Mac excludes the loans that secure AgVantage securities from the credit risk metrics it discloses because Farmer Mac has only indirect credit risk on those loans and because of the other characteristics of AgVantage securities that mitigate credit risk. Those characteristics include a general obligation of an issuing institution approved by Farmer Mac, the required collateralization level for the securities, the requirement for delinquent loans to be removed from the pool of pledged loans and replaced with current eligible loans, and in some cases, the requirement for the counterparty to comply with specified financial covenants for the life of the related AgVantage security. As of September 30, 2017, Farmer Mac had not experienced any credit losses on any AgVantage securities and does not expect to incur any such losses in the future. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Risk Management—Credit Risk – Institutional" for more information about Farmer Mac's credit risk on AgVantage securities.

The credit exposure of Farmer Mac and Farmer Mac II LLC on USDA Securities, including those underlying Farmer Mac Guaranteed USDA Securities, is covered by the full faith and credit of the United States.  Therefore, Farmer Mac believes that Farmer Mac and Farmer Mac II LLC have little or no credit risk exposure in the USDA Guarantees line of business because of the USDA guarantee.  As of September 30, 2017, neither Farmer Mac nor Farmer Mac II LLC had experienced any credit losses on any business under the USDA Guarantees line of business, and neither expects to incur any such losses in the future.

Loans in the Farm & Ranch line of business are all secured by first liens on agricultural real estate. Accordingly, Farmer Mac's exposure on a loan is limited to the difference between (1) the total of the accrued interest, advances, and the principal balance of a loan and (2) the value of the property less the cost to sell. Measurement of that excess or shortfall is the best predictor and determinant of loss, compared to other measures that evaluate the efficiency of a particular farm operator.  For example, debt service ratios depend upon farm operator efficiency and leverage, which can vary widely within a geographic region, commodity type, or an operator's business and farming skills. Thus, Farmer Mac considers a loan's original loan-to-value ratio as one of many factors in evaluating loss severity. This ratio is calculated by dividing the loan principal balance at the time of guarantee, purchase, or commitment by the appraised value at the date of loan origination or, when available, updated appraised value at the time of guarantee, purchase, or commitment.  Other factors Farmer Mac considers include, but are not limited to, other underwriting standards, commodity and farming forecasts, and regional economic and agricultural conditions.

Loan-to-value ratios depend upon the market value of a property, as determined in accordance with Farmer Mac's collateral valuation standards.  As of September 30, 2017 and December 31, 2016, the average unpaid loan balance for loans outstanding in the Farm & Ranch line of business was $642,000 and $611,000, respectively. The original loan-to-value ratio is based on the original appraised value that has not been indexed to provide a current market value or reflect amortization of loans. As of second quarter 2017, Farmer Mac revised its calculation of the original loan-to-value ratio of a loan to combine for any cross-collateralized loans: (1) the original loan principal balance amounts in the numerator; and (2) the original appraised property values in the denominator. In previous periods, the ratio was calculated on a loan-by-loan basis without considering the effects of any cross-collateralization. Prior period ratios of original loan-to-value have been recalculated to conform to this revised calculation. The

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weighted-average original loan-to-value ratio for Farm & Ranch loans purchased during third quarter 2017 was 52 percent, compared to 46 percent for loans purchased during third quarter 2016. The weighted-average original loan-to-value ratio for all Farm & Ranch loans held and all loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs was approximately 51 percent as of both September 30, 2017 and December 31, 2016. The weighted-average original loan-to-value ratio for all 90-day delinquencies was 50 percent and 55 percent, respectively, as of September 30, 2017 and December 31, 2016.

The weighted-average current loan-to-value ratio, which is the loan-to-value ratio based on original appraised value but which reflects loan amortization since purchase, for Farm & Ranch loans held and loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs was approximately 44 percent as of both September 30, 2017 and December 31, 2016.

Farmer Mac maintains an allowance for loan losses to cover estimated probable losses on loans held and a reserve for losses to cover estimated probable losses on loans underlying LTSPCs and off-balance sheet Farm & Ranch Guaranteed Securities.  The methodology that Farmer Mac uses to determine the level of its allowance for losses is described in Note 2(j) to the consolidated financial statements included in Farmer Mac's Annual Report on Form 10-K for the fiscal year ended December 31, 2016 filed with the SEC on March 9, 2017. Management believes that this methodology produces a reasonable estimate of probable losses, as of the balance sheet date, for all loans held and loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs.

The following table summarizes the changes in the components of Farmer Mac's total allowance for losses for the three and nine months ended September 30, 2017 and 2016:

Table 15

	As of September 30, 2017								As of September 30, 2016
	Allowance for Loan Losses			Reserve for Losses		Total Allowance for Losses			Allowance for Loan Losses			Reserve for Losses			Total Allowance for Losses
	(in thousands)
For the Three Months Ended:
Beginning Balance	$	6,138		$	1,966	$	8,104		$	4,893		$	2,191		$	7,084
Provision for/(release of) losses	270			114		384			191			(222		)	(31		)
Charge-offs	—			—		—			(130		)	—			(130		)
Ending Balance	$	6,408		$	2,080	$	8,488		$	4,954		$	1,969		$	6,923
For the Nine Months Ended:
Beginning Balance	$	5,415		$	2,020	$	7,435		$	4,480		$	2,083		$	6,563
Provision for/(release of) losses	1,234			60		1,294			604			(114		)	490
Charge-offs	(241		)	—		(241		)	(130		)	—			(130		)
Ending Balance	$	6,408		$	2,080	$	8,488		$	4,954		$	1,969		$	6,923

Activity affecting the allowance for loan losses and reserve for losses is discussed in "Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations—Provision for and Release of Allowance for Loan Losses and Reserve for Losses." As of September 30, 2017, Farmer Mac's total allowance for losses totaled $8.5 million, or 0.13 percent of the outstanding principal balance of Farm & Ranch loans held for investment and loans underlying LTSPCs and off-

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balance sheet Farm & Ranch Guaranteed Securities, compared to $7.4 million, or 0.12 percent, as of December 31, 2016.

As of September 30, 2017, Farmer Mac individually evaluated $24.3 million of the $147.6 million of recorded investment in impaired assets for collateral shortfalls against updated appraised values, other updated collateral valuations, or discounted values. For the remaining $123.3 million of impaired assets for which updated valuations were not available, Farmer Mac evaluated them in the aggregate in consideration of their similar risk characteristics and historical statistics. Farmer Mac recorded specific allowances of $2.9 million for undercollateralized assets as of September 30, 2017. Farmer Mac's general allowances were $5.6 million as of September 30, 2017.

The charge-offs recorded during the first nine months of 2017 were primarily related to two impaired crop loans, with one borrower, that were foreclosed and transitioned to REO during first quarter 2017. Farmer Mac had previously recorded a specific allowance of $0.2 million on these impaired crop loans as of December 31, 2016. In second quarter 2017, Farmer Mac sold the related properties for $5.4 million and recognized a $0.8 million gain on the sale of the REO.

Farmer Mac's 90-day delinquency measure includes loans 90 days or more past due, as well as loans in foreclosure and non-performing loans where the borrower is in bankruptcy. As of September 30, 2017, Farmer Mac's 90-day delinquencies were $66.4 million (1.01 percent of the Farm & Ranch portfolio), compared to $21.0 million (0.34 percent of the Farm & Ranch portfolio) as of December 31, 2016 and $18.4 million (0.31 percent of the Farm & Ranch portfolio) as of September 30, 2016. Those 90-day delinquencies were comprised of 68 delinquent loans as of September 30, 2017, compared with 38 delinquent loans as of December 31, 2016 and 50 delinquent loans as of September 30, 2016. As of September 30, 2017, the increase in 90-day delinquencies, as compared to as of December 31, 2016, is primarily attributable to several larger loans and certain crop and permanent planting loans mostly due to factors specific to the borrower and not related to macroeconomic factors in the agricultural economy. In particular, $15.3 million in permanent planting loans to a single borrower became delinquent in first quarter 2017 and accounts for one-third of the year-to-date increase in 90-day delinquencies. Farmer Mac believes it is adequately collateralized on this exposure. The increase is also consistent with the seasonal pattern of Farmer Mac's 90-day delinquencies fluctuating from quarter to quarter, both in dollars and as a percentage of the outstanding Farm & Ranch portfolio, with higher levels generally observed at the end of the first and third quarters and lower levels generally observed at the end of the second and fourth quarters of each year as a result of the annual (January 1st) and semi-annual (January 1st and July 1st) payment terms of most Farm & Ranch loans. Farmer Mac believes that it remains adequately collateralized on these loans. As Farmer Mac has expected, its 90-day delinquency rate has reverted to, and is in line with, its fifteen-year historical average rate of approximately one percent of the Farm & Ranch portfolio. Although the vast majority of the year-to-date increase in 90-day delinquencies is due to borrower-specific factors, other factors such as macroeconomic trends and the cyclical nature of the agricultural economy could contribute to an increase in 90-day delinquencies in the future. The highest 90-day delinquency rate observed in the Farm & Ranch portfolio during the preceding fifteen-year period occurred in 2009 at approximately two percent, which coincided with increased delinquencies in loans within Farmer Mac's then-held ethanol portfolio that Farmer Mac no longer holds.

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The following table presents historical information regarding Farmer Mac's 90-day delinquencies in the Farm & Ranch line of business compared to the principal balance of all Farm & Ranch loans held and loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs:

Table 16

	Farm & Ranch Line of Business		90-Day Delinquencies		Percentage
	(dollars in thousands)
As of:
September 30, 2017	$	6,557,030	$	66,381	1.01	%
June 30, 2017	6,426,518		41,901		0.65	%
March 31, 2017	6,240,467		50,807		0.81	%
December 31, 2016	6,139,304		21,038		0.34	%
September 30, 2016	6,004,728		18,377		0.31	%
June 30, 2016	5,830,533		22,093		0.38	%
March 31, 2016	5,713,789		34,680		0.61	%
December 31, 2015	5,725,299		32,136		0.56	%
September 30, 2015	5,504,030		36,669		0.67	%

When analyzing the overall risk profile of its lines of business, Farmer Mac takes into account more than the Farm & Ranch loan delinquency percentages provided above. The lines of business also include AgVantage securities and Rural Utilities loans held and underlying LTSPCs, neither of which have any delinquencies, and USDA Securities, which are backed by the full faith and credit of the United States. Across all of Farmer Mac's lines of business, 90-day delinquencies represented 0.36 percent of total outstanding business volume as of September 30, 2017, compared to 0.12 percent as of December 31, 2016 and 0.11 percent as of September 30, 2016.

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The following table presents outstanding Farm & Ranch loans held and loans underlying LTSPCs and off-balance sheet Farm & Ranch Guaranteed Securities and 90-day delinquencies as of September 30, 2017 by year of origination, geographic region, commodity/collateral type, original loan-to-value ratio, and range in the size of borrower exposure:

Table 17

Farm & Ranch 90-Day Delinquencies as of September 30, 2017
	Distribution of Farm & Ranch Line of Business		Farm & Ranch Line of Business		90-Day Delinquencies(1)			Percentage
	(dollars in thousands)
By year of origination:
2007 and prior	12	%	$	789,189	$	8,810		1.12	%
2008	2	%	171,541		552			0.32	%
2009	2	%	108,320		864			0.80	%
2010	3	%	181,434		3,485			1.92	%
2011	4	%	251,269		1,226			0.49	%
2012	9	%	582,502		1,573			0.27	%
2013	13	%	847,661		2,011			0.24	%
2014	10	%	653,536		22,561		(2)	3.45	%
2015	13	%	839,215		13,938		(3)	1.66	%
2016	17	%	1,151,290		9,869			0.86	%
2017	15	%	981,073		1,492			0.15	%
Total	100	%	$	6,557,030	$	66,381		1.01	%
By geographic region(4):
Northwest	11	%	$	723,616	$	7,802		1.08	%
Southwest	29	%	1,917,692		9,284			0.48	%
Mid-North	34	%	2,205,750		10,462			0.47	%
Mid-South	14	%	899,293		16,075			1.79	%
Northeast	4	%	290,655		1,522			0.52	%
Southeast	8	%	520,024		21,236			4.08	%
Total	100	%	$	6,557,030	$	66,381		1.01	%
By commodity/collateral type:
Crops	55	%	$	3,593,716	$	32,275		0.90	%
Permanent plantings	18	%	1,184,221		22,330			1.89	%
Livestock	20	%	1,309,743		7,367			0.56	%
Part-time farm	6	%	407,708		3,766			0.92	%
Ag. Storage and Processing	1	%	48,068		—			—	%
Other	—		13,574		643			4.74	%
Total	100	%	$	6,557,030	$	66,381		1.01	%
By original loan-to-value ratio(5):
0.00% to 40.00%	19	%	$	1,274,050	$	9,762		0.77	%
40.01% to 50.00%	25	%	1,622,767		19,037			1.17	%
50.01% to 60.00%	35	%	2,268,852		31,627			1.39	%
60.01% to 70.00%	17	%	1,130,748		5,236			0.46	%
70.01% to 80.00%(6)	4	%	233,963		719			0.31	%
80.01% to 90.00%(6)	—	%	26,650		—			—	%
Total	100	%	$	6,557,030	$	66,381		1.01	%
By size of borrower exposure(7):
Less than $1,000,000	35	%	$	2,297,648	$	13,282		0.58	%
$1,000,000 to $4,999,999	38	%	2,500,101		27,999			1.12	%
$5,000,000 to $9,999,999	12	%	815,411		9,815		(3)	1.20	%
$10,000,000 to $24,999,999	9	%	568,471		15,285		(2)	2.69	%
$25,000,000 to $50,000,000	6	%	375,399		—			—	%
Total	100	%	$	6,557,030	$	66,381		1.01	%

⁽¹⁾  Includes loans held and loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs that are 90 days or more past due, in foreclosure, or in bankruptcy with at least one missed payment, excluding loans performing under either their original loan terms or a court-approved bankruptcy plan.

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⁽²⁾  Includes $15.3 million of permanent planting loans with one borrower located in the Southeast who became 90-days delinquent during first quarter 2017. The original combined loan-to-value ratio of these two permanent planting loans was between 50.01% to 60.00%.

⁽³⁾  Includes $9.8 million related to two crop loans located in the Mid-South that became 90-days delinquent as a result of a bankruptcy filed by one borrower. These two loans with the same borrower had separate underlying collateral with original loan-to-value ratios between 40.01% to 50.00% and 50.01% to 60.00%, respectively.

⁽⁴⁾  Geographic regions:  Northwest (AK, ID, MT, OR, WA, WY); Southwest (AZ, CA, CO, HI, NM, NV, UT); Mid-North (IA, IL, IN, MI, MN, NE, ND, SD, WI); Mid-South (AR, KS, LA, MO, OK, TX); Northeast (CT, DE, KY, MA, MD, ME, NH, NJ, NY, OH, PA, RI, VA, VT, WV); Southeast (AL, FL, GA, MS, NC, SC, TN).

⁽⁵⁾  As of second quarter 2017, Farmer Mac revised its calculation of the original loan-to-value ratio of a loan to combine for any cross-collateralized loans: (i) the original loan principal balance amounts in the numerator; and (ii) the original appraised property values in the denominator. In previous periods, the ratio was calculated on a loan-by-loan basis without considering the effects of any cross-collateralization. Prior period information has been reclassified to conform to the current period calculation and presentation.

⁽⁶⁾  Primarily part-time farm loans. Loans with an original loan-to-value ratio of greater than 80% are required to have private mortgage insurance.

⁽⁷⁾  Includes multiple loans to the same borrower or borrower-related entities.

Another indicator that Farmer Mac considers in analyzing the credit quality of its Farm & Ranch portfolio is the level of internally-rated "substandard" assets, both in dollars and as a percentage of the outstanding Farm & Ranch portfolio. Assets categorized as "substandard" have a well-defined weakness or weaknesses, and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected. As of September 30, 2017, Farmer Mac's substandard assets were $219.6 million (3.3 percent of the Farm & Ranch portfolio), compared to $165.2 million (2.7 percent of the Farm & Ranch portfolio) as of December 31, 2016. Those substandard assets were comprised of 298 loans as of September 30, 2017 and 287 loans as of December 31, 2016. The $54.4 million increase from year-end 2016 was primarily driven by credit downgrades in on-balance sheet loans. The new substandard asset volume from year-end 2016 includes several large exposures and also represents a relatively diverse set of commodities. Subsequent to September 30, 2017, $8.2 million in on-balance sheet loans considered to be substandard were paid off in full at par. Farmer Mac expects that over time its substandard asset rate will eventually revert closer to, and possibly exceed, Farmer Mac's historical average due to macroeconomic factors and the cyclical nature of the agricultural economy. Farmer Mac's average substandard assets as a percentage of its Farm & Ranch portfolio over the last 15 years is approximately 4 percent. The highest substandard asset rate observed during that period occurred in 2010 at approximately 8 percent, which coincided with an increase in substandard loans within Farmer Mac's then-held ethanol portfolio that Farmer Mac no longer holds. If Farmer Mac's substandard asset rate continues to increase from current levels, it is likely that Farmer Mac's provision to the allowance for loan losses and the reserve for losses will also increase.

Although some credit losses are inherent to the business of agricultural lending, Farmer Mac believes that any losses associated with the current agricultural credit cycle will be moderated by the strength and diversity of its portfolio, which Farmer Mac believes is adequately collateralized. See Note 5 to the consolidated financial statements for more information regarding credit quality indicators related to Farm & Ranch loans held and loans underlying LTSPCs and off-balance sheet Farm & Ranch Guaranteed Securities.

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The following table presents Farmer Mac's cumulative net credit losses relative to the cumulative original balance for all Farm & Ranch loans purchased and loans underlying LTSPCs and off-balance sheet Farm & Ranch Guaranteed Securities as of September 30, 2017 by year of origination, geographic region, and commodity/collateral type.  The purpose of this information is to present information regarding losses relative to original Farm & Ranch purchases, guarantees, and commitments.

Table 18

Farm & Ranch Credit Losses Relative to Cumulative
Original Loans, Guarantees, and LTSPCs as of September 30, 2017
	Cumulative Original Loans, Guarantees and LTSPCs		Cumulative Net Credit Losses/(Recoveries)			Cumulative Loss Rate
	(dollars in thousands)
By year of origination:
2007 and prior	$	13,305,693	$	26,012		0.20	%
2008	813,551		3,400			0.42	%
2009	548,060		1,508			0.28	%
2010	654,343		5			—	%
2011	762,881		3,661			0.48	%
2012	1,127,622		—			—	%
2013	1,392,208		—			—	%
2014	927,856		—			—	%
2015	1,033,860		(540		)	(0.05	)%
2016	1,307,740		—			—	%
2017	1,042,619		—			—	%
Total	$	22,916,433	$	34,046		0.15	%
By geographic region(1):
Northwest	$	3,053,678	$	11,221		0.37	%
Southwest	7,872,878		9,101			0.12	%
Mid-North	5,868,873		12,830			0.22	%
Mid-South	2,754,813		(211		)	(0.01	)%
Northeast	1,374,499		169			0.01	%
Southeast	1,991,692		936			0.05	%
Total	$	22,916,433	$	34,046		0.15	%
By commodity/collateral type:
Crops	$	10,570,840	$	3,822		0.04	%
Permanent plantings	4,692,278		9,332			0.20	%
Livestock	5,521,760		3,877			0.07	%
Part-time farm	1,304,350		1,342			0.10	%
Ag. Storage and Processing	671,873		15,673			2.33	%
Other	155,332		—			—	%
Total	$	22,916,433	$	34,046		0.15	%

⁽¹⁾  Geographic regions:  Northwest (AK, ID, MT, OR, WA, WY); Southwest (AZ, CA, CO, HI, NM, NV, UT); Mid-North (IA, IL, IN, MI, MN, NE, ND, SD, WI); Mid-South (AR, KS, LA, MO, OK, TX); Northeast (CT, DE, KY, MA, MD, ME, NH, NJ, NY, OH, PA, RI, VA, VT, WV); Southeast (AL, FL, GA, MS, NC, SC, TN).

Analysis of portfolio performance indicates that commodity type is the primary determinant of Farmer Mac's exposure to loss on a given loan. Within most commodity groups, certain geographic areas allow greater economies of scale or proximity to markets than others and, consequently, may result in more successful operations within the commodity group. Certain geographic areas also offer better growing conditions and market access than others and, consequently, may result in more versatile and more successful operators within a given commodity group.  Farmer Mac's board of directors has established policies regarding geographic and commodity concentration to maintain adequate diversification and measure concentration risk.

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In Farmer Mac's experience, the degree to which the collateral for a commodity group is single-use or highly improved is a more significant determinant of the probability of ultimate losses on a given loan than diversity of geographic location within a commodity group. Commodity groups that tend to be single-use or highly improved include permanent plantings (for example, nut crops), agricultural storage and processing facilities (for example, canola plants and grain processing facilities), and certain livestock facilities (for example, dairy facilities). The versatility of a borrower's operation (and in the case of persisting adverse economic conditions, the borrower's ability to switch commodity groups) will more likely result in profitability for the borrower and, consequently, a lower risk of decreased value for the underlying collateral. Producers of agricultural commodities that require highly improved property are generally less able to adapt their operations when faced with adverse economic conditions. In addition, in the event of a borrower's default, the prospective sale value of the collateral is more likely to decrease and the related loan may become undercollateralized. This analysis is consistent with corresponding commodity analyses, which indicate that Farmer Mac has experienced higher loss and collateral deficiency rates in permanent planting loans and agricultural storage and processing loans, for which the collateral is typically highly improved and specialized.

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The following tables present concentrations of Farm & Ranch loans held and loans underlying LTSPCs and off-balance sheet Farm & Ranch Guaranteed Securities by commodity type within geographic region and cumulative credit losses by origination year and commodity type:

Table 19

	As of September 30, 2017
	Farm & Ranch Concentrations by Commodity Type within Geographic Region
	Crops			Permanent Plantings			Livestock			Part-time Farm			Ag. Storage and Processing			Other			Total
	(dollars in thousands)
By geographic region(1):
Northwest	$	344,689		$	104,660		$	218,667		$	55,349		$	—		$	251		$	723,616
	5.3		%	1.6		%	3.3		%	0.8		%	—		%	—		%	11.0		%
Southwest	507,839			890,994			426,043			71,247			12,515			9,054			1,917,692
	7.7		%	13.6		%	6.5		%	1.1		%	0.2		%	0.1		%	29.2		%
Mid-North	1,874,780			17,538			191,418			104,076			14,481			3,457			2,205,750
	28.6		%	0.3		%	2.9		%	1.7		%	0.2		%	0.1		%	33.8		%
Mid-South	556,227			20,110			266,986			49,001			6,442			527			899,293
	8.5		%	0.3		%	4.1		%	0.7		%	0.1		%	—		%	13.7		%
Northeast	131,277			28,681			51,190			74,332			5,175			—			290,655
	2.0		%	0.4		%	0.8		%	1.1		%	0.1		%	—		%	4.4		%
Southeast	178,904			122,238			155,439			53,703			9,455			285			520,024
	2.7		%	1.9		%	2.4		%	0.8		%	0.1		%	—		%	7.9		%
Total	$	3,593,716		$	1,184,221		$	1,309,743		$	407,708		$	48,068		$	13,574		$	6,557,030
	54.8		%	18.1		%	20.0		%	6.2		%	0.7		%	0.2		%	100.0		%

⁽¹⁾  Geographic regions:  Northwest (AK, ID, MT, OR, WA, WY); Southwest (AZ, CA, CO, HI, NM, NV, UT); Mid-North (IA, IL, IN, MI, MN, NE, ND, SD, WI); Mid-South (AR, KS, LA, MO, OK, TX); Northeast (CT, DE, KY, MA, MD, ME, NH, NJ, NY, OH, PA, RI, VA, VT, WV); Southeast (AL, FL, GA, MS, NC, SC, TN).

Table 20

	As of September 30, 2017
	Farm & Ranch Cumulative Credit Losses by Origination Year and Commodity Type
	Crops			Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Total
	(in thousands)
By year of origination:
2007 and Prior	$	1,638		$	9,184	$	3,803	$	1,189	$	10,198	$	26,012
2008	2,626			—		—		153		621		3,400
2009	98			148		69		—		1,193		1,508
2010	—			—		5		—		—		5
2011	—			—		—		—		3,661		3,661
2012	—			—		—		—		—		—
2013	—			—		—		—		—		—
2014	—			—		—		—		—		—
2015	(540		)	—		—		—		—		(540		)
2016	—			—		—		—		—		—
2017	—			—		—		—		—		—
Total	$	3,822		$	9,332	$	3,877	$	1,342	$	15,673	$	34,046

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Farmer Mac regularly conducts detailed, statistical stress tests of its portfolio for credit risk and compares those results to current and historical credit quality metrics and to the various statutory, regulatory, and Farmer Mac's board of directors' capital policy metrics. Farmer Mac's methodologies for pricing its guarantee and commitment fees, managing credit risk, and providing adequate allowances for losses consider all of the foregoing factors and information.

Farmer Mac requires approved lenders to make representations and warranties regarding the conformity of eligible agricultural mortgage and rural utilities loans to Farmer Mac's standards, the accuracy of loan data provided to Farmer Mac, and other requirements related to the loans.  Sellers are responsible to Farmer Mac for breaches of those representations and warranties, and Farmer Mac has the ability to require a seller to cure, replace, or repurchase a loan sold or transferred to Farmer Mac if any breach of a representation or warranty is discovered that was material to Farmer Mac's decision to purchase the loan or that directly or indirectly causes a default or potential loss on a loan sold or transferred by the seller to Farmer Mac. During third quarter 2017, Farmer Mac did not require any seller to cure or repurchase a loan purchased by Farmer Mac for breach of a representation or warranty. During the previous three years ended September 30, 2017, Farmer Mac had required one seller to repurchase a total of two loans aggregating $0.8 million for breaches of representations and warranties made about those two loans, both of which repurchases occurred during first quarter 2016. In addition to relying on the representations and warranties of lenders, Farmer Mac also underwrites all of the agricultural real estate mortgage loans (other than rural housing and part-time farm mortgage loans) and rural utilities loans that it holds in its portfolio. For rural housing and part-time farm mortgage loans, Farmer Mac relies on representations and warranties from the seller that those loans conform to Farmer Mac's specified underwriting criteria without exception. For more information about Farmer Mac's loan eligibility requirements, see "Business—Farmer Mac's Lines of Business—Farm & Ranch—Loan Eligibility" and "Business—Farmer Mac's Lines of Business—Rural Utilities—Loan Eligibility" in Farmer Mac's Annual Report on Form 10-K for the fiscal year ended December 31, 2016 filed with the SEC on March 9, 2017.

Under contracts with Farmer Mac and in consideration for servicing fees, Farmer Mac-approved central servicers service loans in accordance with Farmer Mac's requirements.  Central servicers are responsible to Farmer Mac for serious errors in the servicing of those loans.  If a central servicer materially breaches the terms of its servicing agreement with Farmer Mac, such as failing to forward payments received or releasing collateral without Farmer Mac's consent, or experiences insolvency or bankruptcy, Farmer Mac has the right to terminate the servicing relationship for a particular loan or the entire portfolio serviced by the central servicer. In addition, Farmer Mac can proceed against the central servicer in arbitration or exercise any remedies available to it under law. During the previous three years ended September 30, 2017, Farmer Mac had not exercised any remedies or taken any formal action against any central servicers. For more information about Farmer Mac's servicing requirements, see "Business—Farmer Mac's Lines of Business—Farm & Ranch—Servicing" and "Business—Farmer Mac's Lines of Business—Rural Utilities—Servicing" in Farmer Mac's Annual Report on Form 10-K for the fiscal year ended December 31, 2016 filed with the SEC on March 9, 2017.

Credit Risk – Institutional.  Farmer Mac is exposed to credit risk arising from its business relationships with other institutions including:

• issuers of AgVantage securities;

• approved lenders and servicers; and

• interest rate swap counterparties.

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Farmer Mac approves AgVantage counterparties and manages institutional credit risk related to those AgVantage counterparties by requiring them to meet Farmer Mac's standards for creditworthiness for the particular counterparty and transaction.  The required collateralization level is established at the time the AgVantage facility is entered into with the counterparty and does not change during the life of the AgVantage securities issued under the facility.  In AgVantage transactions, the corporate obligor is required to remove from the pool of pledged collateral any loan that becomes more than 30 days delinquent in the payment of principal or interest and to substitute an eligible loan that is current in payment to maintain the minimum required collateralization level.  In the event of a default on the general obligation, Farmer Mac would have recourse to the pledged collateral and have rights to the ongoing borrower payments of principal and interest. For Farm Equity AgVantage counterparties, Farmer Mac also requires that the counterparty generally (1) maintain a higher collateralization level, through lower loan-to-value ratio thresholds and higher overcollateralization than required for traditional AgVantage securities and (2) comply with specified financial covenants for the life of the related Farm Equity AgVantage security to avoid default. For a more detailed description of AgVantage securities, see "Business—Farmer Mac's Lines of Business—Institutional Credit—AgVantage Securities" in Farmer Mac's Annual Report on Form 10-K for the year ended December 31, 2016 filed with the SEC on March 9, 2017.

The unpaid principal balance of outstanding on-balance sheet AgVantage securities secured by loans eligible for the Farm & Ranch line of business totaled $5.1 billion as of September 30, 2017 and $3.7 billion as of December 31, 2016. The unpaid principal balance of on-balance sheet AgVantage securities secured by loans eligible for the Rural Utilities line of business totaled $2.5 billion as of September 30, 2017 and $2.3 billion as of December 31, 2016. The unpaid principal balance of outstanding off-balance sheet AgVantage securities totaled $0.3 billion as of September 30, 2017 and $1.3 billion as of December 31, 2016. The decrease in the unpaid principal balance of outstanding off-balance sheet AgVantage securities from year-end 2016 was attributable to the refinancing of a $1.0 billion AgVantage security that matured in April 2017 into three new on-balance sheet AgVantage securities. Previously, $970.0 million of this $1.0 billion maturing AgVantage security was reported as off-balance sheet business volume because it was owned by third party investors. For more information about this AgVantage transaction, see "Management's Discussion and Analysis of Financial Condition and Results of Operations—Business Volume."

The following table provides information about the issuers of AgVantage securities, as well as the required collateralization levels for those transactions as of September 30, 2017 and December 31, 2016:

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Table 21

	As of September 30, 2017				As of December 31, 2016
Counterparty	Balance		Credit Rating	Required Collateralization	Balance		Credit Rating	Required Collateralization
	(dollars in thousands)
AgVantage:
MetLife	$	2,550,000	AA-	103%	$	2,550,000	AA-	103%
CFC(1)	2,812,873		A	100%	2,594,402		A	100%
Rabo Agrifinance, Inc.	2,075,000		None	106%	1,800,000		None	106%
Other(2)	126,088		(3)	106% to 125%	86,373		(3)	106% to 125%
Farm Equity AgVantage(4)	337,881		None	110%	256,911		None	110%
Total outstanding	$	7,901,842			$	7,287,686

⁽¹⁾  Includes $300.0 million related to a revolving floating rate AgVantage facility. Farmer Mac receives a fixed fee based on the full dollar amount of the facility.

⁽²⁾  Consists of AgVantage securities issued by 6 different issuers as of both September 30, 2017 and December 31, 2016.

⁽³⁾  Consists of AgVantage securities from 6 different issuers without a credit rating as of both September 30, 2017 and December 31, 2016.

⁽⁴⁾  Consists of AgVantage securities from 5 different issuers as of September 30, 2017 and 3 different issuers as of December 31, 2016.

Farmer Mac manages institutional credit risk related to lenders and servicers by requiring those institutions to meet Farmer Mac's standards for creditworthiness.  Farmer Mac monitors the financial condition of those institutions by evaluating financial statements and bank credit rating agency reports.  For more information about Farmer Mac's lender eligibility requirements, see "Business—Farmer Mac's Lines of Business—Farm & Ranch—Approved Lenders" and "Business—Farmer Mac's Lines of Business—Rural Utilities—Approved Lenders" in Farmer Mac's Annual Report on Form 10-K for the year ended December 31, 2016 filed with the SEC on March 9, 2017.

Farmer Mac manages institutional credit risk related to its interest rate swap counterparties through collateralization provisions contained in each of its swap agreements that varies based on the market value of its swaps portfolio with each counterparty. Furthermore, rules jointly issued by various prudential regulators, including FCA, establish minimum requirements for the exchange of initial and variation margin between Farmer Mac and its swap dealer counterparties in non-cleared swaps transactions. Effective March 1, 2017, Farmer Mac was required to exchange variation margin with its swap dealer counterparties in non-cleared swaps transactions entered into following the effective date at a zero threshold level pursuant to these new rules. Farmer Mac transacts interest rate swaps with multiple counterparties to ensure a more even distribution of institutional credit risk related to its swap transactions. As a result of mandatory clearing rules for certain interest rate derivative transactions enacted under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act"), Farmer Mac uses the clearing process for cleared swap transactions as another mechanism for managing its derivative counterparty risk. Credit risk related to interest rate swap contracts is discussed in "Management's Discussion and Analysis of Financial Condition and Results of Operations—Risk Management—Interest Rate Risk" and Note 4 to the consolidated financial statements.

Credit Risk–Other Investments. As of September 30, 2017, Farmer Mac had $0.4 billion of cash and cash equivalents and $2.2 billion of investment securities. The management of the credit risk inherent in these investments is governed by Farmer Mac's internal policies as well as FCA regulations, which establish limitations on dollar amount, issuer concentration, and credit quality. Those regulations can be found at 12 C.F.R. §§ 652.1-652.45 (the "Liquidity and Investment Regulations"). In addition to establishing a portfolio of highly liquid investments as an available source of cash, the goals of Farmer Mac's investment policies are designed to minimize Farmer Mac's exposure to financial market volatility, preserve capital, and support Farmer Mac's access to the debt markets.

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The Liquidity and Investment Regulations and Farmer Mac's policies generally require each investment or issuer of an investment to be highly rated by a nationally recognized statistical rating organization ("NRSRO").  Investments in mortgage securities and asset-backed securities are required to have a rating in the highest NRSRO category. Corporate debt securities with maturities of no more than five years but more than three years are required to be rated in one of the two highest categories; corporate debt securities with maturities of three years or less are required to be rated in one of the three highest categories.  Some investments do not require a rating, such as U.S. Treasury securities and other obligations fully insured by the United States government or a government agency or diversified investment funds regulated under the Investment Company Act of 1940.  Investments in diversified investment funds are further limited to those funds that are holding only instruments approved for direct investment by Farmer Mac.

The Liquidity and Investment Regulations and Farmer Mac's policies also establish concentration limits, which are intended to limit exposure to any one counterparty. Although the Liquidity and Investment Regulations limit Farmer Mac's total credit exposure to any single issuer of securities and uncollateralized financial derivatives to 25 percent of Farmer Mac's regulatory capital (as of September 30, 2017, 25 percent of Farmer Mac's regulatory capital was $165.5 million), Farmer Mac's current policy limits this total credit exposure to 5 percent of its regulatory capital (as of September 30, 2017, 5 percent of Farmer Mac's regulatory capital was $33.1 million). These exposure limits do not apply to obligations of the United States or GSEs, though Farmer Mac is restricted by the Liquidity and Investment Regulations and its own policy from investing more than 100 percent of its regulatory capital in any one GSE.

On February 23, 2016, FCA published a proposed rule in the Federal Register to amend the Liquidity and Investment Regulations to comply with Section 939A of the Dodd-Frank Act by removing references and requirements relating to credit ratings and replacing them with other standards of creditworthiness, as well as to revise the eligibility criteria and exposure limits for certain types of investments. Farmer Mac submitted comments on this proposed rule to FCA on April 25, 2016 and expects a final rule to be issued during 2017 or 2018. Farmer Mac expects that it will be able to successfully adapt to FCA's proposed amendments of the Liquidity and Investment Regulations.

Interest Rate Risk.  Farmer Mac is subject to interest rate risk on all assets retained on its balance sheet because of possible timing differences in the cash flows of the assets and related liabilities.  This risk is primarily related to loans held, Farmer Mac Guaranteed Securities (excluding AgVantage securities), and USDA Securities due to the ability of borrowers to prepay their loans before the scheduled maturities, thereby increasing the risk of asset and liability cash flow mismatches.  Cash flow mismatches in a changing interest rate environment can reduce the earnings of Farmer Mac if assets repay sooner than expected and the resulting cash flows must be reinvested in lower-yielding investments when Farmer Mac's funding costs cannot be correspondingly reduced, or if assets repay more slowly than expected and the associated debt must be replaced by higher-cost debt. As discussed below, Farmer Mac manages this interest rate risk by funding assets purchased with liabilities matching the duration and cash flow characteristics of the assets purchased.

Interest Rate Risk Management

The goal of interest rate risk management at Farmer Mac is to create and maintain a portfolio that generates stable earnings and value across a variety of interest rate environments. Recognizing that interest rate sensitivity may change with the passage of time and as interest rates change, Farmer Mac

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assesses this exposure on a regular basis and, if necessary, readjusts its portfolio of assets and liabilities by:

• purchasing assets in the ordinary course of business;

• refinancing existing liabilities; or

• using financial derivatives to alter the characteristics of existing assets or liabilities.

Farmer Mac's primary strategy for managing interest rate risk is to fund asset purchases with liabilities that have similar duration and cash flow characteristics so that they will perform similarly as interest rates change. To match these characteristics, Farmer Mac issues discount notes and both callable and non-callable medium-term notes across a spectrum of maturities. Farmer Mac issues callable debt to offset the prepayment risk associated with some loans. By using a blend of liabilities that includes callable debt, the interest rate sensitivities of the liabilities tend to increase or decrease as interest rates change in a manner similar to changes in the interest rate sensitivities of the assets. Farmer Mac also uses financial derivatives to better match the durations of Farmer Mac's assets and liabilities, thereby reducing overall interest rate sensitivity.

Taking into consideration the prepayment provisions and the default probabilities associated with its loan assets, Farmer Mac uses prepayment models to project and value cash flows associated with these assets.  Because borrowers' behaviors in various interest rate environments may change over time, Farmer Mac periodically evaluates the effectiveness of these models compared to actual prepayment experience and adjusts and refines the models as necessary to improve the precision of subsequent prepayment forecasts.

In certain cases, yield maintenance provisions and other prepayment penalties contained in agricultural real estate mortgage loans and rural utilities loans reduce, but do not eliminate, prepayment risk.  Those provisions require borrowers to make an additional payment when they prepay their loans, thus compensating Farmer Mac for the shortened duration of the prepaid loan.  As of September 30, 2017, approximately 2 percent of the total outstanding balance of loans in the Farm & Ranch line of business where Farmer Mac either owned the loan or the beneficial interest in the underlying loan had yield maintenance provisions or other forms of prepayment protection (together covering 5 percent of all loans with fixed interest rates).  Of the Farm & Ranch loans purchased in third quarter 2017, none had yield maintenance or another form of prepayment protection. As of September 30, 2017, none of Farmer Mac's USDA Securities had yield maintenance provisions; however, 5 percent contained other prepayment penalties.  Of the USDA Securities purchased in third quarter 2017, 3 percent contained various forms of prepayment penalties.  As of September 30, 2017, 64 percent of the Rural Utilities loans owned by Farmer Mac had yield maintenance provisions. Of the Rural Utilities loans purchased in third quarter 2017, 100 percent contained prepayment penalties.

Farmer Mac's purchases of eligible loan assets expose Farmer Mac to interest rate risk arising primarily from uncertainty as to when the borrowers will repay the outstanding principal balance on the related loans. Generally, the values of Farmer Mac's eligible loan assets, and the debt issued to fund these assets, increase when interest rates decline, and their values decrease as interest rates rise. Furthermore, changes in interest rates may affect loan prepayment rates which may, in turn, affect durations and values of the loans. Declining interest rates generally increase prepayment rates, which shortens the duration of these assets, while rising interest rates tend to slow loan prepayments, thereby extending the duration of the loans.

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Farmer Mac is also subject to interest rate risk on loans that Farmer Mac has committed to acquire (other than delinquent loans through LTSPCs) but has not yet purchased.  When Farmer Mac commits to purchase those loans, it is exposed to interest rate risk between the time it commits to purchase the loans and the time it either:

• sells Farmer Mac Guaranteed Securities backed by the loans; or

• issues debt to retain the loans in its portfolio.

Farmer Mac manages the interest rate risk related to these loans, and any related Farmer Mac Guaranteed Securities or debt issuance, through the use of forward sale contracts on the debt securities of other GSEs and futures contracts involving U.S. Treasury securities.  Farmer Mac uses forward sale contracts on GSE securities to reduce its interest rate exposure to changes in both U.S. Treasury rates and spreads on Farmer Mac debt and certain Farmer Mac Guaranteed Securities. Issuing debt to fund the loans as investments does not fully eliminate interest rate risk due to the possible timing differences in the cash flows of the assets and related liabilities, as discussed above.

Farmer Mac's $0.4 billion of cash and cash equivalents mature within three months and are funded with discount notes having similar maturities. As of September 30, 2017, $2.15 billion of the $2.23 billion of investment securities (96 percent) were floating rate securities with rates that adjust within one year or fixed rate securities with original maturities between three months and one year. Those securities are funded with effectively floating rate debt that closely matches the rate adjustment dates of the associated investments. As of September 30, 2017, Farmer Mac had outstanding discount notes of $1.9 billion, medium-term notes that mature within one year of $6.2 billion, and medium-term notes that mature after one year of $7.4 billion.

Interest Rate Risk Metrics

Farmer Mac regularly stress tests its portfolio for interest rate risk and uses a variety of metrics to quantify and manage its interest rate risk. These metrics include sensitivity to interest rate movements of market value of equity ("MVE") and projected net effective spread ("NES") as well as duration gap analysis. MVE represents management's estimate of the present value of all future cash flows from on- and off-balance sheet assets, liabilities, and financial derivatives, discounted at current interest rates and appropriate spreads. However, MVE is not indicative of the market value of Farmer Mac as a going concern because these market values are theoretical and do not reflect future business activities. MVE sensitivity analysis is used to measure the degree to which the market values of Farmer Mac's assets and liabilities change for a given change in interest rates. Because this analysis evaluates the impact of interest rate movements on the value of all future cash flows, this measure provides an evaluation of Farmer Mac's long-term interest rate risk.

Farmer Mac's NES simulation represents the difference between projected income from interest-earning assets and interest expense associated with the related funding, including associated derivatives. Farmer Mac's NES may be affected by changes in market interest rates resulting from timing differences between maturities and re-pricing characteristics of assets and liabilities. The direction and magnitude of any such effect depends on the direction and magnitude of the change in interest rates as well as the composition of Farmer Mac's portfolio. The NES forecast represents an estimate of the net effective spread income that Farmer Mac's current portfolio is expected to produce over a twelve-month horizon. As a result, NES sensitivity statistics provide a short-term view of Farmer Mac's interest rate sensitivity.

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Duration is a measure of a financial instrument's sensitivity to small changes in interest rates. Duration gap is the difference between the estimated durations of Farmer Mac's assets and liabilities. Because duration is a measure of market value sensitivity, duration gap summarizes the extent to which estimated market value sensitivities for assets and liabilities are matched. Duration gap provides a relatively concise measure of the interest rate risk inherent in Farmer Mac's outstanding book of business.

A positive duration gap denotes that the duration of Farmer Mac's assets is greater than the duration of its liabilities. A positive duration gap indicates that the market value of Farmer Mac's assets is more sensitive to small interest rate movements than is the market value of its liabilities. Conversely, a negative duration gap indicates that Farmer Mac's assets are less sensitive to small interest rate movements than are its liabilities.

Each of the metrics is produced using asset/liability models and is derived based on management's best estimates of factors such as projected interest rates, interest rate volatility, and prepayment speeds. Accordingly, these metrics should be understood as estimates rather than precise measurements. In addition, actual results may differ to the extent there are material changes to Farmer Mac's portfolio or changes in strategies undertaken to mitigate unfavorable sensitivities to interest rate changes.

The following schedule summarizes the results of Farmer Mac's MVE and NES sensitivity analysis as of September 30, 2017 and December 31, 2016 to an immediate and instantaneous uniform or "parallel" shift in the yield curve:

Table 22

	Percentage Change in MVE from Base Case
Interest Rate Scenario	As of September 30, 2017		As of December 31, 2016
+100 basis points	(1.4	)%	(2.5	)%
-50 basis points	(1.7	)%	(0.8	)%

	Percentage Change in NES from Base Case
Interest Rate Scenario	As of September 30, 2017		As of December 31, 2016
+100 basis points	3.0	%	3.0	%
-50 basis points	(2.2	)%	(2.1	)%

Farmer Mac's board of directors has established policies and procedures regarding MVE and NES sensitivity. These policies include the measurement of MVE and NES sensitivity to more severe decreasing interest rate scenarios that are consistent in magnitude with the increasing interest rate scenarios. However, given the current low interest rate environment, those rate scenarios produce negative interest rates, and, as a result, do not produce results that are meaningful. Consequently, Farmer Mac currently measures and reports MVE and NES sensitivity to a down 50 basis point interest rate shock.

As of September 30, 2017, Farmer Mac's effective duration gap was negative 0.7 months, compared to positive 0.1 months as of December 31, 2016.  During the first nine months of 2017, short-term interest rates increased materially and the yield curve flattened. This rate movement reduced the duration of Farmer Mac's assets relative to its liabilities, thereby slightly widening Farmer Mac's duration gap. Despite this rate movement, Farmer Mac's overall interest rate sensitivity remained relatively stable and at relatively low levels during the first nine months of 2017.

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Financial Derivatives Transactions

The economic effects of financial derivatives are included in Farmer Mac's MVE, NES, and duration gap analyses.  Farmer Mac enters into the following financial derivative transactions principally to protect against risk from the effects of market price or interest rate movements on the value of assets, future cash flows, credit exposure, and debt issuance, not for trading or speculative purposes:

• "pay-fixed" interest rate swaps, in which Farmer Mac pays fixed rates of interest to, and receives floating rates of interest from, counterparties;

• "receive-fixed" interest rate swaps, in which Farmer Mac receives fixed rates of interest from, and pays floating rates of interest to, counterparties; and

• "basis swaps," in which Farmer Mac pays variable rates of interest based on one index to, and receives variable rates of interest based on another index from, counterparties.

As of September 30, 2017, Farmer Mac had $8.8 billion combined notional amount of interest rate swaps, with terms ranging from less than one year to twenty-five years, of which $2.7 billion were pay-fixed interest rate swaps, $4.8 billion were receive-fixed interest rate swaps, and $1.2 billion were basis swaps.

Farmer Mac enters into interest rate swap contracts to synthetically adjust the characteristics of its debt to match more closely the cash flow and duration characteristics of its loans and other assets, thereby reducing interest rate risk and often times deriving an overall lower effective cost of borrowing than would otherwise be available to Farmer Mac in the conventional debt market.  Specifically, interest rate swaps synthetically convert the variable cash flows related to the forecasted issuance of short-term debt into effectively fixed rate medium-term notes that match the anticipated duration and interest rate characteristics of the corresponding assets.  Farmer Mac evaluates the overall cost of using the swap market as a funding alternative and uses interest rate swaps to manage specific interest rate risks for specific transactions. Certain financial derivatives are designated as fair value hedges of fixed rate assets classified as available-for-sale to protect against fair value changes in the assets related to a benchmark interest rate (e.g., LIBOR).

Farmer Mac has used callable interest rate swaps (in conjunction with the issuance of short-term debt) as an alternative to callable medium-term notes with equivalently structured maturities and call options.  The call options on the swaps are designed to match the prepayment options on those assets without prepayment protection.  The blended durations of the swaps are also designed to match the duration of the related assets over their estimated lives.  If the assets prepay, the swaps can be called and the short-term debt repaid; if the assets do not prepay, the swaps remain outstanding and the short-term debt is rolled over, effectively providing fixed rate callable funding over the lives of the related assets.  Thus, the economics of the assets are closely matched to the economics of the interest rate swap and funding combination.

As discussed in Note 4 to the consolidated financial statements, all financial derivatives are recorded on the balance sheet at fair value as derivative assets or as derivative liabilities. Changes in the fair values of financial derivatives are reported in "Gains/(losses) on financial derivatives and hedging activities" in the consolidated statements of operations. For financial derivatives designated in fair value hedge accounting relationships, changes in the fair values of the hedged items related to the risk being hedged are also reported in "Gains/(losses) on financial derivatives and hedging activities" in the consolidated statements of operations. The accrual of the contractual amounts due on the financial derivative is included as an

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adjustment to the yield of the hedged item and is reported in net interest income. For financial derivatives designated in cash flow hedge accounting relationships, the effective portion of the derivative gain/loss is recorded in other comprehensive income. Amounts are disclosed as a reclassification out of other comprehensive income and affecting net interest income when the hedged transaction occurs and affects earnings. Any ineffective portion of designated hedge transactions is recognized immediately in "Gains/(losses) on financial derivatives and hedging activities." All of Farmer Mac's financial derivatives transactions are conducted under standard collateralized agreements that limit Farmer Mac's potential credit exposure to any counterparty. As of September 30, 2017, Farmer Mac had $0.1 million uncollateralized net exposures to two counterparties. As of December 31, 2016, Farmer Mac had uncollateralized net exposures of $0.2 million to two counterparties.

Basis Risk

In addition to being exposed to the risk of asset and liability cash flow mismatches, Farmer Mac is exposed to the risk related to changes in its cost of funds relative to floating rate market indexes (such as LIBOR) on some of the floating rate assets it holds. This exposure is referred to as "basis risk." Some of Farmer Mac's floating rate assets reset on rate adjustment dates on the basis of a floating rate market index, whereas the related debt that Farmer Mac issued to fund those assets until their maturities may be refinanced on the basis of Farmer Mac’s cost of funds at a particular time. Basis risk arises from the potential variability between the rates at which those floating rate assets reset and the rates at which Farmer Mac can issue debt to fund those assets. Farmer Mac can fund these floating rate assets in several ways, including:

• issuing short-term discount notes with maturities that match the reset period of the assets;

• issuing floating rate medium-term notes with maturities that match the maturities of the assets;

• issuing non-maturity matched, floating rate medium-term notes; or

• issuing non-maturity matched, fixed-rate discount notes or medium-term notes swapped to match the interest rate reset dates of the assets as an alternative source of effectively floating rate funding.

Farmer Mac primarily uses the last two options identified in the list above to fund these floating rate assets because this funding strategy is usually the most effective way to provide an interest rate match, maintain a suitable liquidity profile, and lower Farmer Mac’s cost of funds. As funding for these floating rate assets matures, Farmer Mac seeks to refinance the debt associated with these assets in a similar fashion to achieve an appropriate interest rate match for the remaining life of the assets. However, if the rates on Farmer Mac’s discount notes or medium-term notes deteriorate relative to LIBOR during the time between when these floating rate assets were first funded and when Farmer Mac refinances the associated debt, Farmer Mac is exposed to a commensurate reduction in its net effective spread on the associated assets. Conversely, if the rates on Farmer Mac’s discount notes or medium-term notes improve relative to LIBOR during that time, Farmer Mac would benefit from a commensurate increase in its net effective spread on those assets.

Farmer Mac is also subject to basis risk on some of its fixed rate assets as a result of its use of pay-fixed interest rate swaps, combined with a series of discount note or medium-term note issuances, as an alternative source of effectively fixed rate funding. This risk arises because the rates at which Farmer Mac refinances its funding for some fixed rate assets through the issuance of discount notes or medium-term notes may vary from the agreed-upon rates based on the floating rate market index received by Farmer Mac on the associated swaps. In these cases, if the rates on Farmer Mac's discount notes or medium-term notes were to deteriorate relative to LIBOR, Farmer Mac would be exposed to a commensurate reduction

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in its net interest income and net effective spread. Conversely, if the rates on Farmer Mac's discount notes or medium-term notes were to improve relative to LIBOR, Farmer Mac would benefit from a commensurate increase in its net interest income and net effective spread.

To mitigate this basis risk, Farmer Mac seeks to issue debt of sufficient maturity to reduce the frequency of required refinancing of that debt over the life of the associated asset. As of September 30, 2017, Farmer Mac held $6.6 billion of floating-rate assets in its lines of business and its liquidity investment portfolio that reset on the basis of floating rate market indexes, primarily one-month and three-month LIBOR. As of the same date, Farmer Mac also had $2.7 billion of interest rate swaps outstanding where Farmer Mac pays a fixed rate of interest and receives a floating rate of interest.

Adjustments to Farmer Mac's funding strategies to take advantage of lower cost LIBOR-based funding opportunities, as well as a generally favorable LIBOR-based funding market, has enabled Farmer Mac to reduce its funding costs through the first nine months of 2017. LIBOR-based funding markets have recently returned to levels that are consistent with Farmer Mac's historical experience, and Farmer Mac believes that additional material improvements in the near-term are less likely.

Liquidity and Capital Resources

Farmer Mac regularly accesses the capital markets for funding, and Farmer Mac has maintained access to the capital markets at favorable rates throughout 2016 and the first nine months of 2017. Assuming continued access to the capital markets, Farmer Mac believes it has sufficient liquidity and capital resources to support its operations for the next 12 months and for the foreseeable future. Farmer Mac also has a liquidity contingency plan to manage unanticipated disruptions in its access to the capital markets. That plan involves borrowing through repurchase agreement arrangements and the sale of liquid assets. Farmer Mac is required to maintain a minimum of 90 days of liquidity under the Liquidity and Investment Regulations. In accordance with the methodology for calculating available days of liquidity prescribed by those regulations, Farmer Mac maintained an average of 209 days of liquidity during third quarter 2017 and had 200 days of liquidity as of September 30, 2017.

Debt Issuance.  Farmer Mac funds its purchases of eligible loan assets and investment assets and finances its operations primarily by issuing debt obligations of various maturities through a network of dealers in the public capital markets.  Farmer Mac works to enhance its funding operations by undertaking extensive debt investor relations initiatives, including conducting non-deal roadshows with institutional investors, making periodic dealer sales force presentations, and speaking at fixed income investor conferences throughout the United States. Debt obligations issued by Farmer Mac include discount notes and fixed and floating rate medium-term notes, including callable notes.

Farmer Mac's board of directors has authorized the issuance of up to $18.0 billion of discount notes and medium-term notes (of which $15.5 billion was outstanding as of September 30, 2017), subject to periodic review of the adequacy of that level relative to Farmer Mac's borrowing requirements. Farmer Mac invests the proceeds of its debt issuances in purchases of loans, USDA Securities, Farmer Mac Guaranteed Securities, and investment assets in accordance with policies established by its board of directors and subject to regulations established by FCA.

Liquidity.  The funding and liquidity needs of Farmer Mac's lines of business are driven by the purchase and retention of eligible loans, USDA Securities, and Farmer Mac Guaranteed Securities (including

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AgVantage securities); the maturities of Farmer Mac's discount notes and medium-term notes; and payment of principal and interest on Farmer Mac Guaranteed Securities.  Farmer Mac's primary sources of funds to meet these needs are the proceeds of its debt issuances, fees for its guarantees and commitments, net effective spread, loan repayments, and maturities of AgVantage securities.

Farmer Mac maintains cash, cash equivalents (including U.S. Treasury securities and other short-term money market instruments), and other investment securities that can be drawn upon for liquidity needs.  The following table presents these assets as of September 30, 2017 and December 31, 2016:

Table 23

	As of September 30, 2017		As of December 31, 2016
	(in thousands)
Cash and cash equivalents	$	366,764	$	265,229
Investment securities:
Guaranteed by U.S. Government and its agencies	1,351,430		1,423,850
Guaranteed by GSEs	848,151		1,044,261
Corporate debt securities	—		10,041
Asset-backed securities	35,385		37,699
Total	$	2,601,730	$	2,781,080

Capital Requirements. Farmer Mac is subject to the following capital requirements – minimum, critical, and risk-based. Farmer Mac is required to comply with the higher of the minimum capital requirement and the risk-based capital requirement. The minimum capital requirement is expressed as a percentage of on-balance sheet assets and off-balance sheet obligations. The critical capital requirement is equal to one-half of the minimum capital amount. Farmer Mac's statutory charter does not specify the required level of risk-based capital but directs FCA to establish a risk-based capital stress test for Farmer Mac, using specified stress test parameters. Certain enforcement powers are given to FCA depending on Farmer Mac's compliance with these capital standards. As of September 30, 2017, Farmer Mac was in compliance with its statutory capital requirements and was classified as within "level I" (the highest compliance level). See Note 7 to the consolidated financial statements for more information about Farmer Mac's capital position and see "Business—Government Regulation of Farmer Mac—Capital Standards" in Farmer Mac's Annual Report on Form 10-K for the fiscal year ended December 31, 2016 filed with the SEC on March 9, 2017 for more information on the capital requirements applicable to Farmer Mac.

In accordance with FCA's rule on capital planning, Farmer Mac's board of directors has adopted a policy for maintaining a sufficient level of "Tier 1" capital (consisting of retained earnings, paid-in capital, common stock, and qualifying preferred stock). That policy imposes restrictions on Tier 1-eligible dividends and any discretionary bonus payments in the event that Tier 1 capital falls below specified thresholds. As of September 30, 2017, Farmer Mac's Tier 1 capital ratio was 13.1%, compared to 12.7% as of December 31, 2016, as the marginal impact of capital growth outpaced the marginal impact of growth in risk weighted assets during the first nine months of 2017. For more information about Farmer Mac's capital adequacy policy and FCA's rule on capital planning, see "Business—Government Regulation of Farmer Mac—Capital Standards" in Farmer Mac's Annual Report on Form 10-K for the fiscal year ended December 31, 2016 filed with the SEC on March 9, 2017. As of September 30, 2017, Farmer Mac was in compliance with its capital adequacy policy.

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Regulatory Matters

The Dodd-Frank Act contains a variety of provisions designed to regulate financial markets. Certain provisions of the Dodd-Frank Act, including those regarding derivatives, corporate governance, and executive compensation, apply to Farmer Mac. Farmer Mac does not expect that any of the final rules that have been adopted under the Dodd-Frank Act or that may be adopted will have a material effect on Farmer Mac's business activities and operations or financial condition. Farmer Mac will continue to monitor all applicable developments in the implementation of the Dodd-Frank Act and expects to be able to adapt successfully to any new applicable legislative and regulatory requirements.

Other Matters

Common Stock Dividends. For each of the first, second, and third quarters in 2017, Farmer Mac paid a quarterly dividend of $0.36 per share on all classes of its common stock. For each quarter in 2016, Farmer Mac paid a quarterly dividend of $0.26 per share on all classes of its common stock. Farmer Mac's ability to declare and pay dividends on common stock could be restricted if it fails to comply with applicable capital requirements. See "Business—Government Regulation of Farmer Mac—Capital Standards—Enforcement Levels" in Farmer Mac's Annual Report on Form 10-K for the fiscal year ended December 31, 2016 filed with the SEC on March 9, 2017 for more information on FCA's enforcement powers.

Preferred Stock Dividends. For each of the first, second, and third quarters in 2017 and for each quarter in 2016, Farmer Mac paid the following quarterly dividends on its outstanding preferred stock:

• $0.3672 per share on its 5.875% Non-Cumulative Preferred Stock, Series A;

• $0.4297 per share on its 6.875% Non-Cumulative Preferred Stock, Series B; and

• $0.3750 per share on its 6.000% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C.

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Supplemental Information

The following tables present quarterly and annual information regarding new business volume, repayments, and outstanding business volume:

Table 24

New Business Volume
	Farm & Ranch				USDA Guarantees		Rural Utilities				Institutional Credit
	Loans		LTSPCs		USDA Securities		Loans		LTSPCs		AgVantage		Total
	(in thousands)
For the quarter ended:
September 30, 2017	$	298,274	$	102,774	$	131,298	$	70,000	$	—	$	290,995	$	893,341
June 30, 2017	312,217		55,899		169,261		25,000		—		1,296,757		1,859,134
March 31, 2017	314,137		113,261		131,101		27,341		—		561,407		1,147,247
December 31, 2016	243,692		117,265		129,343		10,800		20,000		247,154		768,254
September 30, 2016	282,690		155,657		119,201		20,000		—		528,234		1,105,782
June 30, 2016	241,093		58,156		133,745		10,000		421,404		396,245		1,260,643
March 31, 2016	198,548		68,017		98,968		9,691		—		927,219		1,302,443
December 31, 2015	245,252		185,919		72,442		46,082		—		14,391		564,086
September 30, 2015	175,965		79,621		91,374		53,552		522,262		506,602		1,429,376
For the year ended:
December 31, 2016	966,023		399,095		481,257		50,491		441,404		2,098,852		4,437,122
December 31, 2015	748,368		427,795		376,935		108,337		522,262		1,043,158		3,226,855

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Table 25

Repayments of Assets by Line of Business
	Farm & Ranch							USDA Guarantees			Rural Utilities						Institutional Credit
	Loans		Guaranteed Securities		LTSPCs			USDA Securities			Loans			LTSPCs			AgVantage		Total
	(in thousands)
For the quarter ended:
Scheduled	$	61,961	$	6,735	$	21,409	—	$	24,163	—	$	27,191	—	$	39,816	—	$	100,571	$	281,846
Unscheduled	49,894		5,861		124,676		—	45,192		—	457		—	—		—	—		226,080
September 30, 2017	$	111,855	$	12,596	$	146,085		$	69,355		$	27,648		$	39,816		$	100,571	$	507,926
Scheduled	$	21,687	$	9,116	$	41,821		$	35,169		$	—		$	9,885		$	1,166,922	$	1,284,600
Unscheduled	51,442		10,737		47,262			46,776			—			—			4,000		160,217
June 30, 2017	$	73,129	$	19,853	$	89,083		$	81,945		$	—		$	9,885		$	1,170,922	$	1,444,817
Scheduled	$	70,394	$	16,184	$	48,375		$	36,322		$	26,909		$	8,934		$	161,451	$	368,569
Unscheduled	114,811		11,985		64,486			39,457			814			—			102,059		333,612
March 31, 2017	$	185,205	$	28,169	$	112,861		$	75,779		$	27,723		$	8,934		$	263,510	$	702,181
Scheduled	$	20,566	$	15,209	$	21,546		$	21,325		$	—		$	15,929		$	311,739	$	406,314
Unscheduled	47,156		10,767		111,137			34,477			4,427			—			2,240		210,204
December 31, 2016	$	67,722	$	25,976	$	132,683		$	55,802		$	4,427		$	15,929		$	313,979	$	616,518
Scheduled	$	47,221	$	7,954	$	39,192		$	22,626		$	26,522		$	58,177		$	559,895	$	761,587
Unscheduled	85,583		17,108		67,094			36,099			2,108			—			5,000		212,992
September 30, 2016	$	132,804	$	25,062	$	106,286		$	58,725		$	28,630		$	58,177		$	564,895	$	974,579
Scheduled	$	10,769	$	9,876	$	34,610		$	34,434		$	82		$	7,424		$	66,699	$	163,894
Unscheduled	64,184		8,947		54,119			68,535			—			—			—		195,785
June 30, 2016	$	74,953	$	18,823	$	88,729		$	102,969		$	82		$	7,424		$	66,699	$	359,679
Scheduled	$	42,555	$	17,866	$	42,619		$	42,969		$	25,966		$	4,140		$	589,847	$	765,962
Unscheduled	91,510		10,883		72,642			44,694			—			—			—		219,729
March 31, 2016	$	134,065	$	28,749	$	115,261		$	87,663		$	25,966		$	4,140		$	589,847	$	985,691
Scheduled	$	6,689	$	16,884	$	26,265		$	18,981		$	11,234		$	4,165		$	15,154	$	99,372
Unscheduled	59,280		22,534		78,250			33,809			—			—			—		193,873
December 31, 2015	$	65,969	$	39,418	$	104,515		$	52,790		$	11,234		$	4,165		$	15,154	$	293,245
Scheduled	$	37,524	$	11,178	$	45,943		$	19,785		$	25,662		$	4,033		$	609,524	$	753,649
Unscheduled	70,242		11,164		61,075			35,394			—			—			—		177,875
September 30, 2015	$	107,766	$	22,342	$	107,018		$	55,179		$	25,662		$	4,033		$	609,524	$	931,524
For the year ended:
Scheduled	$	121,111	$	50,905	$	137,967		$	121,354		$	52,570		$	85,670		$	1,528,180	$	2,097,757
Unscheduled	288,433		47,705		304,992			183,805			6,535			—			7,240		838,710
December 31, 2016	$	409,544	$	98,610	$	442,959		$	305,159		$	59,105		$	85,670		$	1,535,420	$	2,936,467
Scheduled	$	92,703	$	60,351	$	160,019		$	103,218		$	62,720		$	8,198		$	715,845	$	1,203,054
Unscheduled	237,912		61,684		255,369			153,474			14,300			—			—		722,739
December 31, 2015	$	330,615	$	122,035	$	415,388		$	256,692		$	77,020		$	8,198		$	715,845	$	1,925,793

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Table 26

Lines of Business - Outstanding Business Volume
	Farm & Ranch						USDA Guarantees		Rural Utilities				Institutional Credit
	Loans		Guaranteed Securities		LTSPCs		USDA Securities		Loans		LTSPCs		AgVantage		Total
	(in thousands)
As of:
September 30, 2017	$	4,068,893	$	354,823	$	2,133,314	$	2,298,956	$	1,066,482	$	819,963	$	7,901,842	$	18,644,273
June 30, 2017	3,882,474		367,419		2,176,625		2,237,013		1,024,130		859,779		7,711,418		18,258,858
March 31, 2017	3,643,386		387,272		2,209,809		2,149,697		999,130		869,664		7,585,583		17,844,541
December 31, 2016	3,514,454		415,441		2,209,409		2,094,375		999,512		878,598		7,287,686		17,399,475
September 30, 2016	3,338,484		441,417		2,224,827		2,020,834		993,139		874,527		7,354,511		17,247,739
June 30, 2016	3,188,598		466,479		2,175,456		1,960,358		1,001,769		932,704		7,391,172		17,116,536
March 31, 2016	3,022,458		485,302		2,206,029		1,929,582		991,851		518,724		7,061,626		16,215,572
December 31, 2015	2,957,975		514,051		2,253,273		1,918,277		1,008,126		522,864		6,724,254		15,898,820
September 30, 2015	2,778,692		553,469		2,171,869		1,898,625		982,078		518,229		6,725,017		15,627,979

Table 27

On-Balance Sheet Outstanding Business Volume
	Fixed Rate		5- to 10-Year ARMs & Resets		1-Month to 3-Year ARMs		Total Held in Portfolio
	(in thousands)
As of:
September 30, 2017	$	6,921,477	$	2,447,923	$	5,426,757	$	14,796,157
June 30, 2017	6,722,463		2,406,120		5,226,982		14,355,565
March 31, 2017	5,373,283		2,330,819		5,255,146		12,959,248
December 31, 2016	5,346,011		2,274,535		4,888,291		12,508,837
September 30, 2016	5,278,332		2,212,946		4,869,765		12,361,043
June 30, 2016	5,201,386		2,157,342		4,867,336		12,226,064
March 31, 2016	4,942,566		2,296,767		4,468,045		11,707,378
December 31, 2015	4,923,163		2,271,960		4,118,366		11,313,489
September 30, 2015	4,889,894		2,147,916		4,049,361		11,087,171

111

The following table presents the quarterly net effective spread (a non-GAAP measure) by segment:

Table 28

	Net Effective Spread by Line of Business
	Farm & Ranch				USDA Guarantees				Rural Utilities				Institutional Credit				Corporate				Net Effective Spread
	Dollars		Yield		Dollars		Yield		Dollars		Yield		Dollars		Yield		Dollars		Yield		Dollars		Yield
	(dollars in thousands)
For the quarter ended:
September 30, 2017(1)	$	11,478	1.75	%	$	4,855	0.92	%	$	2,832	1.09	%	$	14,363	0.78	%	$	2,699	0.41	%	$	36,227	0.92	%
June 30, 2017	11,331		1.80	%	4,681		0.90	%	2,736		1.09	%	14,395		0.81	%	2,467		0.35	%	35,610		0.92	%
March 31, 2017	10,684		1.80	%	4,703		0.91	%	2,639		1.06	%	12,581		0.82	%	2,259		0.32	%	32,866		0.91	%
December 31, 2016	10,349		1.78	%	5,334		1.08	%	2,623		1.05	%	11,627		0.78	%	1,995		0.26	%	31,928		0.89	%
September 30, 2016(1)	10,703		1.90	%	5,189		1.07	%	2,643		1.05	%	11,427		0.75	%	2,237		0.24	%	32,199		0.86	%
June 30, 2016	9,875		1.78	%	4,588		0.96	%	2,562		1.03	%	11,407		0.77	%	2,594		0.29	%	31,026		0.84	%
March 31, 2016	9,461		1.71	%	4,308		0.91	%	2,538		1.02	%	11,090		0.80	%	2,552		0.26	%	29,949		0.82	%
December 31, 2015	9,381		1.72	%	4,518		0.96	%	2,845		1.14	%	10,899		0.80	%	2,306		0.26	%	29,949		0.85	%
September 30, 2015	9,628		1.80	%	4,630		0.99	%	2,907		1.18	%	11,271		0.81	%	1,951		0.25	%	30,387		0.88	%

⁽¹⁾  Net effective spread is a non-GAAP measure. See Note 9 to the consolidated financial statements for a reconciliation of GAAP net interest income by line of business to net effective spread by line of business for the three months ended September 30, 2017 and 2016.

112

The following table presents quarterly core earnings (a non-GAAP measure) reconciled to net income attributable to common stockholders:

Table 29

Core Earnings by Quarter Ended
	September 2017			June 2017			March 2017			December 2016			September 2016			June 2016			March 2016			December 2015			September 2015
	(in thousands)
Revenues:
Net effective spread	$	36,227		$	35,610		$	32,866		$	31,928		$	32,199		$	31,026		$	29,949		$	29,949		$	30,387
Guarantee and commitment fees	4,935			4,942			5,317			5,158			4,533			4,810			4,669			4,730			4,328
Other	429			(197		)	1,061			1,189			(32		)	(125		)	(517		)	(284		)	(93		)
Total revenues	41,591			40,355			39,244			38,275			36,700			35,711			34,101			34,395			34,622
Credit related expense/(income):
Provision for/(release of) losses	384			466			444			512			(31		)	458			63			(49		)	(303		)
REO operating expenses	—			23			—			—			—			—			39			44			48
(Gains)/losses on sale of REO	(32		)	(757		)	5			—			(15		)	—			—			—			—
Total credit related expense/(income)	352			(268		)	449			512			(46		)	458			102			(5		)	(255		)
Operating expenses:
Compensation and employee benefits	5,987			6,682			6,317			5,949			5,438			5,611			5,774			5,385			5,236
General and administrative	3,890			3,921			3,800			4,352			3,474			3,757			3,526			3,238			3,676
Regulatory fees	625			625			625			625			613			612			613			613			600
Total operating expenses	10,502			11,228			10,742			10,926			9,525			9,980			9,913			9,236			9,512
Net earnings	30,737			29,395			28,053			26,837			27,221			25,273			24,086			25,164			25,365
Income tax expense	10,410			10,297			9,166			9,581			9,497			8,956			8,444			8,855			8,924
Net (loss)/income attributable to non-controlling interest(1)	—			(150		)	(15		)	28			(18		)	(16		)	(28		)	(60		)	(36		)
Preferred stock dividends	3,295			3,296			3,295			3,296			3,295			3,296			3,295			3,296			3,295
Core earnings	$	17,032		$	15,952		$	15,607		$	13,932		$	14,447		$	13,037		$	12,375		$	13,073		$	13,182
Reconciling items:
Gains/(losses) on financial derivatives and hedging activities due to fair value changes	2,737			2,221			4,805			17,233			1,460			(2,076		)	(2,989		)	2,743			(6,906		)
Unrealized (losses)/gains on trading assets	—			(2		)	(82		)	(474		)	1,182			394			358			696			(8		)
Amortization of premiums/discounts and deferred gains on assets consolidated at fair value	(954		)	(117		)	(127		)	(40		)	(157		)	(371		)	(281		)	(263		)	(117		)
Net effects of settlements on agency forward contracts	456			261			32			1,024			464			466			(255		)	(162		)	(390		)
Income tax effect related to reconciling items	(784		)	(827		)	(1,620		)	(6,210		)	(1,032		)	556			1,109			(1,055		)	2,598
Net income attributable to common stockholders	$	18,487		$	17,488		$	18,615		$	25,465		$	16,364		$	12,006		$	10,317		$	15,032		$	8,359

⁽¹⁾  As of May 1, 2017, Farmer Mac transferred its entire 65% ownership interest in AgVisory back to the limited liability company.

113

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Farmer Mac is exposed to market risk from changes in interest rates.  Farmer Mac manages this market risk by entering into various financial transactions, including financial derivatives, and by monitoring and measuring its exposure to changes in interest rates.  See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Risk Management—Interest Rate Risk" for more information about Farmer Mac's exposure to interest rate risk and its strategies to manage that risk.  For information regarding Farmer Mac's use of financial derivatives and related accounting policies, see Note 4 to the consolidated financial statements.

Item 4. Controls and Procedures

Management's Evaluation of Disclosure Controls and Procedures. Farmer Mac maintains disclosure controls and procedures designed to ensure that information required to be disclosed in its periodic filings under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including this Quarterly Report on Form 10-Q, is recorded, processed, summarized and reported on a timely basis. These disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed under the Exchange Act is accumulated and communicated to Farmer Mac's management on a timely basis to allow decisions regarding required disclosure. Management, including Farmer Mac's Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the design and operation of Farmer Mac's disclosure controls and procedures (as defined under Rules 13a-15(e) and 15d-15(e) of the Exchange Act) as of September 30, 2017.

Farmer Mac carried out the evaluation of the effectiveness of its disclosure controls and procedures, required by paragraph (b) of Exchange Act Rules 13a-15 and 15d-15, under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer. Based upon this evaluation, the Chief Executive Officer and Chief Financial Officer concluded that Farmer Mac's disclosure controls and procedures were effective as of September 30, 2017.

Changes in Internal Control Over Financial Reporting. There were no changes in Farmer Mac's internal control over financial reporting during the three months ended September 30, 2017 that have materially affected, or are reasonably likely to materially affect, Farmer Mac's internal control over financial reporting.

PART II

Item 1. Legal Proceedings

None.

Item 1A.    Risk Factors

There were no material changes from the risk factors previously disclosed in Farmer Mac's Annual Report on Form 10-K for the year ended December 31, 2016 filed with the SEC on March 9, 2017.

114

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(a)Farmer Mac is a federally chartered instrumentality of the United States and its debt and equity securities are exempt from registration pursuant to Section 3(a)(2) of the Securities Act of 1933.

During third quarter 2017, the following transactions occurred related to Farmer Mac's equity securities that were not registered under the Securities Act of 1933 and were not otherwise reported on a Current Report on Form 8-K:

Class C Non-Voting Common Stock. Under Farmer Mac's policy that permits directors of Farmer Mac to elect to receive shares of Class C Non-Voting Common Stock in lieu of their cash retainers, Farmer Mac issued an aggregate of 50 shares of its Class C Non-Voting Common Stock on July 5, 2017 to the three directors who elected to receive stock in lieu of their cash retainers. Farmer Mac calculated the number of shares issued to the directors based on a price of $64.70 per share, which was the closing price of the Class C Non-Voting Common Stock on June 30, 2017, as reported by the New York Stock Exchange.

(b) Not applicable.

(c) None.

Item 3. Defaults Upon Senior Securities

(a) None.

(b) None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

(a) None.

(b) None

Item 6. Exhibits and Financial Statement Schedules

(a) (1)           Financial Statements.

Refer to Part I Item 1 above.

(2)           Financial Statement Schedules.

All schedules are omitted since they are not applicable, not required, or the information required to be set forth therein is included in the consolidated financial statements or in notes thereto.

115

*	3.1	—	Title VIII of the Farm Credit Act of 1971, as most recently amended by the Food, Conservation and Energy Act of 2008 (Previously filed as Exhibit to Form 10-Q filed August 12, 2008).
*	3.2	—	Amended and Restated By-Laws of the Registrant (Previously filed as Exhibit 3.1 to Form 8-K filed August 9, 2017).
*	4.1	—	Specimen Certificate for Farmer Mac Class A Voting Common Stock (Previously filed as Exhibit 4.1 to Form 10-Q filed May 15, 2003).
*	4.2	—	Specimen Certificate for Farmer Mac Class B Voting Common Stock (Previously filed as Exhibit 4.2 to Form 10-Q filed May 15, 2003).
*	4.3	—	Specimen Certificate for Farmer Mac Class C Non-Voting Common Stock (Previously filed as Exhibit 4.3 to Form 10-Q filed May 15, 2003).
*	4.4	—	Specimen Certificate for 5.875% Non-Cumulative Preferred Stock, Series A (Previously filed as Exhibit 4.4.1 to Form 10-Q filed May 9, 2013).
*	4.4.1	—	Certificate of Designation of Terms and Conditions of 5.875% Non-Cumulative Preferred Stock, Series A (Previously filed as Exhibit 4.1 to Form 8-A filed January 17, 2013).
*	4.5	—	Specimen Certificate for 6.875% Non-Cumulative Preferred Stock, Series B (Previously filed as Exhibit 4.5 to Form 10-Q filed May 12, 2014).
*	4.5.1	—	Certificate of Designation of Terms and Conditions of 6.875% Non-Cumulative Preferred Stock, Series B (Previously filed as Exhibit 4.1 to Form 8-A filed March 25, 2014).
*	4.6	—	Specimen Certificate for 6.000% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C (Previously filed as Exhibit 4.6 to Form 10-Q filed August 11, 2014).
*	4.6.1	—	Certificate of Designation of Terms and Conditions of 6.000% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C (Previously filed as Exhibit 4.1 to Form 8-A filed June 20, 2014).
**	10.1	—	Amendment to Sublease between Mayer Brown LLP and the Registrant, dated as of August 1, 2017.
**	31.1	—	Certification of Registrant's principal executive officer relating to the Registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2017, pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
**	31.2	—	Certification of Registrant's principal financial officer relating to the Registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2017, pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
**	32	—	Certification of Registrant's principal executive officer and principal financial officer relating to the Registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2017, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

*	Incorporated by reference to the indicated prior filing.
**	Filed with this report.
†	Management contract or compensatory plan.

116

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

FEDERAL AGRICULTURAL MORTGAGE CORPORATION

/s/ Timothy L. Buzby		November 9, 2017
By:	Timothy L. Buzby	Date
	President and Chief Executive Officer
	(Principal Executive Officer)

/s/ R. Dale Lynch		November 9, 2017
By:	R. Dale Lynch	Date
	Executive Vice President – Chief Financial Officer and Treasurer
	(Principal Financial Officer)

117

EX-10.1

EXHBIIT 10.1

AMENDMENT TO SUBLEASE

THIS AMENDMENT TO SUBLEASE (this “Amendment”) is made as of August 1, 2017 (the “Effective Date”) by and between MAYER BROWN LLP, an Illinois limited liability partnership (“Sublandlord”) and FEDERAL AGRICULTURAL MORTGAGE CORPORATION, a federally-chartered instrumentality of the United States and an institution of the Farm Credit System (“Subtenant”).

RECITALS:

A.Sublandlord and Subtenant entered into that certain Sublease dated December 6, 2010, pursuant to which Sublandlord subleased to Subtenant the entire 4^th floor (“Original Premises”) of the Building, which Original Premises contains 21,597 rentable square feet of space. The initial lease is referred to herein as the “Original Sublease.” From and after the full and final execution and delivery of this Amendment, the “Sublease” shall be deemed to mean the Original Sublease, as modified by this Amendment.

B.Sublandlord and Subtenant have agreed to expand the Premises demised under the Sublease, as more particularly set forth below, and to make certain additional modifications to the Original Sublease related thereto as more particularly set forth below.

NOW, THEREFORE, in consideration of the foregoing recitals and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

1.Recitals Incorporated/Capitalized Terms. The recitals are hereby incorporated as if fully set forth herein as a substantive provisions of this Amendment. Except as otherwise expressly set forth herein, the capitalized terms used in this Amendment shall have the same meanings ascribed to such terms in the Original Sublease.

2.Demise and Delivery of Additional Premises.

A.In addition to the Original Premises, Sublandlord does hereby sublease, sublet and demise unto Subtenant, and Subtenant does hereby sublease and rent from Sublandlord, upon and subject to the provisions of the Sublease, a portion of the 7^th floor of the Building, consisting of 5,606 rsf, as outlined on the floor plan attached hereto and incorporated herein as Exhibit A (the “Additional Premises”).

B.On or before the Effective Date, subject to Sublandlord’s receipt of Landlord’s consent in accordance with Section 13, Sublandlord shall deliver to Subtenant the Additional Premises. Sublandlord shall deliver to Subtenant the Additional Premises in its “as is” condition, except that Sublandlord shall have constructed a new demising wall, using building standard materials, in the location shown on Exhibit B (the “Sublandlord’s Work”). Sublandlord shall not be required to make for the benefit of Subtenant any other improvements to or repairs of any kind or character in or to the Additional Premises, subject to Section 8 of the Sublease.

C.All work necessary to prepare the Additional Premises for occupancy by Subtenant (including, without limitation, any telephone and data cabling and the installation of fixtures) (collectively, the “Subtenant’s Work”) shall be performed by Subtenant in accordance with the terms set forth in the Work Letter attached as Exhibit C attached hereto, at Subtenant’s own expense (subject to the application of the applicable “Improvement Allowance” in accordance with (and as defined in) the Work Letter).

3.Modification of Original Sublease. From and after the Effective Date, the Original Sublease is hereby amended as follows:

A.All references to the “Premises” shall mean the Original Premises, together with the Additional Premises.

B.The “Rent Schedule” set forth in Section 5(b) of the Original Sublease shall be amended as set forth below, and the “Base Rent” payable under the Sublease shall mean the Base Rent set forth in the revised Rent Schedule:

Lease Year 6	$60.81	$1,654,214.43 (annualized)	$137,851.20 (commencing with payment due August 1, 2017)
Lease Year 7	$62.33	$1,695,562.99	$141,296.92
Lease Year 8	$63.89	$1,737,999.67	$144,833.31
Lease Year 9	$65.49	$1,781,524.47	$148,460.37
Lease Year 10	$67.13	$1,826,137.39	$152,178.12
Lease Year 11	$68.80	$1,871,566.40	$155,963.87
Lease Year 12	$70.52	$1,918,355.56	$159,862.96
Lease Year 13 (11 months)	$72.28	$1,802,380.10 (11 months)	$163,852.74

C. The “Subtenant’s Proportionate Share” shall be 11.06%.

D.Exhibit B of the Original Sublease shall be amended to include the Additional Premises depicted on Exhibit A of this Amendment.

E.With respect to Subtenant’s Work to be performed in the Additional Premises, Exhibit C (Work Letter) of the Original Sublease is hereby replaced with Exhibit C attached to this Amendment.

4.Furniture. Subtenant acknowledges that all furniture currently located in the Additional Premises shall remain in the Additional Premises on the Effective Date.

5.No Default. Subtenant represents and warrants to Sublandlord that, as of the date hereof, to the best of Subtenant’s knowledge (i) Sublandlord has timely performed all of its obligations under the Sublease, (ii) Sublandlord is not in default under any of the provisions of the Sublease, and (iii) Sublandlord is not in breach of any of the provisions of the Sublease which, with the passage of time, delivery of notice, or both, would become a default under the Sublease.

6.Brokerage. Sublandlord and Subtenant represent to each other that they have not dealt with any brokers in connection with the Additional Premises or this Amendment, and the parties shall indemnify and hold each other harmless from and against any and all liability, loss, damage, expense, claim, action, demand, suit or obligation, including but not limited to reasonable attorneys’ fees, arising out of or relating to a respective breach of this representation.

7.No Further Modification. Except as expressly modified by this Amendment, the Sublease shall continue in full force and effect, unmodified.

8.Enforceability. If any provision of this Amendment is held to be invalid or unenforceable, the same shall not affect the validity or enforceability of the other provisions of this Amendment, which shall continue in full force and effect, as if the invalid or unenforceable provision had been deleted.

9.Conflicting Terms. The terms of this Amendment shall be reconciled with the terms of the Original Sublease to the fullest extent reasonably possible; but in the event there is any irreconcilable conflict between the terms of the Original Sublease and the terms of this Amendment, the terms of this Amendment shall be controlling.

10.Further Amendment. This Amendment and the Original Sublease constitute the entire agreement between Sublandlord and Subtenant as to the Premises described herein, superseding any and all prior verbal discussions and agreements between Sublandlord and Subtenant. The Original Sublease and this Amendment may be further amended only in writing signed by both Sublandlord and Subtenant.

11.Governing Law. This Amendment shall be construed and enforced in accordance with the laws of the District of Columbia, without resort to choice of law principles

12.Time. Time is of the essence for all purposes under the Sublease.

13.Condition Precedent. This Amendment shall not become effective unless and until the Landlord has consented to this Amendment and Subtenant’s Plans (as defined in the Work Letter) by providing written notice of its consent to Sublandlord. Both Sublandlord and Subtenant agree to cooperate and to use reasonable efforts to obtain the written consent to this Amendment and Subtenant’s Plans from the Landlord. Sublandlord shall pay for any attorneys’ fees and other expenses which the Landlord incurs in connection with this Amendment and which the Landlord thereafter bills Sublandlord in accordance with the Prime Lease. If Sublandlord has not obtained Landlord’s consent within thirty (30) days after execution of this Amendment, then at any time thereafter prior to the obtaining of such consent from Landlord, either party shall have the right to terminate this Amendment by providing written notice of termination to the other, and this Amendment shall thereafter terminate and be of no further force or effect, neither party shall have any further obligations or liabilities hereunder, and the Original Sublease shall continue to be in full force and effect.

END OF TEXT. SIGNATURES APPEAR ON FOLLOWING PAGE.

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date and year first above written,

WITNESS:                    SUBLANDLORD:

MAYER BROWN LLP

an Illinois limited liability partnership

/s/ Roberta Schrock                By:    /s/ Daniel A. Masur (Seal)

Name:    Daniel A. Masur

Title:    Partner-in-Charge –D.C.

WITNESS:                    SUBTENANT:

FEDERAL AGRICULTURAL MORTGAGE             CORPORATION, a federally-chartered                 corporation

/s/ Stephen P. Mullery                By:     /s/ R. Dale Lynch             (Seal)

Name:    R. Dale Lynch

Title: Executive Vice President – Chief Financial Officer

EXHIBIT A

Drawing Showing Additional Premises

[Drawing]

EXHIBIT B

Drawing Showing Location of Demising Wall

[Drawing]

EXHIBIT C

Work Letter/Additional Premises

This is the Work Letter (“Work Letter”) referred to in the foregoing Amendment to Sublease (the “Amendment”) made between MAYER BROWN LLP, an Illinois limited liability partnership (“Sublandlord”), and FEDERAL AGRICULTURAL MORTGAGE CORPORATION, a federally-chartered corporation (“Subtenant”).  Capitalized terms used herein, unless otherwise defined in this Work Letter, shall have the respective meanings assigned to them in the Sublease (as such term is defined in the Amendment).

For and in consideration of the agreement to lease the Additional Premises and the mutual covenants contained herein and in the Sublease, Sublandlord and Subtenant agree as follows:

1.Subtenant’s Work. Subtenant shall, at Subtenant’s own cost and expense except for the Improvement Allowance (as hereinafter defined), perform all work (“Subtenant’s Work”) necessary or desirable to improve the Additional Premises to a finished condition ready for the conduct of Subtenant’s business therein. Subtenant’s Work may include, without limitation, the installation of additional (package) air conditioning equipment to provide after-hours heating, ventilating, and air conditioning to the Additional Premises (which may utilize Sublandlord’s condenser water at no additional charge to Subtenant). Subtenant’s Work shall be performed in accordance with Subtenant’s Plans (defined in Section 3(b)(i) hereof) approved in advance by Sublandlord, and subject to the other terms and conditions of this Work Letter and to the terms and conditions of the Sublease. Subtenant’s Work shall not modify or adversely affect the structure or systems of the Building except as may be expressly permitted by Sublandlord and Landlord.

2.Pre-Construction Documentation.

(a)Prior to the commencement of Subtenant’s Work, Subtenant shall submit the following information and items to Sublandlord:

(i)The scheduled commencement date of construction of Subtenant’s Work and the estimated date of completion of construction.

(ii)An itemized statement of estimated construction cost, including permits and fees and architectural, engineering and contracting fees (the “Estimated Cost of Subtenant’s Work”).

(b)All contracts with Subtenant’s Contractors (as defined in Section 5(c) below) shall be subject to the prior written approval of Sublandlord, which approval shall not be unreasonably withheld, delayed or conditioned, and Landlord to the extent required by the Prime Lease.

(c)Subtenant shall submit the following information and items to Sublandlord not less than five (5) days prior to commencement of construction of Subtenant’s Work:

(i)The names and addresses of Subtenant’s Contractors. Sublandlord and Landlord shall have the right to approve Subtenant’s Contractors and Subtenant shall employ as Subtenant’s Contractors only those persons or entities approved by Sublandlord, which approval shall not be unreasonably withheld, and Landlord to the extent required by the Prime Lease.

(ii)An updated itemized statement of estimated construction cost, including permits and fees and architectural, engineering and contracting fees.

(iii)Certified copies of insurance policies or certificates of insurance as hereinafter described. Subtenant shall not permit Subtenant’s Contractors to commence work until the required insurance has been obtained and certified copies of policies or certificates have been delivered to Sublandlord.

(iv)A copy of a fully executed contract with each of Subtenant’s Contractors.

(d)Subtenant will update such information and items by notice to Sublandlord of any changes.

3.Submission of Drawings. Subtenant shall comply with the following procedure for approval of Subtenant’s Plans by Sublandlord:

(a)Subtenant shall deliver to Sublandlord five (5) black‑and‑white prints of a preliminary conceptual layout of the Premises for use in evaluation of space utilization in the Premises (“Space Plan”) prepared by an architect licensed in the District of Columbia, selected by Subtenant and approved by Sublandlord and Landlord (“Subtenant’s Architect”). Not more than fifteen (15) days after the delivery of the Space Plan, Sublandlord shall notify Subtenant either of Landlord’s approval thereof, or of the changes reasonably required by Landlord. If Sublandlord notifies Subtenant that changes are required, Subtenant shall promptly thereafter submit to Sublandlord, for Landlord’s approval, a Space Plan amended by Subtenant and Subtenant’s Architect in accordance with the changes so required. Sublandlord shall notify Subtenant of Landlord’s approval or disapproval of the amended Space Plan within fifteen (15) days of Sublandlord’s receipt thereof and Subtenant shall have any changes to the Space Plan required by Landlord made promptly after the date Subtenant receives notice thereof.

(b)Following Landlord’s approval of the Space Plan, Subtenant shall deliver to Sublandlord for its approval, which approval shall not be unreasonably withheld, conditioned, or delayed by Sublandlord, five (5) black‑and‑white prints of Subtenant’s Plans prepared by Subtenant’s Architect based on the approved Space Plan.

(i)“Subtenant’s Plans” means the plans and specifications (including architectural, mechanical and electrical working drawings) for the supply, installation and finishing in the Premises of Subtenant’s Work, including without limitation all partitions; doors and hardware; ceilings; wiring, lights and switches; heating, cooling and ventilation equipment and controls; telephone and electrical outlets; floor covering; drapes; built‑ins; plumbing and fixtures; fire protection, fire warning and security systems; and other equipment and facilities attached to and forming part of the Building.

(ii)Subtenant’s Plans shall be prepared at Subtenant’s sole cost and expense by Subtenant’s Architect. Subtenant shall pay all fees and costs of Sublandlord’s or Landlord’s architect and engineer in reviewing the Space Plan, Subtenant’s Plans, specifications and drawings in the event such review is required by Sublandlord in its reasonable discretion, subject to the application of the Improvement Allowance. In the event Landlord reviews the Space Plan, Subtenant’s Plans, specifications and drawings at a charge that is billed to Subtenant, then Sublandlord either shall not perform or shall not bill Subtenant for any separate review by Sublandlord. If Sublandlord elects not to perform a separate review, then Landlord's approval of the Space Plan, Subtenant’s Plans, specifications and drawings shall also be deemed Sublandlord's approval for all purposes of this Work Letter.

(iii)Not more than fifteen (15) days after receipt by Sublandlord of the Subtenant’s Plans, Sublandlord shall notify Subtenant either of its approval thereof or of changes required. If Sublandlord notifies Subtenant that changes are required, Subtenant shall promptly submit to Sublandlord, for its approval, which approval shall not be unreasonably withheld, Subtenant’s Plans amended by Subtenant and Subtenant’s Architect in accordance with the changes so required. Sublandlord shall notify Subtenant of its approval or disapproval of the amended Subtenant’s Plans within fifteen (15) days after Sublandlord’s receipt thereof and Subtenant shall have any changes to the Subtenant’s Plans reasonably required by Sublandlord (or required by Landlord) promptly made. Upon Sublandlord’s notification to Subtenant of approval by Sublandlord of Subtenant’s Plans, Subtenant shall promptly submit Subtenant’s Plans for pricing and to appropriate authorities for the issuance of a building permit, if required.

(iv)Approvals or disapprovals on behalf of Sublandlord may be given by Sublandlord, or such architect or other representative as Sublandlord may from time to time designate. Sublandlord shall give reasons for any disapproval. Sublandlord’s approval shall not constitute an assumption by Sublandlord of responsibility for the accuracy or sufficiency of Subtenant’s Plans, for compliance with law or performance standards or otherwise. Subtenant shall submit any changes to Subtenant’s Plans to Sublandlord for Sublandlord’s reasonable approval (and Landlord’s approval) before commencing any work with respect to such changes. Unless otherwise agreed by Sublandlord, all drawings provided by Subtenant hereunder shall be of uniform size not exceeding 30” x 42” and to a minimum scale of one eighth inch equals one foot.

4.Delivery of Premises; Commencement of Subtenant’s Work.

(a)Sublandlord shall deliver the Premises to Subtenant on the Effective Date, in their “as is” condition, except for the Sublandlord’s Work. All of the terms and provisions of the Sublease shall be binding upon Subtenant from and after the date on which Subtenant takes possession of the Premises.

(b)No construction work shall be undertaken or commenced by Subtenant in the Premises until:

(i)Subtenant’s Plans have been submitted to and approved by Sublandlord and Landlord,

(ii)all governmental approvals and permits required for the commencement of Subtenant’s Work, if any, have been obtained by Subtenant, and evidence thereof has been provided to Sublandlord,

(iii)all required insurance coverages have been obtained by Subtenant, and evidence thereof provided to Sublandlord,

(iv)items required to be submitted to Sublandlord prior to commencement of construction of Subtenant’s Work have been so submitted and have been approved, where required, and

(v)Sublandlord has given written notice that the work can proceed. Sublandlord agrees to give such notice within two (2) business days after Subtenant satisfies the requirements of subparagraphs 4(b)(i)-(iv).

5.Standards of Design and Construction of Subtenant’s Work and Conditions of Subtenant’s Performance. All work done in or upon the Additional Premises by Subtenant shall be done according to the standards set forth in this Section 5, except as the same may be modified on Subtenant’s Plans approved by or on behalf of Sublandlord.

(a)All design and construction shall comply with all applicable statutes, ordinances, regulations, laws, codes and industry standards. Approval by Sublandlord of Subtenant’s Plans shall not constitute a waiver of this requirement or assumption by Sublandlord of responsibility for compliance. Where several sets of the foregoing laws, codes and standards must be met, the strictest shall apply where not prohibited by another law, code or standard. Subtenant shall cause Subtenant’s Architect to become familiar with the foregoing design criteria and with all construction procedures which may be established by Landlord and Sublandlord for the Building in order to permit completion of proper and adequate architectural, mechanical, electrical, plumbing and fire protection working drawings for Subtenant’s Work in conformity with the standards provided for herein and in order to assure proper coordination of Subtenant’s Work with the construction of other tenants’ premises in the Building.

(b)Subtenant shall, at its own cost and expense, obtain all required building permits and when construction has been completed shall, at its own cost and expense, obtain an occupancy permit for the Additional Premises (if required), which shall be delivered to Sublandlord.

(c)Subtenant may competitively bid Subtenant’s Work provided all contractors and subcontractors engaged by or on behalf of Subtenant for construction of Subtenant’s Work (collectively, “Subtenant’s Contractors”) shall be reasonably acceptable to Sublandlord and shall be licensed contractors, possessing good labor relations, capable of performing quality workmanship and working in harmony with Sublandlord’s employees, contractors and subcontractors and with other contractors and subcontractors on the job site. All work shall be coordinated with any general construction work in the Building in order not to adversely affect other work being performed by or for Sublandlord or its contractors and subcontractors. Subtenant may also hire, at its sole cost (subject to the application of the Improvement Allowance), an independent construction manager.

(d)Sublandlord shall have the right, but not the obligation, to perform, on behalf of and for the account of Subtenant, subject to reimbursement by Subtenant for the reasonable actual costs thereof without any profit to Sublandlord, any work which is required as a result of Subtenant’s Work and (i) Sublandlord deems necessary, in its good faith commercially reasonable judgment, to be done on an emergency basis, or (ii) which pertains to repairs of Subtenant’s Work and other work in the Building. If Sublandlord elects to exercise its rights under this Section 5(d), Sublandlord agrees to give Subtenant reasonable prior notice and to permit Subtenant an opportunity to perform such work, and if Subtenant does not timely perform such work, to consult with Subtenant about the completion of such work so as to minimize Subtenant’s costs without adversely impacting the Building’s structural components or mechanical, electrical, plumbing or fire protection systems.

(e)Subtenant shall use only new, first‑class materials in Subtenant’s Work, except (i) where explicitly shown in Subtenant’s Plans approved by Sublandlord (ii) for the re-use of existing Building materials. On completion of Subtenant’s Work, Subtenant shall provide or cause to be provided to Sublandlord warranties of at least one (1) year duration against defects in workmanship and materials on all work performed and equipment installed in the Additional Premises as part of Subtenant’s Work.

(f)Subtenant’s Contractors, in performing work, shall not unreasonably interfere with other tenants and occupants of the Building. Subtenant shall take all reasonable precautionary steps to protect its facilities and the facilities of others affected by Subtenant’s Work and to properly police same. Construction equipment and materials are to be kept within the Additional Premises and delivery and loading of equipment and materials shall be done at such locations and at such time as Sublandlord shall reasonably direct so as not to burden the construction or operation of the Building.

(g)Sublandlord shall have the right to order Subtenant or any of Subtenant’s Contractors who have violated the requirements imposed on Subtenant or Subtenant’s Contractors pursuant to this Work Letter to cease work and remove their equipment and employees from the Building unless Subtenant or Subtenant’s Contractors, as the case may be, immediately comply with such requirements. Sublandlord agrees to give Subtenant notice not later than the end of the prior working day before exercising such rights.

(h)With respect to work performed by Landlord in accordance with Section 5(d), Subtenant shall pay Sublandlord for the reasonable cost of (i) all work performed by Sublandlord on behalf of Subtenant, (ii) all materials or labor furnished on Subtenant’s behalf, and (iii) all other amounts required to be paid by Subtenant to Sublandlord, within thirty (30) days from the date of Sublandlord’s invoice therefor, subject to the application of the Improvement Allowance.

(i)During the construction of the Subtenant’s Work, Subtenant and its contractors shall be obligated to pay for electricity, water or HVAC during normal business hours with respect to the Additional Premises pursuant to the terms of the Sublease, provided that after-hours HVAC shall be paid for by Subtenant at Landlord's standard charges for the same. Subtenant shall be entitled to non-exclusive use of freight elevators during normal business hours pursuant to Building rules and regulations at no cost to Subtenant. The interiors of elevators used by Subtenant shall be adequately protected from damage in a manner reasonably satisfactory to Sublandlord. Subtenant shall ensure that Subtenant’s Contractors remove all construction debris and shall not place debris in the Building’s waste containers.

(j)Subtenant shall permit access to the Additional Premises, and Subtenant’s Work shall be subject to inspection by Sublandlord, Landlord and their respective architects, contractors and other representatives, at all times during the period when Subtenant’s Work is being constructed and installed and following completion of Subtenant’s Work.

(k)Subject only to circumstances over which Subtenant has no control and which could not have been avoided by Subtenant by the exercise of due diligence, Subtenant shall proceed with its work expeditiously, continuously and efficiently. Subtenant shall notify Sublandlord upon completion of Subtenant’s Work.

(l)In addition, upon completion of Subtenant’s Work, Subtenant shall notify Sublandlord and shall furnish Sublandlord with final waivers of liens and contractors’ affidavits, in such form as may be required by Sublandlord, Landlord, and Landlord’s title insurance company or lender, from all parties performing labor or supplying materials or services in connection with Subtenant’s Work showing that all of said parties have been compensated in full and waiving all liens in connection with the Additional Premises and Building. Subtenant shall furnish partial waivers of liens and contractors’ affidavits to Sublandlord from time to time during the course of construction upon Sublandlord’s or Landlord’s request covering those portions of such labor, materials and services which have been performed and supplied. Subtenant shall submit to Sublandlord a detailed breakdown of Subtenant’s total construction costs, together with such evidence of payment as is reasonably satisfactory to Sublandlord.

(m)Subtenant shall have no authority to deviate in any material respect from Subtenant’s Plans in performance of Subtenant’s Work, except as approved by Sublandlord and its designated representative in writing which approval shall not be unreasonably withheld to the extent that the requested deviation from Subtenant’s Plans does not modify or adversely affect the Building’s structure or systems. Upon completion of Subtenant’s Work, Subtenant shall furnish to Sublandlord “as‑built” drawings of Subtenant’s Work.

(n)Sublandlord shall, at Sublandlord’s cost, have the right to run roof drainage lines, utility lines, pipes, duct work and component parts of all mechanical and electrical systems where necessary or desirable through existing conduits, walls and utility closets in the Additional Premises, to repair, alter, replace or remove the same without substantially changing the location thereof, and to require Subtenant to install and maintain proper access panels thereto (consistent with industry practice in first-class buildings).

(o)Subtenant shall impose on and enforce all applicable terms of this Work Letter against Subtenant’s Contractors, Subtenant’s Architect and Subtenant’s engineer.

(p)Subtenant and Subtenant’s employees shall not be permitted to occupy the Additional Premises for the purpose of conducting Subtenant’s business therein until Sublandlord’s or Landlord’s architect reasonably confirms that Subtenant’s Work has been substantially completed in accordance with the approved Subtenant’s Plans.

6.Insurance and Indemnification.

(a)In addition to any insurance which may be required under the Sublease, Subtenant shall secure, pay for and maintain or cause Subtenant’s Contractors to secure, pay for and maintain during the continuance of Subtenant’s Work, insurance in the following minimum coverages and limits of liability:

(i)Workmen’s Compensation and Employer’s Liability Insurance with limits of not less than $500,000.00 and as required by any Employee Benefit Acts or other statutes applicable where the work is to be performed as will protect Subtenant’s Contractors from liability under the aforementioned acts.

(ii)Commercial General Liability Insurance (including Contractors’ Protective Liability) in an amount not less than $2,000,000.00 per occurrence, whether involving bodily injury liability (or death resulting therefrom) or property damage liability, or a combination thereof, with a minimum aggregate limit of $2,000,000.00, and with umbrella coverage with limits not less than $5,000,000.00. Such insurance shall provide for explosion and collapse, completed operations coverage and broad form blanket contractual liability coverage and shall insure Subtenant’s Contractors against any and all claims for bodily injury, including death resulting therefrom, and damage to the property of others arising from its operations under the contracts, whether such operations are performed by Subtenant’s Contractors or by anyone directly or indirectly employed by any of them.

(iii)Comprehensive Automobile Liability Insurance, including the ownership, maintenance and operation of any automotive equipment, owned, hired, or non‑owned in an amount not less than $500,000.00 for each person in one accident, and $1,000,000.00 for injuries sustained by two or more persons in any one accident and property damage liability in an amount not less than $1,000,000.00 for each accident. Such insurance shall insure Subtenant’s Contractors against any and all claims for bodily injury, including death resulting therefrom, and damage to the property of others arising from its operations under the contracts, whether such operations are performed by Subtenant’s Contractors, or by anyone directly or indirectly employed by any of them.

(iv)“All‑risk” builder’s risk insurance upon the entire Subtenant’s Work to the full insurable value thereof. This insurance shall include the interests of Landlord, Sublandlord and Subtenant (and their respective contractors and subcontractors of any tier to the extent of any insurable interest therein) in the Subtenant’s Work and shall insure against the perils of fire and extended coverage and shall include “all-risk” builder’s risk insurance for physical loss or damage including, without duplication of coverage, theft, vandalism and malicious mischief. If portions of the Subtenant’s Work are stored off the site of the Building or in transit to said site are not covered under said “all-risk” builder’s risk insurance, then Subtenant shall effect and maintain similar property insurance on such portions of Subtenant’s Work. If after such loss no other special agreement is made, the decision to replace or not replace any such damaged Subtenant’s Work shall be made in accordance with the terms and provisions of the Sublease. The waiver of subrogation provisions contained in the Sublease shall apply to the “all-risk” builder’s risk insurance policy to be obtained by Subtenant pursuant to this paragraph.

All such policies will be obtained from companies reasonably acceptable to Sublandlord and Landlord; and Subtenant shall cause Sublandlord, Landlord, Landlord’s managing agent, Cushman & Wakefield U.S., Inc., and any designee of Landlord to be named as an additional insured under such policies (except the workmen’s compensation policy). Said endorsements shall also provide that all additional insured parties shall be given not less than thirty (30) days’ prior written notice of any reduction, cancellation or non‑renewal of coverage (except that not less than ten (10) days’ prior written notice shall be sufficient in the case of cancellation for non‑payment of premium) and shall provide that the insurance coverage afforded to the additional insured parties thereunder shall be primary to any insurance carried independently by said additional insured parties. At Subtenant’s request, Sublandlord shall furnish a list of names and addresses of parties to be named as additional insureds. The insurance policies required hereunder shall be considered as the primary insurance and shall not call into contribution any insurance maintained by Sublandlord and Landlord. Additionally, where applicable, each policy shall contain a cross‑liability and severability of interest clause.

(b)Performance of the Subtenant's Work shall be subject to the indemnification provisions contained in the Sublease.

7.Improvement Allowance.

(a)Sublandlord shall reimburse Subtenant for up to $210,225 (being $37.50 per square foot of rentable area of the Additional Premises) (the “Improvement Allowance”) of the Cost of Subtenant’s Work (as hereinafter defined). Subtenant shall pay the amount by which the Cost of Subtenant’s Work exceeds the Improvement Allowance. The Improvement Allowance shall be paid out to Subtenant based upon ninety percent (90%) of the value of the work for which payment is requested (i.e., the value of such work prior to application of any retainage provided for in Subtenant's contract with Subtenant's Contractor) to reimburse Subtenant for the Cost of Subtenant’s Work. Prior to the payment of any portion of the Improvement Allowance, Subtenant shall deliver, or shall cause to be delivered to Sublandlord evidence that the work for which reimbursement is then being requested has been performed and paid for by Subtenant, which evidence shall include executed lien waivers, architect’s certificates, contractor’s statements, and owner’s statements covering the work for which reimbursement is requested from time to time. Sublandlord covenants that it will make disbursements of the Improvement Allowance within thirty (30) days after receiving the foregoing required documentation. At Subtenant's election, payments out of the Improvement Allowance shall be made by Sublandlord directly to Subtenant's Contractor, in which event any lien waivers delivered to Sublandlord in connection with a request for disbursement may be conditioned upon payment. Funds paid to Subtenant from Sublandlord shall be deemed to be paid out of the Improvement Allowance until the full amount of the Improvement Allowance has been disbursed. In no event shall Sublandlord be required to make more than one disbursement of the Improvement Allowance during any single calendar month. Upon Subtenant’s completion of Subtenant’s Work and delivery to Sublandlord of final lien waivers and other evidence reasonably required by Sublandlord to confirm Subtenant’s Work has been completed and fully paid for, Sublandlord shall, promptly after written request from Subtenant, disburse to Subtenant any portion of the Improvement Allowance to which Subtenant has satisfied the requirements for disbursement but which was withheld by Sublandlord as the ten percent (10%) retainage. The Improvement Allowance shall be available to pay for the cost of Subtenant’s Work and for so-called "soft costs", which include space planning, architectural and engineering fees, legal fees, construction management fees, moving costs, telephone and computer cabling and for furniture fixtures and office equipment and stationery.

(b)If Sublandlord fails to disburse any portion of the Improvement Allowance as and when required by Section 7(a) of this Work Letter, Subtenant shall be entitled to a credit against Base Rent due and payable under the Sublease in the amount equal to the amount of the Improvement Allowance that was not disbursed by Sublandlord as and when required by Section 7(a), with interest accruing on such unpaid amount at the rate of 9% per annum.

8.Cost of Subtenant’s Work. “Cost of Subtenant’s Work” shall mean costs of all labor and materials, general contractor’s fees and any permit or license fees necessary for completion of construction of Subtenant’s Work. Sublandlord shall not be entitled to any construction coordination or supervision fee in connection with the Subtenant's Work, and Subtenant shall have no liability to pay any construction coordination fee payable to Landlord pursuant to the Prime Lease.

9.Landlord’s Approval. Notwithstanding anything to the contrary contained in the Sublease or this Work Letter, in each instance where Sublandlord’s approval or consent is required, Landlord’s approval shall be required to the extent required under the Prime Lease.

10.Miscellaneous.

(a)Charges due from Subtenant to Sublandlord pursuant to this Work Letter, if any, may be deducted by Sublandlord from any payment of the Improvement Allowance provided Sublandlord has delivered reasonable evidence of such charges to Subtenant.

(b)If Subtenant’s Plans require the construction and installation of more fire hose cabinets or telephone/electrical closets than the number regularly provided by Sublandlord in the portion of the Building in which the Additional Premises are located, Subtenant shall pay all costs and expenses arising from the construction and installation of such additional fire hose cabinets or telephone/electrical closets.

(c)This Work Letter shall not be deemed applicable to any additional office space added to the Original Premises or the Additional Premises at any time or from time to time, whether by any options under the Sublease or otherwise, or to any portion of the Original Premises, the Additional Premiese, or any additions thereto in the event of a renewal or extension of the original Term of the Sublease, whether by any options under the Sublease or otherwise, unless expressly so provided in the Sublease or any amendment or supplement thereto.

(d)With respect to any amounts owed by Subtenant hereunder and not paid when due or Subtenant’s failure to perform its obligations hereunder, Sublandlord shall have all of the rights and remedies granted to Sublandlord under the Sublease for non‑payment by Subtenant of any amounts owed thereunder or failure by Subtenant to perform its obligations thereunder.

[END OF WORK LETTER]

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Timothy L. Buzby, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of the Federal Agricultural Mortgage Corporation for the fiscal quarter ended September 30, 2017;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)  Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 9, 2017

/s/ Timothy L. Buzby

Timothy L. Buzby

Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, R. Dale Lynch, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of the Federal Agricultural Mortgage Corporation for the fiscal quarter ended September 30, 2017;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)  Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 9, 2017

/s/ R. Dale Lynch

R. Dale Lynch

Chief Financial Officer

EX-32

Exhibit 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of the Federal Agricultural Mortgage Corporation (the “Corporation”) for the quarterly period ended September 30, 2017 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, Timothy L. Buzby, Chief Executive Officer of the Corporation, and R. Dale Lynch, Chief Financial Officer of the Corporation, each hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to his knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

/s/ Timothy L. Buzby
Timothy L. Buzby
Chief Executive Officer
/s/ R. Dale Lynch
R. Dale Lynch
Chief Financial Officer
Date:	November 9, 2017

XML

DOCUMENT AND ENTITY INFORMATION DOCUMENT AND ENTITY INFORMATION - shares	9 Months Ended
	Sep. 30, 2017	Nov. 01, 2017
Entity Information [Line Items]
Entity Registrant Name	FEDERAL AGRICULTURAL MORTGAGE CORP
Entity Central Index Key	0000845877
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Amendment Flag	false
Trading Symbol	AGM
Common Class A, Voting [Member]
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		1,030,780
Common Class B, Voting [Member]
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		500,301
Common Class C, Non-Voting [Member]
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		9,086,963

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Assets:
Cash and cash equivalents	$ 366,764	$ 265,229
Loans:
Loans held for investment, at amortized cost	3,804,966	3,379,884
Loans held for investment in consolidated trusts, at amortized cost	1,329,212	1,132,966
Allowance for loan losses	(6,408)	(5,415)
Total loans, net of allowance	5,127,770	4,507,435
Real estate owned, at lower of cost or fair value	1,086	1,528
Financial derivatives, at fair value	2,020	23,182
Interest receivable (includes $10,625 and $12,584, respectively, related to consolidated trusts)	110,175	122,782
Guarantee and commitment fees receivable	36,679	38,871
Deferred tax asset, net	4,293	12,291
Prepaid expenses and other assets	96,780	86,322
Total Assets	17,690,238	15,606,020
Notes payable:
Due within one year	8,112,928	8,440,123
Due after one year	7,399,961	5,222,977
Total notes payable	15,512,889	13,663,100
Debt securities of consolidated trusts held by third parties	1,333,417	1,142,704
Financial derivatives, at fair value	30,595	58,152
Accrued interest payable (includes $8,874 and $10,881, respectively, related to consolidated trusts)	61,804	49,700
Guarantee and commitment obligation	35,316	37,282
Accounts payable and accrued expenses	19,971	9,415
Reserve for losses	2,080	2,020
Total Liabilities	16,996,072	14,962,373
Commitments and Contingencies (Note 6)
Common stock:
Additional paid-in capital	119,130	118,655
Accumulated other comprehensive income, net of tax	40,795	33,758
Retained earnings	318,869	275,714
Total Stockholders' Equity	694,166	643,425
Non-controlling interest	0	222
Total Equity	694,166	643,647
Total Liabilities and Equity	17,690,238	15,606,020
Series A Preferred Stock [Member]
Preferred stock:
Preferred stock	58,333	58,333
Series B Preferred Stock [Member]
Preferred stock:
Preferred stock	73,044	73,044
Series C Preferred Stock [Member]
Preferred stock:
Preferred stock	73,382	73,382
Common Class A, Voting [Member]
Common stock:
Common Stock	1,031	1,031
Common Class B, Voting [Member]
Common stock:
Common Stock	500	500
Common Class C, Non-Voting [Member]
Common stock:
Common Stock	9,082	9,008
Investment Securities [Member]
Assets:
Available-for-sale, at fair value	2,234,966	2,515,851
Marketable Securities	2,234,966	2,515,851
Farmer Mac Guaranteed Securities:
Assets:
Available-for-sale, at fair value	5,443,746	4,853,685
Held-to-maturity, at amortized cost	2,158,810	1,149,231
Marketable Securities	7,602,556	6,002,916
USDA Securities [Member]
Assets:
Held-to-maturity, at amortized cost	2,092,285	2,009,225
Trading, at fair value	14,864	20,388
Marketable Securities	$ 2,107,149	$ 2,029,613

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CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Interest receivable - Consolidated Trusts amount	$ 110,175	$ 122,782
Accrued interest payable - Consolidated Trusts amount	$ 61,804	$ 49,700
Series A Preferred Stock [Member]
Preferred stock, par value	$ 25	$ 25
Preferred stock, shares authorized	2,400,000	2,400,000
Preferred Stock, Shares Issued	2,400,000	2,400,000
Preferred Stock, Shares Outstanding	2,400,000	2,400,000
Series B Preferred Stock [Member]
Preferred stock, par value	$ 25	$ 25
Preferred stock, shares authorized	3,000,000	3,000,000
Preferred Stock, Shares Issued	3,000,000	3,000,000
Preferred Stock, Shares Outstanding	3,000,000	3,000,000
Series C Preferred Stock [Member]
Preferred stock, par value	$ 25	$ 25
Preferred stock, shares authorized	3,000,000	3,000,000
Preferred Stock, Shares Issued	3,000,000	3,000,000
Preferred Stock, Shares Outstanding	3,000,000	3,000,000
Common Class A, Voting [Member]
Common stock, par value	$ 1	$ 1
Common stock, shares outstanding	1,030,780	1,030,780
Common Class B, Voting [Member]
Common stock, par value	$ 1	$ 1
Common stock, shares outstanding	500,301	500,301
Common Class C, Non-Voting [Member]
Common stock, par value	$ 1	$ 1
Common stock, shares outstanding	9,082,335	9,007,481
Variable Interest Entity, Primary Beneficiary [Member]
Interest receivable - Consolidated Trusts amount	$ 10,625	$ 12,584
Accrued interest payable - Consolidated Trusts amount	$ 8,874	$ 10,881

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CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended				9 Months Ended
	Sep. 30, 2017		Sep. 30, 2016		Sep. 30, 2017		Sep. 30, 2016
Interest income:
Investments and cash equivalents	$ 9,223		$ 6,994		$ 24,834		$ 20,235
Farmer Mac Guaranteed Securities and USDA Securities	54,350		38,129		146,978		110,938
Loans	40,924		34,409		117,349		99,486
Total interest income	104,497		79,532		289,161		230,659
Total interest expense	64,935		43,969		172,797		127,098
Net interest income	39,562		35,563		116,364		103,561
Provision for loan losses	(270)		(191)		(1,234)		(604)
Net interest income after provision for loan losses	39,292		35,372		115,130		102,957
Non-interest income:
Guarantee and commitment fees	3,314	[1]	3,798	[2]	10,630	[3]	11,079	[4]
Gains/(losses) on financial derivatives and hedging activities	661		(1,601)		2,530		(13,079)
Gains/(losses) on trading securities	0		1,182		(84)		1,934
Gains/(losses) on sale of available-for-sale investment securities	89		0		89		(9)
Gains on sale of real estate owned	32		15		784		15
Other income	203		707		890		1,221
Non-interest income	4,299		4,101		14,839		1,161
Non-interest expense:
Compensation and employee benefits	5,987		5,438		18,986		16,823
General and administrative	3,890		3,474		11,611		10,757
Regulatory fees	625		613		1,875		1,838
Real estate owned operating costs, net	0		0		23		39
Provision for/(release of) reserve for losses	114		(222)		60		(114)
Non-interest expense	10,616	[5]	9,303	[6]	32,555	[7]	29,343	[8]
Income before income taxes	32,975		30,170		97,414		74,775
Income tax expense	11,193		10,529		33,103		26,264
Net income	21,782		19,641		64,311		48,511
Less: Net loss attributable to non-controlling interest	0		18		165		62
Net income attributable to Farmer Mac	21,782		19,659		64,476		48,573
Preferred stock dividends	(3,295)		(3,295)		(9,886)		(9,886)
Net income attributable to common stockholders	$ 18,487		$ 16,364		$ 54,590		$ 38,687
Earnings per common share and dividends:
Basic earnings per common share	$ 1.74	[9]	$ 1.56		$ 5.16	[10]	$ 3.70
Diluted earnings per common share	1.71000	[9]	1.54000		5.06000	[10]	3.6000
Common Stock, Dividends, Per Share, Cash Paid	$ 0.36		$ 0.26		$ 1.08		$ 0.78

[1] Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.

[2] Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.

[3] Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.

[4] Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.

[5] Includes directly attributable costs and an allocation of indirectly attributable costs based on staffing.

[6] Includes directly attributable costs and an allocation of indirectly attributable costs based on staffing.

[7] Includes directly attributable costs and an allocation of indirectly attributable costs based on staffing.

[8] Includes directly attributable costs and an allocation of indirectly attributable costs based on staffing.

[9] For the effect of the adoption of the new Accounting Standard Update 2016-09, "Improvements to Employee Share-Based Payment Accounting," on Basic and Diluted EPS, see Note 1(d) "New Accounting Standards."

[10] For the effect of the adoption of the new Accounting Standard Update 2016-09, "Improvements to Employee Share-Based Payment Accounting," on Basic and Diluted EPS, see Note 1(d) "New Accounting Standards."

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net income	$ 21,782	$ 19,641	$ 64,311	$ 48,511
Other comprehensive income before taxes:
Net unrealized (losses)/gains on available-for-sale securities	(886)	552	19,283	46,305
Net changes in held-to-maturity securities	(1,879)	(73)	(7,491)	(2,081)
Net unrealized gains/(losses) on cash flow hedges	253	1,336	(966)	(6,403)
Other comprehensive (loss)/income before tax	(2,512)	1,815	10,826	37,821
Income tax expense related to other comprehensive (loss)/income	879	(635)	(3,789)	(13,238)
Other comprehensive (loss)/income net of tax	(1,633)	1,180	7,037	24,583
Comprehensive income	20,149	20,821	71,348	73,094
Less: comprehensive loss attributable to non-controlling interest	0	18	165	62
Comprehensive income attributable to Farmer Mac	$ 20,149	$ 20,839	$ 71,513	$ 73,156

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CONSOLIDATED STATEMENTS OF EQUITY Statement - USD ($)	Total	Common Class C, Non-Voting [Member]	Preferred Stock [Member]	Preferred Stock [Member] Common Class C, Non-Voting [Member]	Common Stock [Member]	Common Stock [Member] Common Class C, Non-Voting [Member]	Additional Paid-in Capital [Member]	Additional Paid-in Capital [Member] Common Class C, Non-Voting [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Accumulated Other Comprehensive Income (Loss) [Member] Common Class C, Non-Voting [Member]	Retained Earnings [Member]	Retained Earnings [Member] Common Class C, Non-Voting [Member]	Noncontrolling Interest [Member]	Noncontrolling Interest [Member] Common Class C, Non-Voting [Member]
Beginning Balance (Shares Outstanding) at Dec. 31, 2015			8,400,000		10,687,000
Beginning Balance at Dec. 31, 2015	$ 553,720,000		$ 204,759,000		$ 10,687,000		$ 117,862,000		$ (11,019,000)		$ 231,228,000		$ 203,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Attributable to Farmer Mac	48,573,000		0		0		0		0		48,573,000		0
Less: Net loss attributable to non-controlling interest	62,000		0		0		0		0		0		(62,000)
Other comprehensive income, net of tax	24,583,000		0		0		0		24,583,000		0		0
Preferred stock	(9,886,000)		0		0		0		0		(9,886,000)		0
Common stock	(8,145,000)		0		0		0		0		(8,145,000)		0
Stock Issued During Period, Shares, New Issues				0		101,000
Stock Issued During Period, Value, New Issues		$ 491,000		$ 0		$ 101,000		$ 390,000		$ 0		$ 0		$ 0
Repurchase of Class C Common Stock				0		(307,000)
Repurchase of Class C Common Stock		(9,088,000)		$ 0		$ (307,000)		0		0		(8,781,000)		0
Stock-based compensation cost	2,566,000		0		0		2,566,000		0		0		0
Other stock-based award activity	(1,921,000)		0		0		(1,921,000)		0		0		0
Redemption of interest in subsidiary	53,000		$ 0		$ 0		0		0		0		53,000
Ending Balance (Shares Outstanding) at Sep. 30, 2016			8,400,000		10,481,000
Ending Balance at Sep. 30, 2016	600,884,000		$ 204,759,000		$ 10,481,000		118,897,000		13,564,000		252,989,000		194,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock	(0.26)
Ending Balance (Shares Outstanding) at Dec. 31, 2016			8,400,000		10,539,000
Ending Balance at Dec. 31, 2016	643,647,000		$ 204,759,000		$ 10,539,000		118,655,000		33,758,000		275,714,000		222,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Attributable to Farmer Mac	64,476,000		0		0		0		0		64,476,000		0
Less: Net loss attributable to non-controlling interest	165,000		0		0		0		0		0		(165,000)
Other comprehensive income, net of tax	7,037,000		0		0		0		7,037,000		0		0
Preferred stock	(9,886,000)		0		0		0		0		(9,886,000)		0
Common stock	(11,435,000)		0		0		0		0		(11,435,000)		0
Stock Issued During Period, Shares, New Issues				0		74,000
Stock Issued During Period, Value, New Issues		$ 302,000		$ 0		$ 74,000		$ 228,000		$ 0		$ 0		$ 0
Repurchase of Class C Common Stock		(668,000)
Stock-based compensation cost	2,597,000		0		0		2,597,000		0		0		0
Other stock-based award activity	(2,350,000)		0		0		(2,350,000)		0		0		0
Redemption of interest in subsidiary	(57,000)		$ 0		$ 0		0		0		0		(57,000)
Ending Balance (Shares Outstanding) at Sep. 30, 2017			8,400,000		10,613,000
Ending Balance at Sep. 30, 2017	$ 694,166,000		$ 204,759,000		$ 10,613,000		$ 119,130,000		$ 40,795,000		$ 318,869,000		$ 0

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net income	$ 64,311	$ 48,511
Adjustments to reconcile net income to net cash provided by operating activities:
Net amortization of deferred gains, premiums, and discounts on loans, investments, Farmer Mac Guaranteed Securities, and USDA Securities	1,701	1,343
Amortization of debt premiums, discounts and issuance costs	17,078	24,789
Net change in fair value of trading securities, hedged assets, and financial derivatives	(12,232)	1,672
Gains on sale of real estate owned	(784)	(15)
Total provision for losses	1,294	490
Excess Tax Benefits from Share-Based Compensation	1,170	0
Deferred income taxes	1,910	(1,270)
Other Noncash Income (Expense)	11	9
Stock-based compensation expense	2,597	2,565
Proceeds from repayment of trading investment securities	0	2,212
Proceeds from repayment of loans purchased as held for sale	54,919	67,506
Net change in:
Interest receivable	12,678	26,172
Guarantee and commitment fees receivable	226	534
Other assets	(109)	(46,832)
Accrued interest payable	12,104	(7,351)
Other liabilities	435	507
Net cash provided by operating activities	157,309	120,842
Cash flows from investing activities:
Purchases of loans held for investment	(1,047,001)	(762,018)
Purchases of defaulted loans	(3,458)	(2,516)
Proceeds from repayment of loans purchased as held for investment	368,826	333,920
Proceeds from sale of Farmer Mac Guaranteed Securities	404,246	457,369
Proceeds from sale of real estate owned	6,464	295
Net cash used by investing activities	(1,777,246)	(930,044)
Cash flows from financing activities:
Excess tax benefits related to stock-based awards	0	408
Payments to third parties on debt securities of consolidated trusts	(86,582)	(71,806)
Proceeds from common stock issuance	235	405
Tax payments related to share-based awards	(2,283)	(1,975)
Investment in subsidiary - non-controlling interest	0	53
Dividends paid on common and preferred stock	(21,321)	(18,031)
Net cash provided/(used) by financing activities	1,721,472	(87,301)
Net increase in cash and cash equivalents	101,535	(896,503)
Cash and cash equivalents at beginning of period	265,229	1,210,084
Cash and cash equivalents at end of period	366,764	313,581
Medium-term Notes [Member]
Cash flows from financing activities:
Proceeds from issuance of discount notes and medium-term notes	7,160,298	4,763,631
Payments to redeem discount notes and medium-term notes	(3,416,300)	(3,103,800)
Discount Notes [Member]
Cash flows from financing activities:
Proceeds from issuance of discount notes and medium-term notes	40,262,122	77,411,229
Payments to redeem discount notes and medium-term notes	(42,174,697)	(79,058,129)
Investment Securities [Member]
Cash flows from investing activities:
Purchases of available-for-sale investment securities and Farmer Mac Guaranteed Securities and USDA Guaranteed Securities	(614,423)	(1,365,314)
Proceeds from repayment of available-for-sale investment securities, Farmer Mac Guaranteed Securities and USDA Guaranteed Securities	895,497	957,973
Proceeds from sale of available-for-sale investment securities	5,089	186,769
Farmer Mac Guaranteed Securities and USDA Securities [Member]
Cash flows from investing activities:
Purchases of available-for-sale investment securities and Farmer Mac Guaranteed Securities and USDA Guaranteed Securities	(2,580,229)	(2,203,574)
Proceeds from repayment of available-for-sale investment securities, Farmer Mac Guaranteed Securities and USDA Guaranteed Securities	787,743	1,467,052
Common Class C, Non-Voting [Member]
Cash flows from financing activities:
Common stock repurchased	$ 0	$ (9,286)

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Accounting Policies

9 Months Ended

Sep. 30, 2017

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The interim unaudited consolidated financial statements of the Federal Agricultural Mortgage Corporation ("Farmer Mac") and subsidiaries have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). These interim unaudited consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary to present a fair statement of the financial position and the results of operations and cash flows of Farmer Mac and subsidiaries for the interim periods presented. Certain information and footnote disclosures normally included in the annual consolidated financial statements have been omitted as permitted by SEC rules and regulations. The December 31, 2016 consolidated balance sheet presented in this report has been derived from Farmer Mac's audited 2016 consolidated financial statements. Management believes that the disclosures are adequate to present fairly the consolidated financial statements as of the dates and for the periods presented. These interim unaudited consolidated financial statements should be read in conjunction with the 2016 consolidated financial statements of Farmer Mac and subsidiaries included in Farmer Mac's Annual Report on Form 10-K for the year ended December 31, 2016 filed with the SEC on March 9, 2017. That Form 10-K describes Farmer Mac's significant accounting policies, which include its policies on Principles of Consolidation; Cash and Cash Equivalents and Statements of Cash Flows; Transfers of Financial Assets and Liabilities; Investment Securities, Farmer Mac Guaranteed Securities, and USDA Securities; Loans; Securitization of Loans; Real Estate Owned; Financial Derivatives; Notes Payable; Allowance for Loan Losses and Reserve for Losses; Earnings Per Common Share; Income Taxes; Stock-Based Compensation; Comprehensive Income; Long-Term Standby Purchase Commitments; Fair Value Measurement; and Consolidation of Variable Interest Entities ("VIEs"). Results for interim periods are not necessarily indicative of those that may be expected for the fiscal year. Presented below are Farmer Mac's significant accounting policies that contain updated information for the three months ended September 30, 2017.

Principles of Consolidation

The consolidated financial statements include the accounts of Farmer Mac and its three subsidiaries during the quarter: (1) Farmer Mac Mortgage Securities Corporation ("FMMSC"), whose principal activities are to facilitate the purchase and issuance of Farmer Mac Guaranteed Securities; (2) Farmer Mac II LLC, whose principal activity is the operation of substantially all of the business related to the USDA Guarantees line of business – primarily the acquisition of USDA Securities; and (3) Contour Valuation Services, LLC (which began doing business as AgVisory during first quarter 2016), whose principal activity is to appraise agricultural real estate. On May 1, 2017, Farmer Mac transferred its entire 65% ownership interest in AgVisory back to the limited liability company as a company redemption in exchange for $5,000. Farmer Mac recognized a loss of approximately $0.1 million after-tax upon the transfer. The consolidated financial statements also include the accounts of VIEs in which Farmer Mac determined itself to be the primary beneficiary.

The following tables present, by line of business, details about the consolidation of VIEs:

Table 1.1

	Consolidation of Variable Interest Entities
	As of September 30, 2017
	Farm & Ranch		USDA Guarantees		Rural Utilities		Institutional Credit		Corporate		Total
	(in thousands)
On-Balance Sheet:
Consolidated VIEs:
Loans held for investment in consolidated trusts, at amortized cost	$	1,329,212	$	—	$	—	$	—	$	—	$	1,329,212
Debt securities of consolidated trusts held by third parties (1)	1,333,417		—		—		—		—		1,333,417
Unconsolidated VIEs:
Farmer Mac Guaranteed Securities:
Carrying value (2)	—		31,003		—		—		—		31,003
Maximum exposure to loss (3)	—		30,688		—		—		—		30,688
Investment securities:
Carrying value (4)	—		—		—		—		783,665		783,665
Maximum exposure to loss (3) (4)	—		—		—		—		781,755		781,755
Off-Balance Sheet:
Unconsolidated VIEs:
Farmer Mac Guaranteed Securities:
Maximum exposure to loss (3) (5)	354,823		226,802		—		—		—		581,625

⁽¹⁾  Includes borrower remittances of $4.2 million. The borrower remittances had not been passed through to third party investors as of September 30, 2017.

⁽²⁾  Includes $0.3 million of unamortized premiums and discounts and fair value adjustments related to the USDA Guarantees line of business.

⁽³⁾  Farmer Mac uses unpaid principal balance and outstanding face amount of investment securities to represent maximum exposure to loss.

⁽⁴⁾  Includes auction-rate certificates, asset-backed securities, and government-sponsored enterprise ("GSE")-guaranteed mortgage-backed securities.

⁽⁵⁾  The amount under the Farm & Ranch line of business relates to unconsolidated trusts where Farmer Mac determined it was not the primary beneficiary due to shared power with an unrelated party.

	Consolidation of Variable Interest Entities
	As of December 31, 2016
	Farm & Ranch		USDA Guarantees		Rural Utilities		Institutional Credit		Corporate		Total
	(in thousands)
On-Balance Sheet:
Consolidated VIEs:
Loans held for investment in consolidated trusts, at amortized cost	$	1,132,966	$	—	$	—	$	—	$	—	$	1,132,966
Debt securities of consolidated trusts held by third parties (1)	1,142,704		—		—		—		—		1,142,704
Unconsolidated VIEs:
Farmer Mac Guaranteed Securities:
Carrying value (2)	—		36,042		—		30,347		—		66,389
Maximum exposure to loss (3)	—		35,599		—		30,000		—		65,599
Investment securities:
Carrying value (4)	—		—		—		—		827,874		827,874
Maximum exposure to loss (3) (4)	—		—		—		—		825,909		825,909
Off-Balance Sheet:
Unconsolidated VIEs:
Farmer Mac Guaranteed Securities:
Maximum exposure to loss (3) (5)	415,441		103,976		—		970,000		—		1,489,417

⁽¹⁾  Includes borrower remittances of $9.7 million, which have not been passed through to third party investors as of December 31, 2016.

⁽²⁾  Includes $0.4 million of unamortized premiums and discounts and fair value adjustments related to the USDA Guarantees line of business. Includes fair value adjustments related to the Institutional Credit line of business of $0.3 million.

⁽³⁾  Farmer Mac uses unpaid principal balance and the outstanding face amount of investment securities to represent maximum exposure to loss.

⁽⁴⁾  Includes auction-rate certificates, asset-backed securities, and GSE-guaranteed mortgage-backed securities.

⁽⁵⁾  The amount under the Farm & Ranch line of business relates to unconsolidated trusts where Farmer Mac determined it was not the primary beneficiary due to shared power with an unrelated party.

Statements of Cash Flows

The following table sets forth information regarding certain cash and non-cash transactions for the nine months endedSeptember 30, 2017 and 2016:

Table 1.2

	For the Nine Months Ended
	September 30, 2017	September 30, 2016
	(in thousands)
Non-cash activity:
Real estate owned acquired through loan liquidation	5,261	—
Loans acquired and securitized as Farmer Mac Guaranteed Securities	404,246	457,369
Consolidation of Farm & Ranch Guaranteed Securities from off-balance sheet to loans held for investment in consolidated trusts and to debt securities of consolidated trusts held by third parties	277,307	402,841
Purchases of securities - traded not yet settled	9,987	25,000

Earnings Per Common Share

Basic earnings per common share ("EPS") is based on the weighted-average number of shares of common stock outstanding.  Diluted earnings per common share is based on the weighted-average number of shares of common stock outstanding adjusted to include all potentially dilutive common stock options, stock appreciation rights ("SARs"), and non-vested restricted stock awards.  The following schedule reconciles basic and diluted EPS for the three and nine months ended September 30, 2017 and 2016:

Table 1.3

	For the Three Months Ended
	September 30, 2017(1)						September 30, 2016
	Net Income		Weighted-Average Shares	$ per Share			Net Income		Weighted-Average Shares	$ per Share
	(in thousands, except per share amounts)
Basic EPS
Net income attributable to common stockholders	$	18,487	10,605	$	1.74		$	16,364	10,473	$	1.56
Effect of dilutive securities(2)
Stock options, SARs and restricted stock	—		210	(0.03		)	—		176	(0.02		)
Diluted EPS	$	18,487	10,815	$	1.71		$	16,364	10,649	$	1.54

⁽¹⁾  For the effect of the adoption of the new Accounting Standard Update 2016-09, "Improvements to Employee Share-Based Payment Accounting," on Basic and Diluted EPS, see Note 1(d) "New Accounting Standards."

⁽²⁾  For the three months ended September 30, 2017 and 2016, stock options and SARs of 24,657 and 54,709, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because they were anti-dilutive. For the three months ended September 30, 2017 and 2016, contingent shares of non-vested restricted stock of 32,892, and 37,284, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because performance conditions had not yet been met.

	For the Nine Months Ended
	September 30, 2017(1)						September 30, 2016
	Net Income		Weighted-Average Shares	$ per Share			Net Income		Weighted-Average Shares	$ per Share
	(in thousands, except per share amounts)
Basic EPS
Net income attributable to common stockholders	$	54,590	10,586	$	5.16		$	38,687	10,464	$	3.70
Effect of dilutive securities(2)
Stock options, SARs and restricted stock	—		208	(0.10		)	—		291	(0.10		)
Diluted EPS	$	54,590	10,794	$	5.06		$	38,687	10,755	$	3.60

⁽¹⁾  For the effect of the adoption of the new Accounting Standard Update 2016-09, "Improvements to Employee Share-Based Payment Accounting," on Basic and Diluted EPS, see Note 1(d) "New Accounting Standards."

⁽²⁾  For the nine months ended September 30, 2017 and 2016, stock options and SARs of 33,440 and 115,875, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because they were anti-dilutive. For the nine months ended September 30, 2017 and 2016, contingent shares of non-vested restricted stock of 32,892, and 37,284, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because performance conditions had not yet been met.

Comprehensive Income

Comprehensive income represents all changes in stockholders' equity except those resulting from investments by or distributions to stockholders, and is comprised of net income and unrealized gains and losses on available-for-sale securities, certain held-to-maturity securities transferred from the available-for-sale classification, and cash flow hedges, net of related taxes.

The following table presents the changes in accumulated other comprehensive income ("AOCI"), net of tax, by component for the three and nine months ended September 30, 2017 and 2016:

Table 1.4

	As of September 30, 2017												As of September 30, 2016
	Available-for-Sale Securities			Held-to-Maturity Securities			Cash Flow Hedges			Total			Available-for-Sale Securities			Held-to-Maturity Securities			Cash Flow Hedges			Total
	(in thousands)
For the Three Months Ended:
Beginning Balance	$	(1,276	)	$	42,104		$	1,600		$	42,428		$	19,704		$	(1,781	)	$	(5,539	)	$	12,384
Other Comprehensive Income Before Reclassifications	2,298			—			(97		)	2,201			2,746			—			527			3,273
Amounts reclassified from AOCI	(2,875		)	(1,221		)	262			(3,834		)	(2,388		)	(47		)	342			(2,093		)
Net Comprehensive (Loss)/Income	(577		)	(1,221		)	165			(1,633		)	358			(47		)	869			1,180
Ending Balance	$	(1,853	)	$	40,883		$	1,765		$	40,795		$	20,062		$	(1,828	)	$	(4,670	)	$	13,564
For the Nine Months Ended:
Beginning Balance	$	(14,387	)	$	45,752		$	2,393		$	33,758		$	(10,035	)	$	(476	)	$	(508	)	$	(11,019	)
Other Comprehensive Income Before Reclassifications	20,711			—			(1,522		)	19,189			37,446			—			(5,136		)	32,310
Amounts reclassified from AOCI	(8,177		)	(4,869		)	894			(12,152		)	(7,349		)	(1,352		)	974			(7,727		)
Net Comprehensive Income/(Loss)	12,534			(4,869		)	(628		)	7,037			30,097			(1,352		)	(4,162		)	24,583
Ending Balance	$	(1,853	)	$	40,883		$	1,765		$	40,795		$	20,062		$	(1,828	)	$	(4,670	)	$	13,564

The following table presents other comprehensive income activity, the impact on net income of amounts reclassified from each component of AOCI, and the related tax impact for the three and nine months ended September 30, 2017 and 2016:

Table 1.5

	For the Three Months Ended
	September 30, 2017									September 30, 2016
	Before Tax			Provision (Benefit)			After Tax			Before Tax			Provision (Benefit)			After Tax
	(in thousands)
Other comprehensive income:
Available-for-sale-securities:
Unrealized holding gains on available-for-sale-securities	$	3,536		$	1,238		$	2,298		$	4,225		$	1,479		$	2,746
Less reclassification adjustments included in:
Gains/(losses) on financial derivatives and hedging activities(1)	(4,326		)	(1,514		)	(2,812		)	(3,652		)	(1,278		)	(2,374		)
Gains/(losses) on sale of available-for-sale investment securities(2)	(89		)	(31		)	(58		)	—			—			—
Other income(2)	(7		)	(2		)	(5		)	(21		)	(7		)	(14		)
Total	$	(886	)	$	(309	)	$	(577	)	$	552		$	194		$	358
Held-to-maturity securities:
Less reclassification adjustments included in:
Net interest income(3)	$	(1,879	)	$	(658	)	$	(1,221	)	$	(73	)	$	(26	)	$	(47	)
Total	$	(1,879	)	$	(658	)	$	(1,221	)	$	(73	)	$	(26	)	$	(47	)
Cash flow hedges
Unrealized (losses)/gains on cash flow hedges	$	(150	)	$	(53	)	$	(97	)	$	810		$	283		$	527
Less reclassification adjustments included in:
Net interest income(4)	403			141			262			526			184			342
Total	$	253		$	88		$	165		$	1,336		$	467		$	869
Other comprehensive (loss)/income	$	(2,512	)	$	(879	)	$	(1,633	)	$	1,815		$	635		$	1,180

⁽¹⁾  Relates to the amortization of unrealized gains on hedged items prior to the application of fair value hedge accounting.

⁽²⁾  Represents amortization of deferred gains related to certain available-for-sale USDA Securities and Farmer Mac Guaranteed USDA Securities.

⁽³⁾  Relates to the amortization of unrealized gains or losses prior to the reclassification of these securities from available-for-sale to held-to-maturity. The amortization of unrealized gains or losses reported in AOCI for held-to-maturity securities will be offset by the amortization of the premium or discount created from the transfer into held-to-maturity securities, which occurred at fair value. These unrealized gains or losses will be recorded over the remaining life of the security with no impact on future net income.

⁽⁴⁾  Relates to the recognition of unrealized gains and losses on cash flow hedges recorded in AOCI.

	For the Nine Months Ended
	September 30, 2017									September 30, 2016
	Before Tax			Provision (Benefit)			After Tax			Before Tax			Provision (Benefit)			After Tax
	(in thousands)
Other comprehensive income:
Available-for-sale-securities:
Unrealized holding gains on available-for-sale-securities	$	31,863		$	11,152		$	20,711		$	57,610		$	20,164		$	37,446
Less reclassification adjustments included in:
Gains/(losses) on financial derivatives and hedging activities(1)	(12,470		)	(4,365		)	(8,105		)	(11,591		)	(4,056		)	(7,535		)
Gains/(losses) on sale of available-for-sale investment securities(2)	(89		)	(31		)	(58		)	9			3			6
Other income(3)	(21		)	(7		)	(14		)	277			97			180
Total	$	19,283		$	6,749		$	12,534		$	46,305		$	16,208		$	30,097
Held-to-maturity securities:
Less reclassification adjustments included in:
Net interest income(4)	$	(7,491	)	$	(2,622	)	$	(4,869	)	$	(2,081	)	$	(729	)	$	(1,352	)
Total	$	(7,491	)	$	(2,622	)	$	(4,869	)	$	(2,081	)	$	(729	)	$	(1,352	)
Cash flow hedges
Unrealized losses on cash flow hedges	(2,342		)	(820		)	$	(1,522	)	$	(7,901	)	$	(2,765	)	$	(5,136	)
Less reclassification adjustments included in:
Net interest income(5)	1,376			482			894			1,498			524			974
Total	$	(966	)	$	(338	)	$	(628	)	$	(6,403	)	$	(2,241	)	$	(4,162	)
Other comprehensive income	$	10,826		$	3,789		$	7,037		$	37,821		$	13,238		$	24,583

⁽¹⁾  Relates to the amortization of unrealized gains on hedged items prior to the application of fair value hedge accounting.

⁽²⁾  Represents unrealized losses on sales of available-for-sale investment securities.

⁽³⁾  Represents amortization of deferred gains related to certain available-for-sale USDA Securities and Farmer Mac Guaranteed USDA Securities.

⁽⁴⁾  Relates to the amortization of unrealized gains or losses prior to the reclassification of these securities from available-for-sale to held-to-maturity. The amortization of unrealized gains or losses reported in AOCI for held-to-maturity securities will be offset by the amortization of the premium or discount created from the transfer into held-to-maturity securities, which occurred at fair value. These unrealized gains or losses will be recorded over the remaining life of the security with no impact on future net income.

⁽⁵⁾  Relates to the recognition of unrealized gains and losses on cash flow hedges recorded in AOCI.

New Accounting Standards

In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which provides new guidance intended to simplify several aspects of accounting and presentation for employee share-based payment transactions. The ASU became effective for Farmer Mac on January 1, 2017. The adoption of the new guidance had the following effect on Farmer Mac's financial position, results of operations, and cash flows:

• Consolidated Statements of Operations - The ASU requires the recognition of all net tax benefits related to share-based compensation awards in the income tax provision. Previously, these amounts were recognized in additional paid-in capital. Net tax benefits related to share-based compensation awards of $0.3 million and $1.2 million, respectively, were recognized as a reduction to income tax expense in the three and nine months ended September 30, 2017 in the consolidated statement of operations. Net tax benefits result from the excess of the tax deduction over the compensation expense recognized under GAAP for share-based compensation awards. That excess arises because the tax deduction is based upon the value of share-based awards upon their exercise (or vesting, in the case of restricted stock units), whereas the compensation expense under GAAP is based upon the value of the share-based awards upon their grant date.

The ASU also changed the calculation of diluted earnings per share. GAAP requires the "treasury stock method" to determine the number of dilutive securities in calculating diluted earnings per share. The ASU changed the calculation of "assumed proceeds" under the treasury stock method to exclude the amount of net tax benefits that would have been recognized in additional paid-in capital under the previous accounting standard. This change in the calculation reduces the amount of shares assumed to have been repurchased under the treasury stock method, thus increasing the number of dilutive shares.

Both of these changes in the guidance were applied prospectively beginning January 1, 2017 and for the three and nine months ended September 30, 2017. For the three months ended September 30, 2017, the change in the recognition of all net tax benefits related to share-based compensation awards in the income tax provision resulted in an increase of $0.03 in basic earnings per share and $0.02 in diluted earnings per share for the three months ended September 30, 2017. For the nine months ended September 30, 2017, the change in the recognition of all net tax benefits related to share-based compensation awards in the income tax provision resulted in an increase of $0.11 in basic earnings per share and $0.09 in diluted earnings per share. The change in the guidance for the calculation of diluted earnings per share had an immaterial impact on diluted earnings per share.

Additionally, the ASU allows companies to choose to either include an estimate of forfeitures expected to occur in share-based compensation expense or account for them as they occur. Previously, GAAP required companies to include an estimate of forfeitures expected to occur in their share-based compensations expense. Farmer Mac has elected to account for forfeitures in compensation expense as they occur. The cumulative impact of the change in the treatment of forfeitures was not material for the three and nine months ended September 30, 2017.

• Consolidated Statements of Cash Flows - The ASU requires excess tax benefits from share-based employee awards to be reported within operating activities. Previously, these cash flows were reported within financing activities. Farmer Mac has applied this guidance prospectively, resulting in an increase in net cash provided by operating activities and a corresponding decrease in net cash provided by financing activities of $0.3 million and $1.2 million, respectively, for the three and nine months ended September 30, 2017.

The ASU requires employee taxes paid when an employer withholds shares for tax purposes to be reported within financing activities. Under the previous guidance, these cash flows were included in operating activities. These changes were required to be applied on a retrospective basis. As a result, the consolidated statement of cash flows for prior periods was revised, resulting in an increase in net cash provided by operating activities and a decrease in net cash provided by financing activities of $2.0 million for the nine months ended September 30, 2016, compared to previously reported amounts. The amount of employee taxes paid for shares withheld was $2.3 million for the nine months ended September 30, 2017.

In June 2016, the FASB issued ASU 2016-13, "Financial Instruments—Credit Losses," which will require entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts.  Entities will be required to use forward-looking information to form their credit loss estimates.  The ASU will also require enhanced disclosures to help users of financial statements better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio.  The new standard is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019.   Early application will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018.  Farmer Mac is currently evaluating the impact that the new guidance will have on its consolidated financial statements. That impact will primarily be from the new requirement to recognize all expected losses rather than just incurred losses as of the reporting date. 

In March 2017, the FASB issued ASU 2017-08, "Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities," which shortens the amortization period for certain callable debt securities held at a premium by requiring the premium to be amortized to the earliest call date. The ASU does not require an accounting change for securities held at a discount. The new standard is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019. Farmer Mac does not expect that adoption of the new guidance will have a material effect on Farmer Mac's financial position, results of operations, or cash flows.

In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities," which amends hedge accounting recognition and presentation requirements to better align a reporting entity's risk management activities and hedge accounting. The new guidance reduces the complexity and simplifies the application of hedge accounting by eliminating the requirement to separately measure and report hedge ineffectiveness and by requiring the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The new standard is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018. Early adoption of the new guidance is permitted in any interim or annual period after issuance of the ASU. Farmer Mac is planning to adopt the new guidance as of January 1, 2018 and does not expect the adoption of the new guidance to have a material effect on Farmer Mac's financial position, results of operation, or cash flow upon the adoption of the new guidance.

XML

Investment Securities

9 Months Ended

Sep. 30, 2017

Investment Securities [Member]

Schedule of Available-for-sale and Trading Securities [Line Items]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

INVESTMENT SECURITIES

The following tables set forth information about Farmer Mac's investment securities as of September 30, 2017 and December 31, 2016:

Table 2.1

	As of September 30, 2017
	Amount Outstanding		Unamortized Premium/(Discount)			Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	19,700	$	—		$	19,700	$	—	$	(1,182	)	$	18,518
Floating rate asset-backed securities	35,870		(165		)	35,705		20		(123		)	35,602
Floating rate Government/GSE guaranteed mortgage-backed securities	1,308,236		2,386			1,310,622		2,858		(1,276		)	1,312,204
Fixed rate GSE guaranteed mortgage-backed securities(1)	468		2,247			2,715		2,250		—			4,965
Fixed rate senior agency debt	100,000		(8		)	99,992		—		(121		)	99,871
Fixed rate U.S. Treasuries	765,318		(1,054		)	764,264		—		(458		)	763,806
Total available-for-sale	2,229,592		3,406			2,232,998		5,128		(3,160		)	2,234,966
Total investment securities	$	2,229,592	$	3,406		$	2,232,998	$	5,128	$	(3,160	)	$	2,234,966

⁽¹⁾  Fair value includes $4.5 million of an interest-only security with a notional amount of $144.3 million.

	As of December 31, 2016
	Amount Outstanding		Unamortized Premium/(Discount)			Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	19,700	$	—		$	19,700	$	—	$	(1,970	)	$	17,730
Floating rate asset-backed securities	44,442		(202		)	44,240		1		(390		)	43,851
Floating rate corporate debt securities	10,000		—			10,000		41		—			10,041
Floating rate Government/GSE guaranteed mortgage-backed securities	1,359,700		2,827			1,362,527		1,768		(3,266		)	1,361,029
Fixed rate GSE guaranteed mortgage-backed securities(1)	538		2,582			3,120		4,505		—			7,625
Floating rate GSE subordinated debt	70,000		—			70,000		—		(3,047		)	66,953
Fixed rate senior agency debt	187,295		106			187,401		—		(268		)	187,133
Fixed rate U.S. Treasuries	821,619		359			821,978		47		(536		)	821,489
Total available-for-sale	2,513,294		5,672			2,518,966		6,362		(9,477		)	2,515,851
Total investment securities	$	2,513,294	$	5,672		$	2,518,966	$	6,362	$	(9,477	)	$	2,515,851

⁽¹⁾  Fair value includes $7.0 million of an interest-only security with a notional amount of $146.1 million.

During the three months ended September 30, 2017, Farmer Mac received proceeds of $5.1 million from the sale of securities from its available-for-sale investment portfolio, resulting in gross realized gains of $0.1 million. Farmer Mac did not sell any securities from its available-for-sale investment portfolio during the three months ended September 30, 2016. During the nine months ended September 30, 2017, Farmer Mac received proceeds of $5.1 million from the sale of securities from its available-for-sale investment portfolio, resulting in gross realized gains of $0.1 million, compared to proceeds of $186.8 million for the same period in 2016, resulting in gross realized gains of $0.1 million and gross realized losses of $0.1 million.

As of September 30, 2017 and December 31, 2016, unrealized losses on available-for-sale investment securities were as follows:

Table 2.2

	As of September 30, 2017
	Available-for-Sale Securities
	Unrealized loss position for less than 12 months					Unrealized loss position for more than 12 months
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(in thousands)
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	—	$	—		$	18,518	$	(1,182	)
Floating rate asset-backed securities	—		—			24,089		(123		)
Floating rate Government/GSE guaranteed mortgage-backed securities	131,772		(220		)	277,196		(1,056		)
Fixed rate U.S. Treasuries	738,815		(431		)	24,991		(27		)
Fixed rate senior agency debt	49,929		(73		)	49,943		(48		)
Total	$	920,516	$	(724	)	$	394,737	$	(2,436	)

	As of December 31, 2016
	Available-for-Sale Securities
	Unrealized loss position for less than 12 months					Unrealized loss position for more than 12 months
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(in thousands)
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	—	$	—		$	17,730	$	(1,970	)
Floating rate asset-backed securities	4,654		(10		)	38,077		(380		)
Floating rate Government/GSE guaranteed mortgage-backed securities	384,586		(1,030		)	442,041		(2,236		)
Floating rate GSE subordinated debt	—		—			66,953		(3,047		)
Fixed rate U.S. Treasuries	732,371		(536		)	—		—
Fixed rate senior agency debt	187,133		(268		)	—		—
Total	$	1,308,744	$	(1,844	)	$	564,801	$	(7,633	)

The unrealized losses presented above are principally due to a general widening of market spreads and an increase in the levels of interest rates from the dates of acquisition to September 30, 2017 and December 31, 2016, as applicable. The resulting decrease in fair values reflects an increase in the perceived risk by the financial markets related to those securities. As of September 30, 2017, all of the investment securities in an unrealized loss position either were backed by the full faith and credit of the U.S. government or had credit ratings of at least "AA+." As of December 31, 2016, all of the investment securities in an unrealized loss position either were backed by the full faith and credit of the U.S. government or had credit ratings of at least "AA+," except one that was rated "A-." The unrealized losses were on 81 and 97 individual investment securities as of September 30, 2017 and December 31, 2016, respectively.

As of September 30, 2017, 44 of the securities in loss positions had been in loss positions for more than 12 months and had a total unrealized loss of $2.4 million. As of December 31, 2016, 36 of the securities in loss positions had been in loss positions for more than 12 months and had a total unrealized loss of $7.6 million.  Securities in unrealized loss positions for 12 months or longer have a fair value as of September 30, 2017 that is, on average, approximately 99 percent of their amortized cost basis. Farmer Mac believes that all of these unrealized losses are recoverable within a reasonable period of time by way of maturity or changes in credit spreads. Accordingly, Farmer Mac has concluded that none of the unrealized losses on these available-for-sale investment securities are other-than-temporary impairment as of September 30, 2017 and December 31, 2016.

Farmer Mac did not own any held-to-maturity or trading investment securities as of September 30, 2017 and December 31, 2016.

The amortized cost, fair value, and weighted-average yield of available-for-sale investment securities by remaining contractual maturity as of September 30, 2017 are set forth below. Asset-backed and mortgage-backed securities are included based on their final maturities, although the actual maturities may differ due to prepayments of the underlying assets.

Table 2.3

	As of September 30, 2017
	Available-for-Sale Securities
	Amortized Cost		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	798,153	$	797,630	0.92%
Due after one year through five years	363,861		364,132		1.62%
Due after five years through ten years	279,192		281,792		1.75%
Due after ten years	791,792		791,412		1.86%
Total	$	2,232,998	$	2,234,966	1.47%

XML

Farmer Mac Guaranteed Securities and USDA Guaranteed Securities

9 Months Ended

Sep. 30, 2017

Farmer Mac Guaranteed Securities and USDA Securities [Member]

Schedule of Held-to-Maturity, Available-for-sale, and Trading Securities [Line Items]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

FARMER MAC GUARANTEED SECURITIES AND USDA SECURITIES

The following tables set forth information about on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities as of September 30, 2017 and December 31, 2016:

Table 3.1

	As of September 30, 2017
	Unpaid Principal Balance		Unamortized Premium/(Discount)			Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Held-to-maturity:
AgVantage	$	2,128,974	$	(1,166	)	$	2,127,808	$	5,091	$	(6,073	)	$	2,126,826
Farmer Mac Guaranteed USDA Securities	30,688		314			31,002		86		(284		)	30,804
Total Farmer Mac Guaranteed Securities	2,159,662		(852		)	2,158,810		5,177		(6,357		)	2,157,630
USDA Securities	2,027,261		65,024			2,092,285		—		(64,741		)	2,027,544
Total held-to-maturity	$	4,186,923	$	64,172		$	4,251,095	$	5,177	$	(71,098	)	$	4,185,174
Available-for-sale:
AgVantage	$	5,459,655	$	(141	)	$	5,459,514	$	30,811	$	(46,579	)	$	5,443,746
Trading:
USDA Securities	$	14,204	$	1,092		$	15,296	$	31	$	(463	)	$	14,864

	As of December 31, 2016
	Unpaid Principal Balance		Unamortized Premium/(Discount)			Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Held-to-maturity:
AgVantage	$	1,115,465	$	(2,276	)	$	1,113,189	$	7,187	$	(3,175	)	$	1,117,201
Farmer Mac Guaranteed USDA Securities	35,599		443			36,042		5		(239		)	35,808
Total Farmer Mac Guaranteed Securities	1,151,064		(1,833		)	1,149,231		7,192		(3,414		)	1,153,009
USDA Securities	1,935,440		73,785			2,009,225		—		(95,590		)	1,913,635
Total held-to-maturity	$	3,086,504	$	71,952		$	3,158,456	$	7,192	$	(99,004	)	$	3,066,644
Available-for-sale:
AgVantage	$	4,889,007	$	(103	)	$	4,888,904	$	28,715	$	(63,934	)	$	4,853,685
Trading:
USDA Securities	$	19,360	$	1,377		$	20,737	$	41	$	(390	)	$	20,388

On October 1, 2016, Farmer Mac transferred $2.0 billion of USDA Securities and $32.8 million of Farmer Mac Guaranteed USDA Securities from available-for-sale to held-to-maturity to reflect Farmer Mac’s positive intent and ability to hold these securities until maturity or payoff. Farmer Mac transferred these securities at fair value as of the date of the transfer, which included a cost basis adjustment of unrealized appreciation in the amount of $73.1 million for the USDA Securities and $0.7 million for the Farmer Mac Guaranteed USDA Securities. The accumulated unrealized appreciation was retained in accumulated other comprehensive income in the amount of $73.8 million, before tax. Farmer Mac accounts for held-to-maturity securities at amortized cost. Both the cost basis adjustment and accumulated unrealized appreciation will be amortized as an adjustment to the yield on the held-to-maturity USDA Securities over the remaining term of the transferred securities.

As of September 30, 2017 and December 31, 2016, unrealized losses on held-to-maturity and available-for-sale on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities were as follows:

Table 3.2

	As of September 30, 2017
	Held-to-Maturity and Available-for-Sale Securities
	Unrealized loss position for less than 12 months					Unrealized loss position for more than 12 months
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(in thousands)
Held-to-maturity:
AgVantage	$	1,249,774	$	(3,888	)	$	247,815	$	(2,185	)
Farmer Mac Guaranteed USDA Securities	25,201		(284		)	—		—
USDA Securities	1,940,984		(64,696		)	86,619		(45		)
Total held-to-maturity	$	3,215,959	$	(68,868	)	$	334,434	$	(2,230	)
Available-for-sale:
AgVantage	$	1,293,478	$	(14,376	)	$	1,424,602	$	(32,203	)

	As of December 31, 2016
	Available-for-Sale Securities
	Unrealized loss position for less than 12 months					Unrealized loss position for more than 12 months
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(in thousands)
Held-to-maturity:
AgVantage	$	358,575	$	(3,175	)	$	—	$	—
Farmer Mac Guaranteed USDA Securities	30,575		(239		)	—		—
USDA Securities	1,816,366		(95,582		)	97,270		(8		)
Total held-to-maturity	$	2,205,516	$	(98,996	)	$	97,270	$	(8	)
Available-for-sale:
AgVantage	$	982,538	$	(18,482	)	$	1,131,930	$	(45,452	)

The unrealized losses presented above are principally due to higher interest rates from the date of acquisition to September 30, 2017 and December 31, 2016, as applicable. In addition, the unrealized losses on the held-to-maturity USDA Securities as of both September 30, 2017 and December 31, 2016 reflect their increased cost basis resulting from their transfer to held-to-maturity as of October 1, 2016, as described above. The credit exposure related to Farmer Mac's USDA Guarantees line of business is covered by the full faith and credit guarantee of the United States. The unrealized losses from AgVantage securities were on 30 available-for-sale securities as of September 30, 2017. There were 18 held-to-maturity AgVantage securities with an unrealized loss as of September 30, 2017. The unrealized losses from AgVantage securities were on 22 available-for-sale securities as of December 31, 2016. There were 7 unrealized losses from held-to-maturity securities as of December 31, 2016. As of September 30, 2017, 12 available-for-sale AgVantage securities had been in a loss position for more than 12 months with a total unrealized loss of $32.2 million. As of December 31, 2016, 10 available-for-sale AgVantage securities had been in a loss position for more than 12 months with a total unrealized loss of $45.5 million. Farmer Mac has concluded that none of the unrealized losses on its held-to-maturity Farmer Mac Guaranteed Securities and USDA Securities and available-for-sale Farmer Mac Guaranteed Securities are other-than-temporary impairment as of either September 30, 2017 or December 31, 2016.  Farmer Mac does not intend to sell these securities, and it is not more likely than not that Farmer Mac will be required to sell the securities before recovery of the amortized cost basis.

During the three and nine months ended September 30, 2017 and 2016, Farmer Mac realized no gains or losses from the sale of Farmer Mac Guaranteed Securities and USDA Securities.

The amortized cost, fair value, and weighted-average yield of available-for-sale and held-to-maturity Farmer Mac Guaranteed Securities and USDA Securities by remaining contractual maturity as of September 30, 2017 are set forth below. The balances presented are based on their final maturities, although the actual maturities may differ due to prepayments of the underlying assets.

Table 3.3

	As of September 30, 2017
	Available-for-Sale Securities
	Amortized Cost		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	1,000,000	$	1,001,537	1.90	%
Due after one year through five years	2,696,001		2,706,480		2.14	%
Due after five years through ten years	745,701		750,299		2.87	%
Due after ten years	1,017,812		985,430		1.98	%
Total	$	5,459,514	$	5,443,746	2.17	%

	As of September 30, 2017
	Held-to-Maturity Securities
	Amortized Cost		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	926,747	$	925,935	1.78	%
Due after one year through five years	1,260,842		1,258,848		2.27	%
Due after five years through ten years	208,034		201,899		3.07	%
Due after ten years	1,855,472		1,798,492		3.35	%
Total	$	4,251,095	$	4,185,174	2.66	%

As of September 30, 2017, Farmer Mac owned trading USDA Securities with an amortized cost of $15.3 million, a fair value of $14.9 million, and a weighted-average yield of 5.36 percent. As of December 31, 2016, Farmer Mac owned trading USDA Securities with an amortized cost of $20.7 million, a fair value of $20.4 million, and a weighted-average yield of 5.44 percent.

XML

Financial Derivatives

9 Months Ended

Sep. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities Disclosure

FINANCIAL DERIVATIVES

Farmer Mac enters into financial derivative transactions principally to protect against risk from the effects of market price or interest rate movements on the value of certain assets, future cash flows, or debt issuance, and not for trading or speculative purposes.  Certain financial derivatives are designated as fair value hedges of fixed rate assets, primarily classified as available-for-sale, to protect against fair value changes in the assets related to a benchmark interest rate (i.e., LIBOR). Other financial derivatives are designated as cash flow hedges to mitigate the volatility of future interest rate payments on floating rate debt.

All financial derivatives are recorded on the balance sheet at fair value as a freestanding asset or liability. Changes in the fair values of financial derivatives not designated as cash flow hedges are reported in "Gains/(losses) on financial derivatives and hedging activities" in the consolidated statements of operations. For financial derivatives designated in fair value hedge accounting relationships, changes in the fair values of the hedged items, which are primarily fixed rate AgVantage securities and fixed rate medium-term notes, related to the risk being hedged are also reported in "Gains/(losses) on financial derivatives and hedging activities" in the consolidated statements of operations. Interest accruals on derivatives designated in fair value hedge accounting relationships are recorded in "Net interest income" in the consolidated statements of operations. For the three and nine months ended September 30, 2017 the amount of interest expense recognized on those derivatives was $1.9 millionand $6.9 million, respectively. For the three and nine months ended September 30, 2016, the amount of interest expense recognized on those derivatives was $4.0 million and $12.9 million, respectively. For financial derivatives designated in cash flow hedge accounting relationships, the effective portion of the derivative gain/loss is recorded in other comprehensive income and any ineffective portion is recognized immediately in "Gains/(losses) on financial derivatives and hedging activities" in the consolidated statements of operations. Because the hedging instrument is an interest rate swap and the hedged forecasted transactions are future interest payments on variable-rate debt, amounts recorded in accumulated other comprehensive income are reclassified to "Total interest expense" in conjunction with the recognition of interest expense on the debt. For the three and nine months ended September 30, 2017, $0.4 million and $1.4 million, respectively, was reclassified out of accumulated other comprehensive income into interest expense. For the three and nine months ended September 30, 2016, $0.5 million and $1.5 million, respectively, was reclassified out of accumulated other comprehensive income into interest expense. As of September 30, 2017, Farmer Mac expects to reclassify $1.2 million pretax, or $0.8 million after-tax, from accumulated other comprehensive income, net of tax, to earnings over the next twelve months. This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations, and the addition of other hedges subsequent to September 30, 2017. During the three and nine months ended September 30, 2017 and 2016, there were no gains or losses from interest rate swaps designated as cash flow hedges reclassified to earnings because it became probable the original forecasted transaction would not occur.

Fees that Farmer Mac receives upon the inception of swaps are also reported in "Gains/(losses) on financial derivatives and hedging activities" in the consolidated statements of operations. These fees are offset dollar-for-dollar by the discount on the associated hedged debt. However, the swap fees are recognized immediately in Gains/(losses) on financial derivatives and hedging activities, whereas the offsetting discount on the hedged debt is amortized over the term of the debt as an adjustment to its yield. Thus, there is a timing difference between the recognition of the swap fees in Gains/(losses) on financial derivatives and hedging activities and the recognition of the discount in interest expense. There is also a presentation difference because the swap fees are included in Gains/(losses) on financial derivatives and hedging activities, whereas the amortization of the discount is included in interest expense. Additionally, the amount of swap fees varies depending upon the number of swaps initiated during a quarter.

The following tables summarize information related to Farmer Mac's financial derivatives on a gross basis without giving consideration to master netting arrangements as of September 30, 2017 and December 31, 2016 and the effects of financial derivatives on the consolidated statements of operations for the three and nine months ended September 30, 2017 and 2016:

Table 4.1

	As of September 30, 2017
			Fair Value						Weighted- Average Pay Rate	Weighted- Average Receive Rate	Weighted- Average Forward Price	Weighted- Average Remaining Life (in years)
	Notional Amount		Asset			(Liability)
	(dollars in thousands)
Fair value hedges:
Interest rate swaps:
Pay fixed non-callable	$	2,040,854	$	744		$	(8,768	)	1.83%	1.31%		5.42
Receive fixed non-callable	1,431,700		64			(1,985		)	1.23%	1.42%		1.74
Cash flow hedges:
Interest rate swaps:
Pay fixed non-callable	349,000		960			(555		)	2.19%	1.55%		6.32
No hedge designation:
Interest rate swaps:
Pay fixed non-callable	348,040		166			(19,318		)	3.80%	1.31%		6.88
Receive fixed non-callable	3,389,116		—			—			1.12%	1.10%		0.85
Basis swaps	1,225,000		42			(63		)	1.20%	1.22%		0.95
Treasury futures	7,400		50			—					125.99
Credit valuation adjustment			(6		)	94
Total financial derivatives	$	8,791,110	$	2,020		$	(30,595	)
Collateral pledged			—			25,079
Net amount			$	2,020		$	(5,516	)

	As of December 31, 2016
			Fair Value						Weighted- Average Pay Rate	Weighted- Average Receive Rate	Weighted- Average Forward Price	Weighted- Average Remaining Life (in years)
	Notional Amount		Asset			(Liability)
	(dollars in thousands)
Fair value hedges:
Interest rate swaps:
Pay fixed non-callable	$	1,642,609	$	18,508		$	(18,909	)	1.73%	0.90%		4.70
Cash flow hedges:
Interest rate swaps:
Pay fixed non-callable	207,000		3,706			(955		)	2.18%	1.11%		7.28
No hedge designation:
Interest rate swaps:
Pay fixed non-callable	435,827		339			(32,951		)	4.06%	0.89%		5.90
Receive fixed non-callable	4,991,821		607			(5,064		)	0.74%	0.75%		0.60
Receive fixed callable	30,000		—			(33		)	0.82%	0.58%		0.33
Basis swaps	765,000		36			(243		)	0.78%	0.78%		0.87
Treasury futures	28,000		—			(155		)			123.73
Credit valuation adjustment			(14		)	158
Total financial derivatives	$	8,100,257	$	23,182		$	(58,152	)
Collateral pledged			—			25,643
Net amount			$	23,182		$	(32,509	)

Table 4.2

	Gains/(losses) on financial derivatives and hedging activities
	For the Three Months Ended						For the Nine Months Ended
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
	(in thousands)
Fair value hedges:
Interest rate swaps(1)	$	1,576		$	11,276		$	(5,466	)	$	(30,062	)
Hedged items	166			(10,550		)	4,750			35,778
Gains/(losses) on fair value hedges	1,742			726			(716		)	5,716
Cash flow hedges:
Loss recognized (ineffective portion)	(191		)	(68		)	(365		)	(322		)
Losses on cash flow hedges	(191		)	(68		)	(365		)	(322		)
No hedge designation:
Interest rate swaps	(1,031		)	(2,333		)	4,006			(16,820		)
Agency forwards	—			79			(588		)	(789		)
Treasury futures	141			(5		)	193			(864		)
(Losses)/gains on financial derivatives not designated in hedging relationships	(890		)	(2,259		)	3,611			(18,473		)
Gains/(losses) on financial derivatives and hedging activities	$	661		$	(1,601	)	$	2,530		$	(13,079	)

⁽¹⁾  Included in the assessment of hedge effectiveness as of September 30, 2017, but excluded from the amounts in the table, were losses of $1.6 million and gains of $0.7 million, respectively, for the three and nine months ended September 30, 2017, attributable to the fair value of the swaps at the inception of the hedging relationship. Accordingly, the amounts recognized as hedge ineffectiveness for three and nine months ended September 30, 2017 were gains of $0.1 million and zero, respectively. The comparable amounts as of September 30, 2016 were losses of $1.0 million and $4.2 million for the three and nine months ended September 30, 2016, attributable to the fair value of the swaps at the inception of the hedging relationship and, accordingly, losses of $0.2 million and gains of $1.5 million for the three and nine months ended September 30, 2016, attributable to hedge ineffectiveness.

As of September 30, 2017 and December 31, 2016, Farmer Mac's credit exposure to interest rate swap counterparties, excluding netting arrangements and any adjustment for nonperformance risk, but including accrued interest, was $24.6 million and $24.5 million, respectively; however, including netting arrangements and accrued interest, Farmer Mac's credit exposure was $0.1 million and $0.2 million as of September 30, 2017 and December 31, 2016, respectively. As of September 30, 2017, Farmer Mac held no cash as collateral for its derivatives in net asset positions resulting in uncollateralized net asset positions of $0.1 million. As of December 31, 2016, Farmer Mac held no cash collateral for its derivatives in net asset positions, resulting in uncollateralized net asset positions of $0.2 million.

As of September 30, 2017 and December 31, 2016, the fair value of Farmer Mac's derivatives in a net liability position including accrued interest but excluding netting arrangements and any adjustment for nonperformance risk, was $61.1 million and $65.7 million, respectively; however, including netting arrangements and accrued interest, the fair value of Farmer Mac's derivatives in a net liability position at the counterparty level was $27.3 million and $41.4 million as of September 30, 2017 and December 31, 2016, respectively.  Farmer Mac posted cash of $0.1 million and $25.0 million of investment securities as of September 30, 2017 and posted cash of $1.0 million and $24.6 million investment securities as of December 31, 2016.  Farmer Mac records posted cash as a reduction in the outstanding balance of cash and cash equivalents and an increase in the balance of prepaid expenses and other assets. Any investment securities posted as collateral are included in the investment securities balances on the consolidated balance sheets.  If Farmer Mac had breached certain provisions of the derivative contracts as of September 30, 2017 and December 31, 2016, it could have been required to settle its obligations under the agreements or post additional collateral of $2.3 millionand $15.8 million, respectively. As of September 30, 2017 and December 31, 2016, there were no financial derivatives in a net payable position where Farmer Mac was required to pledge collateral which the counterparty had the right to sell or repledge.

For certain derivatives, Farmer Mac clears interest rate swaps through a clearinghouse, the Chicago Mercantile Exchange ("CME"). Farmer Mac posts initial and variation margins to this clearinghouse through which centrally-cleared derivatives and futures contracts are traded. These collateral postings expose Farmer Mac to institutional credit risk in the event that either the clearinghouse or the futures commission merchant that Farmer Mac uses to post collateral to the clearinghouse fails to meet its obligations. Conversely, the use of centrally-cleared derivatives mitigates Farmer Mac's credit risk to individual counterparties because clearinghouses assume the credit risk among counterparties in centrally-cleared derivatives transactions. Of Farmer Mac's $8.8 billion notional amount of interest rate swaps outstanding as of September 30, 2017, $7.7 billion were cleared through swap clearinghouses. Of Farmer Mac's $8.1 billion notional amount of interest rate swaps outstanding as of December 31, 2016, $6.9 billion were cleared through swap clearinghouses.

Effective January 3, 2017, the CME implemented a change in its rules related to the exchange of variation margin. Specifically, the exchange of variation margin between derivatives counterparties is now deemed by CME to be a partial settlement of each respective derivative contract rather than as collateral pledged by a counterparty. Accordingly, beginning in first quarter 2017, Farmer Mac presented its cleared derivatives portfolio net of variation margin payments on its consolidated balance sheets and recognized realized gains or losses as a result of these payments within "Gains/(losses) on financial derivatives and hedging activities" on its consolidated statements of operations. Prior to first quarter 2017, Farmer Mac accounted for variation margin as collateral and associated unrealized gains or losses on those centrally cleared derivative contracts. Farmer Mac included those unrealized gains or losses within "Gains/(losses) on financial derivatives and hedging activities" in its consolidated statements of operations prior to first quarter 2017. See Note 9 for information about the effect of this rule change on the calculation of core earnings beginning in 2017.

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Loans and Allowance for Losses and Concentrations of Credit Risk

9 Months Ended

Sep. 30, 2017

Receivables [Abstract]

Loans and Allowance for Credit Losses and Concentration Risk Disclosure

LOANS AND ALLOWANCE FOR LOSSES

Loans

Farmer Mac classifies loans as either held for investment or held for sale. Loans held for investment are recorded at the unpaid principal balance, net of unamortized premium or discount and other cost adjustments. Loans held for sale are reported at the lower of cost or fair value determined on a pooled basis. As of September 30, 2017 and December 31, 2016, Farmer Mac had no loans held for sale. The following table displays the composition of the loan balances as of September 30, 2017 and December 31, 2016:

Table 5.1

	As of September 30, 2017									As of December 31, 2016
	Unsecuritized			In Consolidated Trusts			Total			Unsecuritized			In Consolidated Trusts			Total
	(in thousands)
Farm & Ranch	$	2,739,681		$	1,329,212		$	4,068,893		$	2,381,488		$	1,132,966		$	3,514,454
Rural Utilities	1,066,482			—			1,066,482			999,512			—			999,512
Total unpaid principal balance(1)	3,806,163			1,329,212			5,135,375			3,381,000			1,132,966			4,513,966
Unamortized premiums, discounts and other cost basis adjustments	(1,197		)	—			(1,197		)	(1,116		)	—			(1,116		)
Total loans	3,804,966			1,329,212			5,134,178			3,379,884			1,132,966			4,512,850
Allowance for loan losses	(5,195		)	(1,213		)	(6,408		)	(4,437		)	(978		)	(5,415		)
Total loans, net of allowance	$	3,799,771		$	1,327,999		$	5,127,770		$	3,375,447		$	1,131,988		$	4,507,435

⁽¹⁾  Unpaid principal balance is the basis of presentation in disclosures of outstanding balances for Farmer Mac's lines of business.

Allowance for Losses

Farmer Mac maintains an allowance for losses presented in two components on its consolidated balance sheets: (1) an allowance for loan losses to account for estimated probable losses on loans held, and (2) a reserve for losses to account for estimated probable losses on loans underlying LTSPCs and off-balance sheet Farmer Mac Guaranteed Securities (excluding AgVantage securities).  Farmer Mac's total allowance for losses was $8.5 million as of September 30, 2017 and $7.4 million as of December 31, 2016. See Note 6 for more information about off-balance sheet Farmer Mac Guaranteed Securities and LTSPCs.  

The following is a summary of the changes in the total allowance for losses for the three and nine months ended September 30, 2017 and 2016:

Table 5.2

	As of September 30, 2017								As of September 30, 2016
	Allowance for Loan Losses			Reserve for Losses		Total Allowance for Losses			Allowance for Loan Losses			Reserve for Losses			Total Allowance for Losses
	(in thousands)
For the Three Months Ended:
Beginning Balance	$	6,138		$	1,966	$	8,104		$	4,893		$	2,191		$	7,084
Provision for/(release of) losses	270			114		384			191			(222		)	(31		)
Charge-offs	—			—		—			(130		)	—			(130		)
Ending Balance	$	6,408		$	2,080	$	8,488		$	4,954		$	1,969		$	6,923
For the Nine Months Ended:
Beginning Balance	$	5,415		$	2,020	$	7,435		$	4,480		$	2,083		$	6,563
Provision for/(release of) losses	1,234			60		1,294			604			(114		)	490
Charge-offs	(241		)	—		(241		)	(130		)	—			(130		)
Ending Balance	$	6,408		$	2,080	$	8,488		$	4,954		$	1,969		$	6,923

During third quarter 2017, Farmer Mac recorded net provisions to its allowance for loan losses and reserve for losses of $0.3 million and $0.1 million, respectively. The net provisions to the allowance for loan losses recorded during third quarter 2017 were primarily attributable to (1) an increase in the specific allowance for certain impaired on-balance sheet crop and permanent planting loans resulting from both an increase in the outstanding balance of such loans and downgrades in risk ratings on certain of those loans, and (2) an increase in the general allowance due to overall net volume growth in on-balance sheet Farm & Ranch loans. The net provision to the reserve for losses recorded during the third quarter 2017 was primarily attributable to an increase in the general reserve due to downgrades in risk ratings on certain unimpaired Agricultural Storage and Processing loans underlying LTSPCs. Farmer Mac recorded no charge-offs to its allowance for loan losses during third quarter 2017.

During third quarter 2016, Farmer Mac recorded net provisions to its allowance for loan losses of $0.2 million and net releases to its reserve for losses of $0.2 million. The net provisions to the allowance for loan losses recorded during third quarter 2016 were attributable to an increase in the general allowance due to overall net volume growth in on-balance sheet Farm & Ranch loans and downgrades in risk ratings for a small number of loans. The net releases to the reserve for losses recorded during the three months ended September 30, 2016 were attributable to the release of a specific reserve on an impaired livestock loan underlying an LTSPC that was required to be removed from the LTSPC pool by the originator during third quarter 2016. Farmer Mac recorded $0.1 million charge-offs to its allowance for loan losses during third quarter 2016.

The following tables present the changes in the total allowance for losses for the three and nine months ended September 30, 2017 and 2016 by commodity type:

Table 5.3

	September 30, 2017
	Crops			Permanent Plantings		Livestock			Part-time Farm			Ag. Storage and Processing		Other			Total
	(in thousands)
For the Three Months Ended:
Beginning Balance	$	3,735		$	2,164	$	1,234		$	397		$	558	$	16		$	8,104
Provision for/(release of) losses	115			162		35			4			72		(4		)	384
Ending Balance	$	3,850		$	2,326	$	1,269		$	401		$	630	$	12		$	8,488
For the Nine Months Ended:
Beginning Balance	$	3,365		$	1,723	$	1,375		$	405		$	533	$	34		$	7,435
Provision for/(release of) losses	713			603		(93		)	(4		)	97		(22		)	1,294
Charge-offs	(228		)	—		(13		)	—			—		—			(241		)
Ending Balance	$	3,850		$	2,326	$	1,269		$	401		$	630	$	12		$	8,488

	September 30, 2016
	Crops		Permanent Plantings		Livestock			Part-time Farm			Ag. Storage and Processing			Other			Total
	(in thousands)
For the Three Months Ended:
Beginning Balance	$	3,111	$	1,144	$	1,906		$	447		$	473		$	3		$	7,084
Provision for/(release of) losses	103		198		(354		)	36			(13		)	(1		)	(31		)
Charge-offs	—		—		—			(130		)	—			—			(130		)
Ending Balance	$	3,214	$	1,342	$	1,552		$	353		$	460		$	2		$	6,923
For the Nine Months Ended:
Beginning Balance	$	2,791	$	931	$	1,781		$	408		$	649		$	3		$	6,563
Provision for/(release of) losses	423		411		(229		)	75			(189		)	(1		)	490
Charge-offs	—		—		—			(130		)	—			—			(130		)
Ending Balance	$	3,214	$	1,342	$	1,552		$	353		$	460		$	2		$	6,923

The following tables present the unpaid principal balances of loans held and loans underlying LTSPCs and off-balance sheet Farmer Mac Guaranteed Securities (excluding AgVantage securities) and the related total allowance for losses by impairment method and commodity type as of September 30, 2017 and December 31, 2016:

Table 5.4

	As of September 30, 2017
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Ending Balance:
Collectively evaluated for impairment:
On-balance sheet	$	2,278,701	$	767,275	$	623,499	$	246,416	$	13,248	$	9,004	$	3,938,143
Off-balance sheet	1,237,846		373,496		668,280		153,278		34,820		3,849		2,471,569
Total	$	3,516,547	$	1,140,771	$	1,291,779	$	399,694	$	48,068	$	12,853	$	6,409,712
Individually evaluated for impairment:
On-balance sheet	$	68,322	$	41,201	$	13,516	$	7,069	$	—	$	642	$	130,750
Off-balance sheet	8,847		2,249		4,448		945		—		79		16,568
Total	$	77,169	$	43,450	$	17,964	$	8,014	$	—	$	721	$	147,318
Total Farm & Ranch loans:
On-balance sheet	$	2,347,023	$	808,476	$	637,015	$	253,485	$	13,248	$	9,646	$	4,068,893
Off-balance sheet	1,246,693		375,745		672,728		154,223		34,820		3,928		2,488,137
Total	$	3,593,716	$	1,184,221	$	1,309,743	$	407,708	$	48,068	$	13,574	$	6,557,030
Allowance for Losses:
Collectively evaluated for impairment:
On-balance sheet	$	1,868	$	973	$	748	$	219	$	87	$	6	$	3,901
Off-balance sheet	560		285		212		46		543		4		1,650
Total	$	2,428	$	1,258	$	960	$	265	$	630	$	10	$	5,551
Individually evaluated for impairment:
On-balance sheet	$	1,193	$	1,010	$	192	$	112	$	—	$	—	$	2,507
Off-balance sheet	229		58		117		24		—		2		430
Total	$	1,422	$	1,068	$	309	$	136	$	—	$	2	$	2,937
Total Farm & Ranch loans:
On-balance sheet	$	3,061	$	1,983	$	940	$	331	$	87	$	6	$	6,408
Off-balance sheet	789		343		329		70		543		6		2,080
Total	$	3,850	$	2,326	$	1,269	$	401	$	630	$	12	$	8,488

	As of December 31, 2016
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Ending Balance:
Collectively evaluated for impairment:
On-balance sheet	$	2,115,450	$	569,360	$	537,859	$	183,660	$	11,545	$	8,894	$	3,426,768
Off-balance sheet	1,241,851		437,575		752,473		131,889		36,506		4,503		2,604,797
Total	$	3,357,301	$	1,006,935	$	1,290,332	$	315,549	$	48,051	$	13,397	$	6,031,565
Individually evaluated for impairment:
On-balance sheet	$	41,648	$	27,770	$	10,658	$	7,610	$	—	$	—	$	87,686
Off-balance sheet	11,549		2,735		4,854		915		—		—		20,053
Total	$	53,197	$	30,505	$	15,512	$	8,525	$	—	$	—	$	107,739
Total Farm & Ranch loans:
On-balance sheet	$	2,157,098	$	597,130	$	548,517	$	191,270	$	11,545	$	8,894	$	3,514,454
Off-balance sheet	1,253,400		440,310		757,327		132,804		36,506		4,503		2,624,850
Total	$	3,410,498	$	1,037,440	$	1,305,844	$	324,074	$	48,051	$	13,397	$	6,139,304
Allowance for Losses:
Collectively evaluated for impairment:
On-balance sheet	$	2,000	$	652	$	735	$	193	$	22	$	28	$	3,630
Off-balance sheet	420		281		241		54		511		6		1,513
Total	$	2,420	$	933	$	976	$	247	$	533	$	34	$	5,143
Individually evaluated for impairment:
On-balance sheet	$	613	$	770	$	270	$	132	$	—	$	—	$	1,785
Off-balance sheet	332		20		129		26		—		—		507
Total	$	945	$	790	$	399	$	158	$	—	$	—	$	2,292
Total Farm & Ranch loans:
On-balance sheet	$	2,613	$	1,422	$	1,005	$	325	$	22	$	28	$	5,415
Off-balance sheet	752		301		370		80		511		6		2,020
Total	$	3,365	$	1,723	$	1,375	$	405	$	533	$	34	$	7,435

The following tables present by commodity type the unpaid principal balances, recorded investment, and specific allowance for losses related to impaired loans and the recorded investment in loans on nonaccrual status as of September 30, 2017 and December 31, 2016:

Table 5.5

	As of September 30, 2017
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Impaired Loans:
With no specific allowance:
Recorded investment	$	11,909	$	4,963	$	3,942	$	1,939	$	—	$	644	$	23,397
Unpaid principal balance	11,885		4,953		3,935		1,936		—		643		23,352
With a specific allowance:
Recorded investment(1)	65,391		38,565		14,048		6,088		—		78		124,170
Unpaid principal balance	65,284		38,497		14,029		6,078		—		78		123,966
Associated allowance	1,422		1,068		309		136		—		2		2,937
Total:
Recorded investment	77,300		43,528		17,990		8,027		—		722		147,567
Unpaid principal balance	77,169		43,450		17,964		8,014		—		721		147,318
Associated allowance	1,422		1,068		309		136		—		2		2,937
Recorded investment of loans on nonaccrual status(2)	$	29,535	$	25,653	$	2,819	$	5,037	$	—	$	—	$	63,044

⁽¹⁾  Impairment analysis was performed in the aggregate in consideration of similar risk characteristics of the assets and historical statistics on $123.3 million (84 percent) of impaired loans as of September 30, 2017, which resulted in a specific allowance of $2.7 million.

⁽²⁾  Includes no loans that are less than 90 days delinquent but which have not met Farmer Mac's performance criteria for returning to accrual status.

	As of December 31, 2016
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Impaired Loans:
With no specific allowance:
Recorded investment	$	20,761	$	3,683	$	1,054	$	1,970	$	—	$	—	$	27,468
Unpaid principal balance	20,816		3,688		1,055		1,975		—		—		27,534
With a specific allowance:
Recorded investment(1)	32,326		26,748		14,322		6,535		—		—		79,931
Unpaid principal balance	32,381		26,817		14,457		6,550		—		—		80,205
Associated allowance	945		790		399		158		—		—		2,292
Total:
Recorded investment	53,087		30,431		15,376		8,505		—		—		107,399
Unpaid principal balance	53,197		30,505		15,512		8,525		—		—		107,739
Associated allowance	945		790		399		158		—		—		2,292
Recorded investment of loans on nonaccrual status(2)	$	13,405	$	10,785	$	2,696	$	5,256	$	—	$	—	$	32,142

⁽¹⁾  Impairment analysis was performed in the aggregate in consideration of similar risk characteristics of the assets and historical statistics on $76.5 million (71 percent) of impaired loans as of December 31, 2016, which resulted in a specific allowance of $1.6 million.

⁽²⁾  Includes $12.4 million of loans that are less than 90 days delinquent but which have not met Farmer Mac's performance criteria for returning to accrual status.

The following table presents by commodity type the average recorded investment and interest income recognized on impaired loans for the three and nine months ended September 30, 2017 and 2016:

Table 5.6

	September 30, 2017
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
For the Three Months Ended:
Average recorded investment in impaired loans	$	72,180	$	38,396	$	15,582	$	7,944	$	—	$	401	$	134,503
Income recognized on impaired loans	101		244		13		61		—		—		419
For the Nine Months Ended:
Average recorded investment in impaired loans	$	65,244	$	35,101	$	14,620	$	8,096	$	—	$	201	$	123,262
Income recognized on impaired loans	563		464		212		235		—		—		1,474

	September 30, 2016
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
For the Three Months Ended:
Average recorded investment in impaired loans	$	33,032	$	22,980	$	12,120	$	8,172	$	—	$	—	$	76,304
Income recognized on impaired loans	46		236		81		74		—		—		437
For the Nine Months Ended:
Average recorded investment in impaired loans	$	28,293	$	25,277	$	13,704	$	8,654	$	4,668	$	—	$	80,596
Income recognized on impaired loans	108		789		229		251		—		—		1,377

For the three months ended September 30, 2017, there were no troubled debt restructurings ("TDRs"). For the nine months ended September 30, 2017, the recorded investment of loans determined to be TDRs was$0.2 million both before and after restructuring. For the three and nine months ended September 30, 2016, there were no TDRs. As of September 30, 2017 and 2016, there were no TDRs identified during the previous 12 months that were in default under the modified terms. The impact of TDRs on Farmer Mac's allowance for loan losses was immaterial for the three and nine months ended September 30, 2017 and 2016.

When particular criteria are met, such as the default of the borrower, Farmer Mac becomes entitled to purchase the defaulted loans underlying Farmer Mac Guaranteed Securities (commonly referred to as "removal-of-account" provisions).  Farmer Mac records all such defaulted loans at their unpaid principal balance during the period in which Farmer Mac becomes entitled to purchase the loans and, therefore, regains effective control over the transferred loans. In accordance with the terms of all LTSPCs, Farmer Mac acquires loans that are either 90 days or 120 days delinquent (depending on the provisions of the applicable agreement) upon the request of the counterparty. Subsequent to the purchase, these defaulted loans are treated as nonaccrual loans and, therefore, interest is accounted for on the cash basis. Any decreases in expected cash flows are recognized as impairment.

The following tables present information related to Farmer Mac's acquisition of defaulted loans for the three and nine months ended September 30, 2017 and 2016 and the outstanding balances and carrying amounts of all such loans as of September 30, 2017 and December 31, 2016:

Table 5.7

	For the Three Months Ended				For the Nine Months Ended
	September 30, 2017		September 30, 2016		September 30, 2017		September 30, 2016
	($ in thousands)
Unpaid principal balance at acquisition date:
Loans underlying LTSPCs	$	—	$	852	$	311	$	2,118
Loans underlying off-balance sheet Farmer Mac Guaranteed Securities (excluding AgVantage securities)	3,043		250		3,147		398
Total unpaid principal balance at acquisition date	3,043		1,102		3,458		2,516
Contractually required payments receivable	3,073		1,109		3,490		2,544
Impairment recognized subsequent to acquisition	—		—		—		208
Recovery/release of allowance for all outstanding acquired defaulted loans	29		21		171		31
Number of defaulted loans purchased	6		3		10		8

	As of
	September 30, 2017		December 31, 2016
	(in thousands)
Outstanding balance	$	16,514	$	14,669
Carrying amount	15,379		13,069

Net credit losses and 90-day delinquencies as of and for the periods indicated for loans held and loans underlying off-balance sheet securities representing interests in pools of eligible Farm & Ranch loans ("Farm & Ranch Guaranteed Securities") and LTSPCs are presented in the table below.  As of September 30, 2017, there were no delinquencies and no probable losses inherent in Farmer Mac's Rural Utilities loan portfolio and Farmer Mac had not experienced credit losses on any Rural Utilities loans.

Table 5.8

	90-Day Delinquencies(1)				Net Credit (Recoveries)/Losses
	As of				For the Nine Months Ended
	September 30, 2017		December 31, 2016		September 30, 2017			September 30, 2016
	(in thousands)
On-balance sheet assets:
Farm & Ranch:
Loans	$	65,105	$	19,757	$	(520	)	$	154
Total on-balance sheet	$	65,105	$	19,757	$	(520	)	$	154
Off-balance sheet assets:
Farm & Ranch:
LTSPCs	$	1,276	$	1,281	$	—		$	—
Total off-balance sheet	$	1,276	$	1,281	$	—		$	—
Total	$	66,381	$	21,038	$	(520	)	$	154

⁽¹⁾  Includes loans and loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs that are 90 days or more past due, in foreclosure, or in bankruptcy with at least one missed payment, excluding loans performing under either their original loan terms or a court-approved bankruptcy plan.

Of the $65.1 million of on-balance sheet loans reported as 90-day delinquencies as of September 30, 2017, $11,000 were loans subject to "removal-of-account" provisions. Of the $19.8 million of on-balance sheet loans reported as 90-day delinquencies as of December 31, 2016, $0.1 million were loans subject to "removal-of-account" provisions.

Credit Quality Indicators

The following tables present credit quality indicators related to Farm & Ranch loans held and loans underlying LTSPCs and off-balance sheet Farm & Ranch Guaranteed Securities as of September 30, 2017 and December 31, 2016:  

Table 5.9

	As of September 30, 2017
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Credit risk profile by internally assigned grade(1)
On-balance sheet:
Acceptable	$	2,240,054	$	760,251	$	603,653	$	241,208	$	13,248	$	9,004	$	3,867,418
Special mention(2)	38,647		7,024		19,846		5,208		—		—		70,725
Substandard(3)	68,322		41,201		13,516		7,069		—		642		130,750
Total on-balance sheet	$	2,347,023	$	808,476	$	637,015	$	253,485	$	13,248	$	9,646	$	4,068,893
Off-Balance Sheet:
Acceptable	$	1,133,150	$	336,780	$	627,220	$	148,085	$	31,502	$	3,213	$	2,279,950
Special mention(2)	77,671		8,359		31,264		1,832		—		169		119,295
Substandard(3)	35,872		30,606		14,244		4,306		3,318		546		88,892
Total off-balance sheet	$	1,246,693	$	375,745	$	672,728	$	154,223	$	34,820	$	3,928	$	2,488,137
Total Ending Balance:
Acceptable	$	3,373,204	$	1,097,031	$	1,230,873	$	389,293	$	44,750	$	12,217	$	6,147,368
Special mention(2)	116,318		15,383		51,110		7,040		—		169		190,020
Substandard(3)	104,194		71,807		27,760		11,375		3,318		1,188		219,642
Total	$	3,593,716	$	1,184,221	$	1,309,743	$	407,708	$	48,068	$	13,574	$	6,557,030
Commodity analysis of past due loans(1)
On-balance sheet	$	31,413	$	22,330	$	7,367	$	3,352	$	—	$	643	$	65,105
Off-balance sheet	862		—		—		414		—		—		1,276
90 days or more past due	$	32,275	$	22,330	$	7,367	$	3,766	$	—	$	643	$	66,381

⁽¹⁾  Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans. 

⁽²⁾  Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.  

⁽³⁾  Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected.

	As of December 31, 2016
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Credit risk profile by internally assigned grade(1)
On-balance sheet:
Acceptable	$	2,080,227	$	568,221	$	504,784	$	179,288	$	11,545	$	8,894	$	3,352,959
Special mention(2)	35,223		1,139		33,075		4,372		—		—		73,809
Substandard(3)	41,648		27,770		10,658		7,610		—		—		87,686
Total on-balance sheet	$	2,157,098	$	597,130	$	548,517	$	191,270	$	11,545	$	8,894	$	3,514,454
Off-Balance Sheet
Acceptable	$	1,201,144	$	403,256	$	724,056	$	125,440	$	34,537	$	3,916	$	2,492,349
Special mention(2)	20,422		16,881		15,341		2,344		—		6		54,994
Substandard(3)	31,834		20,173		17,930		5,020		1,969		581		77,507
Total off-balance sheet	$	1,253,400	$	440,310	$	757,327	$	132,804	$	36,506	$	4,503	$	2,624,850
Total Ending Balance:
Acceptable	$	3,281,371	$	971,477	$	1,228,840	$	304,728	$	46,082	$	12,810	$	5,845,308
Special mention(2)	55,645		18,020		48,416		6,716		—		6		128,803
Substandard(3)	73,482		47,943		28,588		12,630		1,969		581		165,193
Total	$	3,410,498	$	1,037,440	$	1,305,844	$	324,074	$	48,051	$	13,397	$	6,139,304
Commodity analysis of past due loans(1)
On-balance sheet	$	13,449	$	3,245	$	669	$	2,394	$	—	$	—	$	19,757
Off-balance sheet	373		407		38		463		—		—		1,281
90 days or more past due	$	13,822	$	3,652	$	707	$	2,857	$	—	$	—	$	21,038

⁽¹⁾  Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.  

⁽²⁾  Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.  

⁽³⁾  Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected.

Concentrations of Credit Risk

The following table sets forth the geographic and commodity/collateral diversification, the range of original loan-to-value ratios, and the range in the size of borrower exposure for all Farm & Ranch loans held and loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs as of September 30, 2017 and December 31, 2016:

Table 5.10

	As of
	September 30, 2017		December 31, 2016
	(in thousands)
By commodity/collateral type:
Crops	$	3,593,716	$	3,410,498
Permanent plantings	1,184,221		1,037,440
Livestock	1,309,743		1,305,844
Part-time farm	407,708		324,074
Ag. Storage and Processing	48,068		48,051
Other	13,574		13,397
Total	$	6,557,030	$	6,139,304
By geographic region(1):
Northwest	$	723,616	$	657,403
Southwest	1,917,692		1,791,745
Mid-North	2,205,750		2,104,867
Mid-South	899,293		837,121
Northeast	290,655		229,679
Southeast	520,024		518,489
Total	$	6,557,030	$	6,139,304
By original loan-to-value ratio(2):
0.00% to 40.00%	$	1,274,050	$	1,220,432
40.01% to 50.00%	1,622,767		1,466,047
50.01% to 60.00%	2,268,852		2,078,099
60.01% to 70.00%	1,130,748		1,167,395
70.01% to 80.00%	233,963		191,664
80.01% to 90.00%	26,650		15,667
Total	$	6,557,030	$	6,139,304
By size of borrower exposure(3):
Less than $1,000,000	$	2,297,648	$	2,195,103
$1,000,000 to $4,999,999	2,500,101		2,398,843
$5,000,000 to $9,999,999	815,411		782,171
$10,000,000 to $24,999,999	568,471		469,681
$25,000,000 to $50,000,000	375,399		293,506
Total	$	6,557,030	$	6,139,304

⁽¹⁾  Geographic regions:  Northwest (AK, ID, MT, OR, WA, WY); Southwest (AZ, CA, CO, HI, NM, NV, UT); Mid-North (IA, IL, IN, MI, MN, NE, ND, SD, WI); Mid-South (AR, KS, LA, MO, OK, TX); Northeast (CT, DE, KY, MA, MD, ME, NH, NJ, NY, OH, PA, RI, VA, VT, WV); Southeast (AL, FL, GA, MS, NC, SC, TN).

⁽²⁾  As of second quarter 2017, Farmer Mac revised its calculation of the original loan-to-value ratio of a loan to combine for any cross-collateralized loans: (i) the original loan principal balance amounts in the numerator and (ii) the original appraised property values in the denominator. In previous periods, the ratio was calculated on a loan-by-loan basis without considering the effects of any cross-collateralization. Prior period information has been reclassified to conform to the current period calculation and presentation.

⁽³⁾  Includes multiple loans to the same borrower or borrower-related entities.

The original loan-to-value ratio is calculated by dividing the loan principal balance at the time of guarantee, purchase, or commitment by the appraised value at the date of loan origination or, when available, the updated appraised value at the time of guarantee, purchase, or commitment.  Current loan-to-value ratios may be higher or lower than the original loan-to-value ratios.

XML

Guarantees and Long Term Standby Purchase Commitments

9 Months Ended

Sep. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Guarantees and Long Term Standby Purchase Commitments Disclosure

GUARANTEES AND LONG-TERM STANDBY PURCHASE COMMITMENTS

Farmer Mac offers two credit enhancement alternatives to direct loan purchases that allow approved lenders the ability to retain the cash flow benefits of their loans and increase their liquidity and lending capacity: (1) Farmer Mac Guaranteed Securities, which are available through each of the Farm & Ranch, USDA Guarantees, Rural Utilities, and Institutional Credit lines of business, and (2) LTSPCs, which are available through the Farm & Ranch or the Rural Utilities lines of business.

The following table presents the maximum principal amount of potential undiscounted future payments that Farmer Mac could be required to make under all off-balance sheet Farmer Mac Guaranteed Securities as of September 30, 2017 and December 31, 2016, not including offsets provided by any recourse provisions, recoveries from third parties, or collateral for the underlying loans:

Table 6.1

Outstanding Balance of Off-Balance Sheet Farmer Mac Guaranteed Securities
	As of September 30, 2017		As of December 31, 2016
	(in thousands)
Farm & Ranch:
Guaranteed Securities	$	354,823	$	415,441
USDA Guarantees:
Farmer Mac Guaranteed USDA Securities	226,802		103,976
Institutional Credit:
AgVantage Securities	13,214		983,214
Revolving floating rate AgVantage facility(1)	300,000		300,000
Total off-balance sheet Farmer Mac Guaranteed Securities	$	894,839	$	1,802,631

⁽¹⁾  Relates to a revolving floating rate AgVantage facility subject to specified contractual terms. Farmer Mac receives a fixed fee based on the full dollar amount of the facility.

Eligible loans and other eligible assets may be placed into trusts that are used as vehicles for the securitization of the transferred assets and the Farmer Mac-guaranteed beneficial interests in the trusts are sold to investors.  The following table summarizes the significant cash flows received from and paid to trusts used for Farmer Mac securitizations:

Table 6.2

	For the Nine Months Ended
	September 30, 2017			September 30, 2016
	(in thousands)
Proceeds from new securitizations	$	404,246		$	457,369
Guarantee fees received	2,141			2,333
Purchases of assets from the trusts	(3,147		)	(2,118		)

Farmer Mac has recorded a liability for its obligation to stand ready under the guarantee in the guarantee and commitment obligation on the consolidated balance sheets.  This liability approximated $3.8 million as of September 30, 2017 and $5.5 million as of December 31, 2016. As of September 30, 2017 and December 31, 2016, the weighted-average remaining maturity of all loans underlying off-balance sheet Farmer Mac Guaranteed Securities, excluding AgVantage securities, was 10.1 years and 10.7 years, respectively. As of September 30, 2017 and December 31, 2016, the weighted-average remaining maturity of the off-balance sheet AgVantage securities was 1.1 years and 0.7 years, respectively.

Long-Term Standby Purchase Commitments

An LTSPC is a commitment by Farmer Mac to purchase eligible loans from an identified pool of loans under specified circumstances set forth in the applicable agreement, either for cash or in exchange for Farmer Mac Guaranteed Securities, on one or more undetermined future dates.  As consideration for its assumption of the credit risk on loans underlying an LTSPC, Farmer Mac receives a commitment fee payable monthly in arrears in an amount approximating what would have been the guarantee fee if the transaction were structured as a swap for Farmer Mac Guaranteed Securities.

The maximum principal amount of potential undiscounted future payments that Farmer Mac could be requested to make under all LTSPCs, not including offsets provided by any recourse provisions, recoveries from third parties, or collateral for the underlying loans, was $3.0 billion as of September 30, 2017 and $3.1 billion as of December 31, 2016.

As of both September 30, 2017 and December 31, 2016, the weighted-average remaining maturity of all loans underlying LTSPCs was 15.2 years and 15.1 years, respectively.  For those LTSPCs issued or modified on or after January 1, 2003, Farmer Mac has recorded a liability for its obligation to stand ready under the commitment in the guarantee and commitment obligation on the consolidated balance sheets.  This liability approximated $31.5 million as of September 30, 2017 and $31.8 million as of December 31, 2016.

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Equity

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Equity Disclosure

EQUITY

Common Stock

For each of the first, second, and third quarters in 2017, Farmer Mac paid a quarterly dividend of $0.36 per share on all classes of its common stock. For each quarter in 2016, Farmer Mac paid a quarterly dividend of $0.26 per share on all classes of its common stock.

On September 8, 2015, Farmer Mac's board of directors approved a share repurchase program authorizing Farmer Mac to repurchase up to $25 million of its outstanding Class C non-voting common stock through September 8, 2017. As of September 30, 2017, Farmer Mac had repurchased approximately 668,000 shares of Class C non-voting common stock at a cost of approximately $19.6 million pursuant to the share repurchase program. In August 2017, Farmer Mac's board of directors approved the continuation of the share repurchase program on its existing terms through August 2019 for the repurchase of up to $5.4 million of Farmer Mac's outstanding Class C non-voting common stock, which is the amount currently remaining under the share repurchase program originally authorized in third quarter 2015.

Preferred Stock

For each of the first, second, and third quarters in 2017 and for each quarter in 2016, Farmer Mac paid the following quarterly dividends on its outstanding preferred stock:

• $0.3672 per share on its 5.875% Non-Cumulative Preferred Stock, Series A;

• $0.4297 per share on its 6.875% Non-Cumulative Preferred Stock, Series B; and

• $0.3750 per share on its 6.000% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C.

Capital Requirements

Farmer Mac is subject to the following capital requirements:

• Statutory minimum capital requirement – Farmer Mac's statutory minimum capital level is an amount of core capital (stockholders' equity less accumulated other comprehensive income) equal to the sum of 2.75 percent of Farmer Mac's aggregate on-balance sheet assets, as calculated for regulatory purposes, plus 0.75 percent of the aggregate off-balance sheet obligations of Farmer Mac, specifically including:   

◦ the unpaid principal balance of outstanding Farmer Mac Guaranteed Securities;

◦ instruments issued or guaranteed by Farmer Mac that are substantially equivalent to Farmer Mac Guaranteed Securities, including LTSPCs; and

◦ other off-balance sheet obligations of Farmer Mac.

• Statutory critical capital requirement – Farmer Mac's critical capital level is an amount of core capital equal to 50 percent of the total minimum capital requirement at that time.

• Risk-based capital requirement – Farmer Mac's charter directs the Farm Credit Administration ("FCA"), an independent agency in the executive branch of the United States government that regulates Farmer Mac, to establish a risk-based capital stress test for Farmer Mac, using specified stress-test parameters.

Farmer Mac is required to comply with the higher of the minimum capital requirement and the risk-based capital requirement. As of both September 30, 2017 and December 31, 2016, the minimum capital requirement was greater than the risk-based capital requirement. Farmer Mac's ability to declare and pay dividends could be restricted if it fails to comply with applicable capital requirements.

As of September 30, 2017, Farmer Mac's minimum capital requirement was $515.8 million and its core capital level was $653.4 million, which was $137.6 million above the minimum capital requirement as of that date. As of December 31, 2016, Farmer Mac's minimum capital requirement was $466.5 million and its core capital level was $609.7 million, which was $143.2 million above the minimum capital requirement as of that date.

In accordance with FCA's rule on Farmer Mac's capital planning, and as part of Farmer Mac's capital plan, Farmer Mac has adopted a policy for maintaining a sufficient level of Tier 1 capital (consisting of retained earnings, paid-in-capital, common stock, and qualifying preferred stock) and imposing restrictions on Tier 1-eligible dividends and any discretionary bonus payments in the event that this capital falls below specified thresholds.

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Fair Value Disclosures

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Fair Value Disclosure

FAIR VALUE DISCLOSURES

As of September 30, 2017, Farmer Mac's assets and liabilities recorded at fair value included financial instruments valued at $5.5 billion whose fair values were estimated by management in the absence of readily determinable fair values (i.e., level 3).  These financial instruments measured as level 3 represented 31 percent of total assets and 71 percent of financial instruments measured at fair value as of September 30, 2017. As of December 31, 2016, Farmer Mac's assets and liabilities recorded at fair value included financial instruments valued at $4.9 billion whose fair values were estimated by management in the absence of readily determinable fair values.  These financial instruments measured as level 3 represented 31 percent of total assets and 65 percent of financial instruments measured at fair value as of December 31, 2016.

Transfers in and/or out of the different levels within the fair value hierarchy are based on the fair values of the assets and liabilities as of the beginning of the reporting period. During the first half of 2017 there was one transfer within fair value hierarchy from Level 2 to Level 3 for the fair value measurement of a fixed-rate GSE guaranteed mortgage-backed security (interest only strip). The transfer to Level 3 was because unobservable inputs became significant to the overall estimate of the fair value of the security as of March 31, 2017. There were no transfers within the fair value hierarchy for fair value measurements of Farmer Mac's investment securities, Farmer Mac Guaranteed Securities, USDA Securities, and financial derivatives during the first nine months of 2016. See Note 3 for information about the transfer of available-for-sale USDA and Farmer Mac Guaranteed USDA securities to held-to-maturity as of October 1, 2016.

The following tables present information about Farmer Mac's assets and liabilities measured at fair value on a recurring and non-recurring basis as of September 30, 2017 and December 31, 2016, respectively, and indicate the fair value hierarchy of the valuation techniques used by Farmer Mac to determine such fair value:

Table 8.1

Assets and Liabilities Measured at Fair Value as of September 30, 2017
	Level 1		Level 2		Level 3		Total
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	—	$	—	$	18,518	$	18,518
Floating rate asset-backed securities	—		35,602		—		35,602
Floating rate Government/GSE guaranteed mortgage-backed securities	—		1,312,204		—		1,312,204
Fixed rate GSE guaranteed mortgage-backed securities	—		507		4,458		4,965
Fixed rate senior agency debt	—		99,871		—		99,871
Fixed rate U.S. Treasuries	763,806		—		—		763,806
Total Investment Securities	763,806		1,448,184		22,976		2,234,966
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	—		—		5,443,746		5,443,746
Total Farmer Mac Guaranteed Securities	—		—		5,443,746		5,443,746
USDA Securities:
Trading	—		—		14,864		14,864
Total USDA Securities	—		—		14,864		14,864
Financial derivatives	50		1,970		—		2,020
Total Assets at fair value	$	763,856	$	1,450,154	$	5,481,586	$	7,695,596
Liabilities:
Financial derivatives	$	—	$	30,595	$	—	$	30,595
Total Liabilities at fair value	$	—	$	30,595	$	—	$	30,595
Non-recurring:
Assets:
Loans held for investment	$	—	$	—	$	636	$	636
REO	—		—		455		455
Total Non-recurring Assets at fair value	$	—	$	—	$	1,091	$	1,091

Assets and Liabilities Measured at Fair Value as of December 31, 2016
	Level 1		Level 2		Level 3		Total
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	—	$	—	$	17,730	$	17,730
Floating rate asset-backed securities	—		43,851		—		43,851
Floating rate corporate debt securities	—		10,041		—		10,041
Floating rate Government/GSE guaranteed mortgage-backed securities	—		1,361,029		—		1,361,029
Fixed rate GSE guaranteed mortgage-backed securities	—		7,625		—		7,625
Floating rate GSE subordinated debt	—		66,953		—		66,953
Fixed rate senior agency debt	—		187,133		—		187,133
Fixed rate U.S. Treasuries	821,489		—		—		821,489
Total Investment Securities	821,489		1,676,632		17,730		2,515,851
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	—		—		4,853,685		4,853,685
Total Farmer Mac Guaranteed Securities	—		—		4,853,685		4,853,685
USDA Securities:
Trading	—		—		20,388		20,388
Total USDA Securities	—		—		20,388		20,388
Financial derivatives	—		23,182		—		23,182
Total Assets at fair value	$	821,489	$	1,699,814	$	4,891,803	$	7,413,106
Liabilities:
Financial derivatives	$	155	$	57,997	$	—	$	58,152
Total Liabilities at fair value	$	155	$	57,997	$	—	$	58,152
Non-recurring:
Assets:
Loans held for investment	$	—	$	—	$	2,799	$	2,799
REO	—		—		349		349
Total Non-recurring Assets at fair value	$	—	$	—	$	3,148	$	3,148

The following tables present additional information about assets and liabilities measured at fair value on a recurring basis for which Farmer Mac has used significant unobservable inputs to determine fair value. Net transfers in and/or out of level 3 are based on the fair values of the assets and liabilities as of the beginning of the reporting period. There were no liabilities measured at fair value using significant unobservable inputs during the three and nine months ended September 30, 2017 and 2016.

Table 8.2

Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended September 30, 2017
	Beginning Balance		Purchases		Sales			Settlements			Realized and Unrealized Gains/(Losses) included in Income			Unrealized Gains/(Losses) included in Other Comprehe- nsive Income			Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	18,518	$	—	$	—		$	—		$	—		$	—		$	18,518
Fixed rate GSE guaranteed mortgage-backed securities	4,651		—		—			(111		)	—			(82		)	4,458
Total available-for-sale	23,169		—		—			(111		)	—			(82		)	22,976
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	5,282,562		193,800		—			(29,851		)	(1,171		)	(1,594		)	5,443,746
Total available-for-sale	5,282,562		193,800		—			(29,851		)	(1,171		)	(1,594		)	5,443,746
USDA Securities:
Available-for-sale	—		40,844		(40,844		)	—			—			—			—
Trading(1)	16,294		—		—			(1,430		)	—			—			14,864
Total USDA Securities	16,294		40,844		(40,844		)	(1,430		)	—			—			14,864
Total Assets at fair value	$	5,322,025	$	234,644	$	(40,844	)	$	(31,392	)	$	(1,171	)	$	(1,676	)	$	5,481,586

⁽¹⁾  Includes unrealized gains of $34,000 attributable to assets still held as of September 30, 2017 that are recorded in "Gains/(losses) on trading securities."

Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended September 30, 2016
	Beginning Balance		Purchases		Sales			Settlements			Realized and Unrealized Gains included in Income			Unrealized Gains included in Other Comprehe-nsive Income			Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	17,730	$	—	$	—		$	—		$	—		$	(148	)	$	17,582
Total available-for-sale	17,730		—		—			—			—			(148		)	17,582
Trading:
Floating rate asset-backed securities(1)	281		—		—			(1,887		)	1,606			—			—
Total trading	281		—		—			(1,887		)	1,606			—			—
Total Investment Securities	18,011		—		—			(1,887		)	1,606			(148		)	17,582
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	4,697,584		263,196		—			(64,895		)	(10,960		)	19,732			4,904,657
Farmer Mac Guaranteed USDA Securities	33,447		—		—			(504		)	—			(119		)	32,824
Total Farmer Mac Guaranteed Securities	4,731,031		263,196		—			(65,399		)	(10,960		)	19,613			4,937,481
USDA Securities:
Available-for-sale	1,967,759		119,201		(31,866		)	(55,772		)	—			(18,995		)	1,980,327
Trading(2)	24,787		—		—			(874		)	(424		)	—			23,489
Total USDA Securities	1,992,546		119,201		(31,866		)	(56,646		)	(424		)	(18,995		)	2,003,816
Total Assets at fair value	$	6,741,588	$	382,397	$	(31,866	)	$	(123,932	)	$	(9,778	)	$	470		$	6,958,879

⁽¹⁾  Unrealized gains are attributable to assets still held as of September 30, 2016 and are recorded in "Gains/(losses) on trading securities."

⁽²⁾  Includes unrealized losses of $0.4 million attributable to assets still held as of September 30, 2016 that are recorded in "Gains/(losses) on trading securities."

Level 3 Assets and Liabilities Measured at Fair Value for the Nine Months Ended September 30, 2017
	Beginning Balance		Transfers in		Purchases		Sales			Settlements			Realized and Unrealized Gains/(Losses) included in Income			Unrealized Gains/(Losses) included in Other Comprehe- nsive Income			Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	17,730	—		$	—	$	—		$	—		$	—		$	788		$	18,518
Fixed rate GSE guaranteed mortgage-backed securities	—		7,041		—		—			(334		)	—			(2,249		)	4,458
Total available-for-sale	17,730		7,041		—		—			(334		)	—			(1,461		)	22,976
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	4,853,685		—		927,615		—			(357,006		)	5,166			14,286			5,443,746
Total available-for-sale	4,853,685		—		927,615		—			(357,006		)	5,166			14,286			5,443,746
USDA Securities:
Available-for-sale	—		—		126,939		(126,939		)	—			—			—			—
Trading(1)	20,388		—		—		—			(5,440		)	(84		)	—			14,864
Total USDA Securities	20,388		—		126,939		(126,939		)	(5,440		)	(84		)	—			14,864
Total Assets at fair value	$	4,891,803	$	7,041	$	1,054,554	$	(126,939	)	$	(362,780	)	$	5,082		$	12,825		$	5,481,586

⁽¹⁾  Includes unrealized gains of $42,000 attributable to assets still held as of September 30, 2017 that are recorded in "Gains/(losses) on trading securities."

Level 3 Assets and Liabilities Measured at Fair Value for the Nine Months Ended September 30, 2016
	Beginning Balance		Purchases		Sales			Settlements			Realized and Unrealized Gains included in Income		Unrealized(Losses)/Gains included in Other Comprehe-nsive Income			Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	44,924	$	—	$	(26,806	)	$	—		$	6	$	(542	)	$	17,582
Total available-for-sale	44,924		—		(26,806		)	—			6		(542		)	17,582
Trading:
Floating rate asset-backed securities(1)	491		—		—			(2,213		)	1,722		—			—
Total trading	491		—		—			(2,213		)	1,722		—			—
Total Investment Securities	45,415		—		(26,806		)	(2,213		)	1,728		(542		)	17,582
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	4,121,244		1,342,572		—			(594,124		)	26,475		8,490			4,904,657
Farmer Mac Guaranteed USDA Securities	31,361		4,100		—			(3,240		)	—		603			32,824
Total Farmer Mac Guaranteed Securities	4,152,605		1,346,672		—			(597,364		)	26,475		9,093			4,937,481
USDA Securities:
Available-for-sale	1,888,344		351,914		(58,628		)	(237,262		)	—		35,959			1,980,327
Trading(2)	28,975		—		—			(5,698		)	212		—			23,489
Total USDA Securities	1,917,319		351,914		(58,628		)	(242,960		)	212		35,959			2,003,816
Total Assets at fair value	$	6,115,339	$	1,698,586	$	(85,434	)	$	(842,537	)	$	28,415	$	44,510		$	6,958,879

⁽¹⁾  Unrealized gains are attributable to assets still held as of September 30, 2016 and are recorded in "Gains/(losses) on trading securities."

⁽²⁾  Includes unrealized gains of $0.1 million attributable to assets still held as of September 30, 2016 that are recorded in "Gains/(losses) on trading securities."

The following tables present additional information about the significant unobservable inputs, such as discount rates and constant prepayment rates ("CPR"), used in the fair value measurements categorized in level 3 of the fair value hierarchy as of September 30, 2017 and December 31, 2016.

Table 8.3

	As of September 30, 2017
Financial Instruments	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted-Average)
	(in thousands)
Assets:
Investment securities:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	18,518	Indicative bids	Range of broker quotes	94.0% - 94.0% (94.0%)
Fixed rate GSE guaranteed mortgage-backed securities	$	4,458	Discounted cash flow	Discount rate	3.7%
				CPR	0 %
Farmer Mac Guaranteed Securities:
AgVantage	$	5,443,746	Discounted cash flow	Discount rate	2.0% - 3.3% (2.2%)
USDA Securities	$	14,864	Discounted cash flow	Discount rate	3.6% - 5.3% (5.0%)
				CPR	7% - 19% (17%)

	As of December 31, 2016
Financial Instruments	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted-Average)
	(in thousands)
Assets:
Investment securities:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	17,730	Indicative bids	Range of broker quotes	90.0% - 90.0% (90.0%)
Farmer Mac Guaranteed Securities:
AgVantage	$	4,853,685	Discounted cash flow	Discount rate	1.5% - 3.3% (1.9%)
USDA Securities	$	20,388	Discounted cash flow	Discount rate	4.0% - 5.3% (5.0%)
				CPR	13% - 18% (17%)

The significant unobservable inputs used in the fair value measurements of Farmer Mac Guaranteed Securities and USDA Securities are prepayment rates and discount rates commensurate with the risks involved. Typically, significant increases (decreases) in any of these inputs in isolation may result in materially lower (higher) fair value measurements. Generally, in a rising interest rate environment, Farmer Mac would expect average discount rates to increase and would likely expect a corresponding decrease in forecasted prepayment rates. Conversely, in a declining interest rate environment, Farmer Mac would expect average discount rates to decrease and would likely expect a corresponding increase in forecasted prepayment rates. Prepayment rates are not presented in the table above for AgVantage securities because they generally do not pay down principal based on amortization schedules but instead typically have fixed maturity dates when the secured general obligations are due.

Disclosures on Fair Value of Financial Instruments

The following table sets forth the estimated fair values and carrying values for financial assets, liabilities, and guarantees and commitments as of September 30, 2017 and December 31, 2016:

Table 8.4

	As of September 30, 2017				As of December 31, 2016
	Fair Value		Carrying Amount		Fair Value		Carrying Amount
	(in thousands)
Financial assets:
Cash and cash equivalents	$	366,764	$	366,764	$	265,229	$	265,229
Investment securities	2,234,966		2,234,966		2,515,851		2,515,851
Farmer Mac Guaranteed Securities	7,601,376		7,602,556		6,006,694		6,002,916
USDA Securities	2,042,408		2,107,149		1,934,023		2,029,613
Loans	5,140,669		5,127,770		4,481,019		4,507,435
Financial derivatives	2,020		2,020		23,182		23,182
Guarantee and commitment fees receivable:
LTSPCs	31,986		32,307		34,720		32,656
Farmer Mac Guaranteed Securities	4,611		4,372		6,197		6,215
Financial liabilities:
Notes payable:
Due within one year	8,108,390		8,112,928		8,439,515		8,440,123
Due after one year	7,450,462		7,399,961		5,260,497		5,222,977
Debt securities of consolidated trusts held by third parties	1,310,240		1,333,417		1,107,513		1,142,704
Financial derivatives	30,595		30,595		58,152		58,152
Guarantee and commitment obligations:
LTSPCs	31,169		31,491		33,860		31,796
Farmer Mac Guaranteed Securities	4,065		3,825		5,467		5,486

The carrying value of cash and cash equivalents is a reasonable estimate of their approximate fair value and is classified as level 1 within the fair value hierarchy. Investment securities primarily are valued based on unadjusted quoted prices in active markets and are classified as level 2 within the fair value hierarchy. Farmer Mac internally models the fair value of its loan portfolio, including loans held for investment and loans held for investment in consolidated trusts, Farmer Mac Guaranteed Securities, and USDA Securities by discounting the projected cash flows of these instruments at projected interest rates. The fair values are based on the present value of expected cash flows using management's best estimate of certain key assumptions, which include prepayment speeds, forward yield curves and discount rates commensurate with the risks involved. These fair value measurements do not take into consideration the fair value of the underlying property and are classified as level 3 within the fair value hierarchy. Financial derivatives primarily are valued using unadjusted counterparty valuations and are classified as level 2 within the fair value hierarchy. The fair value of the guarantee fees receivable/obligation and debt securities of consolidated trusts are estimated based on the present value of expected future cash flows of the underlying mortgage assets using management's best estimate of certain key assumptions, which include prepayments speeds, forward yield curves, and discount rates commensurate with the risks involved and are classified as level 3 within the fair value hierarchy. Notes payable are valued by discounting the expected cash flows of these instruments using a yield curve derived from market prices observed for similar agency securities and are also classified as level 3 within the fair value hierarchy. Because the cash flows of Farmer Mac's financial instruments may be interest rate path dependent, estimated fair values and projected discount rates for level 3 financial instruments are derived using a Monte Carlo simulation model. Different market assumptions and estimation methodologies could significantly affect estimated fair value amounts.

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Business Segment Reporting

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Business Segment Reporting Disclosure

BUSINESS SEGMENT REPORTING

The following tables present core earnings for Farmer Mac's operating segments and a reconciliation to consolidated net income for the three and nine months ended September 30, 2017 and 2016:

Table 9.1

Core Earnings by Business Segment
For the Three Months Ended September 30, 2017
	Farm & Ranch			USDA Guarantees			Rural  Utilities			Institutional Credit			Corporate			Reconciling Adjustments				Consolidated Net Income
	(in thousands)
Net interest income	$	13,609		$	5,288		$	2,230		$	15,431		$	3,004		$	—			$	39,562
Less: reconciling adjustments(1)(2)(3)	(2,131		)	(433		)	602			(1,068		)	(305		)	3,335				—
Net effective spread	11,478			4,855			2,832			14,363			2,699			3,335				—
Guarantee and commitment fees(2)	4,236			130			476			93						(1,621		)		3,314
Other income/(expense)(3)(4)	214			9			5			—			233			524				985
Non-interest income/(loss)	4,450			139			481			93			233			(1,097		)		4,299
Provision for loan losses	(270		)	—			—			—			—			—				(270		)
Provision for reserve for losses	(114		)													—				(114		)
Other non-interest expense	(4,077		)	(1,080		)	(608		)	(1,670		)	(3,067		)	—				(10,502		)
Non-interest expense(5)	(4,191		)	(1,080		)	(608		)	(1,670		)	(3,067		)	—				(10,616		)
Core earnings before income taxes	11,467			3,914			2,705			12,786			(135		)	2,238			(6)	32,975
Income tax (expense)/benefit	(4,014		)	(1,370		)	(947		)	(4,475		)	396			(783		)		(11,193		)
Core earnings before preferred stock dividends and attribution of income to non-controlling interest	7,453			2,544			1,758			8,311			261			1,455			(6)	21,782
Preferred stock dividends	—			—			—			—			(3,295		)	—				(3,295		)
Segment core earnings/(losses)	$	7,453		$	2,544		$	1,758		$	8,311		$	(3,034	)	$	1,455		(6)	$	18,487
Total assets at carrying value	$	4,128,778		$	2,165,749		$	1,073,525		$	7,612,572		$	2,709,614		$	—			$	17,690,238
Total on- and off-balance sheet program assets at principal balance	$	6,557,030		$	2,298,956		$	1,886,445		$	7,901,842		$	—		$	—			$	18,644,273

⁽¹⁾  Excludes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.

⁽²⁾  Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.

⁽³⁾  Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "Gains/(losses) on financial derivatives and hedging activities" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

⁽⁴⁾  Includes reconciling adjustments for fair value adjustments on financial derivatives and trading assets. Also includes a reconciling adjustment related to the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities. In 2016 and prior periods, fair value adjustments on financial derivatives included variation margin payment amounts because those amounts were considered to be collateral of the related exposure and were accounted for as unrealized gains or losses. However, effective first quarter 2017, CME implemented a change in its rules related to the exchange of variation margin, whereby variation margin payments are considered to be a partial settlement of the respective derivatives contracts rather than as pledged collateral, and accounted for as realized gains and losses. See Note 4 for more information about this rule change. Farmer Mac believes that even though these variation margin amounts are now accounted for as realized gains or losses on financial derivatives and hedging activities as a result of the CME rule change, their economic character will remain the same as they were before the change. This is not expected to have a cumulative net impact on Farmer Mac's financial condition or results of operations reported in accordance with GAAP because the related financial instruments are expected to be held to maturity. Therefore, beginning in 2017, this reconciling adjustment includes realized gains and losses on financial derivatives centrally cleared through CME resulting from the exchange of variation margin. As a result, core earnings subsequent to 2016 will be presented on a consistent basis with core earnings in 2016 and prior periods.

⁽⁵⁾  Includes directly attributable costs and an allocation of indirectly attributable costs based on staffing.

⁽⁶⁾  Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends and attribution of income to non-controlling interest reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.

Core Earnings by Business Segment
For the Three Months Ended September 30, 2016
	Farm & Ranch			USDA Guarantees			Rural  Utilities			Institutional Credit			Corporate			Reconciling Adjustments				Consolidated Net Income
	(in thousands)
Net interest income	$	12,039		$	5,753		$	2,963		$	12,226		$	2,582		$	—			$	35,563
Less: reconciling adjustments(1)(2)(3)	(1,336		)	(564		)	(320		)	(799		)	(345		)	3,364				—
Net effective spread	10,703			5,189			2,643			11,427			2,237			3,364				—
Guarantee and commitment fees(2)	3,516			29			529			459			—			(735		)		3,798
Other income/(expense)(3)(4)	276			95			—			—			(388		)	320				303
Non-interest income/(loss)	3,792			124			529			459			(388		)	(415		)		4,101
Provision for loan losses	(191		)	—			—			—			—			—				(191		)
Provision for reserve for losses	222			—			—			—			—			—				222
Other non-interest expense	(3,673		)	(933		)	(553		)	(1,253		)	(3,113		)	—				(9,525		)
Non-interest expense(5)	(3,451		)	(933		)	(553		)	(1,253		)	(3,113		)	—				(9,303		)
Core earnings before income taxes	10,853			4,380			2,619			10,633			(1,264		)	2,949			(6)	30,170
Income tax (expense)/benefit	(3,799		)	(1,533		)	(917		)	(3,722		)	474			(1,032		)		(10,529		)
Core earnings before preferred stock dividends and attribution of income to non-controlling interest	7,054			2,847			1,702			6,911			(790		)	1,917			(6)	19,641
Preferred stock dividends	—			—			—			—			(3,295		)	—				(3,295		)
Non-controlling interest	—			—			—			—			18			—				18
Segment core earnings/(losses)	$	7,054		$	2,847		$	1,702		$	6,911		$	(4,067	)	$	1,917		(6)	$	16,364
Total assets at carrying value	$	3,436,641		$	2,062,195		$	1,008,903		$	6,045,227		$	3,447,939		$	—			$	16,000,905
Total on- and off-balance sheet program assets at principal balance	$	6,004,728		$	2,020,834		$	1,867,666		$	7,354,511		$	—		$	—			$	17,247,739

⁽¹⁾  Excludes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.

⁽²⁾  Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.

⁽³⁾  Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "Gains/(losses) on financial derivatives and hedging activities" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

⁽⁴⁾  Includes reconciling adjustments for fair value adjustments on financial derivatives and trading assets. Also includes a reconciling adjustment related to the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities.

⁽⁵⁾  Includes directly attributable costs and an allocation of indirectly attributable costs based on staffing.

⁽⁶⁾  Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends and attribution of income to non-controlling interest reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.

Core Earnings by Business Segment
For the Nine Months Ended September 30, 2017
	Farm & Ranch			USDA Guarantees			Rural  Utilities			Institutional Credit			Corporate			Reconciling Adjustments				Consolidated Net Income
	(in thousands)
Net interest income	$	39,701		$	15,747		$	8,181		$	44,364		$	8,371		$	—			$	116,364
Less: reconciling adjustments(1)(2)(3)	(6,208		)	(1,508		)	26			(3,025		)	(946		)	11,661				—
Net effective spread	33,493			14,239			8,207			41,339			7,425			11,661				—
Guarantee and commitment fees(2)	12,722			303			1,455			713			—			(4,563		)		10,630
Other income/(expense)(3)(4)	1,402			34			15			—			626			2,132				4,209
Non-interest income/(loss)	14,124			337			1,470			713			626			(2,431		)		14,839
Provision for loan losses	(1,234		)	—			—			—			—			—				(1,234		)
Release of reserve for losses	(60		)	—			—			—			—			—				(60		)
Other non-interest expense	(12,588		)	(3,333		)	(1,838		)	(4,813		)	(9,923		)	—				(32,495		)
Non-interest expense(5)	(12,648		)	(3,333		)	(1,838		)	(4,813		)	(9,923		)	—				(32,555		)
Core earnings before income taxes	33,735			11,243			7,839			37,239			(1,872		)	9,230			(6)	97,414
Income tax (expense)/benefit	(11,806		)	(3,935		)	(2,744		)	(13,033		)	1,646			(3,231		)		(33,103		)
Core earnings before preferred stock dividends and attribution of income to non-controlling interest	21,929			7,308			5,095			24,206			(226		)	5,999			(6)	64,311
Preferred stock dividends	—			—			—			—			(9,886		)	—				(9,886		)
Non-controlling interest	—			—			—			—			165			—				165
Segment core earnings/(losses)	$	21,929		$	7,308		$	5,095		$	24,206		$	(9,947	)	$	5,999		(6)	$	54,590
Total assets at carrying value	$	4,128,778		$	2,165,749		$	1,073,525		$	7,612,572		$	2,709,614		$	—			$	17,690,238
Total on- and off-balance sheet program assets at principal balance	$	6,557,030		$	2,298,956		$	1,886,445		$	7,901,842		$	—		$	—			$	18,644,273

⁽¹⁾  Excludes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.

⁽²⁾  Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.

⁽³⁾  Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "Gains/(losses) on financial derivatives and hedging activities" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

⁽⁴⁾  Includes reconciling adjustments for fair value adjustments on financial derivatives and trading assets. Also includes a reconciling adjustment related to the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities. In 2016 and prior periods, fair value adjustments on financial derivatives included variation margin payment amounts because those amounts were considered to be collateral of the related exposure and were accounted for as unrealized gains or losses. However, effective first quarter 2017, CME implemented a change in its rules related to the exchange of variation margin, whereby variation margin payments are considered to be a partial settlement of the respective derivatives contracts rather than as pledged collateral, and accounted for as realized gains and losses. See Note 4 for more information about this rule change. Farmer Mac believes that even though these variation margin amounts are now accounted for as realized gains or losses on financial derivatives and hedging activities as a result of the CME rule change, their economic character will remain the same as they were before the change. This is not expected to have a cumulative net impact on Farmer Mac's financial condition or results of operations reported in accordance with GAAP because the related financial instruments are expected to be held to maturity. Therefore, beginning in 2017, this reconciling adjustment includes realized gains and losses on financial derivatives centrally cleared through CME resulting from the exchange of variation margin. As a result, core earnings subsequent to 2016 will be presented on a consistent basis with core earnings in 2016 and prior periods.

⁽⁵⁾  Includes directly attributable costs and an allocation of indirectly attributable costs based on staffing.

⁽⁶⁾  Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends and attribution of income to non-controlling interest reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.

Core Earnings by Business Segment
For the Nine Months Ended September 30, 2016
	Farm & Ranch			USDA Guarantees			Rural  Utilities			Institutional Credit			Corporate			Reconciling Adjustments				Consolidated Net Income
	(in thousands)
Net interest income	$	34,772		$	15,743		$	8,682		$	36,084		$	8,280		$	—			$	103,561
Less: reconciling adjustments(1)(2)(3)	(4,733		)	(1,658		)	(939		)	(2,160		)	(897		)	10,387				—
Net effective spread	30,039			14,085			7,743			33,924			7,383			10,387				—
Guarantee and commitment fees(2)	11,390			50			1,197			1,375			—			(2,933		)		11,079
Other income/(expense)(3)(4)	451			178			—			—			(1,288		)	(9,259		)		(9,918		)
Non-interest income/(loss)	11,841			228			1,197			1,375			(1,288		)	(12,192		)		1,161
Provision for loan losses	(604		)	—			—			—			—			—				(604		)
Provision for reserve for losses	114			—			—			—			—			—				114
Other non-interest expense	(11,946		)	(3,118		)	(2,214		)	(2,330		)	(9,849		)	—				(29,457		)
Non-interest expense(5)	(11,832		)	(3,118		)	(2,214		)	(2,330		)	(9,849		)	—				(29,343		)
Core earnings before income taxes	29,444			11,195			6,726			32,969			(3,754		)	(1,805		)	(6)	74,775
Income tax (expense)/benefit	(10,307		)	(3,918		)	(2,355		)	(11,538		)	1,221			633				(26,264		)
Core earnings before preferred stock dividends and attribution of income to non-controlling interest	19,137			7,277			4,371			21,431			(2,533		)	(1,172		)	(6)	48,511
Preferred stock dividends	—			—			—			—			(9,886		)	—				(9,886		)
Non-controlling interest	—			—			—			—			62			—				62
Segment core earnings/(losses)	$	19,137		$	7,277		$	4,371		$	21,431		$	(12,357	)	$	(1,172	)	(6)	$	38,687
Total assets at carrying value	$	3,436,641		$	2,062,195		$	1,008,903		$	6,045,227		$	3,447,939		$	—			$	16,000,905
Total on- and off-balance sheet program assets at principal balance	$	6,004,728		$	2,020,834		$	1,867,666		$	7,354,511		$	—		$	—			$	17,247,739

⁽¹⁾  Excludes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.

⁽²⁾  Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.

⁽³⁾  Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "Gains/(losses) on financial derivatives and hedging activities" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

⁽⁴⁾  Includes reconciling adjustments for fair value adjustments on financial derivatives and trading assets. Also includes a reconciling adjustment related to the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities.

⁽⁵⁾  Includes directly attributable costs and an allocation of indirectly attributable costs based on staffing.

⁽⁶⁾  Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends and attribution of income to non-controlling interest reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.

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Accounting Policies - Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2017

Accounting Policies [Abstract]

Summary of Significant Account Policies

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The interim unaudited consolidated financial statements of the Federal Agricultural Mortgage Corporation ("Farmer Mac") and subsidiaries have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). These interim unaudited consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary to present a fair statement of the financial position and the results of operations and cash flows of Farmer Mac and subsidiaries for the interim periods presented. Certain information and footnote disclosures normally included in the annual consolidated financial statements have been omitted as permitted by SEC rules and regulations. The December 31, 2016 consolidated balance sheet presented in this report has been derived from Farmer Mac's audited 2016 consolidated financial statements. Management believes that the disclosures are adequate to present fairly the consolidated financial statements as of the dates and for the periods presented. These interim unaudited consolidated financial statements should be read in conjunction with the 2016 consolidated financial statements of Farmer Mac and subsidiaries included in Farmer Mac's Annual Report on Form 10-K for the year ended December 31, 2016 filed with the SEC on March 9, 2017. That Form 10-K describes Farmer Mac's significant accounting policies, which include its policies on Principles of Consolidation; Cash and Cash Equivalents and Statements of Cash Flows; Transfers of Financial Assets and Liabilities; Investment Securities, Farmer Mac Guaranteed Securities, and USDA Securities; Loans; Securitization of Loans; Real Estate Owned; Financial Derivatives; Notes Payable; Allowance for Loan Losses and Reserve for Losses; Earnings Per Common Share; Income Taxes; Stock-Based Compensation; Comprehensive Income; Long-Term Standby Purchase Commitments; Fair Value Measurement; and Consolidation of Variable Interest Entities ("VIEs"). Results for interim periods are not necessarily indicative of those that may be expected for the fiscal year. Presented below are Farmer Mac's significant accounting policies that contain updated information for the three months ended September 30, 2017.

Principles of Consolidation

Principles of Consolidation

The consolidated financial statements include the accounts of Farmer Mac and its three subsidiaries during the quarter: (1) Farmer Mac Mortgage Securities Corporation ("FMMSC"), whose principal activities are to facilitate the purchase and issuance of Farmer Mac Guaranteed Securities; (2) Farmer Mac II LLC, whose principal activity is the operation of substantially all of the business related to the USDA Guarantees line of business – primarily the acquisition of USDA Securities; and (3) Contour Valuation Services, LLC (which began doing business as AgVisory during first quarter 2016), whose principal activity is to appraise agricultural real estate. On May 1, 2017, Farmer Mac transferred its entire 65% ownership interest in AgVisory back to the limited liability company as a company redemption in exchange for $5,000. Farmer Mac recognized a loss of approximately $0.1 million after-tax upon the transfer. The consolidated financial statements also include the accounts of VIEs in which Farmer Mac determined itself to be the primary beneficiary.

Cash and Cash Equivalents and Statements of Cash Flows

Statements of Cash Flows

Earnings Per Share

Earnings Per Common Share

Basic earnings per common share ("EPS") is based on the weighted-average number of shares of common stock outstanding.  Diluted earnings per common share is based on the weighted-average number of shares of common stock outstanding adjusted to include all potentially dilutive common stock options, stock appreciation rights ("SARs"), and non-vested restricted stock awards.

Comprehensive Income

Comprehensive Income

Comprehensive income represents all changes in stockholders' equity except those resulting from investments by or distributions to stockholders, and is comprised of net income and unrealized gains and losses on available-for-sale securities, certain held-to-maturity securities transferred from the available-for-sale classification, and cash flow hedges, net of related taxes.

New Accounting Standards

New Accounting Standards

In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which provides new guidance intended to simplify several aspects of accounting and presentation for employee share-based payment transactions. The ASU became effective for Farmer Mac on January 1, 2017. The adoption of the new guidance had the following effect on Farmer Mac's financial position, results of operations, and cash flows:

• Consolidated Statements of Operations - The ASU requires the recognition of all net tax benefits related to share-based compensation awards in the income tax provision. Previously, these amounts were recognized in additional paid-in capital. Net tax benefits related to share-based compensation awards of $0.3 million and $1.2 million, respectively, were recognized as a reduction to income tax expense in the three and nine months ended September 30, 2017 in the consolidated statement of operations. Net tax benefits result from the excess of the tax deduction over the compensation expense recognized under GAAP for share-based compensation awards. That excess arises because the tax deduction is based upon the value of share-based awards upon their exercise (or vesting, in the case of restricted stock units), whereas the compensation expense under GAAP is based upon the value of the share-based awards upon their grant date.

The ASU also changed the calculation of diluted earnings per share. GAAP requires the "treasury stock method" to determine the number of dilutive securities in calculating diluted earnings per share. The ASU changed the calculation of "assumed proceeds" under the treasury stock method to exclude the amount of net tax benefits that would have been recognized in additional paid-in capital under the previous accounting standard. This change in the calculation reduces the amount of shares assumed to have been repurchased under the treasury stock method, thus increasing the number of dilutive shares.

Both of these changes in the guidance were applied prospectively beginning January 1, 2017 and for the three and nine months ended September 30, 2017. For the three months ended September 30, 2017, the change in the recognition of all net tax benefits related to share-based compensation awards in the income tax provision resulted in an increase of $0.03 in basic earnings per share and $0.02 in diluted earnings per share for the three months ended September 30, 2017. For the nine months ended September 30, 2017, the change in the recognition of all net tax benefits related to share-based compensation awards in the income tax provision resulted in an increase of $0.11 in basic earnings per share and $0.09 in diluted earnings per share. The change in the guidance for the calculation of diluted earnings per share had an immaterial impact on diluted earnings per share.

Additionally, the ASU allows companies to choose to either include an estimate of forfeitures expected to occur in share-based compensation expense or account for them as they occur. Previously, GAAP required companies to include an estimate of forfeitures expected to occur in their share-based compensations expense. Farmer Mac has elected to account for forfeitures in compensation expense as they occur. The cumulative impact of the change in the treatment of forfeitures was not material for the three and nine months ended September 30, 2017.

• Consolidated Statements of Cash Flows - The ASU requires excess tax benefits from share-based employee awards to be reported within operating activities. Previously, these cash flows were reported within financing activities. Farmer Mac has applied this guidance prospectively, resulting in an increase in net cash provided by operating activities and a corresponding decrease in net cash provided by financing activities of $0.3 million and $1.2 million, respectively, for the three and nine months ended September 30, 2017.

The ASU requires employee taxes paid when an employer withholds shares for tax purposes to be reported within financing activities. Under the previous guidance, these cash flows were included in operating activities. These changes were required to be applied on a retrospective basis. As a result, the consolidated statement of cash flows for prior periods was revised, resulting in an increase in net cash provided by operating activities and a decrease in net cash provided by financing activities of $2.0 million for the nine months ended September 30, 2016, compared to previously reported amounts. The amount of employee taxes paid for shares withheld was $2.3 million for the nine months ended September 30, 2017.

In June 2016, the FASB issued ASU 2016-13, "Financial Instruments—Credit Losses," which will require entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts.  Entities will be required to use forward-looking information to form their credit loss estimates.  The ASU will also require enhanced disclosures to help users of financial statements better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio.  The new standard is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019.   Early application will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018.  Farmer Mac is currently evaluating the impact that the new guidance will have on its consolidated financial statements. That impact will primarily be from the new requirement to recognize all expected losses rather than just incurred losses as of the reporting date. 

In March 2017, the FASB issued ASU 2017-08, "Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities," which shortens the amortization period for certain callable debt securities held at a premium by requiring the premium to be amortized to the earliest call date. The ASU does not require an accounting change for securities held at a discount. The new standard is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019. Farmer Mac does not expect that adoption of the new guidance will have a material effect on Farmer Mac's financial position, results of operations, or cash flows.

In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities," which amends hedge accounting recognition and presentation requirements to better align a reporting entity's risk management activities and hedge accounting. The new guidance reduces the complexity and simplifies the application of hedge accounting by eliminating the requirement to separately measure and report hedge ineffectiveness and by requiring the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The new standard is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018. Early adoption of the new guidance is permitted in any interim or annual period after issuance of the ASU. Farmer Mac is planning to adopt the new guidance as of January 1, 2018 and does not expect the adoption of the new guidance to have a material effect on Farmer Mac's financial position, results of operation, or cash flow upon the adoption of the new guidance.

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Accounting Policies - Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2017

Accounting Policies [Abstract]

Schedule of Variable Interest Entities [Table Text Block]

The following tables present, by line of business, details about the consolidation of VIEs:

Table 1.1

	Consolidation of Variable Interest Entities
	As of September 30, 2017
	Farm & Ranch		USDA Guarantees		Rural Utilities		Institutional Credit		Corporate		Total
	(in thousands)
On-Balance Sheet:
Consolidated VIEs:
Loans held for investment in consolidated trusts, at amortized cost	$	1,329,212	$	—	$	—	$	—	$	—	$	1,329,212
Debt securities of consolidated trusts held by third parties (1)	1,333,417		—		—		—		—		1,333,417
Unconsolidated VIEs:
Farmer Mac Guaranteed Securities:
Carrying value (2)	—		31,003		—		—		—		31,003
Maximum exposure to loss (3)	—		30,688		—		—		—		30,688
Investment securities:
Carrying value (4)	—		—		—		—		783,665		783,665
Maximum exposure to loss (3) (4)	—		—		—		—		781,755		781,755
Off-Balance Sheet:
Unconsolidated VIEs:
Farmer Mac Guaranteed Securities:
Maximum exposure to loss (3) (5)	354,823		226,802		—		—		—		581,625

⁽¹⁾  Includes borrower remittances of $4.2 million. The borrower remittances had not been passed through to third party investors as of September 30, 2017.

⁽²⁾  Includes $0.3 million of unamortized premiums and discounts and fair value adjustments related to the USDA Guarantees line of business.

⁽³⁾  Farmer Mac uses unpaid principal balance and outstanding face amount of investment securities to represent maximum exposure to loss.

⁽⁴⁾  Includes auction-rate certificates, asset-backed securities, and government-sponsored enterprise ("GSE")-guaranteed mortgage-backed securities.

⁽⁵⁾  The amount under the Farm & Ranch line of business relates to unconsolidated trusts where Farmer Mac determined it was not the primary beneficiary due to shared power with an unrelated party.

	Consolidation of Variable Interest Entities
	As of December 31, 2016
	Farm & Ranch		USDA Guarantees		Rural Utilities		Institutional Credit		Corporate		Total
	(in thousands)
On-Balance Sheet:
Consolidated VIEs:
Loans held for investment in consolidated trusts, at amortized cost	$	1,132,966	$	—	$	—	$	—	$	—	$	1,132,966
Debt securities of consolidated trusts held by third parties (1)	1,142,704		—		—		—		—		1,142,704
Unconsolidated VIEs:
Farmer Mac Guaranteed Securities:
Carrying value (2)	—		36,042		—		30,347		—		66,389
Maximum exposure to loss (3)	—		35,599		—		30,000		—		65,599
Investment securities:
Carrying value (4)	—		—		—		—		827,874		827,874
Maximum exposure to loss (3) (4)	—		—		—		—		825,909		825,909
Off-Balance Sheet:
Unconsolidated VIEs:
Farmer Mac Guaranteed Securities:
Maximum exposure to loss (3) (5)	415,441		103,976		—		970,000		—		1,489,417

⁽¹⁾  Includes borrower remittances of $9.7 million, which have not been passed through to third party investors as of December 31, 2016.

⁽²⁾  Includes $0.4 million of unamortized premiums and discounts and fair value adjustments related to the USDA Guarantees line of business. Includes fair value adjustments related to the Institutional Credit line of business of $0.3 million.

⁽³⁾  Farmer Mac uses unpaid principal balance and the outstanding face amount of investment securities to represent maximum exposure to loss.

⁽⁴⁾  Includes auction-rate certificates, asset-backed securities, and GSE-guaranteed mortgage-backed securities.

⁽⁵⁾  The amount under the Farm & Ranch line of business relates to unconsolidated trusts where Farmer Mac determined it was not the primary beneficiary due to shared power with an unrelated party.

Schedule of Cash Flow, Supplemental Disclosures

The following table sets forth information regarding certain cash and non-cash transactions for the nine months endedSeptember 30, 2017 and 2016:

Table 1.2

	For the Nine Months Ended
	September 30, 2017	September 30, 2016
	(in thousands)
Non-cash activity:
Real estate owned acquired through loan liquidation	5,261	—
Loans acquired and securitized as Farmer Mac Guaranteed Securities	404,246	457,369
Consolidation of Farm & Ranch Guaranteed Securities from off-balance sheet to loans held for investment in consolidated trusts and to debt securities of consolidated trusts held by third parties	277,307	402,841
Purchases of securities - traded not yet settled	9,987	25,000

Earnings Per Common Share

The following schedule reconciles basic and diluted EPS for the three and nine months ended September 30, 2017 and 2016:

Table 1.3

	For the Three Months Ended
	September 30, 2017(1)						September 30, 2016
	Net Income		Weighted-Average Shares	$ per Share			Net Income		Weighted-Average Shares	$ per Share
	(in thousands, except per share amounts)
Basic EPS
Net income attributable to common stockholders	$	18,487	10,605	$	1.74		$	16,364	10,473	$	1.56
Effect of dilutive securities(2)
Stock options, SARs and restricted stock	—		210	(0.03		)	—		176	(0.02		)
Diluted EPS	$	18,487	10,815	$	1.71		$	16,364	10,649	$	1.54

⁽¹⁾  For the effect of the adoption of the new Accounting Standard Update 2016-09, "Improvements to Employee Share-Based Payment Accounting," on Basic and Diluted EPS, see Note 1(d) "New Accounting Standards."

⁽²⁾  For the three months ended September 30, 2017 and 2016, stock options and SARs of 24,657 and 54,709, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because they were anti-dilutive. For the three months ended September 30, 2017 and 2016, contingent shares of non-vested restricted stock of 32,892, and 37,284, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because performance conditions had not yet been met.

	For the Nine Months Ended
	September 30, 2017(1)						September 30, 2016
	Net Income		Weighted-Average Shares	$ per Share			Net Income		Weighted-Average Shares	$ per Share
	(in thousands, except per share amounts)
Basic EPS
Net income attributable to common stockholders	$	54,590	10,586	$	5.16		$	38,687	10,464	$	3.70
Effect of dilutive securities(2)
Stock options, SARs and restricted stock	—		208	(0.10		)	—		291	(0.10		)
Diluted EPS	$	54,590	10,794	$	5.06		$	38,687	10,755	$	3.60

⁽¹⁾  For the effect of the adoption of the new Accounting Standard Update 2016-09, "Improvements to Employee Share-Based Payment Accounting," on Basic and Diluted EPS, see Note 1(d) "New Accounting Standards."

⁽²⁾  For the nine months ended September 30, 2017 and 2016, stock options and SARs of 33,440 and 115,875, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because they were anti-dilutive. For the nine months ended September 30, 2017 and 2016, contingent shares of non-vested restricted stock of 32,892, and 37,284, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because performance conditions had not yet been met.

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

The following table presents the changes in accumulated other comprehensive income ("AOCI"), net of tax, by component for the three and nine months ended September 30, 2017 and 2016:

Table 1.4

	As of September 30, 2017												As of September 30, 2016
	Available-for-Sale Securities			Held-to-Maturity Securities			Cash Flow Hedges			Total			Available-for-Sale Securities			Held-to-Maturity Securities			Cash Flow Hedges			Total
	(in thousands)
For the Three Months Ended:
Beginning Balance	$	(1,276	)	$	42,104		$	1,600		$	42,428		$	19,704		$	(1,781	)	$	(5,539	)	$	12,384
Other Comprehensive Income Before Reclassifications	2,298			—			(97		)	2,201			2,746			—			527			3,273
Amounts reclassified from AOCI	(2,875		)	(1,221		)	262			(3,834		)	(2,388		)	(47		)	342			(2,093		)
Net Comprehensive (Loss)/Income	(577		)	(1,221		)	165			(1,633		)	358			(47		)	869			1,180
Ending Balance	$	(1,853	)	$	40,883		$	1,765		$	40,795		$	20,062		$	(1,828	)	$	(4,670	)	$	13,564
For the Nine Months Ended:
Beginning Balance	$	(14,387	)	$	45,752		$	2,393		$	33,758		$	(10,035	)	$	(476	)	$	(508	)	$	(11,019	)
Other Comprehensive Income Before Reclassifications	20,711			—			(1,522		)	19,189			37,446			—			(5,136		)	32,310
Amounts reclassified from AOCI	(8,177		)	(4,869		)	894			(12,152		)	(7,349		)	(1,352		)	974			(7,727		)
Net Comprehensive Income/(Loss)	12,534			(4,869		)	(628		)	7,037			30,097			(1,352		)	(4,162		)	24,583
Ending Balance	$	(1,853	)	$	40,883		$	1,765		$	40,795		$	20,062		$	(1,828	)	$	(4,670	)	$	13,564

Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]

The following table presents other comprehensive income activity, the impact on net income of amounts reclassified from each component of AOCI, and the related tax impact for the three and nine months ended September 30, 2017 and 2016:

Table 1.5

	For the Three Months Ended
	September 30, 2017									September 30, 2016
	Before Tax			Provision (Benefit)			After Tax			Before Tax			Provision (Benefit)			After Tax
	(in thousands)
Other comprehensive income:
Available-for-sale-securities:
Unrealized holding gains on available-for-sale-securities	$	3,536		$	1,238		$	2,298		$	4,225		$	1,479		$	2,746
Less reclassification adjustments included in:
Gains/(losses) on financial derivatives and hedging activities(1)	(4,326		)	(1,514		)	(2,812		)	(3,652		)	(1,278		)	(2,374		)
Gains/(losses) on sale of available-for-sale investment securities(2)	(89		)	(31		)	(58		)	—			—			—
Other income(2)	(7		)	(2		)	(5		)	(21		)	(7		)	(14		)
Total	$	(886	)	$	(309	)	$	(577	)	$	552		$	194		$	358
Held-to-maturity securities:
Less reclassification adjustments included in:
Net interest income(3)	$	(1,879	)	$	(658	)	$	(1,221	)	$	(73	)	$	(26	)	$	(47	)
Total	$	(1,879	)	$	(658	)	$	(1,221	)	$	(73	)	$	(26	)	$	(47	)
Cash flow hedges
Unrealized (losses)/gains on cash flow hedges	$	(150	)	$	(53	)	$	(97	)	$	810		$	283		$	527
Less reclassification adjustments included in:
Net interest income(4)	403			141			262			526			184			342
Total	$	253		$	88		$	165		$	1,336		$	467		$	869
Other comprehensive (loss)/income	$	(2,512	)	$	(879	)	$	(1,633	)	$	1,815		$	635		$	1,180

⁽¹⁾  Relates to the amortization of unrealized gains on hedged items prior to the application of fair value hedge accounting.

⁽²⁾  Represents amortization of deferred gains related to certain available-for-sale USDA Securities and Farmer Mac Guaranteed USDA Securities.

⁽³⁾  Relates to the amortization of unrealized gains or losses prior to the reclassification of these securities from available-for-sale to held-to-maturity. The amortization of unrealized gains or losses reported in AOCI for held-to-maturity securities will be offset by the amortization of the premium or discount created from the transfer into held-to-maturity securities, which occurred at fair value. These unrealized gains or losses will be recorded over the remaining life of the security with no impact on future net income.

⁽⁴⁾  Relates to the recognition of unrealized gains and losses on cash flow hedges recorded in AOCI.

	For the Nine Months Ended
	September 30, 2017									September 30, 2016
	Before Tax			Provision (Benefit)			After Tax			Before Tax			Provision (Benefit)			After Tax
	(in thousands)
Other comprehensive income:
Available-for-sale-securities:
Unrealized holding gains on available-for-sale-securities	$	31,863		$	11,152		$	20,711		$	57,610		$	20,164		$	37,446
Less reclassification adjustments included in:
Gains/(losses) on financial derivatives and hedging activities(1)	(12,470		)	(4,365		)	(8,105		)	(11,591		)	(4,056		)	(7,535		)
Gains/(losses) on sale of available-for-sale investment securities(2)	(89		)	(31		)	(58		)	9			3			6
Other income(3)	(21		)	(7		)	(14		)	277			97			180
Total	$	19,283		$	6,749		$	12,534		$	46,305		$	16,208		$	30,097
Held-to-maturity securities:
Less reclassification adjustments included in:
Net interest income(4)	$	(7,491	)	$	(2,622	)	$	(4,869	)	$	(2,081	)	$	(729	)	$	(1,352	)
Total	$	(7,491	)	$	(2,622	)	$	(4,869	)	$	(2,081	)	$	(729	)	$	(1,352	)
Cash flow hedges
Unrealized losses on cash flow hedges	(2,342		)	(820		)	$	(1,522	)	$	(7,901	)	$	(2,765	)	$	(5,136	)
Less reclassification adjustments included in:
Net interest income(5)	1,376			482			894			1,498			524			974
Total	$	(966	)	$	(338	)	$	(628	)	$	(6,403	)	$	(2,241	)	$	(4,162	)
Other comprehensive income	$	10,826		$	3,789		$	7,037		$	37,821		$	13,238		$	24,583

⁽¹⁾  Relates to the amortization of unrealized gains on hedged items prior to the application of fair value hedge accounting.

⁽²⁾  Represents unrealized losses on sales of available-for-sale investment securities.

⁽³⁾  Represents amortization of deferred gains related to certain available-for-sale USDA Securities and Farmer Mac Guaranteed USDA Securities.

⁽⁴⁾  Relates to the amortization of unrealized gains or losses prior to the reclassification of these securities from available-for-sale to held-to-maturity. The amortization of unrealized gains or losses reported in AOCI for held-to-maturity securities will be offset by the amortization of the premium or discount created from the transfer into held-to-maturity securities, which occurred at fair value. These unrealized gains or losses will be recorded over the remaining life of the security with no impact on future net income.

⁽⁵⁾  Relates to the recognition of unrealized gains and losses on cash flow hedges recorded in AOCI.

XML

Investment Securities - Investment Securities (Tables) - Investment Securities [Member]

9 Months Ended

Sep. 30, 2017

Schedule of Available-for-sale and Trading Securities [Line Items]

Marketable Securities [Table Text Block]

The following tables set forth information about Farmer Mac's investment securities as of September 30, 2017 and December 31, 2016:

Table 2.1

	As of September 30, 2017
	Amount Outstanding		Unamortized Premium/(Discount)			Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	19,700	$	—		$	19,700	$	—	$	(1,182	)	$	18,518
Floating rate asset-backed securities	35,870		(165		)	35,705		20		(123		)	35,602
Floating rate Government/GSE guaranteed mortgage-backed securities	1,308,236		2,386			1,310,622		2,858		(1,276		)	1,312,204
Fixed rate GSE guaranteed mortgage-backed securities(1)	468		2,247			2,715		2,250		—			4,965
Fixed rate senior agency debt	100,000		(8		)	99,992		—		(121		)	99,871
Fixed rate U.S. Treasuries	765,318		(1,054		)	764,264		—		(458		)	763,806
Total available-for-sale	2,229,592		3,406			2,232,998		5,128		(3,160		)	2,234,966
Total investment securities	$	2,229,592	$	3,406		$	2,232,998	$	5,128	$	(3,160	)	$	2,234,966

⁽¹⁾  Fair value includes $4.5 million of an interest-only security with a notional amount of $144.3 million.

	As of December 31, 2016
	Amount Outstanding		Unamortized Premium/(Discount)			Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	19,700	$	—		$	19,700	$	—	$	(1,970	)	$	17,730
Floating rate asset-backed securities	44,442		(202		)	44,240		1		(390		)	43,851
Floating rate corporate debt securities	10,000		—			10,000		41		—			10,041
Floating rate Government/GSE guaranteed mortgage-backed securities	1,359,700		2,827			1,362,527		1,768		(3,266		)	1,361,029
Fixed rate GSE guaranteed mortgage-backed securities(1)	538		2,582			3,120		4,505		—			7,625
Floating rate GSE subordinated debt	70,000		—			70,000		—		(3,047		)	66,953
Fixed rate senior agency debt	187,295		106			187,401		—		(268		)	187,133
Fixed rate U.S. Treasuries	821,619		359			821,978		47		(536		)	821,489
Total available-for-sale	2,513,294		5,672			2,518,966		6,362		(9,477		)	2,515,851
Total investment securities	$	2,513,294	$	5,672		$	2,518,966	$	6,362	$	(9,477	)	$	2,515,851

⁽¹⁾  Fair value includes $7.0 million of an interest-only security with a notional amount of $146.1 million.

Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Table Text Block]

As of September 30, 2017 and December 31, 2016, unrealized losses on available-for-sale investment securities were as follows:

Table 2.2

	As of September 30, 2017
	Available-for-Sale Securities
	Unrealized loss position for less than 12 months					Unrealized loss position for more than 12 months
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(in thousands)
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	—	$	—		$	18,518	$	(1,182	)
Floating rate asset-backed securities	—		—			24,089		(123		)
Floating rate Government/GSE guaranteed mortgage-backed securities	131,772		(220		)	277,196		(1,056		)
Fixed rate U.S. Treasuries	738,815		(431		)	24,991		(27		)
Fixed rate senior agency debt	49,929		(73		)	49,943		(48		)
Total	$	920,516	$	(724	)	$	394,737	$	(2,436	)

	As of December 31, 2016
	Available-for-Sale Securities
	Unrealized loss position for less than 12 months					Unrealized loss position for more than 12 months
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(in thousands)
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	—	$	—		$	17,730	$	(1,970	)
Floating rate asset-backed securities	4,654		(10		)	38,077		(380		)
Floating rate Government/GSE guaranteed mortgage-backed securities	384,586		(1,030		)	442,041		(2,236		)
Floating rate GSE subordinated debt	—		—			66,953		(3,047		)
Fixed rate U.S. Treasuries	732,371		(536		)	—		—
Fixed rate senior agency debt	187,133		(268		)	—		—
Total	$	1,308,744	$	(1,844	)	$	564,801	$	(7,633	)

The unrealized losses presented above are principally due to a general widening of market spreads and an increase in the levels of interest rates from the dates of acquisition to September 30, 2017 and December 31, 2016, as applicable. The resulting decrease in fair values reflects an increase in the perceived risk by the financial markets related to those securities. As of September 30, 2017, all of the investment securities in an unrealized loss position either were backed by the full faith and credit of the U.S. government or had credit ratings of at least "AA+." As of December 31, 2016, all of the investment securities in an unrealized loss position either were backed by the full faith and credit of the U.S. government or had credit ratings of at least "AA+," except one that was rated "A-." The unrealized losses were on 81 and 97 individual investment securities as of September 30, 2017 and December 31, 2016, respectively.

As of September 30, 2017, 44 of the securities in loss positions had been in loss positions for more than 12 months and had a total unrealized loss of $2.4 million. As of December 31, 2016, 36 of the securities in loss positions had been in loss positions for more than 12 months and had a total unrealized loss of $7.6 million.  Securities in unrealized loss positions for 12 months or longer have a fair value as of September 30, 2017 that is, on average, approximately 99 percent of their amortized cost basis. Farmer Mac believes that all of these unrealized losses are recoverable within a reasonable period of time by way of maturity or changes in credit spreads. Accordingly, Farmer Mac has concluded that none of the unrealized losses on these available-for-sale investment securities are other-than-temporary impairment as of September 30, 2017 and December 31, 2016.

Investments Classified by Contractual Maturity Date [Table Text Block]

The amortized cost, fair value, and weighted-average yield of available-for-sale investment securities by remaining contractual maturity as of September 30, 2017 are set forth below. Asset-backed and mortgage-backed securities are included based on their final maturities, although the actual maturities may differ due to prepayments of the underlying assets.

Table 2.3

	As of September 30, 2017
	Available-for-Sale Securities
	Amortized Cost		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	798,153	$	797,630	0.92%
Due after one year through five years	363,861		364,132		1.62%
Due after five years through ten years	279,192		281,792		1.75%
Due after ten years	791,792		791,412		1.86%
Total	$	2,232,998	$	2,234,966	1.47%

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Farmer Mac Guaranteed Securities and USDA Guaranteed Securities - Farmer Mac Guaranteed Securities and USDA Securities (Tables) - Farmer Mac Guaranteed Securities and USDA Securities [Member]

9 Months Ended

Sep. 30, 2017

Schedule of Held-to-Maturity, Available-for-sale, and Trading Securities [Line Items]

Marketable Securities [Table Text Block]

The following tables set forth information about on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities as of September 30, 2017 and December 31, 2016:

Table 3.1

	As of September 30, 2017
	Unpaid Principal Balance		Unamortized Premium/(Discount)			Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Held-to-maturity:
AgVantage	$	2,128,974	$	(1,166	)	$	2,127,808	$	5,091	$	(6,073	)	$	2,126,826
Farmer Mac Guaranteed USDA Securities	30,688		314			31,002		86		(284		)	30,804
Total Farmer Mac Guaranteed Securities	2,159,662		(852		)	2,158,810		5,177		(6,357		)	2,157,630
USDA Securities	2,027,261		65,024			2,092,285		—		(64,741		)	2,027,544
Total held-to-maturity	$	4,186,923	$	64,172		$	4,251,095	$	5,177	$	(71,098	)	$	4,185,174
Available-for-sale:
AgVantage	$	5,459,655	$	(141	)	$	5,459,514	$	30,811	$	(46,579	)	$	5,443,746
Trading:
USDA Securities	$	14,204	$	1,092		$	15,296	$	31	$	(463	)	$	14,864

	As of December 31, 2016
	Unpaid Principal Balance		Unamortized Premium/(Discount)			Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(in thousands)
Held-to-maturity:
AgVantage	$	1,115,465	$	(2,276	)	$	1,113,189	$	7,187	$	(3,175	)	$	1,117,201
Farmer Mac Guaranteed USDA Securities	35,599		443			36,042		5		(239		)	35,808
Total Farmer Mac Guaranteed Securities	1,151,064		(1,833		)	1,149,231		7,192		(3,414		)	1,153,009
USDA Securities	1,935,440		73,785			2,009,225		—		(95,590		)	1,913,635
Total held-to-maturity	$	3,086,504	$	71,952		$	3,158,456	$	7,192	$	(99,004	)	$	3,066,644
Available-for-sale:
AgVantage	$	4,889,007	$	(103	)	$	4,888,904	$	28,715	$	(63,934	)	$	4,853,685
Trading:
USDA Securities	$	19,360	$	1,377		$	20,737	$	41	$	(390	)	$	20,388

On October 1, 2016, Farmer Mac transferred $2.0 billion of USDA Securities and $32.8 million of Farmer Mac Guaranteed USDA Securities from available-for-sale to held-to-maturity to reflect Farmer Mac’s positive intent and ability to hold these securities until maturity or payoff. Farmer Mac transferred these securities at fair value as of the date of the transfer, which included a cost basis adjustment of unrealized appreciation in the amount of $73.1 million for the USDA Securities and $0.7 million for the Farmer Mac Guaranteed USDA Securities. The accumulated unrealized appreciation was retained in accumulated other comprehensive income in the amount of $73.8 million, before tax. Farmer Mac accounts for held-to-maturity securities at amortized cost. Both the cost basis adjustment and accumulated unrealized appreciation will be amortized as an adjustment to the yield on the held-to-maturity USDA Securities over the remaining term of the transferred securities.

Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Table Text Block]

As of September 30, 2017 and December 31, 2016, unrealized losses on held-to-maturity and available-for-sale on-balance sheet Farmer Mac Guaranteed Securities and USDA Securities were as follows:

Table 3.2

	As of September 30, 2017
	Held-to-Maturity and Available-for-Sale Securities
	Unrealized loss position for less than 12 months					Unrealized loss position for more than 12 months
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(in thousands)
Held-to-maturity:
AgVantage	$	1,249,774	$	(3,888	)	$	247,815	$	(2,185	)
Farmer Mac Guaranteed USDA Securities	25,201		(284		)	—		—
USDA Securities	1,940,984		(64,696		)	86,619		(45		)
Total held-to-maturity	$	3,215,959	$	(68,868	)	$	334,434	$	(2,230	)
Available-for-sale:
AgVantage	$	1,293,478	$	(14,376	)	$	1,424,602	$	(32,203	)

	As of December 31, 2016
	Available-for-Sale Securities
	Unrealized loss position for less than 12 months					Unrealized loss position for more than 12 months
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(in thousands)
Held-to-maturity:
AgVantage	$	358,575	$	(3,175	)	$	—	$	—
Farmer Mac Guaranteed USDA Securities	30,575		(239		)	—		—
USDA Securities	1,816,366		(95,582		)	97,270		(8		)
Total held-to-maturity	$	2,205,516	$	(98,996	)	$	97,270	$	(8	)
Available-for-sale:
AgVantage	$	982,538	$	(18,482	)	$	1,131,930	$	(45,452	)

The unrealized losses presented above are principally due to higher interest rates from the date of acquisition to September 30, 2017 and December 31, 2016, as applicable. In addition, the unrealized losses on the held-to-maturity USDA Securities as of both September 30, 2017 and December 31, 2016 reflect their increased cost basis resulting from their transfer to held-to-maturity as of October 1, 2016, as described above. The credit exposure related to Farmer Mac's USDA Guarantees line of business is covered by the full faith and credit guarantee of the United States. The unrealized losses from AgVantage securities were on 30 available-for-sale securities as of September 30, 2017. There were 18 held-to-maturity AgVantage securities with an unrealized loss as of September 30, 2017. The unrealized losses from AgVantage securities were on 22 available-for-sale securities as of December 31, 2016. There were 7 unrealized losses from held-to-maturity securities as of December 31, 2016. As of September 30, 2017, 12 available-for-sale AgVantage securities had been in a loss position for more than 12 months with a total unrealized loss of $32.2 million. As of December 31, 2016, 10 available-for-sale AgVantage securities had been in a loss position for more than 12 months with a total unrealized loss of $45.5 million. Farmer Mac has concluded that none of the unrealized losses on its held-to-maturity Farmer Mac Guaranteed Securities and USDA Securities and available-for-sale Farmer Mac Guaranteed Securities are other-than-temporary impairment as of either September 30, 2017 or December 31, 2016.  Farmer Mac does not intend to sell these securities, and it is not more likely than not that Farmer Mac will be required to sell the securities before recovery of the amortized cost basis.

Investments Classified by Contractual Maturity Date [Table Text Block]

The amortized cost, fair value, and weighted-average yield of available-for-sale and held-to-maturity Farmer Mac Guaranteed Securities and USDA Securities by remaining contractual maturity as of September 30, 2017 are set forth below. The balances presented are based on their final maturities, although the actual maturities may differ due to prepayments of the underlying assets.

Table 3.3

	As of September 30, 2017
	Available-for-Sale Securities
	Amortized Cost		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	1,000,000	$	1,001,537	1.90	%
Due after one year through five years	2,696,001		2,706,480		2.14	%
Due after five years through ten years	745,701		750,299		2.87	%
Due after ten years	1,017,812		985,430		1.98	%
Total	$	5,459,514	$	5,443,746	2.17	%

	As of September 30, 2017
	Held-to-Maturity Securities
	Amortized Cost		Fair Value		Weighted- Average Yield
	(dollars in thousands)
Due within one year	$	926,747	$	925,935	1.78	%
Due after one year through five years	1,260,842		1,258,848		2.27	%
Due after five years through ten years	208,034		201,899		3.07	%
Due after ten years	1,855,472		1,798,492		3.35	%
Total	$	4,251,095	$	4,185,174	2.66	%

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Financial Derivatives - Financial Derivatives (Tables)

9 Months Ended

Sep. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments [Table Text Block]

The following tables summarize information related to Farmer Mac's financial derivatives on a gross basis without giving consideration to master netting arrangements as of September 30, 2017 and December 31, 2016 and the effects of financial derivatives on the consolidated statements of operations for the three and nine months ended September 30, 2017 and 2016:

Table 4.1

	As of September 30, 2017
			Fair Value						Weighted- Average Pay Rate	Weighted- Average Receive Rate	Weighted- Average Forward Price	Weighted- Average Remaining Life (in years)
	Notional Amount		Asset			(Liability)
	(dollars in thousands)
Fair value hedges:
Interest rate swaps:
Pay fixed non-callable	$	2,040,854	$	744		$	(8,768	)	1.83%	1.31%		5.42
Receive fixed non-callable	1,431,700		64			(1,985		)	1.23%	1.42%		1.74
Cash flow hedges:
Interest rate swaps:
Pay fixed non-callable	349,000		960			(555		)	2.19%	1.55%		6.32
No hedge designation:
Interest rate swaps:
Pay fixed non-callable	348,040		166			(19,318		)	3.80%	1.31%		6.88
Receive fixed non-callable	3,389,116		—			—			1.12%	1.10%		0.85
Basis swaps	1,225,000		42			(63		)	1.20%	1.22%		0.95
Treasury futures	7,400		50			—					125.99
Credit valuation adjustment			(6		)	94
Total financial derivatives	$	8,791,110	$	2,020		$	(30,595	)
Collateral pledged			—			25,079
Net amount			$	2,020		$	(5,516	)

	As of December 31, 2016
			Fair Value						Weighted- Average Pay Rate	Weighted- Average Receive Rate	Weighted- Average Forward Price	Weighted- Average Remaining Life (in years)
	Notional Amount		Asset			(Liability)
	(dollars in thousands)
Fair value hedges:
Interest rate swaps:
Pay fixed non-callable	$	1,642,609	$	18,508		$	(18,909	)	1.73%	0.90%		4.70
Cash flow hedges:
Interest rate swaps:
Pay fixed non-callable	207,000		3,706			(955		)	2.18%	1.11%		7.28
No hedge designation:
Interest rate swaps:
Pay fixed non-callable	435,827		339			(32,951		)	4.06%	0.89%		5.90
Receive fixed non-callable	4,991,821		607			(5,064		)	0.74%	0.75%		0.60
Receive fixed callable	30,000		—			(33		)	0.82%	0.58%		0.33
Basis swaps	765,000		36			(243		)	0.78%	0.78%		0.87
Treasury futures	28,000		—			(155		)			123.73
Credit valuation adjustment			(14		)	158
Total financial derivatives	$	8,100,257	$	23,182		$	(58,152	)
Collateral pledged			—			25,643
Net amount			$	23,182		$	(32,509	)

Derivative Instruments, Gain (Loss) [Table Text Block]

Table 4.2

	Gains/(losses) on financial derivatives and hedging activities
	For the Three Months Ended						For the Nine Months Ended
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
	(in thousands)
Fair value hedges:
Interest rate swaps(1)	$	1,576		$	11,276		$	(5,466	)	$	(30,062	)
Hedged items	166			(10,550		)	4,750			35,778
Gains/(losses) on fair value hedges	1,742			726			(716		)	5,716
Cash flow hedges:
Loss recognized (ineffective portion)	(191		)	(68		)	(365		)	(322		)
Losses on cash flow hedges	(191		)	(68		)	(365		)	(322		)
No hedge designation:
Interest rate swaps	(1,031		)	(2,333		)	4,006			(16,820		)
Agency forwards	—			79			(588		)	(789		)
Treasury futures	141			(5		)	193			(864		)
(Losses)/gains on financial derivatives not designated in hedging relationships	(890		)	(2,259		)	3,611			(18,473		)
Gains/(losses) on financial derivatives and hedging activities	$	661		$	(1,601	)	$	2,530		$	(13,079	)

⁽¹⁾  Included in the assessment of hedge effectiveness as of September 30, 2017, but excluded from the amounts in the table, were losses of $1.6 million and gains of $0.7 million, respectively, for the three and nine months ended September 30, 2017, attributable to the fair value of the swaps at the inception of the hedging relationship. Accordingly, the amounts recognized as hedge ineffectiveness for three and nine months ended September 30, 2017 were gains of $0.1 million and zero, respectively. The comparable amounts as of September 30, 2016 were losses of $1.0 million and $4.2 million for the three and nine months ended September 30, 2016, attributable to the fair value of the swaps at the inception of the hedging relationship and, accordingly, losses of $0.2 million and gains of $1.5 million for the three and nine months ended September 30, 2016, attributable to hedge ineffectiveness.

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Loans and Allowance for Losses and Concentrations of Credit Risk - Loans and Allowance for Losses and Concentrations (Tables)

9 Months Ended

Sep. 30, 2017

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

Loans

Farmer Mac classifies loans as either held for investment or held for sale. Loans held for investment are recorded at the unpaid principal balance, net of unamortized premium or discount and other cost adjustments. Loans held for sale are reported at the lower of cost or fair value determined on a pooled basis. As of September 30, 2017 and December 31, 2016, Farmer Mac had no loans held for sale. The following table displays the composition of the loan balances as of September 30, 2017 and December 31, 2016:

Table 5.1

	As of September 30, 2017									As of December 31, 2016
	Unsecuritized			In Consolidated Trusts			Total			Unsecuritized			In Consolidated Trusts			Total
	(in thousands)
Farm & Ranch	$	2,739,681		$	1,329,212		$	4,068,893		$	2,381,488		$	1,132,966		$	3,514,454
Rural Utilities	1,066,482			—			1,066,482			999,512			—			999,512
Total unpaid principal balance(1)	3,806,163			1,329,212			5,135,375			3,381,000			1,132,966			4,513,966
Unamortized premiums, discounts and other cost basis adjustments	(1,197		)	—			(1,197		)	(1,116		)	—			(1,116		)
Total loans	3,804,966			1,329,212			5,134,178			3,379,884			1,132,966			4,512,850
Allowance for loan losses	(5,195		)	(1,213		)	(6,408		)	(4,437		)	(978		)	(5,415		)
Total loans, net of allowance	$	3,799,771		$	1,327,999		$	5,127,770		$	3,375,447		$	1,131,988		$	4,507,435

⁽¹⁾  Unpaid principal balance is the basis of presentation in disclosures of outstanding balances for Farmer Mac's lines of business.

Allowance for Credit Losses on Financing Receivables [Table Text Block]

Allowance for Losses

Farmer Mac maintains an allowance for losses presented in two components on its consolidated balance sheets: (1) an allowance for loan losses to account for estimated probable losses on loans held, and (2) a reserve for losses to account for estimated probable losses on loans underlying LTSPCs and off-balance sheet Farmer Mac Guaranteed Securities (excluding AgVantage securities).  Farmer Mac's total allowance for losses was $8.5 million as of September 30, 2017 and $7.4 million as of December 31, 2016. See Note 6 for more information about off-balance sheet Farmer Mac Guaranteed Securities and LTSPCs.  

The following is a summary of the changes in the total allowance for losses for the three and nine months ended September 30, 2017 and 2016:

Table 5.2

	As of September 30, 2017								As of September 30, 2016
	Allowance for Loan Losses			Reserve for Losses		Total Allowance for Losses			Allowance for Loan Losses			Reserve for Losses			Total Allowance for Losses
	(in thousands)
For the Three Months Ended:
Beginning Balance	$	6,138		$	1,966	$	8,104		$	4,893		$	2,191		$	7,084
Provision for/(release of) losses	270			114		384			191			(222		)	(31		)
Charge-offs	—			—		—			(130		)	—			(130		)
Ending Balance	$	6,408		$	2,080	$	8,488		$	4,954		$	1,969		$	6,923
For the Nine Months Ended:
Beginning Balance	$	5,415		$	2,020	$	7,435		$	4,480		$	2,083		$	6,563
Provision for/(release of) losses	1,234			60		1,294			604			(114		)	490
Charge-offs	(241		)	—		(241		)	(130		)	—			(130		)
Ending Balance	$	6,408		$	2,080	$	8,488		$	4,954		$	1,969		$	6,923

During third quarter 2017, Farmer Mac recorded net provisions to its allowance for loan losses and reserve for losses of $0.3 million and $0.1 million, respectively. The net provisions to the allowance for loan losses recorded during third quarter 2017 were primarily attributable to (1) an increase in the specific allowance for certain impaired on-balance sheet crop and permanent planting loans resulting from both an increase in the outstanding balance of such loans and downgrades in risk ratings on certain of those loans, and (2) an increase in the general allowance due to overall net volume growth in on-balance sheet Farm & Ranch loans. The net provision to the reserve for losses recorded during the third quarter 2017 was primarily attributable to an increase in the general reserve due to downgrades in risk ratings on certain unimpaired Agricultural Storage and Processing loans underlying LTSPCs. Farmer Mac recorded no charge-offs to its allowance for loan losses during third quarter 2017.

During third quarter 2016, Farmer Mac recorded net provisions to its allowance for loan losses of $0.2 million and net releases to its reserve for losses of $0.2 million. The net provisions to the allowance for loan losses recorded during third quarter 2016 were attributable to an increase in the general allowance due to overall net volume growth in on-balance sheet Farm & Ranch loans and downgrades in risk ratings for a small number of loans. The net releases to the reserve for losses recorded during the three months ended September 30, 2016 were attributable to the release of a specific reserve on an impaired livestock loan underlying an LTSPC that was required to be removed from the LTSPC pool by the originator during third quarter 2016. Farmer Mac recorded $0.1 million charge-offs to its allowance for loan losses during third quarter 2016.

The following tables present the changes in the total allowance for losses for the three and nine months ended September 30, 2017 and 2016 by commodity type:

Table 5.3

	September 30, 2017
	Crops			Permanent Plantings		Livestock			Part-time Farm			Ag. Storage and Processing		Other			Total
	(in thousands)
For the Three Months Ended:
Beginning Balance	$	3,735		$	2,164	$	1,234		$	397		$	558	$	16		$	8,104
Provision for/(release of) losses	115			162		35			4			72		(4		)	384
Ending Balance	$	3,850		$	2,326	$	1,269		$	401		$	630	$	12		$	8,488
For the Nine Months Ended:
Beginning Balance	$	3,365		$	1,723	$	1,375		$	405		$	533	$	34		$	7,435
Provision for/(release of) losses	713			603		(93		)	(4		)	97		(22		)	1,294
Charge-offs	(228		)	—		(13		)	—			—		—			(241		)
Ending Balance	$	3,850		$	2,326	$	1,269		$	401		$	630	$	12		$	8,488

	September 30, 2016
	Crops		Permanent Plantings		Livestock			Part-time Farm			Ag. Storage and Processing			Other			Total
	(in thousands)
For the Three Months Ended:
Beginning Balance	$	3,111	$	1,144	$	1,906		$	447		$	473		$	3		$	7,084
Provision for/(release of) losses	103		198		(354		)	36			(13		)	(1		)	(31		)
Charge-offs	—		—		—			(130		)	—			—			(130		)
Ending Balance	$	3,214	$	1,342	$	1,552		$	353		$	460		$	2		$	6,923
For the Nine Months Ended:
Beginning Balance	$	2,791	$	931	$	1,781		$	408		$	649		$	3		$	6,563
Provision for/(release of) losses	423		411		(229		)	75			(189		)	(1		)	490
Charge-offs	—		—		—			(130		)	—			—			(130		)
Ending Balance	$	3,214	$	1,342	$	1,552		$	353		$	460		$	2		$	6,923

Schedule of Allowance for Losses by Impairment Method and Commodity [Table Text Block]

The following tables present the unpaid principal balances of loans held and loans underlying LTSPCs and off-balance sheet Farmer Mac Guaranteed Securities (excluding AgVantage securities) and the related total allowance for losses by impairment method and commodity type as of September 30, 2017 and December 31, 2016:

Table 5.4

	As of September 30, 2017
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Ending Balance:
Collectively evaluated for impairment:
On-balance sheet	$	2,278,701	$	767,275	$	623,499	$	246,416	$	13,248	$	9,004	$	3,938,143
Off-balance sheet	1,237,846		373,496		668,280		153,278		34,820		3,849		2,471,569
Total	$	3,516,547	$	1,140,771	$	1,291,779	$	399,694	$	48,068	$	12,853	$	6,409,712
Individually evaluated for impairment:
On-balance sheet	$	68,322	$	41,201	$	13,516	$	7,069	$	—	$	642	$	130,750
Off-balance sheet	8,847		2,249		4,448		945		—		79		16,568
Total	$	77,169	$	43,450	$	17,964	$	8,014	$	—	$	721	$	147,318
Total Farm & Ranch loans:
On-balance sheet	$	2,347,023	$	808,476	$	637,015	$	253,485	$	13,248	$	9,646	$	4,068,893
Off-balance sheet	1,246,693		375,745		672,728		154,223		34,820		3,928		2,488,137
Total	$	3,593,716	$	1,184,221	$	1,309,743	$	407,708	$	48,068	$	13,574	$	6,557,030
Allowance for Losses:
Collectively evaluated for impairment:
On-balance sheet	$	1,868	$	973	$	748	$	219	$	87	$	6	$	3,901
Off-balance sheet	560		285		212		46		543		4		1,650
Total	$	2,428	$	1,258	$	960	$	265	$	630	$	10	$	5,551
Individually evaluated for impairment:
On-balance sheet	$	1,193	$	1,010	$	192	$	112	$	—	$	—	$	2,507
Off-balance sheet	229		58		117		24		—		2		430
Total	$	1,422	$	1,068	$	309	$	136	$	—	$	2	$	2,937
Total Farm & Ranch loans:
On-balance sheet	$	3,061	$	1,983	$	940	$	331	$	87	$	6	$	6,408
Off-balance sheet	789		343		329		70		543		6		2,080
Total	$	3,850	$	2,326	$	1,269	$	401	$	630	$	12	$	8,488

	As of December 31, 2016
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Ending Balance:
Collectively evaluated for impairment:
On-balance sheet	$	2,115,450	$	569,360	$	537,859	$	183,660	$	11,545	$	8,894	$	3,426,768
Off-balance sheet	1,241,851		437,575		752,473		131,889		36,506		4,503		2,604,797
Total	$	3,357,301	$	1,006,935	$	1,290,332	$	315,549	$	48,051	$	13,397	$	6,031,565
Individually evaluated for impairment:
On-balance sheet	$	41,648	$	27,770	$	10,658	$	7,610	$	—	$	—	$	87,686
Off-balance sheet	11,549		2,735		4,854		915		—		—		20,053
Total	$	53,197	$	30,505	$	15,512	$	8,525	$	—	$	—	$	107,739
Total Farm & Ranch loans:
On-balance sheet	$	2,157,098	$	597,130	$	548,517	$	191,270	$	11,545	$	8,894	$	3,514,454
Off-balance sheet	1,253,400		440,310		757,327		132,804		36,506		4,503		2,624,850
Total	$	3,410,498	$	1,037,440	$	1,305,844	$	324,074	$	48,051	$	13,397	$	6,139,304
Allowance for Losses:
Collectively evaluated for impairment:
On-balance sheet	$	2,000	$	652	$	735	$	193	$	22	$	28	$	3,630
Off-balance sheet	420		281		241		54		511		6		1,513
Total	$	2,420	$	933	$	976	$	247	$	533	$	34	$	5,143
Individually evaluated for impairment:
On-balance sheet	$	613	$	770	$	270	$	132	$	—	$	—	$	1,785
Off-balance sheet	332		20		129		26		—		—		507
Total	$	945	$	790	$	399	$	158	$	—	$	—	$	2,292
Total Farm & Ranch loans:
On-balance sheet	$	2,613	$	1,422	$	1,005	$	325	$	22	$	28	$	5,415
Off-balance sheet	752		301		370		80		511		6		2,020
Total	$	3,365	$	1,723	$	1,375	$	405	$	533	$	34	$	7,435

Impaired Financing Receivables [Table Text Block]

The following tables present by commodity type the unpaid principal balances, recorded investment, and specific allowance for losses related to impaired loans and the recorded investment in loans on nonaccrual status as of September 30, 2017 and December 31, 2016:

Table 5.5

	As of September 30, 2017
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Impaired Loans:
With no specific allowance:
Recorded investment	$	11,909	$	4,963	$	3,942	$	1,939	$	—	$	644	$	23,397
Unpaid principal balance	11,885		4,953		3,935		1,936		—		643		23,352
With a specific allowance:
Recorded investment(1)	65,391		38,565		14,048		6,088		—		78		124,170
Unpaid principal balance	65,284		38,497		14,029		6,078		—		78		123,966
Associated allowance	1,422		1,068		309		136		—		2		2,937
Total:
Recorded investment	77,300		43,528		17,990		8,027		—		722		147,567
Unpaid principal balance	77,169		43,450		17,964		8,014		—		721		147,318
Associated allowance	1,422		1,068		309		136		—		2		2,937
Recorded investment of loans on nonaccrual status(2)	$	29,535	$	25,653	$	2,819	$	5,037	$	—	$	—	$	63,044

⁽¹⁾  Impairment analysis was performed in the aggregate in consideration of similar risk characteristics of the assets and historical statistics on $123.3 million (84 percent) of impaired loans as of September 30, 2017, which resulted in a specific allowance of $2.7 million.

⁽²⁾  Includes no loans that are less than 90 days delinquent but which have not met Farmer Mac's performance criteria for returning to accrual status.

	As of December 31, 2016
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Impaired Loans:
With no specific allowance:
Recorded investment	$	20,761	$	3,683	$	1,054	$	1,970	$	—	$	—	$	27,468
Unpaid principal balance	20,816		3,688		1,055		1,975		—		—		27,534
With a specific allowance:
Recorded investment(1)	32,326		26,748		14,322		6,535		—		—		79,931
Unpaid principal balance	32,381		26,817		14,457		6,550		—		—		80,205
Associated allowance	945		790		399		158		—		—		2,292
Total:
Recorded investment	53,087		30,431		15,376		8,505		—		—		107,399
Unpaid principal balance	53,197		30,505		15,512		8,525		—		—		107,739
Associated allowance	945		790		399		158		—		—		2,292
Recorded investment of loans on nonaccrual status(2)	$	13,405	$	10,785	$	2,696	$	5,256	$	—	$	—	$	32,142

⁽¹⁾  Impairment analysis was performed in the aggregate in consideration of similar risk characteristics of the assets and historical statistics on $76.5 million (71 percent) of impaired loans as of December 31, 2016, which resulted in a specific allowance of $1.6 million.

⁽²⁾  Includes $12.4 million of loans that are less than 90 days delinquent but which have not met Farmer Mac's performance criteria for returning to accrual status.

The following table presents by commodity type the average recorded investment and interest income recognized on impaired loans for the three and nine months ended September 30, 2017 and 2016:

Table 5.6

	September 30, 2017
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
For the Three Months Ended:
Average recorded investment in impaired loans	$	72,180	$	38,396	$	15,582	$	7,944	$	—	$	401	$	134,503
Income recognized on impaired loans	101		244		13		61		—		—		419
For the Nine Months Ended:
Average recorded investment in impaired loans	$	65,244	$	35,101	$	14,620	$	8,096	$	—	$	201	$	123,262
Income recognized on impaired loans	563		464		212		235		—		—		1,474

	September 30, 2016
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
For the Three Months Ended:
Average recorded investment in impaired loans	$	33,032	$	22,980	$	12,120	$	8,172	$	—	$	—	$	76,304
Income recognized on impaired loans	46		236		81		74		—		—		437
For the Nine Months Ended:
Average recorded investment in impaired loans	$	28,293	$	25,277	$	13,704	$	8,654	$	4,668	$	—	$	80,596
Income recognized on impaired loans	108		789		229		251		—		—		1,377

Schedule of Certain Loans Acquired in Transfer Acquired During Period [Table Text Block]

The following tables present information related to Farmer Mac's acquisition of defaulted loans for the three and nine months ended September 30, 2017 and 2016 and the outstanding balances and carrying amounts of all such loans as of September 30, 2017 and December 31, 2016:

Table 5.7

	For the Three Months Ended				For the Nine Months Ended
	September 30, 2017		September 30, 2016		September 30, 2017		September 30, 2016
	($ in thousands)
Unpaid principal balance at acquisition date:
Loans underlying LTSPCs	$	—	$	852	$	311	$	2,118
Loans underlying off-balance sheet Farmer Mac Guaranteed Securities (excluding AgVantage securities)	3,043		250		3,147		398
Total unpaid principal balance at acquisition date	3,043		1,102		3,458		2,516
Contractually required payments receivable	3,073		1,109		3,490		2,544
Impairment recognized subsequent to acquisition	—		—		—		208
Recovery/release of allowance for all outstanding acquired defaulted loans	29		21		171		31
Number of defaulted loans purchased	6		3		10		8

	As of
	September 30, 2017		December 31, 2016
	(in thousands)
Outstanding balance	$	16,514	$	14,669
Carrying amount	15,379		13,069

Past Due Financing Receivables [Table Text Block]

Net credit losses and 90-day delinquencies as of and for the periods indicated for loans held and loans underlying off-balance sheet securities representing interests in pools of eligible Farm & Ranch loans ("Farm & Ranch Guaranteed Securities") and LTSPCs are presented in the table below.  As of September 30, 2017, there were no delinquencies and no probable losses inherent in Farmer Mac's Rural Utilities loan portfolio and Farmer Mac had not experienced credit losses on any Rural Utilities loans.

Table 5.8

	90-Day Delinquencies(1)				Net Credit (Recoveries)/Losses
	As of				For the Nine Months Ended
	September 30, 2017		December 31, 2016		September 30, 2017			September 30, 2016
	(in thousands)
On-balance sheet assets:
Farm & Ranch:
Loans	$	65,105	$	19,757	$	(520	)	$	154
Total on-balance sheet	$	65,105	$	19,757	$	(520	)	$	154
Off-balance sheet assets:
Farm & Ranch:
LTSPCs	$	1,276	$	1,281	$	—		$	—
Total off-balance sheet	$	1,276	$	1,281	$	—		$	—
Total	$	66,381	$	21,038	$	(520	)	$	154

⁽¹⁾  Includes loans and loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs that are 90 days or more past due, in foreclosure, or in bankruptcy with at least one missed payment, excluding loans performing under either their original loan terms or a court-approved bankruptcy plan.

Of the $65.1 million of on-balance sheet loans reported as 90-day delinquencies as of September 30, 2017, $11,000 were loans subject to "removal-of-account" provisions.

Financing Receivable Credit Quality Indicators [Table Text Block]

Credit Quality Indicators

The following tables present credit quality indicators related to Farm & Ranch loans held and loans underlying LTSPCs and off-balance sheet Farm & Ranch Guaranteed Securities as of September 30, 2017 and December 31, 2016:  

Table 5.9

	As of September 30, 2017
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Credit risk profile by internally assigned grade(1)
On-balance sheet:
Acceptable	$	2,240,054	$	760,251	$	603,653	$	241,208	$	13,248	$	9,004	$	3,867,418
Special mention(2)	38,647		7,024		19,846		5,208		—		—		70,725
Substandard(3)	68,322		41,201		13,516		7,069		—		642		130,750
Total on-balance sheet	$	2,347,023	$	808,476	$	637,015	$	253,485	$	13,248	$	9,646	$	4,068,893
Off-Balance Sheet:
Acceptable	$	1,133,150	$	336,780	$	627,220	$	148,085	$	31,502	$	3,213	$	2,279,950
Special mention(2)	77,671		8,359		31,264		1,832		—		169		119,295
Substandard(3)	35,872		30,606		14,244		4,306		3,318		546		88,892
Total off-balance sheet	$	1,246,693	$	375,745	$	672,728	$	154,223	$	34,820	$	3,928	$	2,488,137
Total Ending Balance:
Acceptable	$	3,373,204	$	1,097,031	$	1,230,873	$	389,293	$	44,750	$	12,217	$	6,147,368
Special mention(2)	116,318		15,383		51,110		7,040		—		169		190,020
Substandard(3)	104,194		71,807		27,760		11,375		3,318		1,188		219,642
Total	$	3,593,716	$	1,184,221	$	1,309,743	$	407,708	$	48,068	$	13,574	$	6,557,030
Commodity analysis of past due loans(1)
On-balance sheet	$	31,413	$	22,330	$	7,367	$	3,352	$	—	$	643	$	65,105
Off-balance sheet	862		—		—		414		—		—		1,276
90 days or more past due	$	32,275	$	22,330	$	7,367	$	3,766	$	—	$	643	$	66,381

⁽¹⁾  Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans. 

⁽²⁾  Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.  

⁽³⁾  Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected.

	As of December 31, 2016
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Credit risk profile by internally assigned grade(1)
On-balance sheet:
Acceptable	$	2,080,227	$	568,221	$	504,784	$	179,288	$	11,545	$	8,894	$	3,352,959
Special mention(2)	35,223		1,139		33,075		4,372		—		—		73,809
Substandard(3)	41,648		27,770		10,658		7,610		—		—		87,686
Total on-balance sheet	$	2,157,098	$	597,130	$	548,517	$	191,270	$	11,545	$	8,894	$	3,514,454
Off-Balance Sheet
Acceptable	$	1,201,144	$	403,256	$	724,056	$	125,440	$	34,537	$	3,916	$	2,492,349
Special mention(2)	20,422		16,881		15,341		2,344		—		6		54,994
Substandard(3)	31,834		20,173		17,930		5,020		1,969		581		77,507
Total off-balance sheet	$	1,253,400	$	440,310	$	757,327	$	132,804	$	36,506	$	4,503	$	2,624,850
Total Ending Balance:
Acceptable	$	3,281,371	$	971,477	$	1,228,840	$	304,728	$	46,082	$	12,810	$	5,845,308
Special mention(2)	55,645		18,020		48,416		6,716		—		6		128,803
Substandard(3)	73,482		47,943		28,588		12,630		1,969		581		165,193
Total	$	3,410,498	$	1,037,440	$	1,305,844	$	324,074	$	48,051	$	13,397	$	6,139,304
Commodity analysis of past due loans(1)
On-balance sheet	$	13,449	$	3,245	$	669	$	2,394	$	—	$	—	$	19,757
Off-balance sheet	373		407		38		463		—		—		1,281
90 days or more past due	$	13,822	$	3,652	$	707	$	2,857	$	—	$	—	$	21,038

⁽¹⁾  Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.  

⁽²⁾  Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.  

⁽³⁾  Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected.

Schedules of Concentration of Risk, by Risk Factor [Table Text Block]

Concentrations of Credit Risk

The following table sets forth the geographic and commodity/collateral diversification, the range of original loan-to-value ratios, and the range in the size of borrower exposure for all Farm & Ranch loans held and loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs as of September 30, 2017 and December 31, 2016:

Table 5.10

	As of
	September 30, 2017		December 31, 2016
	(in thousands)
By commodity/collateral type:
Crops	$	3,593,716	$	3,410,498
Permanent plantings	1,184,221		1,037,440
Livestock	1,309,743		1,305,844
Part-time farm	407,708		324,074
Ag. Storage and Processing	48,068		48,051
Other	13,574		13,397
Total	$	6,557,030	$	6,139,304
By geographic region(1):
Northwest	$	723,616	$	657,403
Southwest	1,917,692		1,791,745
Mid-North	2,205,750		2,104,867
Mid-South	899,293		837,121
Northeast	290,655		229,679
Southeast	520,024		518,489
Total	$	6,557,030	$	6,139,304
By original loan-to-value ratio(2):
0.00% to 40.00%	$	1,274,050	$	1,220,432
40.01% to 50.00%	1,622,767		1,466,047
50.01% to 60.00%	2,268,852		2,078,099
60.01% to 70.00%	1,130,748		1,167,395
70.01% to 80.00%	233,963		191,664
80.01% to 90.00%	26,650		15,667
Total	$	6,557,030	$	6,139,304
By size of borrower exposure(3):
Less than $1,000,000	$	2,297,648	$	2,195,103
$1,000,000 to $4,999,999	2,500,101		2,398,843
$5,000,000 to $9,999,999	815,411		782,171
$10,000,000 to $24,999,999	568,471		469,681
$25,000,000 to $50,000,000	375,399		293,506
Total	$	6,557,030	$	6,139,304

⁽¹⁾  Geographic regions:  Northwest (AK, ID, MT, OR, WA, WY); Southwest (AZ, CA, CO, HI, NM, NV, UT); Mid-North (IA, IL, IN, MI, MN, NE, ND, SD, WI); Mid-South (AR, KS, LA, MO, OK, TX); Northeast (CT, DE, KY, MA, MD, ME, NH, NJ, NY, OH, PA, RI, VA, VT, WV); Southeast (AL, FL, GA, MS, NC, SC, TN).

⁽²⁾  As of second quarter 2017, Farmer Mac revised its calculation of the original loan-to-value ratio of a loan to combine for any cross-collateralized loans: (i) the original loan principal balance amounts in the numerator and (ii) the original appraised property values in the denominator. In previous periods, the ratio was calculated on a loan-by-loan basis without considering the effects of any cross-collateralization. Prior period information has been reclassified to conform to the current period calculation and presentation.

⁽³⁾  Includes multiple loans to the same borrower or borrower-related entities.

The original loan-to-value ratio is calculated by dividing the loan principal balance at the time of guarantee, purchase, or commitment by the appraised value at the date of loan origination or, when available, the updated appraised value at the time of guarantee, purchase, or commitment.  Current loan-to-value ratios may be higher or lower than the original loan-to-value ratios.

XML

Guarantees and Long Term Standby Purchase Commitments - Guarantees and Long-Term Standby Purchase Commitments (Tables)

9 Months Ended

Sep. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Schedule of Guarantor Obligations [Table Text Block]

The following table presents the maximum principal amount of potential undiscounted future payments that Farmer Mac could be required to make under all off-balance sheet Farmer Mac Guaranteed Securities as of September 30, 2017 and December 31, 2016, not including offsets provided by any recourse provisions, recoveries from third parties, or collateral for the underlying loans:

Table 6.1

Outstanding Balance of Off-Balance Sheet Farmer Mac Guaranteed Securities
	As of September 30, 2017		As of December 31, 2016
	(in thousands)
Farm & Ranch:
Guaranteed Securities	$	354,823	$	415,441
USDA Guarantees:
Farmer Mac Guaranteed USDA Securities	226,802		103,976
Institutional Credit:
AgVantage Securities	13,214		983,214
Revolving floating rate AgVantage facility(1)	300,000		300,000
Total off-balance sheet Farmer Mac Guaranteed Securities	$	894,839	$	1,802,631

⁽¹⁾  Relates to a revolving floating rate AgVantage facility subject to specified contractual terms. Farmer Mac receives a fixed fee based on the full dollar amount of the facility.

Schedule of Cash Flows Related To Transfer of Securitizations [Table Text Block]

Eligible loans and other eligible assets may be placed into trusts that are used as vehicles for the securitization of the transferred assets and the Farmer Mac-guaranteed beneficial interests in the trusts are sold to investors.  The following table summarizes the significant cash flows received from and paid to trusts used for Farmer Mac securitizations:

Table 6.2

	For the Nine Months Ended
	September 30, 2017			September 30, 2016
	(in thousands)
Proceeds from new securitizations	$	404,246		$	457,369
Guarantee fees received	2,141			2,333
Purchases of assets from the trusts	(3,147		)	(2,118		)

Farmer Mac has recorded a liability for its obligation to stand ready under the guarantee in the guarantee and commitment obligation on the consolidated balance sheets.  This liability approximated $3.8 million as of September 30, 2017 and $5.5 million as of December 31, 2016. As of September 30, 2017 and December 31, 2016, the weighted-average remaining maturity of all loans underlying off-balance sheet Farmer Mac Guaranteed Securities, excluding AgVantage securities, was 10.1 years and 10.7 years, respectively. As of September 30, 2017 and December 31, 2016, the weighted-average remaining maturity of the off-balance sheet AgVantage securities was 1.1 years and 0.7 years, respectively.

XML

Fair Value Disclosures - Fair Value Disclosures (Tables)

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]

The following tables present information about Farmer Mac's assets and liabilities measured at fair value on a recurring and non-recurring basis as of September 30, 2017 and December 31, 2016, respectively, and indicate the fair value hierarchy of the valuation techniques used by Farmer Mac to determine such fair value:

Table 8.1

Assets and Liabilities Measured at Fair Value as of September 30, 2017
	Level 1		Level 2		Level 3		Total
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	—	$	—	$	18,518	$	18,518
Floating rate asset-backed securities	—		35,602		—		35,602
Floating rate Government/GSE guaranteed mortgage-backed securities	—		1,312,204		—		1,312,204
Fixed rate GSE guaranteed mortgage-backed securities	—		507		4,458		4,965
Fixed rate senior agency debt	—		99,871		—		99,871
Fixed rate U.S. Treasuries	763,806		—		—		763,806
Total Investment Securities	763,806		1,448,184		22,976		2,234,966
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	—		—		5,443,746		5,443,746
Total Farmer Mac Guaranteed Securities	—		—		5,443,746		5,443,746
USDA Securities:
Trading	—		—		14,864		14,864
Total USDA Securities	—		—		14,864		14,864
Financial derivatives	50		1,970		—		2,020
Total Assets at fair value	$	763,856	$	1,450,154	$	5,481,586	$	7,695,596
Liabilities:
Financial derivatives	$	—	$	30,595	$	—	$	30,595
Total Liabilities at fair value	$	—	$	30,595	$	—	$	30,595
Non-recurring:
Assets:
Loans held for investment	$	—	$	—	$	636	$	636
REO	—		—		455		455
Total Non-recurring Assets at fair value	$	—	$	—	$	1,091	$	1,091

Assets and Liabilities Measured at Fair Value as of December 31, 2016
	Level 1		Level 2		Level 3		Total
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	—	$	—	$	17,730	$	17,730
Floating rate asset-backed securities	—		43,851		—		43,851
Floating rate corporate debt securities	—		10,041		—		10,041
Floating rate Government/GSE guaranteed mortgage-backed securities	—		1,361,029		—		1,361,029
Fixed rate GSE guaranteed mortgage-backed securities	—		7,625		—		7,625
Floating rate GSE subordinated debt	—		66,953		—		66,953
Fixed rate senior agency debt	—		187,133		—		187,133
Fixed rate U.S. Treasuries	821,489		—		—		821,489
Total Investment Securities	821,489		1,676,632		17,730		2,515,851
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	—		—		4,853,685		4,853,685
Total Farmer Mac Guaranteed Securities	—		—		4,853,685		4,853,685
USDA Securities:
Trading	—		—		20,388		20,388
Total USDA Securities	—		—		20,388		20,388
Financial derivatives	—		23,182		—		23,182
Total Assets at fair value	$	821,489	$	1,699,814	$	4,891,803	$	7,413,106
Liabilities:
Financial derivatives	$	155	$	57,997	$	—	$	58,152
Total Liabilities at fair value	$	155	$	57,997	$	—	$	58,152
Non-recurring:
Assets:
Loans held for investment	$	—	$	—	$	2,799	$	2,799
REO	—		—		349		349
Total Non-recurring Assets at fair value	$	—	$	—	$	3,148	$	3,148

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

The following tables present additional information about assets and liabilities measured at fair value on a recurring basis for which Farmer Mac has used significant unobservable inputs to determine fair value. Net transfers in and/or out of level 3 are based on the fair values of the assets and liabilities as of the beginning of the reporting period. There were no liabilities measured at fair value using significant unobservable inputs during the three and nine months ended September 30, 2017 and 2016.

Table 8.2

Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended September 30, 2017
	Beginning Balance		Purchases		Sales			Settlements			Realized and Unrealized Gains/(Losses) included in Income			Unrealized Gains/(Losses) included in Other Comprehe- nsive Income			Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	18,518	$	—	$	—		$	—		$	—		$	—		$	18,518
Fixed rate GSE guaranteed mortgage-backed securities	4,651		—		—			(111		)	—			(82		)	4,458
Total available-for-sale	23,169		—		—			(111		)	—			(82		)	22,976
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	5,282,562		193,800		—			(29,851		)	(1,171		)	(1,594		)	5,443,746
Total available-for-sale	5,282,562		193,800		—			(29,851		)	(1,171		)	(1,594		)	5,443,746
USDA Securities:
Available-for-sale	—		40,844		(40,844		)	—			—			—			—
Trading(1)	16,294		—		—			(1,430		)	—			—			14,864
Total USDA Securities	16,294		40,844		(40,844		)	(1,430		)	—			—			14,864
Total Assets at fair value	$	5,322,025	$	234,644	$	(40,844	)	$	(31,392	)	$	(1,171	)	$	(1,676	)	$	5,481,586

⁽¹⁾  Includes unrealized gains of $34,000 attributable to assets still held as of September 30, 2017 that are recorded in "Gains/(losses) on trading securities."

Level 3 Assets and Liabilities Measured at Fair Value for the Three Months Ended September 30, 2016
	Beginning Balance		Purchases		Sales			Settlements			Realized and Unrealized Gains included in Income			Unrealized Gains included in Other Comprehe-nsive Income			Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	17,730	$	—	$	—		$	—		$	—		$	(148	)	$	17,582
Total available-for-sale	17,730		—		—			—			—			(148		)	17,582
Trading:
Floating rate asset-backed securities(1)	281		—		—			(1,887		)	1,606			—			—
Total trading	281		—		—			(1,887		)	1,606			—			—
Total Investment Securities	18,011		—		—			(1,887		)	1,606			(148		)	17,582
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	4,697,584		263,196		—			(64,895		)	(10,960		)	19,732			4,904,657
Farmer Mac Guaranteed USDA Securities	33,447		—		—			(504		)	—			(119		)	32,824
Total Farmer Mac Guaranteed Securities	4,731,031		263,196		—			(65,399		)	(10,960		)	19,613			4,937,481
USDA Securities:
Available-for-sale	1,967,759		119,201		(31,866		)	(55,772		)	—			(18,995		)	1,980,327
Trading(2)	24,787		—		—			(874		)	(424		)	—			23,489
Total USDA Securities	1,992,546		119,201		(31,866		)	(56,646		)	(424		)	(18,995		)	2,003,816
Total Assets at fair value	$	6,741,588	$	382,397	$	(31,866	)	$	(123,932	)	$	(9,778	)	$	470		$	6,958,879

⁽¹⁾  Unrealized gains are attributable to assets still held as of September 30, 2016 and are recorded in "Gains/(losses) on trading securities."

⁽²⁾  Includes unrealized losses of $0.4 million attributable to assets still held as of September 30, 2016 that are recorded in "Gains/(losses) on trading securities."

Level 3 Assets and Liabilities Measured at Fair Value for the Nine Months Ended September 30, 2017
	Beginning Balance		Transfers in		Purchases		Sales			Settlements			Realized and Unrealized Gains/(Losses) included in Income			Unrealized Gains/(Losses) included in Other Comprehe- nsive Income			Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	17,730	—		$	—	$	—		$	—		$	—		$	788		$	18,518
Fixed rate GSE guaranteed mortgage-backed securities	—		7,041		—		—			(334		)	—			(2,249		)	4,458
Total available-for-sale	17,730		7,041		—		—			(334		)	—			(1,461		)	22,976
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	4,853,685		—		927,615		—			(357,006		)	5,166			14,286			5,443,746
Total available-for-sale	4,853,685		—		927,615		—			(357,006		)	5,166			14,286			5,443,746
USDA Securities:
Available-for-sale	—		—		126,939		(126,939		)	—			—			—			—
Trading(1)	20,388		—		—		—			(5,440		)	(84		)	—			14,864
Total USDA Securities	20,388		—		126,939		(126,939		)	(5,440		)	(84		)	—			14,864
Total Assets at fair value	$	4,891,803	$	7,041	$	1,054,554	$	(126,939	)	$	(362,780	)	$	5,082		$	12,825		$	5,481,586

⁽¹⁾  Includes unrealized gains of $42,000 attributable to assets still held as of September 30, 2017 that are recorded in "Gains/(losses) on trading securities."

Level 3 Assets and Liabilities Measured at Fair Value for the Nine Months Ended September 30, 2016
	Beginning Balance		Purchases		Sales			Settlements			Realized and Unrealized Gains included in Income		Unrealized(Losses)/Gains included in Other Comprehe-nsive Income			Ending Balance
	(in thousands)
Recurring:
Assets:
Investment Securities:
Available-for-sale:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	44,924	$	—	$	(26,806	)	$	—		$	6	$	(542	)	$	17,582
Total available-for-sale	44,924		—		(26,806		)	—			6		(542		)	17,582
Trading:
Floating rate asset-backed securities(1)	491		—		—			(2,213		)	1,722		—			—
Total trading	491		—		—			(2,213		)	1,722		—			—
Total Investment Securities	45,415		—		(26,806		)	(2,213		)	1,728		(542		)	17,582
Farmer Mac Guaranteed Securities:
Available-for-sale:
AgVantage	4,121,244		1,342,572		—			(594,124		)	26,475		8,490			4,904,657
Farmer Mac Guaranteed USDA Securities	31,361		4,100		—			(3,240		)	—		603			32,824
Total Farmer Mac Guaranteed Securities	4,152,605		1,346,672		—			(597,364		)	26,475		9,093			4,937,481
USDA Securities:
Available-for-sale	1,888,344		351,914		(58,628		)	(237,262		)	—		35,959			1,980,327
Trading(2)	28,975		—		—			(5,698		)	212		—			23,489
Total USDA Securities	1,917,319		351,914		(58,628		)	(242,960		)	212		35,959			2,003,816
Total Assets at fair value	$	6,115,339	$	1,698,586	$	(85,434	)	$	(842,537	)	$	28,415	$	44,510		$	6,958,879

⁽¹⁾  Unrealized gains are attributable to assets still held as of September 30, 2016 and are recorded in "Gains/(losses) on trading securities."

⁽²⁾  Includes unrealized gains of $0.1 million attributable to assets still held as of September 30, 2016 that are recorded in "Gains/(losses) on trading securities."

Fair Value Inputs, Assets and Liabilities, Quantitative Information [Table Text Block]

The following tables present additional information about the significant unobservable inputs, such as discount rates and constant prepayment rates ("CPR"), used in the fair value measurements categorized in level 3 of the fair value hierarchy as of September 30, 2017 and December 31, 2016.

Table 8.3

	As of September 30, 2017
Financial Instruments	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted-Average)
	(in thousands)
Assets:
Investment securities:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	18,518	Indicative bids	Range of broker quotes	94.0% - 94.0% (94.0%)
Fixed rate GSE guaranteed mortgage-backed securities	$	4,458	Discounted cash flow	Discount rate	3.7%
				CPR	0 %
Farmer Mac Guaranteed Securities:
AgVantage	$	5,443,746	Discounted cash flow	Discount rate	2.0% - 3.3% (2.2%)
USDA Securities	$	14,864	Discounted cash flow	Discount rate	3.6% - 5.3% (5.0%)
				CPR	7% - 19% (17%)

	As of December 31, 2016
Financial Instruments	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted-Average)
	(in thousands)
Assets:
Investment securities:
Floating rate auction-rate certificates backed by Government guaranteed student loans	$	17,730	Indicative bids	Range of broker quotes	90.0% - 90.0% (90.0%)
Farmer Mac Guaranteed Securities:
AgVantage	$	4,853,685	Discounted cash flow	Discount rate	1.5% - 3.3% (1.9%)
USDA Securities	$	20,388	Discounted cash flow	Discount rate	4.0% - 5.3% (5.0%)
				CPR	13% - 18% (17%)

Fair Value, by Balance Sheet Grouping [Table Text Block]

The following table sets forth the estimated fair values and carrying values for financial assets, liabilities, and guarantees and commitments as of September 30, 2017 and December 31, 2016:

Table 8.4

	As of September 30, 2017				As of December 31, 2016
	Fair Value		Carrying Amount		Fair Value		Carrying Amount
	(in thousands)
Financial assets:
Cash and cash equivalents	$	366,764	$	366,764	$	265,229	$	265,229
Investment securities	2,234,966		2,234,966		2,515,851		2,515,851
Farmer Mac Guaranteed Securities	7,601,376		7,602,556		6,006,694		6,002,916
USDA Securities	2,042,408		2,107,149		1,934,023		2,029,613
Loans	5,140,669		5,127,770		4,481,019		4,507,435
Financial derivatives	2,020		2,020		23,182		23,182
Guarantee and commitment fees receivable:
LTSPCs	31,986		32,307		34,720		32,656
Farmer Mac Guaranteed Securities	4,611		4,372		6,197		6,215
Financial liabilities:
Notes payable:
Due within one year	8,108,390		8,112,928		8,439,515		8,440,123
Due after one year	7,450,462		7,399,961		5,260,497		5,222,977
Debt securities of consolidated trusts held by third parties	1,310,240		1,333,417		1,107,513		1,142,704
Financial derivatives	30,595		30,595		58,152		58,152
Guarantee and commitment obligations:
LTSPCs	31,169		31,491		33,860		31,796
Farmer Mac Guaranteed Securities	4,065		3,825		5,467		5,486

The carrying value of cash and cash equivalents is a reasonable estimate of their approximate fair value and is classified as level 1 within the fair value hierarchy. Investment securities primarily are valued based on unadjusted quoted prices in active markets and are classified as level 2 within the fair value hierarchy. Farmer Mac internally models the fair value of its loan portfolio, including loans held for investment and loans held for investment in consolidated trusts, Farmer Mac Guaranteed Securities, and USDA Securities by discounting the projected cash flows of these instruments at projected interest rates. The fair values are based on the present value of expected cash flows using management's best estimate of certain key assumptions, which include prepayment speeds, forward yield curves and discount rates commensurate with the risks involved. These fair value measurements do not take into consideration the fair value of the underlying property and are classified as level 3 within the fair value hierarchy. Financial derivatives primarily are valued using unadjusted counterparty valuations and are classified as level 2 within the fair value hierarchy. The fair value of the guarantee fees receivable/obligation and debt securities of consolidated trusts are estimated based on the present value of expected future cash flows of the underlying mortgage assets using management's best estimate of certain key assumptions, which include prepayments speeds, forward yield curves, and discount rates commensurate with the risks involved and are classified as level 3 within the fair value hierarchy. Notes payable are valued by discounting the expected cash flows of these instruments using a yield curve derived from market prices observed for similar agency securities and are also classified as level 3 within the fair value hierarchy. Because the cash flows of Farmer Mac's financial instruments may be interest rate path dependent, estimated fair values and projected discount rates for level 3 financial instruments are derived using a Monte Carlo simulation model. Different market assumptions and estimation methodologies could significantly affect estimated fair value amounts.

XML

Business Segment Reporting - Business Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

The following tables present core earnings for Farmer Mac's operating segments and a reconciliation to consolidated net income for the three and nine months ended September 30, 2017 and 2016:

Table 9.1

Core Earnings by Business Segment
For the Three Months Ended September 30, 2017
	Farm & Ranch			USDA Guarantees			Rural  Utilities			Institutional Credit			Corporate			Reconciling Adjustments				Consolidated Net Income
	(in thousands)
Net interest income	$	13,609		$	5,288		$	2,230		$	15,431		$	3,004		$	—			$	39,562
Less: reconciling adjustments(1)(2)(3)	(2,131		)	(433		)	602			(1,068		)	(305		)	3,335				—
Net effective spread	11,478			4,855			2,832			14,363			2,699			3,335				—
Guarantee and commitment fees(2)	4,236			130			476			93						(1,621		)		3,314
Other income/(expense)(3)(4)	214			9			5			—			233			524				985
Non-interest income/(loss)	4,450			139			481			93			233			(1,097		)		4,299
Provision for loan losses	(270		)	—			—			—			—			—				(270		)
Provision for reserve for losses	(114		)													—				(114		)
Other non-interest expense	(4,077		)	(1,080		)	(608		)	(1,670		)	(3,067		)	—				(10,502		)
Non-interest expense(5)	(4,191		)	(1,080		)	(608		)	(1,670		)	(3,067		)	—				(10,616		)
Core earnings before income taxes	11,467			3,914			2,705			12,786			(135		)	2,238			(6)	32,975
Income tax (expense)/benefit	(4,014		)	(1,370		)	(947		)	(4,475		)	396			(783		)		(11,193		)
Core earnings before preferred stock dividends and attribution of income to non-controlling interest	7,453			2,544			1,758			8,311			261			1,455			(6)	21,782
Preferred stock dividends	—			—			—			—			(3,295		)	—				(3,295		)
Segment core earnings/(losses)	$	7,453		$	2,544		$	1,758		$	8,311		$	(3,034	)	$	1,455		(6)	$	18,487
Total assets at carrying value	$	4,128,778		$	2,165,749		$	1,073,525		$	7,612,572		$	2,709,614		$	—			$	17,690,238
Total on- and off-balance sheet program assets at principal balance	$	6,557,030		$	2,298,956		$	1,886,445		$	7,901,842		$	—		$	—			$	18,644,273

⁽¹⁾  Excludes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.

⁽²⁾  Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.

⁽³⁾  Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "Gains/(losses) on financial derivatives and hedging activities" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

⁽⁴⁾  Includes reconciling adjustments for fair value adjustments on financial derivatives and trading assets. Also includes a reconciling adjustment related to the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities. In 2016 and prior periods, fair value adjustments on financial derivatives included variation margin payment amounts because those amounts were considered to be collateral of the related exposure and were accounted for as unrealized gains or losses. However, effective first quarter 2017, CME implemented a change in its rules related to the exchange of variation margin, whereby variation margin payments are considered to be a partial settlement of the respective derivatives contracts rather than as pledged collateral, and accounted for as realized gains and losses. See Note 4 for more information about this rule change. Farmer Mac believes that even though these variation margin amounts are now accounted for as realized gains or losses on financial derivatives and hedging activities as a result of the CME rule change, their economic character will remain the same as they were before the change. This is not expected to have a cumulative net impact on Farmer Mac's financial condition or results of operations reported in accordance with GAAP because the related financial instruments are expected to be held to maturity. Therefore, beginning in 2017, this reconciling adjustment includes realized gains and losses on financial derivatives centrally cleared through CME resulting from the exchange of variation margin. As a result, core earnings subsequent to 2016 will be presented on a consistent basis with core earnings in 2016 and prior periods.

⁽⁵⁾  Includes directly attributable costs and an allocation of indirectly attributable costs based on staffing.

⁽⁶⁾  Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends and attribution of income to non-controlling interest reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.

Core Earnings by Business Segment
For the Three Months Ended September 30, 2016
	Farm & Ranch			USDA Guarantees			Rural  Utilities			Institutional Credit			Corporate			Reconciling Adjustments				Consolidated Net Income
	(in thousands)
Net interest income	$	12,039		$	5,753		$	2,963		$	12,226		$	2,582		$	—			$	35,563
Less: reconciling adjustments(1)(2)(3)	(1,336		)	(564		)	(320		)	(799		)	(345		)	3,364				—
Net effective spread	10,703			5,189			2,643			11,427			2,237			3,364				—
Guarantee and commitment fees(2)	3,516			29			529			459			—			(735		)		3,798
Other income/(expense)(3)(4)	276			95			—			—			(388		)	320				303
Non-interest income/(loss)	3,792			124			529			459			(388		)	(415		)		4,101
Provision for loan losses	(191		)	—			—			—			—			—				(191		)
Provision for reserve for losses	222			—			—			—			—			—				222
Other non-interest expense	(3,673		)	(933		)	(553		)	(1,253		)	(3,113		)	—				(9,525		)
Non-interest expense(5)	(3,451		)	(933		)	(553		)	(1,253		)	(3,113		)	—				(9,303		)
Core earnings before income taxes	10,853			4,380			2,619			10,633			(1,264		)	2,949			(6)	30,170
Income tax (expense)/benefit	(3,799		)	(1,533		)	(917		)	(3,722		)	474			(1,032		)		(10,529		)
Core earnings before preferred stock dividends and attribution of income to non-controlling interest	7,054			2,847			1,702			6,911			(790		)	1,917			(6)	19,641
Preferred stock dividends	—			—			—			—			(3,295		)	—				(3,295		)
Non-controlling interest	—			—			—			—			18			—				18
Segment core earnings/(losses)	$	7,054		$	2,847		$	1,702		$	6,911		$	(4,067	)	$	1,917		(6)	$	16,364
Total assets at carrying value	$	3,436,641		$	2,062,195		$	1,008,903		$	6,045,227		$	3,447,939		$	—			$	16,000,905
Total on- and off-balance sheet program assets at principal balance	$	6,004,728		$	2,020,834		$	1,867,666		$	7,354,511		$	—		$	—			$	17,247,739

⁽¹⁾  Excludes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.

⁽²⁾  Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.

⁽³⁾  Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "Gains/(losses) on financial derivatives and hedging activities" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

⁽⁴⁾  Includes reconciling adjustments for fair value adjustments on financial derivatives and trading assets. Also includes a reconciling adjustment related to the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities.

⁽⁵⁾  Includes directly attributable costs and an allocation of indirectly attributable costs based on staffing.

⁽⁶⁾  Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends and attribution of income to non-controlling interest reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.

Core Earnings by Business Segment
For the Nine Months Ended September 30, 2017
	Farm & Ranch			USDA Guarantees			Rural  Utilities			Institutional Credit			Corporate			Reconciling Adjustments				Consolidated Net Income
	(in thousands)
Net interest income	$	39,701		$	15,747		$	8,181		$	44,364		$	8,371		$	—			$	116,364
Less: reconciling adjustments(1)(2)(3)	(6,208		)	(1,508		)	26			(3,025		)	(946		)	11,661				—
Net effective spread	33,493			14,239			8,207			41,339			7,425			11,661				—
Guarantee and commitment fees(2)	12,722			303			1,455			713			—			(4,563		)		10,630
Other income/(expense)(3)(4)	1,402			34			15			—			626			2,132				4,209
Non-interest income/(loss)	14,124			337			1,470			713			626			(2,431		)		14,839
Provision for loan losses	(1,234		)	—			—			—			—			—				(1,234		)
Release of reserve for losses	(60		)	—			—			—			—			—				(60		)
Other non-interest expense	(12,588		)	(3,333		)	(1,838		)	(4,813		)	(9,923		)	—				(32,495		)
Non-interest expense(5)	(12,648		)	(3,333		)	(1,838		)	(4,813		)	(9,923		)	—				(32,555		)
Core earnings before income taxes	33,735			11,243			7,839			37,239			(1,872		)	9,230			(6)	97,414
Income tax (expense)/benefit	(11,806		)	(3,935		)	(2,744		)	(13,033		)	1,646			(3,231		)		(33,103		)
Core earnings before preferred stock dividends and attribution of income to non-controlling interest	21,929			7,308			5,095			24,206			(226		)	5,999			(6)	64,311
Preferred stock dividends	—			—			—			—			(9,886		)	—				(9,886		)
Non-controlling interest	—			—			—			—			165			—				165
Segment core earnings/(losses)	$	21,929		$	7,308		$	5,095		$	24,206		$	(9,947	)	$	5,999		(6)	$	54,590
Total assets at carrying value	$	4,128,778		$	2,165,749		$	1,073,525		$	7,612,572		$	2,709,614		$	—			$	17,690,238
Total on- and off-balance sheet program assets at principal balance	$	6,557,030		$	2,298,956		$	1,886,445		$	7,901,842		$	—		$	—			$	18,644,273

⁽¹⁾  Excludes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.

⁽²⁾  Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.

⁽³⁾  Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "Gains/(losses) on financial derivatives and hedging activities" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

⁽⁴⁾  Includes reconciling adjustments for fair value adjustments on financial derivatives and trading assets. Also includes a reconciling adjustment related to the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities. In 2016 and prior periods, fair value adjustments on financial derivatives included variation margin payment amounts because those amounts were considered to be collateral of the related exposure and were accounted for as unrealized gains or losses. However, effective first quarter 2017, CME implemented a change in its rules related to the exchange of variation margin, whereby variation margin payments are considered to be a partial settlement of the respective derivatives contracts rather than as pledged collateral, and accounted for as realized gains and losses. See Note 4 for more information about this rule change. Farmer Mac believes that even though these variation margin amounts are now accounted for as realized gains or losses on financial derivatives and hedging activities as a result of the CME rule change, their economic character will remain the same as they were before the change. This is not expected to have a cumulative net impact on Farmer Mac's financial condition or results of operations reported in accordance with GAAP because the related financial instruments are expected to be held to maturity. Therefore, beginning in 2017, this reconciling adjustment includes realized gains and losses on financial derivatives centrally cleared through CME resulting from the exchange of variation margin. As a result, core earnings subsequent to 2016 will be presented on a consistent basis with core earnings in 2016 and prior periods.

⁽⁵⁾  Includes directly attributable costs and an allocation of indirectly attributable costs based on staffing.

⁽⁶⁾  Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends and attribution of income to non-controlling interest reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.

Core Earnings by Business Segment
For the Nine Months Ended September 30, 2016
	Farm & Ranch			USDA Guarantees			Rural  Utilities			Institutional Credit			Corporate			Reconciling Adjustments				Consolidated Net Income
	(in thousands)
Net interest income	$	34,772		$	15,743		$	8,682		$	36,084		$	8,280		$	—			$	103,561
Less: reconciling adjustments(1)(2)(3)	(4,733		)	(1,658		)	(939		)	(2,160		)	(897		)	10,387				—
Net effective spread	30,039			14,085			7,743			33,924			7,383			10,387				—
Guarantee and commitment fees(2)	11,390			50			1,197			1,375			—			(2,933		)		11,079
Other income/(expense)(3)(4)	451			178			—			—			(1,288		)	(9,259		)		(9,918		)
Non-interest income/(loss)	11,841			228			1,197			1,375			(1,288		)	(12,192		)		1,161
Provision for loan losses	(604		)	—			—			—			—			—				(604		)
Provision for reserve for losses	114			—			—			—			—			—				114
Other non-interest expense	(11,946		)	(3,118		)	(2,214		)	(2,330		)	(9,849		)	—				(29,457		)
Non-interest expense(5)	(11,832		)	(3,118		)	(2,214		)	(2,330		)	(9,849		)	—				(29,343		)
Core earnings before income taxes	29,444			11,195			6,726			32,969			(3,754		)	(1,805		)	(6)	74,775
Income tax (expense)/benefit	(10,307		)	(3,918		)	(2,355		)	(11,538		)	1,221			633				(26,264		)
Core earnings before preferred stock dividends and attribution of income to non-controlling interest	19,137			7,277			4,371			21,431			(2,533		)	(1,172		)	(6)	48,511
Preferred stock dividends	—			—			—			—			(9,886		)	—				(9,886		)
Non-controlling interest	—			—			—			—			62			—				62
Segment core earnings/(losses)	$	19,137		$	7,277		$	4,371		$	21,431		$	(12,357	)	$	(1,172	)	(6)	$	38,687
Total assets at carrying value	$	3,436,641		$	2,062,195		$	1,008,903		$	6,045,227		$	3,447,939		$	—			$	16,000,905
Total on- and off-balance sheet program assets at principal balance	$	6,004,728		$	2,020,834		$	1,867,666		$	7,354,511		$	—		$	—			$	17,247,739

⁽¹⁾  Excludes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.

⁽²⁾  Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.

⁽³⁾  Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "Gains/(losses) on financial derivatives and hedging activities" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

⁽⁴⁾  Includes reconciling adjustments for fair value adjustments on financial derivatives and trading assets. Also includes a reconciling adjustment related to the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities.

⁽⁵⁾  Includes directly attributable costs and an allocation of indirectly attributable costs based on staffing.

⁽⁶⁾  Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends and attribution of income to non-controlling interest reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.

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Accounting Policies - Consolidation of Variable Interest Entities (Details) - USD ($) $ in Thousands	Sep. 30, 2017		Dec. 31, 2016
Variable Interest Entity [Line Items]
Loans held for investment in consolidated trusts, at amortized cost	$ 1,329,212		$ 1,132,966
Debt securities of consolidated trusts held by third parties	1,333,417		1,142,704
Farm & Ranch [Member]
Variable Interest Entity [Line Items]
Other Liabilities	4,200		9,700
USDA Guarantees [Member]
Variable Interest Entity [Line Items]
Unamortized Premium/(Discount)	300		400
Institutional Credit [Member]
Variable Interest Entity [Line Items]
Fair Value Adjustment			300
On-balance sheet [Member]
Variable Interest Entity [Line Items]
Loans held for investment in consolidated trusts, at amortized cost	1,329,212		1,132,966
Debt securities of consolidated trusts held by third parties	1,333,417	[1]	1,142,704	[2]
On-balance sheet [Member] | Farm & Ranch [Member]
Variable Interest Entity [Line Items]
Loans held for investment in consolidated trusts, at amortized cost	1,329,212		1,132,966
Debt securities of consolidated trusts held by third parties	1,333,417	[1]	1,142,704	[2]
On-balance sheet [Member] | USDA Guarantees [Member]
Variable Interest Entity [Line Items]
Loans held for investment in consolidated trusts, at amortized cost	0		0
Debt securities of consolidated trusts held by third parties	0	[1]	0	[2]
On-balance sheet [Member] | Rural Utilities [Member]
Variable Interest Entity [Line Items]
Loans held for investment in consolidated trusts, at amortized cost	0		0
Debt securities of consolidated trusts held by third parties	0	[1]	0	[2]
On-balance sheet [Member] | Institutional Credit [Member]
Variable Interest Entity [Line Items]
Loans held for investment in consolidated trusts, at amortized cost	0		0
Debt securities of consolidated trusts held by third parties	0	[1]	0	[2]
On-balance sheet [Member] | Corporate Segment [Member]
Variable Interest Entity [Line Items]
Loans held for investment in consolidated trusts, at amortized cost	0		0
Debt securities of consolidated trusts held by third parties	0	[1]	0	[2]
Off-balance sheet [Member] | Variable Interest Entity, Not Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount	581,625	[3],[4]	1,489,417	[5],[6]
Off-balance sheet [Member] | Farm & Ranch [Member] | Variable Interest Entity, Not Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount	354,823	[3],[4]	415,441	[5],[6]
Off-balance sheet [Member] | USDA Guarantees [Member] | Variable Interest Entity, Not Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount	226,802	[3],[4]	103,976	[5],[6]
Off-balance sheet [Member] | Rural Utilities [Member] | Variable Interest Entity, Not Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount	0	[3],[4]	0	[5],[6]
Off-balance sheet [Member] | Institutional Credit [Member] | Variable Interest Entity, Not Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount	0	[3],[4]	970,000	[5],[6]
Off-balance sheet [Member] | Corporate Segment [Member] | Variable Interest Entity, Not Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount	0	[3],[4]	0	[5],[6]
Farmer Mac Guaranteed Securities: | On-balance sheet [Member] | Variable Interest Entity, Not Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net	31,003	[7]	66,389	[8]
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount	30,688	[3]	65,599	[5]
Farmer Mac Guaranteed Securities: | On-balance sheet [Member] | Farm & Ranch [Member] | Variable Interest Entity, Not Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net	0	[7]	0	[8]
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount	0	[3]	0	[5]
Farmer Mac Guaranteed Securities: | On-balance sheet [Member] | USDA Guarantees [Member] | Variable Interest Entity, Not Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net	31,003	[7]	36,042	[8]
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount	30,688	[3]	35,599	[5]
Farmer Mac Guaranteed Securities: | On-balance sheet [Member] | Rural Utilities [Member] | Variable Interest Entity, Not Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net	0	[7]	0	[8]
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount	0	[3]	0	[5]
Farmer Mac Guaranteed Securities: | On-balance sheet [Member] | Institutional Credit [Member] | Variable Interest Entity, Not Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net	0	[7]	30,347	[8]
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount	0	[3]	30,000	[5]
Farmer Mac Guaranteed Securities: | On-balance sheet [Member] | Corporate Segment [Member] | Variable Interest Entity, Not Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net	0	[7]	0	[8]
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount	0	[3]	0	[5]
Investment Securities [Member]
Variable Interest Entity [Line Items]
Unamortized Premium/(Discount)	3,406		5,672
Investment Securities [Member] | On-balance sheet [Member] | Variable Interest Entity, Not Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net	783,665	[9]	827,874	[10]
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount	781,755	[3],[9]	825,909	[5],[10]
Investment Securities [Member] | On-balance sheet [Member] | Farm & Ranch [Member] | Variable Interest Entity, Not Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net	0	[9]	0	[10]
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount	0	[3],[9]	0	[5],[10]
Investment Securities [Member] | On-balance sheet [Member] | USDA Guarantees [Member] | Variable Interest Entity, Not Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net	0	[9]	0	[10]
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount	0	[3],[9]	0	[5],[10]
Investment Securities [Member] | On-balance sheet [Member] | Rural Utilities [Member] | Variable Interest Entity, Not Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net	0	[9]	0	[10]
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount	0	[3],[9]	0	[5],[10]
Investment Securities [Member] | On-balance sheet [Member] | Institutional Credit [Member] | Variable Interest Entity, Not Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net	0	[9]	0	[10]
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount	0	[3],[9]	0	[5],[10]
Investment Securities [Member] | On-balance sheet [Member] | Corporate Segment [Member] | Variable Interest Entity, Not Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net	783,665	[9]	827,874	[10]
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount	$ 781,755	[3],[9]	$ 825,909	[5],[10]

[1] Includes borrower remittances of $4.2 million. The borrower remittances had not been passed through to third party investors as of September 30, 2017.

[2] Includes borrower remittances of $9.7 million, which have not been passed through to third party investors as of December 31, 2016.

[3] Farmer Mac uses unpaid principal balance and outstanding face amount of investment securities to represent maximum exposure to loss.

[4] The amount under the Farm & Ranch line of business relates to unconsolidated trusts where Farmer Mac determined it was not the primary beneficiary due to shared power with an unrelated party.

[5] Farmer Mac uses unpaid principal balance and the outstanding face amount of investment securities to represent maximum exposure to loss.

[6] The amount under the Farm & Ranch line of business relates to unconsolidated trusts where Farmer Mac determined it was not the primary beneficiary due to shared power with an unrelated party.

[7] Includes $0.3 million of unamortized premiums and discounts and fair value adjustments related to the USDA Guarantees line of business.

[8] Includes $0.4 million of unamortized premiums and discounts and fair value adjustments related to the USDA Guarantees line of business. Includes fair value adjustments related to the Institutional Credit line of business of $0.3 million.

[9] Includes auction-rate certificates, asset-backed securities, and government-sponsored enterprise ("GSE")-guaranteed mortgage-backed securities.

[10] Includes auction-rate certificates, asset-backed securities, and GSE-guaranteed mortgage-backed securities.

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Accounting Policies - Cash and Cash Equivalents and Statements of Cash Flows (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Non-cash activity:
SEC Schedule III, Real Estate, Acquisitions Through Foreclosures	$ 5,261	$ 0
Proceeds from sale of Farmer Mac Guaranteed Securities	404,246	457,369
Consolidation of Farm & Ranch Guaranteed Securities from off-balance sheet to loans held for investment in consolidated trusts and to debt securities of consolidated trusts held by third parties	277,307	402,841
Purchases of Investment Securities Traded, Not Yet Settled	$ 9,987	$ 25,000

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Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				9 Months Ended
	Sep. 30, 2017		Sep. 30, 2016		Sep. 30, 2017		Sep. 30, 2016
Accounting Policies [Abstract]
Net income attributable to common stockholders (Dilutive)	$ 18,487		$ 16,364		$ 54,590		$ 38,687
Stock options, SARs and restricted stock	210	[1]	176	[2]	208	[2]	291	[2]
Earnings Per Share, On Incremental Common Shares Attributable to Share-based Payment Arrangements	$ (0.03)	[1]	$ (0.02)	[2]	$ (0.10)	[2]	$ (0.10)	[2]
Weighted Average Number of Shares Outstanding, Diluted	10,815		10,649		10,794		10,755
Diluted earnings per common share	$ 1.71000	[3]	$ 1.54000		$ 5.06000	[4]	$ 3.6000
Earnings Per Share, Basic [Abstract]
Net Income (Loss) Available to Common Stockholders, Basic	$ 18,487		$ 16,364		$ 54,590		$ 38,687
Weighted Average Number of Shares Outstanding, Basic	10,605		10,473		10,586		10,464
Basic earnings per common share	$ 1.74	[3]	$ 1.56		$ 5.16	[4]	$ 3.70

[1] For the three months ended September 30, 2017 and 2016, stock options and SARs of 24,657 and 54,709, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because they were anti-dilutive. For the three months ended September 30, 2017 and 2016, contingent shares of non-vested restricted stock of 32,892, and 37,284, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because performance conditions had not yet been met.

[2] For the nine months ended September 30, 2017 and 2016, stock options and SARs of 33,440 and 115,875, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because they were anti-dilutive. For the nine months ended September 30, 2017 and 2016, contingent shares of non-vested restricted stock of 32,892, and 37,284, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because performance conditions had not yet been met.

[3] For the effect of the adoption of the new Accounting Standard Update 2016-09, "Improvements to Employee Share-Based Payment Accounting," on Basic and Diluted EPS, see Note 1(d) "New Accounting Standards."

[4] For the effect of the adoption of the new Accounting Standard Update 2016-09, "Improvements to Employee Share-Based Payment Accounting," on Basic and Diluted EPS, see Note 1(d) "New Accounting Standards."

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Accounting Policies - Earnings Per Share Anti-Dilutive (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				9 Months Ended
	Sep. 30, 2017		Sep. 30, 2016		Sep. 30, 2017		Sep. 30, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net Income (Loss) Available to Common Stockholders, Basic	$ 18,487		$ 16,364		$ 54,590		$ 38,687
Net Income (Loss) Available to Common Stockholders, Diluted	$ 18,487		$ 16,364		$ 54,590		$ 38,687
Stock options, SARs and restricted stock	210,000	[1]	176,000	[2]	208,000	[2]	291,000	[2]
Weighted Average Number of Shares Outstanding, Basic	10,605,000		10,473,000		10,586,000		10,464,000
Basic earnings per common share	$ 1.74	[3]	$ 1.56		$ 5.16	[4]	$ 3.70
Earnings Per Share, On Incremental Common Shares Attributable to Share-based Payment Arrangements	$ (0.03)	[1]	$ (0.02)	[2]	$ (0.10)	[2]	$ (0.10)	[2]
Weighted Average Number of Shares Outstanding, Diluted	10,815,000		10,649,000		10,794,000		10,755,000
Diluted earnings per common share	$ 1.71000	[3]	$ 1.54000		$ 5.06000	[4]	$ 3.6000
Stock Options and SARs [Members]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from earnings per share (shares)	24,657		54,709		33,440		115,875
Performance Shares [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from earnings per share (shares)	32,892		37,284		32,892		37,284

[1] For the three months ended September 30, 2017 and 2016, stock options and SARs of 24,657 and 54,709, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because they were anti-dilutive. For the three months ended September 30, 2017 and 2016, contingent shares of non-vested restricted stock of 32,892, and 37,284, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because performance conditions had not yet been met.

[2] For the nine months ended September 30, 2017 and 2016, stock options and SARs of 33,440 and 115,875, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because they were anti-dilutive. For the nine months ended September 30, 2017 and 2016, contingent shares of non-vested restricted stock of 32,892, and 37,284, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because performance conditions had not yet been met.

[3] For the effect of the adoption of the new Accounting Standard Update 2016-09, "Improvements to Employee Share-Based Payment Accounting," on Basic and Diluted EPS, see Note 1(d) "New Accounting Standards."

[4] For the effect of the adoption of the new Accounting Standard Update 2016-09, "Improvements to Employee Share-Based Payment Accounting," on Basic and Diluted EPS, see Note 1(d) "New Accounting Standards."

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Accounting Policies - Changes in Accumulated Other Comprehensive Income, Net of Tax (Details) - USD ($) $ in Thousands	3 Months Ended				9 Months Ended
	Sep. 30, 2017		Sep. 30, 2016		Sep. 30, 2017		Sep. 30, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax	$ 3,536		$ 4,225		$ 31,863		$ 57,610
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
AOCI Beginning Balance	42,428		12,384		33,758		(11,019)
Other comprehensive income/(loss) before reclassifications	2,201		3,273		19,189		32,310
Amounts reclassified from AOCI	(3,834)		(2,093)		(12,152)		(7,727)
Net other comprehensive income/(loss)	(1,633)		1,180		7,037		24,583
AOCI Ending Balance	40,795		13,564		40,795		13,564
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax	1,238		1,479		11,152		20,164
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax	2,298		2,746		20,711		37,446
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax	400		500		1,400		1,500
Other Comprehensive Income (Loss), before Tax	(2,512)		1,815		10,826		37,821
Other Comprehensive Income (Loss), Tax	(879)		635		3,789		13,238
Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest [Member] | Available-for-sale Securities [Member]
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
AOCI Beginning Balance	(1,276)		19,704		(14,387)		(10,035)
Other comprehensive income/(loss) before reclassifications	2,298		2,746		20,711		37,446
Amounts reclassified from AOCI	(2,875)		(2,388)		(8,177)		(7,349)
Net other comprehensive income/(loss)	(577)		358		12,534		30,097
AOCI Ending Balance	(1,853)		20,062		(1,853)		20,062
Other Comprehensive Income (Loss), before Tax	(886)		552		19,283		46,305
Other Comprehensive Income (Loss), Tax	(309)		194		6,749		16,208
Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest [Member] | Held-to-maturity Securities [Member]
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
AOCI Beginning Balance	42,104		(1,781)		45,752		(476)
Other comprehensive income/(loss) before reclassifications	0		0		0		0
Amounts reclassified from AOCI	(1,221)		(47)		(4,869)		(1,352)
Net other comprehensive income/(loss)	(1,221)		(47)		(4,869)		(1,352)
AOCI Ending Balance	40,883		(1,828)		40,883		(1,828)
Other Comprehensive Income (Loss), before Tax	(1,879)		(73)		(7,491)		(2,081)
Other Comprehensive Income (Loss), Tax	(658)		(26)		(2,622)		(729)
Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest [Member]
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
AOCI Beginning Balance	1,600		(5,539)		2,393		(508)
Other comprehensive income/(loss) before reclassifications	(97)		527		(1,522)		(5,136)
Amounts reclassified from AOCI	262		342		894		974
Net other comprehensive income/(loss)	165		869		(628)		(4,162)
AOCI Ending Balance	1,765		(4,670)		1,765		(4,670)
Other Comprehensive Income (Loss), before Tax	253		1,336		(966)		(6,403)
Other Comprehensive Income (Loss), Tax	88		467		(338)		(2,241)
Other Comprehensive Income (Loss), before Reclassifications, before Tax	(150)		810		(2,342)		(7,901)
Other Comprehensive Income (Loss) before Reclassifications, Tax	(53)		283		(820)		(2,765)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gain (Loss) on Derivative Instruments [Member] | Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest [Member] | Available-for-sale Securities [Member]
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Amounts reclassified from AOCI	(2,812)	[1]	(2,374)	[1]	(8,105)	[2]	(7,535)	[2]
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax	(4,326)	[1]	(3,652)	[1]	(12,470)	[2]	(11,591)	[2]
Reclassification from AOCI, Current Period, Tax	(1,514)	[1]	(1,278)	[1]	(4,365)	[2]	(4,056)	[2]
Reclassification out of Accumulated Other Comprehensive Income [Member] | Other Income [Member] | Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest [Member] | Available-for-sale Securities [Member]
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Amounts reclassified from AOCI	(5)	[3]	(14)	[3]	(14)	[4]	180	[4]
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax	(7)	[3]	(21)	[3]	(21)	[4]	277	[4]
Reclassification from AOCI, Current Period, Tax	(2)	[3]	(7)	[3]	(7)	[4]	97	[4]
Reclassification out of Accumulated Other Comprehensive Income [Member] | Interest Income [Member] | Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest [Member] | Held-to-maturity Securities [Member]
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Amounts reclassified from AOCI	(1,221)	[5]	(47)	[5]	(4,869)	[6]	(1,352)	[6]
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax	(1,879)	[5]	(73)	[5]	(7,491)	[6]	(2,081)	[6]
Reclassification from AOCI, Current Period, Tax	(658)	[5]	(26)	[5]	(2,622)	[6]	(729)	[6]
Reclassification out of Accumulated Other Comprehensive Income [Member] | Interest Expense [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest [Member]
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Amounts reclassified from AOCI	262	[7]	342	[7]	894	[8]	974	[8]
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax	403	[7]	526	[7]	1,376	[8]	1,498	[8]
Reclassification from AOCI, Current Period, Tax	141	[7]	184	[7]	482	[8]	524	[8]
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gain (Loss) on Investments [Member] | Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest [Member] | Available-for-sale Securities [Member]
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Amounts reclassified from AOCI	(58)	[3]	0	[3]	(58)	[9]	6	[9]
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax	(89)		0		(89)	[9]	9	[9]
Reclassification from AOCI, Current Period, Tax	$ (31)		$ 0		$ (31)	[9]	$ 3	[9]

[1] (1) Relates to the amortization of unrealized gains on hedged items prior to the application of fair value hedge accounting.

[2] Relates to the amortization of unrealized gains on hedged items prior to the application of fair value hedge accounting.

[3] Represents amortization of deferred gains related to certain available-for-sale USDA Securities and Farmer Mac Guaranteed USDA Securities.

[4] Represents amortization of deferred gains related to certain available-for-sale USDA Securities and Farmer Mac Guaranteed USDA Securities.

[5] Relates to the amortization of unrealized gains or losses prior to the reclassification of these securities from available-for-sale to held-to-maturity. The amortization of unrealized gains or losses reported in AOCI for held-to-maturity securities will be offset by the amortization of the premium or discount created from the transfer into held-to-maturity securities, which occurred at fair value. These unrealized gains or losses will be recorded over the remaining life of the security with no impact on future net income.

[6] Relates to the amortization of unrealized gains or losses prior to the reclassification of these securities from available-for-sale to held-to-maturity. The amortization of unrealized gains or losses reported in AOCI for held-to-maturity securities will be offset by the amortization of the premium or discount created from the transfer into held-to-maturity securities, which occurred at fair value. These unrealized gains or losses will be recorded over the remaining life of the security with no impact on future net income.

[7] Relates to the recognition of unrealized gains and losses on cash flow hedges recorded in AOCI.

[8] Relates to the recognition of unrealized gains and losses on cash flow hedges recorded in AOCI.

[9] Represents unrealized losses on sales of available-for-sale investment securities.

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Accounting Policies - Components of Other Comprehensive Income Loss and Related Tax Impact (Details) - USD ($) $ in Thousands	3 Months Ended				9 Months Ended
	Sep. 30, 2017		Sep. 30, 2016		Sep. 30, 2017		Sep. 30, 2016
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax	$ 3,536		$ 4,225		$ 31,863		$ 57,610
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax	1,238		1,479		11,152		20,164
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax	2,298		2,746		20,711		37,446
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	2,201		3,273		19,189		32,310
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax	400		500		1,400		1,500
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	(3,834)		(2,093)		(12,152)		(7,727)
Other Comprehensive Income (Loss), before Tax	(2,512)		1,815		10,826		37,821
Other Comprehensive Income (Loss), Tax	(879)		635		3,789		13,238
Other comprehensive income, net of tax	(1,633)		1,180		7,037		24,583
Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Other Comprehensive Income (Loss), before Reclassifications, before Tax	(150)		810		(2,342)		(7,901)
Other Comprehensive Income (Loss) before Reclassifications, Tax	(53)		283		(820)		(2,765)
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	(97)		527		(1,522)		(5,136)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	262		342		894		974
Other Comprehensive Income (Loss), before Tax	253		1,336		(966)		(6,403)
Other Comprehensive Income (Loss), Tax	88		467		(338)		(2,241)
Other comprehensive income, net of tax	165		869		(628)		(4,162)
Available-for-sale Securities [Member] | Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	2,298		2,746		20,711		37,446
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	(2,875)		(2,388)		(8,177)		(7,349)
Other Comprehensive Income (Loss), before Tax	(886)		552		19,283		46,305
Other Comprehensive Income (Loss), Tax	(309)		194		6,749		16,208
Other comprehensive income, net of tax	(577)		358		12,534		30,097
Held-to-maturity Securities [Member] | Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	0		0		0		0
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	(1,221)		(47)		(4,869)		(1,352)
Other Comprehensive Income (Loss), before Tax	(1,879)		(73)		(7,491)		(2,081)
Other Comprehensive Income (Loss), Tax	(658)		(26)		(2,622)		(729)
Other comprehensive income, net of tax	(1,221)		(47)		(4,869)		(1,352)
Gain (Loss) on Derivative Instruments [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Available-for-sale Securities [Member] | Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax	(4,326)	[1]	(3,652)	[1]	(12,470)	[2]	(11,591)	[2]
Reclassification from AOCI, Current Period, Tax	(1,514)	[1]	(1,278)	[1]	(4,365)	[2]	(4,056)	[2]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	(2,812)	[1]	(2,374)	[1]	(8,105)	[2]	(7,535)	[2]
Gain (Loss) on Investments [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Available-for-sale Securities [Member] | Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax	(89)		0		(89)	[3]	9	[3]
Reclassification from AOCI, Current Period, Tax	(31)		0		(31)	[3]	3	[3]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	(58)	[4]	0	[4]	(58)	[3]	6	[3]
Other Income [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Available-for-sale Securities [Member] | Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax	(7)	[4]	(21)	[4]	(21)	[5]	277	[5]
Reclassification from AOCI, Current Period, Tax	(2)	[4]	(7)	[4]	(7)	[5]	97	[5]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	(5)	[4]	(14)	[4]	(14)	[5]	180	[5]
Interest Income [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Held-to-maturity Securities [Member] | Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax	(1,879)	[6]	(73)	[6]	(7,491)	[7]	(2,081)	[7]
Reclassification from AOCI, Current Period, Tax	(658)	[6]	(26)	[6]	(2,622)	[7]	(729)	[7]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	(1,221)	[6]	(47)	[6]	(4,869)	[7]	(1,352)	[7]
Interest Expense [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax	403	[8]	526	[8]	1,376	[9]	1,498	[9]
Reclassification from AOCI, Current Period, Tax	141	[8]	184	[8]	482	[9]	524	[9]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	$ 262	[8]	$ 342	[8]	$ 894	[9]	$ 974	[9]

[1] (1) Relates to the amortization of unrealized gains on hedged items prior to the application of fair value hedge accounting.

[2] Relates to the amortization of unrealized gains on hedged items prior to the application of fair value hedge accounting.

[3] Represents unrealized losses on sales of available-for-sale investment securities.

[4] Represents amortization of deferred gains related to certain available-for-sale USDA Securities and Farmer Mac Guaranteed USDA Securities.

[5] Represents amortization of deferred gains related to certain available-for-sale USDA Securities and Farmer Mac Guaranteed USDA Securities.

[6] Relates to the amortization of unrealized gains or losses prior to the reclassification of these securities from available-for-sale to held-to-maturity. The amortization of unrealized gains or losses reported in AOCI for held-to-maturity securities will be offset by the amortization of the premium or discount created from the transfer into held-to-maturity securities, which occurred at fair value. These unrealized gains or losses will be recorded over the remaining life of the security with no impact on future net income.

[7] Relates to the amortization of unrealized gains or losses prior to the reclassification of these securities from available-for-sale to held-to-maturity. The amortization of unrealized gains or losses reported in AOCI for held-to-maturity securities will be offset by the amortization of the premium or discount created from the transfer into held-to-maturity securities, which occurred at fair value. These unrealized gains or losses will be recorded over the remaining life of the security with no impact on future net income.

[8] Relates to the recognition of unrealized gains and losses on cash flow hedges recorded in AOCI.

[9] Relates to the recognition of unrealized gains and losses on cash flow hedges recorded in AOCI.

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Accounting Policies - New Accounting Standards (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017	Sep. 30, 2016
Accounting Policies [Abstract]
Proceeds and Excess Tax Benefit from Share-based Compensation	$ 300	$ 1,200
Excess Tax Benefits from Share-Based Compensation	$ 300	1,170	$ 0
Payments Related to Tax Withholding for Share-based Compensation		$ 2,283	$ 1,975

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Investment Securities - Schedule of Investment Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2017		Dec. 31, 2016
Available-for-sale Securities [Abstract]
Derivative, Notional Amount	$ 8,791,110		$ 8,100,257
Investment Securities [Member]
Available-for-sale Securities [Abstract]
Available-for-Sale Securities Unpaid Principal Balance	2,229,592		2,513,294
Unamortized Premium/(Discount)	3,406		5,672
Available-for-sale Securities, Amortized Cost Basis	2,232,998		2,518,966
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	5,128		6,362
Available-for-sale Securities, Unrealized Losses	(3,160)		(9,477)
Available-for-sale Securities, Fair Value Disclosure	2,234,966		2,515,851
Marketable Securities [Abstract]
Marketable Securities Unpaid Principal Balance	2,229,592		2,513,294
Marketable Securities, Amortized Cost	2,232,998		2,518,966
Marketable Securities, Unrealized Gains	5,128		6,362
Marketable Securities, Unrealized Losses	(3,160)		(9,477)
Marketable Securities	2,234,966		2,515,851
USDA Securities [Member]
Marketable Securities [Abstract]
Marketable Securities	2,107,149		2,029,613
Available-for-sale Securities [Member] | Investment Securities [Member]
Available-for-sale Securities [Abstract]
Unamortized Premium/(Discount)	3,406		5,672
Floating Interest Rate [Member] | Floating rate auction-rate certificates backed by Government guaranteed student loans
Available-for-sale Securities [Abstract]
Available-for-Sale Securities Unpaid Principal Balance	19,700		19,700
Available-for-sale Securities, Amortized Cost Basis	19,700		19,700
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	0		0
Available-for-sale Securities, Unrealized Losses	(1,182)		(1,970)
Available-for-sale Securities, Fair Value Disclosure	18,518		17,730
Floating Interest Rate [Member] | Asset-backed Securities [Member]
Available-for-sale Securities [Abstract]
Available-for-Sale Securities Unpaid Principal Balance	35,870		44,442
Available-for-sale Securities, Amortized Cost Basis	35,705		44,240
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	20		1
Available-for-sale Securities, Unrealized Losses	(123)		(390)
Available-for-sale Securities, Fair Value Disclosure	35,602		43,851
Floating Interest Rate [Member] | Corporate Debt Securities [Member]
Available-for-sale Securities [Abstract]
Available-for-Sale Securities Unpaid Principal Balance			10,000
Available-for-sale Securities, Amortized Cost Basis			10,000
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax			41
Available-for-sale Securities, Unrealized Losses			0
Available-for-sale Securities, Fair Value Disclosure			10,041
Floating Interest Rate [Member] | Government/GSE Guaranteed Mortgage Backed Securities [Member]
Available-for-sale Securities [Abstract]
Available-for-Sale Securities Unpaid Principal Balance	1,308,236		1,359,700
Available-for-sale Securities, Amortized Cost Basis	1,310,622		1,362,527
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	2,858		1,768
Available-for-sale Securities, Unrealized Losses	(1,276)		(3,266)
Available-for-sale Securities, Fair Value Disclosure	1,312,204		1,361,029
Floating Interest Rate [Member] | Subordinated Debt [Member]
Available-for-sale Securities [Abstract]
Available-for-Sale Securities Unpaid Principal Balance			70,000
Available-for-sale Securities, Amortized Cost Basis			70,000
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax			0
Available-for-sale Securities, Unrealized Losses			(3,047)
Available-for-sale Securities, Fair Value Disclosure			66,953
Floating Interest Rate [Member] | Available-for-sale Securities [Member] | Floating rate auction-rate certificates backed by Government guaranteed student loans
Available-for-sale Securities [Abstract]
Unamortized Premium/(Discount)	0		0
Floating Interest Rate [Member] | Available-for-sale Securities [Member] | Asset-backed Securities [Member]
Available-for-sale Securities [Abstract]
Unamortized Premium/(Discount)	(165)		(202)
Floating Interest Rate [Member] | Available-for-sale Securities [Member] | Corporate Debt Securities [Member]
Available-for-sale Securities [Abstract]
Unamortized Premium/(Discount)			0
Floating Interest Rate [Member] | Available-for-sale Securities [Member] | Government/GSE Guaranteed Mortgage Backed Securities [Member]
Available-for-sale Securities [Abstract]
Unamortized Premium/(Discount)	2,386		2,827
Floating Interest Rate [Member] | Available-for-sale Securities [Member] | Subordinated Debt [Member]
Available-for-sale Securities [Abstract]
Unamortized Premium/(Discount)			0
Fixed Interest Rate [Member] | Government/GSE Guaranteed Mortgage Backed Securities [Member]
Available-for-sale Securities [Abstract]
Available-for-Sale Securities Unpaid Principal Balance	468		538	[1]
Available-for-sale Securities, Amortized Cost Basis	2,715		3,120	[1]
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	2,250		4,505	[1]
Available-for-sale Securities, Unrealized Losses	0		0	[1]
Available-for-sale Securities, Fair Value Disclosure	4,965	[2]	7,625	[1]
Derivative, Notional Amount	144,300		146,100
Fixed Interest Rate [Member] | USDA Securities [Member]
Available-for-sale Securities [Abstract]
Available-for-Sale Securities Unpaid Principal Balance	100,000		187,295
Available-for-sale Securities, Amortized Cost Basis	99,992		187,401
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	0		0
Available-for-sale Securities, Unrealized Losses	(121)		(268)
Available-for-sale Securities, Fair Value Disclosure	99,871		187,133
Fixed Interest Rate [Member] | US Treasury Securities [Member]
Available-for-sale Securities [Abstract]
Available-for-Sale Securities Unpaid Principal Balance	765,318		821,619
Available-for-sale Securities, Amortized Cost Basis	764,264		821,978
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	0		47
Available-for-sale Securities, Unrealized Losses	(458)		(536)
Available-for-sale Securities, Fair Value Disclosure	763,806		821,489
Fixed Interest Rate [Member] | Available-for-sale Securities [Member] | Government/GSE Guaranteed Mortgage Backed Securities [Member]
Available-for-sale Securities [Abstract]
Unamortized Premium/(Discount)	2,247		2,582	[1]
Fixed Interest Rate [Member] | Available-for-sale Securities [Member] | USDA Securities [Member]
Available-for-sale Securities [Abstract]
Unamortized Premium/(Discount)	(8)		106
Fixed Interest Rate [Member] | Available-for-sale Securities [Member] | US Treasury Securities [Member]
Available-for-sale Securities [Abstract]
Unamortized Premium/(Discount)	(1,054)		359
Fixed Interest Rate [Member] | Available-for-sale Securities [Member] | Interest-Only-Strip [Member]
Available-for-sale Securities [Abstract]
Unamortized Premium/(Discount)	$ 4,500		$ 7,000

[1] Fair value includes $7.0 million of an interest-only security with a notional amount of $146.1 million.

[2] Fair value includes $4.5 million of an interest-only security with a notional amount of $144.3 million.

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Investment Securities - Narrative (Details) - Investment Securities [Member] - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Schedule of Available-for-sale Securities [Line Items]
Proceeds from sale of available-for-sale investment securities	$ 5,100,000	$ 0	$ 5,089,000	$ 186,769,000
Available-for-sale Securities, Gross Realized Gains	$ 100,000	0	$ 100,000	100,000
Available-for-sale Securities, Gross Realized Losses		$ 0		$ 100,000

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Investment Securities - Unrealized Loss Position (Details) $ in Thousands	Sep. 30, 2017 USD ($) position	Dec. 31, 2016 USD ($) position
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	$ 920,516	$ 1,308,744
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	394,737	564,801
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(724)	(1,844)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses	$ (2,436)	$ (7,633)
Available-for-sale Securities, Continuous Unrealized Loss Position, Qualitative Disclosure [Abstract]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | position	81	97
Investment Securities [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Qualitative Disclosure [Abstract]
Available-for-sale securities in a loss position for more than 12 months, qualitative disclosure, percent of amortized cost	99.00%
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | position	44	36
Standard & Poor's, A- Rating [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Qualitative Disclosure [Abstract]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | position		1
Floating Interest Rate [Member] | Floating rate auction-rate certificates backed by Government guaranteed student loans
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	$ 0	$ 0
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	18,518	17,730
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses	(1,182)	(1,970)
Floating Interest Rate [Member] | Asset-backed Securities [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	0	4,654
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	24,089	38,077
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0	(10)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses	(123)	(380)
Floating Interest Rate [Member] | Government/GSE Guaranteed Mortgage Backed Securities [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	131,772	384,586
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	277,196	442,041
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(220)	(1,030)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses	(1,056)	(2,236)
Floating Interest Rate [Member] | Subordinated Debt [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value		0
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value		66,953
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss		0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses		(3,047)
Fixed Interest Rate [Member] | US Treasury Securities [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	738,815	732,371
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	24,991	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(431)	(536)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses	(27)	0
Fixed Interest Rate [Member] | USDA Securities [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	49,929	187,133
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	49,943	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(73)	(268)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses	$ (48)	$ 0

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Investment Securities - Debt Maturities (Details) - Investment Securities [Member] - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis [Abstract]
Available-for-sale Securities, Due within one year, Amortized Cost	$ 798,153
Available-for-sale Securities, Due after one year through five years, Amortized Cost	363,861
Available-for-sale Securities, Due after five years through ten years, Amortized Cost	279,192
Available-for-sale Securities, Due after ten years, Amortized Cost	791,792
Available-for-sale Securities, Amortized Cost Basis	2,232,998	$ 2,518,966
Available-for-sale Securities, Debt Maturities, Single Maturity Date [Abstract]
Available-for-sale Securities, Due within one year, Fair Value	797,630
Available-for-sale Securities, Due after one year through five years, Fair Value	364,132
Available-for-sale Securities, Due after five years through ten years, Fair Value	281,792
Available-for-sale Securities, Due after ten years, Fair Value	791,412
Available-for-sale securities	$ 2,234,966	$ 2,515,851
Available-for-sale Securities, Debt Maturities, Weighted Average Yield, Single Maturity Date [Abstract]
Available-for-sale Securities, Due within one year, Weighted-Average Yield	0.92%
Available-for-sale Securities, Due after one year through five years, Weighted-Average Yield	1.62%
Available-for-sale Securities, Due after five years through ten years, Weighted-Average Yield	1.75%
Available-for-sale Securities, Due after ten years, Weighted-Average Yield	1.86%
Available-for-sale Securities, Total Weighted-Average Yield	1.47%

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Farmer Mac Guaranteed Securities and USDA Guaranteed Securities - Farmer Mac Guaranteed Securities and USDA Securities (Details) - USD ($) $ in Thousands			12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016	Dec. 31, 2016	Oct. 01, 2016
Schedule of Held-to-Maturity, Available-for-sale, and Trading Securities [Line Items]
Transfer of USDA Guaranteed Securities- Available-for-sale to Held-to-maturity; Unrealized holding gains				$ 73,100
Trading Securities [Abstract]
Transfer of Farmer Mac Guaranteed Securities - Available-for-sale to Held-to-maturity; Unrealized holding gains				700
Transfer of Farmer Mac Guaranteed Securities and USDA Guaranteed Securities - Available-for-sale to Held-to-maturity; Unrealized holding gains				$ 73,800
Farmer Mac Guaranteed Securities and USDA Securities [Member]
Schedule of Held-to-Maturity, Available-for-sale, and Trading Securities [Line Items]
Unamortized Premium/(Discount)	$ 64,172
Held-to-Maturity Securities [Abstract]
Held-to-Maturity Unpaid Principal Balance	4,186,923	$ 3,086,504	$ 3,086,504
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment	4,251,095	3,158,456	3,158,456
Held to Maturity; Unrealized Holding Gains	5,177	7,192	7,192
Held to Maturity - Unrealized Holding Loss	(71,098)	(99,004)	(99,004)
Held-to-maturity Securities, Fair Value	4,185,174	3,066,644	3,066,644
Available-for-sale Securities [Abstract]
Available-for-sale Securities, Amortized Cost Basis	5,459,514
Available-for-sale, at fair value	5,443,746
Farmer Mac Guaranteed Securities [Member]
Schedule of Held-to-Maturity, Available-for-sale, and Trading Securities [Line Items]
Unamortized Premium/(Discount)	(852)	(1,833)	(1,833)
Held-to-Maturity Securities [Abstract]
Held-to-Maturity Unpaid Principal Balance	2,159,662	1,151,064	1,151,064
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment	2,158,810	1,149,231	1,149,231
Held to Maturity; Unrealized Holding Gains	5,177	7,192	7,192
Held to Maturity - Unrealized Holding Loss	(6,357)	(3,414)	(3,414)
Held-to-maturity Securities, Fair Value	2,157,630	1,153,009	1,153,009
USDA Securities [Member]
Trading Securities [Abstract]
Trading, at fair value	14,864	20,388	20,388
Institutional Credit [Member] | Farmer Mac Guaranteed Securities and USDA Securities [Member]
Schedule of Held-to-Maturity, Available-for-sale, and Trading Securities [Line Items]
Unamortized Premium/(Discount)		71,952	71,952
Institutional Credit [Member] | Farmer Mac Guaranteed Securities [Member]
Held-to-Maturity Securities [Abstract]
Held-to-Maturity Unpaid Principal Balance	2,128,974	1,115,465	1,115,465
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment	2,127,808	1,113,189	1,113,189
Held to Maturity; Unrealized Holding Gains	5,091	7,187	7,187
Held to Maturity - Unrealized Holding Loss	(6,073)	(3,175)	(3,175)
Held-to-maturity Securities, Fair Value	2,126,826	1,117,201	1,117,201
Available-for-sale Securities [Abstract]
Available-for-Sale Securities Unpaid Principal Balance	5,459,655	4,889,007	4,889,007
Available-for-sale Securities, Amortized Cost Basis	5,459,514	4,888,904	4,888,904
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	30,811	28,715	28,715
Available-for-sale Securities, Unrealized Losses	(46,579)	(63,934)	(63,934)
Available-for-sale, at fair value	5,443,746	4,853,685	4,853,685
Institutional Credit [Member] | Held-to-maturity Securities [Member] | Farmer Mac Guaranteed Securities [Member]
Schedule of Held-to-Maturity, Available-for-sale, and Trading Securities [Line Items]
Unamortized Premium/(Discount)	(1,166)	(2,276)	(2,276)
Institutional Credit [Member] | Available-for-sale Securities [Member] | Farmer Mac Guaranteed Securities [Member]
Schedule of Held-to-Maturity, Available-for-sale, and Trading Securities [Line Items]
Unamortized Premium/(Discount)	(141)	(103)	(103)
USDA Guarantees [Member]
Schedule of Held-to-Maturity, Available-for-sale, and Trading Securities [Line Items]
Unamortized Premium/(Discount)	300	400	400
USDA Guarantees [Member] | Farmer Mac Guaranteed Securities [Member]
Held-to-Maturity Securities [Abstract]
Held-to-Maturity Unpaid Principal Balance	30,688	35,599	35,599
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment	31,002	36,042	36,042
Held to Maturity; Unrealized Holding Gains	86	5	5
Held to Maturity - Unrealized Holding Loss	(284)	(239)	(239)
Held-to-maturity Securities, Fair Value	30,804	35,808	35,808
USDA Guarantees [Member] | USDA Securities [Member]
Schedule of Held-to-Maturity, Available-for-sale, and Trading Securities [Line Items]
Unamortized Premium/(Discount)	65,024	73,785	73,785
Held-to-Maturity Securities [Abstract]
Held-to-Maturity Unpaid Principal Balance	2,027,261	1,935,440	1,935,440
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment	2,092,285	2,009,225	2,009,225
Held to Maturity; Unrealized Holding Gains	0	0	0
Held to Maturity - Unrealized Holding Loss	(64,741)	(95,590)	(95,590)
Held-to-maturity Securities, Fair Value	2,027,544	1,913,635	1,913,635
Trading Securities [Abstract]
Trading Securities Unpaid Principal Balance	14,204	19,360	19,360
Trading Securities, Debt, Amortized Cost	15,296	20,737	20,737
Trading Securities, Unrealized Gains	31	41
Trading Securities, Unrealized Holding Loss	(463)	(390)
Trading, at fair value	14,864	20,388	20,388
USDA Guarantees [Member] | Available-for-sale Securities [Member] | Farmer Mac Guaranteed Securities [Member]
Schedule of Held-to-Maturity, Available-for-sale, and Trading Securities [Line Items]
Unamortized Premium/(Discount)	314	443	443
USDA Guarantees [Member] | Trading Securities [Member] | USDA Securities [Member]
Schedule of Held-to-Maturity, Available-for-sale, and Trading Securities [Line Items]
Unamortized Premium/(Discount)	$ 1,092	$ 1,377	1,377
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Farmer Mac Guaranteed Securities [Member] | USDA Guarantee [Member] | Available-for-sale Securities [Member]
Schedule of Held-to-Maturity, Available-for-sale, and Trading Securities [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3			2,000,000
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Farmer Mac Guaranteed Securities [Member] | Farmer Mac Guaranteed Securities [Member] | Available-for-sale Securities [Member]
Schedule of Held-to-Maturity, Available-for-sale, and Trading Securities [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3			$ 32,800

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Farmer Mac Guaranteed Securities and USDA Guaranteed Securities - Unrealized Loss Position (Details) $ in Thousands	Sep. 30, 2017 USD ($) position	Dec. 31, 2016 USD ($) position
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	$ 920,516	$ 1,308,744
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	394,737	564,801
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(724)	(1,844)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	$ (2,436)	$ (7,633)
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions [Abstract]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | position	81	97
Farmer Mac Guaranteed Securities and USDA Securities [Member]
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	$ 3,215,959	$ 2,205,516
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	334,434	97,270
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract]
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(68,868)	(98,996)
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(2,230)	(8)
Institutional Credit [Member] | Farmer Mac Guaranteed Securities [Member]
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	1,249,774	358,575
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	247,815	0
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract]
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(3,888)	(3,175)
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(2,185)	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	1,293,478	982,538
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	1,424,602	1,131,930
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(14,376)	(18,482)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	$ (32,203)	$ (45,452)
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions [Abstract]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | position	30	22
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | position	12	10
Held-to-maturity Securities, Continuous Unrealized Loss Position, Qualitative Disclosure [Abstract]
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | position	18	7
USDA Guarantees [Member] | Farmer Mac Guaranteed Securities [Member]
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	$ 25,201	$ 30,575
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	0	0
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract]
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	0	0
USDA Guarantees [Member] | USDA Securities [Member]
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	1,940,984	1,816,366
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	86,619	97,270
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract]
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(45)	(8)
Available-for-sale Securities [Member] | USDA Guarantees [Member] | Farmer Mac Guaranteed Securities [Member]
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract]
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(284)	(239)
Available-for-sale Securities [Member] | USDA Guarantees [Member] | USDA Securities [Member]
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract]
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	$ (64,696)	$ (95,582)

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Farmer Mac Guaranteed Securities and USDA Guaranteed Securities - Schedule of Available-for-sale Securities (Details) - Farmer Mac Guaranteed Securities and USDA Securities [Member] $ in Thousands	Sep. 30, 2017 USD ($)
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis [Abstract]
Available-for-sale Securities, Due within one year, Amortized Cost	$ 1,000,000
Available-for-sale Securities, Due after one year through five years, Amortized Cost	2,696,001
Available-for-sale Securities, Due after five years through ten years, Amortized Cost	745,701
Available-for-sale Securities, Due after ten years, Amortized Cost	1,017,812
Available-for-sale Securities, Amortized Cost Basis	5,459,514
Available-for-sale Securities, Debt Maturities, Single Maturity Date [Abstract]
Available-for-sale Securities, Due within one year, Fair Value	1,001,537
Available-for-sale Securities, Due after one year through five years, Fair Value	2,706,480
Available-for-sale Securities, Due after five years through ten years, Fair Value	750,299
Available-for-sale Securities, Due after ten years, Fair Value	985,430
Available-for-sale, at fair value	$ 5,443,746
Available-for-sale Securities, Debt Maturities, Weighted Average Yield, Single Maturity Date [Abstract]
Available-for-sale Securities, Due within one year, Weighted-Average Yield	1.90%
Available-for-sale Securities, Due after one year through five years, Weighted-Average Yield	2.14%
Available-for-sale Securities, Due after five years through ten years, Weighted-Average Yield	2.87%
Available-for-sale Securities, Due after ten years, Weighted-Average Yield	1.98%
Available-for-sale Securities, Total Weighted-Average Yield	2.17%

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Farmer Mac Guaranteed Securities and USDA Guaranteed Securities - Schedule of Held-to-maturity Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Farmer Mac Guaranteed Securities and USDA Securities [Member]
Held-to-maturity Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis [Abstract]
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment	$ 4,251,095	$ 3,158,456
Held-to-maturity Securities, Debt Maturities, Single Maturity Date, Fair Value [Abstract]
Held-to-maturity Securities, Fair Value	$ 4,185,174	3,066,644
Held-to-Maturity Securities, Debt Maturities, Weighted Average Yield, Single Maturity Date [Abstract]
Held-to-maturity Securities, Debt Maturities, after Five Through Ten Years, Weighted Average Yield	3.07%
Held-to-Maturity Securities, Debt Maturities, After Ten Years, Weighted-Average Yield	3.35%
Farmer Mac Guaranteed Securities [Member]
Held-to-maturity Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis [Abstract]
Held-to-maturity Securities, Debt Maturities, within One Year, Net Carrying Amount	$ 926,747
Held-to-maturity Securities, Debt Maturities, after One Through Five Years, Net Carrying Amount	1,260,842
Held-to-maturity Securities, Debt Maturities, after Five Through Ten Years, Net Carrying Amount	208,034
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment	2,158,810	1,149,231
Held-to-maturity Securities, Debt Maturities, Single Maturity Date, Fair Value [Abstract]
Held-to-maturity Securities, Debt Maturities, Next Twelve Months, Fair Value	925,935
Held-to-maturity Securities, Debt Maturities, Year Two Through Five, Fair Value	1,258,848
Held-to-maturity Securities, Debt Maturities, Year Six Through Ten, Fair Value	201,899
Held-to-maturity Securities, Fair Value	$ 2,157,630	$ 1,153,009
Held-to-Maturity Securities, Debt Maturities, Weighted Average Yield, Single Maturity Date [Abstract]
Held-to-Maturity Securities, Debt Maturities, Next Twelve Months, Weighted-Average Yield	1.78%
Held-to-Maturity Securities, Debt Maturities, Year Two Through Five, Weighted-Average Yield	2.27%
Held-to-Maturity Securities, Debt Maturities, Weighted-Average Yield	2.66%
Held-to-maturity Securities, Debt Maturities, after Ten Years, Net Carrying Amount	$ 1,855,472
Held-to-maturity Securities, Debt Maturities, after Ten Years, Fair Value	$ 1,798,492

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Farmer Mac Guaranteed Securities and USDA Guaranteed Securities - Trading Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	$ 2,436	$ 7,633
USDA Securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading, at fair value	14,864	20,388
USDA Guarantees [Member] | USDA Securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading Securities, Debt, Amortized Cost	15,296	20,737
Trading, at fair value	$ 14,864	$ 20,388
Trading Securities, Weighted-Average Yield	5.36%	5.44%

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Financial Derivatives - Hedging Description (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Gain (Loss) on Fair Value Hedges Recognized in Earnings	$ (1,900)	$ (4,000)	$ (6,900)	$ (12,900)
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax	400	500	1,400	1,500
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net	1,200		1,200
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net of Tax	800		800
Gain (Loss) on Discontinuation of Interest Rate Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring, Net	$ 0	$ 0	$ 0	$ 0

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Financial Derivatives - Schedule of Derivative Instruments in Statement of Financial Position (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Notional Disclosures [Abstract]
Derivative, Notional Amount	$ 8,791,110	$ 8,100,257
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract]
Financial derivatives, at fair value	2,020	23,182
Financial derivatives, at fair value	(30,595)	(58,152)
Derivative, Collateral [Abstract]
Collateral Pledged	25,079	25,643
Derivative Asset	2,020	23,182
Derivative Liability	5,516	32,509
Cash [Member]
Derivative, Collateral [Abstract]
Obligation to Return Securities Received as Collateral	0	0
Collateral Pledged	100	1,000
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Interest Rate Swap, Pay Fixed Non-Callable [Member]
Notional Disclosures [Abstract]
Derivative, Notional Amount	2,040,854	1,642,609
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract]
Financial derivatives, at fair value	744	18,508
Financial derivatives, at fair value	$ (8,768)	$ (18,909)
Derivative, Average Fixed Interest Rate	1.83%	1.73%
Derivative, Average Variable Interest Rate	1.31%	0.90%
Derivative, Average Remaining Maturity	5 years 5 months 2 days	4 years 8 months 13 days
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Interest Rate Swap, Receive Fixed Non-Callable [Member]
Notional Disclosures [Abstract]
Derivative, Notional Amount	$ 1,431,700
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract]
Financial derivatives, at fair value	64
Financial derivatives, at fair value	$ (1,985)
Derivative, Average Fixed Interest Rate	1.23%
Derivative, Average Variable Interest Rate	1.42%
Derivative, Average Remaining Maturity	1 year 8 months 25 days
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest Rate Swap, Pay Fixed Non-Callable [Member]
Notional Disclosures [Abstract]
Derivative, Notional Amount	$ 349,000	$ 207,000
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract]
Financial derivatives, at fair value	960	3,706
Financial derivatives, at fair value	$ (555)	$ (955)
Derivative, Average Fixed Interest Rate	2.19%	2.18%
Derivative, Average Variable Interest Rate	1.55%	1.11%
Derivative, Average Remaining Maturity	6 years 3 months 25 days	7 years 3 months 10 days
Not Designated as Hedging Instrument [Member]
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract]
Derivative Credit Risk Valuation Adjustment, Derivative Assets	$ 6	$ 14
Derivative Credit Risk Valuation Adjustment, Derivative Liabilities	94	158
Not Designated as Hedging Instrument [Member] | Interest Rate Swap, Pay Fixed Non-Callable [Member]
Notional Disclosures [Abstract]
Derivative, Notional Amount	348,040	435,827
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract]
Financial derivatives, at fair value	166	339
Financial derivatives, at fair value	$ (19,318)	$ (32,951)
Derivative, Average Fixed Interest Rate	3.80%	4.06%
Derivative, Average Variable Interest Rate	1.31%	0.89%
Derivative, Average Remaining Maturity	6 years 10 months 16 days	5 years 10 months 24 days
Not Designated as Hedging Instrument [Member] | Interest Rate Swap, Receive Fixed Non-Callable [Member]
Notional Disclosures [Abstract]
Derivative, Notional Amount	$ 3,389,116	$ 4,991,821
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract]
Financial derivatives, at fair value	0	607
Financial derivatives, at fair value	$ 0	$ (5,064)
Derivative, Average Fixed Interest Rate	1.10%	0.75%
Derivative, Average Variable Interest Rate	1.12%	0.74%
Derivative, Average Remaining Maturity	10 months 5 days	7 months 5 days
Not Designated as Hedging Instrument [Member] | Interest Rate Swap, Receive Fixed Callable [Member]
Notional Disclosures [Abstract]
Derivative, Notional Amount		$ 30,000
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract]
Financial derivatives, at fair value		0
Financial derivatives, at fair value		$ (33)
Derivative, Average Fixed Interest Rate		0.58%
Derivative, Average Variable Interest Rate		0.82%
Derivative, Average Remaining Maturity		4 months
Not Designated as Hedging Instrument [Member] | Basis Swap [Member]
Notional Disclosures [Abstract]
Derivative, Notional Amount	$ 1,225,000	$ 765,000
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract]
Financial derivatives, at fair value	42	36
Financial derivatives, at fair value	$ (63)	$ (243)
Derivative, Average Variable Interest Rate	1.20%	0.78%
Derivative, Variable Interest Rate	1.22%	0.78%
Derivative, Average Remaining Maturity	11 months 11 days	10 months 15 days
Not Designated as Hedging Instrument [Member] | Future [Member]
Notional Disclosures [Abstract]
Derivative, Notional Amount	$ 7,400	$ 28,000
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract]
Financial derivatives, at fair value	50	0
Financial derivatives, at fair value	$ 0	$ (155)
Derivative, Weighted-Average Forward Price	$ 125.99	$ 123.73

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Financial Derivatives - Schedule of Derivative Instruments, Impact on Results of Operations (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) on Fair Value Hedges Recognized in Earnings		$ (1,900)	$ (4,000)	$ (6,900)	$ (12,900)
Gains/(losses) on financial derivatives and hedging activities		661	(1,601)	2,530	(13,079)
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge		166	(10,550)	4,750	35,778
Gain (Loss) on Fair Value Hedges Recognized in Earnings		1,742	726	(716)	5,716
Not Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains/(losses) on financial derivatives and hedging activities		(890)	(2,259)	3,611	(18,473)
Interest Rate Swap [Member] | Fair Value Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) on Components Included from Assessment of Interest Rate Fair Value Hedge Effectiveness		1,600	1,000	(700)	4,200
Gain (Loss) on Fair Value Hedge Ineffectiveness, Net		(100)	200	0	(1,500)
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments	[1]	1,576	11,276	(5,466)	(30,062)
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) on Interest Rate Cash Flow Hedge Ineffectiveness		(191)	(68)	(365)	(322)
Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net		(191)	(68)	(365)	(322)
Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains/(losses) on financial derivatives and hedging activities		(1,031)	(2,333)	4,006	(16,820)
Forward Contracts [Member] | Not Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains/(losses) on financial derivatives and hedging activities		0	79	(588)	(789)
Future [Member] | Not Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains/(losses) on financial derivatives and hedging activities		$ 141	$ (5)	$ 193	$ (864)

[1] Included in the assessment of hedge effectiveness as of September 30, 2017, but excluded from the amounts in the table, were losses of $1.6 million and gains of $0.7 million, respectively, for the three and nine months ended September 30, 2017, attributable to the fair value of the swaps at the inception of the hedging relationship. Accordingly, the amounts recognized as hedge ineffectiveness for three and nine months ended September 30, 2017 were gains of $0.1 million and zero, respectively. The comparable amounts as of September 30, 2016 were losses of $1.0 million and $4.2 million for the three and nine months ended September 30, 2016, attributable to the fair value of the swaps at the inception of the hedging relationship and, accordingly, losses of $0.2 million and gains of $1.5 million for the three and nine months ended September 30, 2016, attributable to hedge ineffectiveness.

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Financial Derivatives - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Derivative [Line Items]
Gain (Loss) on Discontinuation of Interest Rate Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring, Net	$ 0	$ 0	$ 0	$ 0
Securities Purchased under Agreements to Resell	0		0		$ 0
Financial derivatives, at fair value	30,595		30,595		58,152
Derivative, Collateral [Abstract]
Collateral Pledged	25,079		25,079		25,643
Additional Collateral, Aggregate Fair Value	2,300		2,300		15,800
Notional Disclosures [Abstract]
Derivative, Notional Amount	8,791,110		8,791,110		8,100,257
Uncollateralized [Member]
Derivative [Line Items]
Credit exposure to interest rate swap counterparties	100		100		200
Cash [Member]
Derivative, Collateral [Abstract]
Collateral Received	0		0		0
Collateral Pledged	100		100		1,000
Securities Pledged as Collateral [Member]
Derivative, Collateral [Abstract]
Collateral Pledged	25,000		25,000		24,600
Exchange Cleared [Member]
Notional Disclosures [Abstract]
Derivative, Notional Amount	7,700,000		7,700,000		6,900,000
Interest Rate Swap [Member]
Notional Disclosures [Abstract]
Derivative, Notional Amount	8,800,000		8,800,000		8,100,000
ERROR in label resolution. | Excluding netting [Member]
Derivative [Line Items]
Credit exposure to interest rate swap counterparties	24,600		24,600		24,500
Financial derivatives, at fair value	61,100		61,100		65,700
ERROR in label resolution. | Netting [Member]
Derivative [Line Items]
Credit exposure to interest rate swap counterparties	100		100		200
Financial derivatives, at fair value	$ 27,300		$ 27,300		$ 41,400

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Loans and Allowance for Losses and Concentrations of Credit Risk - Loan (Details) - USD ($) $ in Thousands		Sep. 30, 2017	Jun. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Gross		$ 3,804,966		$ 3,379,884
Allowance for Loan and Lease Losses, Real Estate		6,408		5,415
Loans and Leases Receivable, Net Amount		5,127,770		4,507,435
Financing Receivable, Allowance for Credit Losses		8,488	$ 8,104	7,435	$ 6,923	$ 7,084	$ 6,563
Real Estate Loan [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Lease Receivable Unpaid Principal Balance	[1]	5,135,375		4,513,966
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums		(1,197)		(1,116)
Loans and Leases Receivable, Gross		5,134,178		4,512,850
Allowance for Loan and Lease Losses, Real Estate		6,408		5,415
Loans and Leases Receivable, Net Amount		5,127,770		4,507,435
Real Estate Loan [Member] | Farm & Ranch [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Lease Receivable Unpaid Principal Balance		4,068,893		3,514,454
Real Estate Loan [Member] | Rural Utilities [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Lease Receivable Unpaid Principal Balance		1,066,482		999,512
Unsecuritized [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Lease Receivable Unpaid Principal Balance	[1]	3,806,163		3,381,000
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums		(1,197)		(1,116)
Loans and Leases Receivable, Gross		3,804,966		3,379,884
Allowance for Loan and Lease Losses, Real Estate		5,195		4,437
Loans and Leases Receivable, Net Amount		3,799,771		3,375,447
Unsecuritized [Member] | Farm & Ranch [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Lease Receivable Unpaid Principal Balance		2,739,681		2,381,488
Unsecuritized [Member] | Rural Utilities [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Lease Receivable Unpaid Principal Balance		1,066,482		999,512
In Consolidated Trusts [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Lease Receivable Unpaid Principal Balance	[1]	1,329,212		1,132,966
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums		0		0
Loans and Leases Receivable, Gross		1,329,212		1,132,966
Allowance for Loan and Lease Losses, Real Estate		1,213		978
Loans and Leases Receivable, Net Amount		1,327,999		1,131,988
In Consolidated Trusts [Member] | Farm & Ranch [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Lease Receivable Unpaid Principal Balance		1,329,212		1,132,966
In Consolidated Trusts [Member] | Rural Utilities [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Lease Receivable Unpaid Principal Balance		$ 0		$ 0

[1] Unpaid principal balance is the basis of presentation in disclosures of outstanding balances for Farmer Mac's lines of business.

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Loans and Allowance for Losses and Concentrations of Credit Risk - Allowance for Credit Losses Roll Forward (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance - Allowance for Loan Losses			$ 5,415
Beginning Balance - Reserve for Losses			2,020
Beginning Balance - Total Allowance for Losses	$ 8,104	$ 7,084	7,435	$ 6,563
Provision for loan losses	(270)	(191)	(1,234)	(604)
Provision for/(release of) reserve for losses	114	(222)	60	(114)
Financing Receivable, Allowance for Credit Losses, Write-downs	0	(130)	(241)	(130)
Total provision for losses	384	(31)	1,294	490
Ending Balance - Allowance for Loan Losses	6,408		6,408
Ending Balance - Reserve for Losses	2,080		2,080
Ending Balance - Total Allowance for Losses	8,488	6,923	8,488	6,923
Crops [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance - Total Allowance for Losses	3,735	3,111	3,365	2,791
Financing Receivable, Allowance for Credit Losses, Write-downs		0	(228)	0
Total provision for losses	115	103	713	423
Ending Balance - Total Allowance for Losses	3,850	3,214	3,850	3,214
Permanent Plantings [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance - Total Allowance for Losses	2,164	1,144	1,723	931
Financing Receivable, Allowance for Credit Losses, Write-downs		0	0	0
Total provision for losses	162	198	603	411
Ending Balance - Total Allowance for Losses	2,326	1,342	2,326	1,342
Livestock [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance - Total Allowance for Losses	1,234	1,906	1,375	1,781
Financing Receivable, Allowance for Credit Losses, Write-downs		0	(13)	0
Total provision for losses	35	(354)	(93)	(229)
Ending Balance - Total Allowance for Losses	1,269	1,552	1,269	1,552
Part-Time Farm [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance - Total Allowance for Losses	397	447	405	408
Financing Receivable, Allowance for Credit Losses, Write-downs		(130)	0	(130)
Total provision for losses	4	36	(4)	75
Ending Balance - Total Allowance for Losses	401	353	401	353
Agriculture Storage and Processing [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance - Total Allowance for Losses	558	473	533	649
Financing Receivable, Allowance for Credit Losses, Write-downs		0	0	0
Total provision for losses	72	(13)	97	(189)
Ending Balance - Total Allowance for Losses	630	460	630	460
Other Commodity [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance - Total Allowance for Losses	16	3	34	3
Financing Receivable, Allowance for Credit Losses, Write-downs		0	0	0
Total provision for losses	(4)	(1)	(22)	(1)
Ending Balance - Total Allowance for Losses	12	2	12	2
Allowance for Loan and Lease Losses [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance - Allowance for Loan Losses	6,138	4,893	5,415	4,480
Provision for loan losses	(270)	(191)	(1,234)	(604)
Financing Receivable, Allowance for Credit Losses, Write-downs	0	(130)	(241)	(130)
Ending Balance - Allowance for Loan Losses	6,408	4,954	6,408	4,954
Reserve for Off-balance Sheet Activities [Member]
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Beginning Balance - Reserve for Losses	1,966	2,191	2,020	2,083
Provision for/(release of) reserve for losses	114	(222)	60	(114)
Financing Receivable, Allowance for Credit Losses, Write-downs	0	0	0	0
Ending Balance - Reserve for Losses	$ 2,080	$ 1,969	$ 2,080	$ 1,969

XML

Loans and Allowance for Losses and Concentrations of Credit Risk - Allowance for Losses by Impairment Method and Commodity (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Financing Receivable, Collectively Evaluated for Impairment		$ 6,409,712		$ 6,409,712			$ 6,031,565
Financing Receivable, Individually Evaluated for Impairment		147,318		147,318			107,739
Financing Receivable, Gross	[1],[2],[3]	6,557,030		6,557,030			6,139,304
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment		5,551		5,551			5,143
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment		2,937		2,937			2,292
Financing Receivable, Allowance for Credit Losses		8,488	$ 6,923	8,488	$ 6,923	$ 8,104	7,435	$ 7,084	$ 6,563
Total provision for losses		384	(31)	1,294	490
Financing Receivable, Allowance for Credit Losses, Write-downs		0	(130)	(241)	(130)
Crops [Member]
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Financing Receivable, Collectively Evaluated for Impairment		3,516,547		3,516,547			3,357,301
Financing Receivable, Individually Evaluated for Impairment		77,169		77,169			53,197
Financing Receivable, Gross	[1]	3,593,716		3,593,716			3,410,498
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment		2,428		2,428			2,420
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment		1,422		1,422			945
Financing Receivable, Allowance for Credit Losses		3,850	3,214	3,850	3,214	3,735	3,365	3,111	2,791
Total provision for losses		115	103	713	423
Financing Receivable, Allowance for Credit Losses, Write-downs			0	(228)	0
Permanent Plantings [Member]
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Financing Receivable, Collectively Evaluated for Impairment		1,140,771		1,140,771			1,006,935
Financing Receivable, Individually Evaluated for Impairment		43,450		43,450			30,505
Financing Receivable, Gross	[1]	1,184,221		1,184,221			1,037,440
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment		1,258		1,258			933
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment		1,068		1,068			790
Financing Receivable, Allowance for Credit Losses		2,326	1,342	2,326	1,342	2,164	1,723	1,144	931
Total provision for losses		162	198	603	411
Financing Receivable, Allowance for Credit Losses, Write-downs			0	0	0
Livestock [Member]
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Financing Receivable, Collectively Evaluated for Impairment		1,291,779		1,291,779			1,290,332
Financing Receivable, Individually Evaluated for Impairment		17,964		17,964			15,512
Financing Receivable, Gross	[1]	1,309,743		1,309,743			1,305,844
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment		960		960			976
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment		309		309			399
Financing Receivable, Allowance for Credit Losses		1,269	1,552	1,269	1,552	1,234	1,375	1,906	1,781
Total provision for losses		35	(354)	(93)	(229)
Financing Receivable, Allowance for Credit Losses, Write-downs			0	(13)	0
Part-Time Farm [Member]
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Financing Receivable, Collectively Evaluated for Impairment		399,694		399,694			315,549
Financing Receivable, Individually Evaluated for Impairment		8,014		8,014			8,525
Financing Receivable, Gross	[1]	407,708		407,708			324,074
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment		265		265			247
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment		136		136			158
Financing Receivable, Allowance for Credit Losses		401	353	401	353	397	405	447	408
Total provision for losses		4	36	(4)	75
Financing Receivable, Allowance for Credit Losses, Write-downs			(130)	0	(130)
Agriculture Storage and Processing [Member]
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Financing Receivable, Collectively Evaluated for Impairment		48,068		48,068			48,051
Financing Receivable, Individually Evaluated for Impairment		0		0			0
Financing Receivable, Gross	[1]	48,068		48,068			48,051
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment		630		630			533
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment		0		0			0
Financing Receivable, Allowance for Credit Losses		630	460	630	460	558	533	473	649
Total provision for losses		72	(13)	97	(189)
Financing Receivable, Allowance for Credit Losses, Write-downs			0	0	0
Other Commodity [Member]
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Financing Receivable, Collectively Evaluated for Impairment		12,853		12,853			13,397
Financing Receivable, Individually Evaluated for Impairment		721		721			0
Financing Receivable, Gross	[1]	13,574		13,574			13,397
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment		10		10			34
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment		2		2			0
Financing Receivable, Allowance for Credit Losses		12	2	12	2	$ 16	34	$ 3	$ 3
Total provision for losses		(4)	(1)	(22)	(1)
Financing Receivable, Allowance for Credit Losses, Write-downs			0	0	0
On-balance sheet [Member]
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Financing Receivable, Collectively Evaluated for Impairment		3,938,143		3,938,143			3,426,768
Financing Receivable, Individually Evaluated for Impairment		130,750		130,750			87,686
Financing Receivable, Gross	[1]	4,068,893		4,068,893			3,514,454
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment		3,901		3,901			3,630
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment		2,507		2,507			1,785
Financing Receivable, Allowance for Credit Losses		6,408		6,408			5,415
On-balance sheet [Member] | Crops [Member]
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Financing Receivable, Collectively Evaluated for Impairment		2,278,701		2,278,701			2,115,450
Financing Receivable, Individually Evaluated for Impairment		68,322		68,322			41,648
Financing Receivable, Gross	[1]	2,347,023		2,347,023			2,157,098
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment		1,868		1,868			2,000
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment		1,193		1,193			613
Financing Receivable, Allowance for Credit Losses		3,061		3,061			2,613
On-balance sheet [Member] | Permanent Plantings [Member]
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Financing Receivable, Collectively Evaluated for Impairment		767,275		767,275			569,360
Financing Receivable, Individually Evaluated for Impairment		41,201		41,201			27,770
Financing Receivable, Gross	[1]	808,476		808,476			597,130
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment		973		973			652
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment		1,010		1,010			770
Financing Receivable, Allowance for Credit Losses		1,983		1,983			1,422
On-balance sheet [Member] | Livestock [Member]
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Financing Receivable, Collectively Evaluated for Impairment		623,499		623,499			537,859
Financing Receivable, Individually Evaluated for Impairment		13,516		13,516			10,658
Financing Receivable, Gross	[1]	637,015		637,015			548,517
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment		748		748			735
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment		192		192			270
Financing Receivable, Allowance for Credit Losses		940		940			1,005
On-balance sheet [Member] | Part-Time Farm [Member]
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Financing Receivable, Collectively Evaluated for Impairment		246,416		246,416			183,660
Financing Receivable, Individually Evaluated for Impairment		7,069		7,069			7,610
Financing Receivable, Gross	[1]	253,485		253,485			191,270
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment		219		219			193
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment		112		112			132
Financing Receivable, Allowance for Credit Losses		331		331			325
On-balance sheet [Member] | Agriculture Storage and Processing [Member]
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Financing Receivable, Collectively Evaluated for Impairment		13,248		13,248			11,545
Financing Receivable, Individually Evaluated for Impairment		0		0			0
Financing Receivable, Gross	[1]	13,248		13,248			11,545
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment		87		87			22
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment		0		0			0
Financing Receivable, Allowance for Credit Losses		87		87			22
On-balance sheet [Member] | Other Commodity [Member]
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Financing Receivable, Collectively Evaluated for Impairment		9,004		9,004			8,894
Financing Receivable, Individually Evaluated for Impairment		642		642			0
Financing Receivable, Gross	[1]	9,646		9,646			8,894
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment		6		6			28
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment		0		0			0
Financing Receivable, Allowance for Credit Losses		6		6			28
Off-balance sheet [Member]
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Financing Receivable, Collectively Evaluated for Impairment		2,471,569		2,471,569			2,604,797
Financing Receivable, Individually Evaluated for Impairment		16,568		16,568			20,053
Financing Receivable, Gross	[1]	2,488,137		2,488,137			2,624,850
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment		1,650		1,650			1,513
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment		430		430			507
Financing Receivable, Allowance for Credit Losses		2,080		2,080			2,020
Off-balance sheet [Member] | Crops [Member]
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Financing Receivable, Collectively Evaluated for Impairment		1,237,846		1,237,846			1,241,851
Financing Receivable, Individually Evaluated for Impairment		8,847		8,847			11,549
Financing Receivable, Gross	[1]	1,246,693		1,246,693			1,253,400
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment		560		560			420
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment		229		229			332
Financing Receivable, Allowance for Credit Losses		789		789			752
Off-balance sheet [Member] | Permanent Plantings [Member]
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Financing Receivable, Collectively Evaluated for Impairment		373,496		373,496			437,575
Financing Receivable, Individually Evaluated for Impairment		2,249		2,249			2,735
Financing Receivable, Gross	[1]	375,745		375,745			440,310
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment		285		285			281
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment		58		58			20
Financing Receivable, Allowance for Credit Losses		343		343			301
Off-balance sheet [Member] | Livestock [Member]
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Financing Receivable, Collectively Evaluated for Impairment		668,280		668,280			752,473
Financing Receivable, Individually Evaluated for Impairment		4,448		4,448			4,854
Financing Receivable, Gross	[1]	672,728		672,728			757,327
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment		212		212			241
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment		117		117			129
Financing Receivable, Allowance for Credit Losses		329		329			370
Off-balance sheet [Member] | Part-Time Farm [Member]
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Financing Receivable, Collectively Evaluated for Impairment		153,278		153,278			131,889
Financing Receivable, Individually Evaluated for Impairment		945		945			915
Financing Receivable, Gross	[1]	154,223		154,223			132,804
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment		46		46			54
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment		24		24			26
Financing Receivable, Allowance for Credit Losses		70		70			80
Off-balance sheet [Member] | Agriculture Storage and Processing [Member]
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Financing Receivable, Collectively Evaluated for Impairment		34,820		34,820			36,506
Financing Receivable, Individually Evaluated for Impairment		0		0			0
Financing Receivable, Gross	[1]	34,820		34,820			36,506
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment		543		543			511
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment		0		0			0
Financing Receivable, Allowance for Credit Losses		543		543			511
Off-balance sheet [Member] | Other Commodity [Member]
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Financing Receivable, Collectively Evaluated for Impairment		3,849		3,849			4,503
Financing Receivable, Individually Evaluated for Impairment		79		79			0
Financing Receivable, Gross	[1]	3,928		3,928			4,503
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment		4		4			6
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment		2		2			0
Financing Receivable, Allowance for Credit Losses		6		6			$ 6
Allowance for Loan and Lease Losses [Member]
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Financing Receivable, Allowance for Credit Losses, Write-downs		$ 0	$ (130)	$ (241)	$ (130)

[1] Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.

[2] As of second quarter 2017, Farmer Mac revised its calculation of the original loan-to-value ratio of a loan to combine for any cross-collateralized loans: (i) the original loan principal balance amounts in the numerator and (ii) the original appraised property values in the denominator. In previous periods, the ratio was calculated on a loan-by-loan basis without considering the effects of any cross-collateralization. Prior period information has been reclassified to conform to the current period calculation and presentation.

[3] Geographic regions: Northwest (AK, ID, MT, OR, WA, WY); Southwest (AZ, CA, CO, HI, NM, NV, UT); Mid-North (IA, IL, IN, MI, MN, NE, ND, SD, WI); Mid-South (AR, KS, LA, MO, OK, TX); Northeast (CT, DE, KY, MA, MD, ME, NH, NJ, NY, OH, PA, RI, VA, VT, WV); Southeast (AL, FL, GA, MS, NC, SC, TN).

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Loans and Allowance for Losses and Concentrations of Credit Risk - Impaired Financing Receivables (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2017		Sep. 30, 2016	Sep. 30, 2017		Sep. 30, 2016	Dec. 31, 2016
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	$ 23,397			$ 23,397			$ 27,468
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	23,352			23,352			27,534
Impaired Financing Receivable, with Related Allowance, Recorded Investment	124,170	[1]		124,170	[1]		79,931	[2]
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	123,966			123,966			80,205
Impaired Financing Receivable, Recorded Investment	147,567			147,567			107,399
Impaired Financing Receivable, Unpaid Principal Balance	147,318			147,318			107,739
Impaired Financing Receivable, Related Allowance	2,937			2,937			2,292
Financing Receivable, Recorded Investment, Nonaccrual Status	63,044	[3]		63,044	[3]		32,142	[4]
Impaired Financing Receivable, Average Recorded Investment	134,503		$ 76,304	123,262		$ 80,596
Impaired Financing Receivable, Interest Income, Cash Basis Method	419		437	1,474		1,377
Crops [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	11,909			11,909			20,761
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	11,885			11,885			20,816
Impaired Financing Receivable, with Related Allowance, Recorded Investment	65,391	[1]		65,391	[1]		32,326	[2]
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	65,284			65,284			32,381
Impaired Financing Receivable, Recorded Investment	77,300			77,300			53,087
Impaired Financing Receivable, Unpaid Principal Balance	77,169			77,169			53,197
Impaired Financing Receivable, Related Allowance	1,422			1,422			945
Financing Receivable, Recorded Investment, Nonaccrual Status	29,535	[3]		29,535	[3]		13,405	[4]
Impaired Financing Receivable, Average Recorded Investment	72,180		33,032	65,244		28,293
Impaired Financing Receivable, Interest Income, Cash Basis Method	101		46	563		108
Permanent Plantings [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	4,963			4,963			3,683
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	4,953			4,953			3,688
Impaired Financing Receivable, with Related Allowance, Recorded Investment	38,565	[1]		38,565	[1]		26,748	[2]
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	38,497			38,497			26,817
Impaired Financing Receivable, Recorded Investment	43,528			43,528			30,431
Impaired Financing Receivable, Unpaid Principal Balance	43,450			43,450			30,505
Impaired Financing Receivable, Related Allowance	1,068			1,068			790
Financing Receivable, Recorded Investment, Nonaccrual Status	25,653	[3]		25,653	[3]		10,785	[4]
Impaired Financing Receivable, Average Recorded Investment	38,396		22,980	35,101		25,277
Impaired Financing Receivable, Interest Income, Cash Basis Method	244		236	464		789
Livestock [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	3,942			3,942			1,054
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	3,935			3,935			1,055
Impaired Financing Receivable, with Related Allowance, Recorded Investment	14,048	[1]		14,048	[1]		14,322	[2]
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	14,029			14,029			14,457
Impaired Financing Receivable, Recorded Investment	17,990			17,990			15,376
Impaired Financing Receivable, Unpaid Principal Balance	17,964			17,964			15,512
Impaired Financing Receivable, Related Allowance	309			309			399
Financing Receivable, Recorded Investment, Nonaccrual Status	2,819	[3]		2,819	[3]		2,696	[4]
Impaired Financing Receivable, Average Recorded Investment	15,582		12,120	14,620		13,704
Impaired Financing Receivable, Interest Income, Cash Basis Method	13		81	212		229
Part-Time Farm [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	1,939			1,939			1,970
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	1,936			1,936			1,975
Impaired Financing Receivable, with Related Allowance, Recorded Investment	6,088	[1]		6,088	[1]		6,535	[2]
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	6,078			6,078			6,550
Impaired Financing Receivable, Recorded Investment	8,027			8,027			8,505
Impaired Financing Receivable, Unpaid Principal Balance	8,014			8,014			8,525
Impaired Financing Receivable, Related Allowance	136			136			158
Financing Receivable, Recorded Investment, Nonaccrual Status	5,037	[3]		5,037	[3]		5,256	[4]
Impaired Financing Receivable, Average Recorded Investment	7,944		8,172	8,096		8,654
Impaired Financing Receivable, Interest Income, Cash Basis Method	61		74	235		251
Agriculture Storage and Processing [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	0			0			0
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	0			0			0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0	[1]		0	[1]		0	[2]
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	0			0			0
Impaired Financing Receivable, Recorded Investment	0			0			0
Impaired Financing Receivable, Unpaid Principal Balance	0			0			0
Impaired Financing Receivable, Related Allowance	0			0			0
Financing Receivable, Recorded Investment, Nonaccrual Status	0	[3]		0	[3]		0	[4]
Impaired Financing Receivable, Average Recorded Investment	0		0	0		4,668
Impaired Financing Receivable, Interest Income, Cash Basis Method	0		0	0		0
Other Commodity [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	644			644			0
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	643			643			0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	78	[1]		78	[1]		0	[2]
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	78			78			0
Impaired Financing Receivable, Recorded Investment	722			722			0
Impaired Financing Receivable, Unpaid Principal Balance	721			721			0
Impaired Financing Receivable, Related Allowance	2			2			0
Financing Receivable, Recorded Investment, Nonaccrual Status	0	[3]		0	[3]		0	[4]
Impaired Financing Receivable, Average Recorded Investment	401		0	201		0
Impaired Financing Receivable, Interest Income, Cash Basis Method	0		$ 0	0		$ 0
Collateral Dependent Not Individually Analyzed [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Recorded Investment	123,300			123,300			76,500
Impaired Financing Receivable, Related Allowance	$ 2,700			$ 2,700			$ 1,600
Impaired Financing Receivable, Impairment analysis performed percent	84.00%			84.00%			71.00%
Less than 90 days past due [Member]
Financing Receivable, Impaired [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 0	[3]		$ 0	[3]		$ 12,400	[4]

[1] Impairment analysis was performed in the aggregate in consideration of similar risk characteristics of the assets and historical statistics on $123.3 million (84 percent) of impaired loans as of September 30, 2017, which resulted in a specific allowance of $2.7 million.

[2] Impairment analysis was performed in the aggregate in consideration of similar risk characteristics of the assets and historical statistics on $76.5 million (71 percent) of impaired loans as of December 31, 2016, which resulted in a specific allowance of $1.6 million.

[3] Includes no loans that are less than 90 days delinquent but which have not met Farmer Mac's performance criteria for returning to accrual status.

[4] Includes $12.4 million of loans that are less than 90 days delinquent but which have not met Farmer Mac's performance criteria for returning to accrual status.

XML

Loans and Allowance for Losses and Concentrations of Credit Risk - Troubled Debt Restructurings (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)
Receivables [Abstract]
Financing Receivable, Modifications, Pre-Modification Recorded Investment	$ 0	$ 0		$ 0
Financing Receivable, Modifications, Post-Modification Recorded Investment	$ 0	$ 0	$ 200,000	$ 0
Financing Receivable, Modifications, Subsequent Default, Number of Contracts	0
Financing Receivable, Modifications, Subsequent Default, Recorded Investment	$ 0
Financing Receivable, Modifications, Subsequent Default, Determination of Allowance for Credit Losses	0

XML

Loans and Allowance for Losses and Concentrations of Credit Risk - Certain Loans Acquired in Transfer (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017 USD ($) defaulted_loan	Sep. 30, 2016 USD ($) defaulted_loan	Sep. 30, 2017 USD ($) defaulted_loan	Sep. 30, 2016 USD ($) defaulted_loan	Dec. 31, 2016 USD ($)
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities, Number Defaulted | defaulted_loan	6	3	10	8
Payments to Acquire Other Loans and Leases Held-for-investment	$ 3,043	$ 1,102	$ 3,458	$ 2,516
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, Contractually Required Payments Receivable at Acquisition, During the Period	3,073	1,109	3,490	2,544
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Provision for Loan Losses	0	0	0	208
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses, Decreases	29	21	171	31
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance	16,514		16,514		$ 14,669
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Carrying Amount, Net	15,379		15,379		$ 13,069
Long-Term Standby Purchase Commitments [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, UPB at acquisition	0	852	311	2,118
Farmer Mac Guaranteed Securities [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, UPB at acquisition	$ 3,043	$ 250	$ 3,147	$ 398

XML

Loans and Allowance for Losses and Concentrations of Credit Risk - Certain Loans Acquired Delinquencies and Net Credit Losses (Details) - USD ($) $ in Thousands		9 Months Ended
		Sep. 30, 2017		Sep. 30, 2016	Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	[2]	$ 66,381	[1]		$ 21,038	[3]
Net credit losses (recoveries)		(520)		$ 154
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities, Subject To Be Purchased	[2]	0			100
On-balance sheet [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	[2]	65,105	[1]		19,757	[3]
Net credit losses (recoveries)		(520)		154
Off-balance sheet [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Financing Receivable, Recorded Investment, Past Due	[2]	1,276	[1]		$ 1,281	[3]
Net credit losses (recoveries)		$ 0		$ 0

[1] Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.

[2] Includes loans and loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs that are 90 days or more past due, in foreclosure, or in bankruptcy with at least one missed payment, excluding loans performing under either their original loan terms or a court-approved bankruptcy plan.

[3] Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.

XML

Loans and Allowance for Losses and Concentrations of Credit Risk - Financing Receivables Credit Quality Indicators (Details) - USD ($) $ in Thousands		Sep. 30, 2017		Dec. 31, 2016
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[2],[3]	$ 6,557,030		$ 6,139,304
Financing Receivable, Recorded Investment, Past Due	[4]	66,381	[1]	21,038	[5]
Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	6,147,368		5,845,308
Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[6]	190,020		128,803
Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[7]	219,642		165,193
Crops [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	3,593,716		3,410,498
Financing Receivable, Recorded Investment, Past Due		32,275	[1]	13,822	[5]
Crops [Member] | Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	3,373,204		3,281,371
Crops [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[6]	116,318		55,645
Crops [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[7]	104,194		73,482
Permanent Plantings [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	1,184,221		1,037,440
Financing Receivable, Recorded Investment, Past Due		22,330	[1]	3,652	[5]
Permanent Plantings [Member] | Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	1,097,031		971,477
Permanent Plantings [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[6]	15,383		18,020
Permanent Plantings [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[7]	71,807		47,943
Livestock [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	1,309,743		1,305,844
Financing Receivable, Recorded Investment, Past Due		7,367	[1]	707	[5]
Livestock [Member] | Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	1,230,873		1,228,840
Livestock [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[6]	51,110		48,416
Livestock [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[7]	27,760		28,588
Part-Time Farm [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	407,708		324,074
Financing Receivable, Recorded Investment, Past Due		3,766	[1]	2,857	[5]
Part-Time Farm [Member] | Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	389,293		304,728
Part-Time Farm [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[6]	7,040		6,716
Part-Time Farm [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[7]	11,375		12,630
Agriculture Storage and Processing [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	48,068		48,051
Financing Receivable, Recorded Investment, Past Due		0	[1]	0	[5]
Agriculture Storage and Processing [Member] | Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	44,750		46,082
Agriculture Storage and Processing [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[6]	0		0
Agriculture Storage and Processing [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[7]	3,318		1,969
Other Commodity [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	13,574		13,397
Financing Receivable, Recorded Investment, Past Due		643	[1]	0	[5]
Other Commodity [Member] | Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	12,217		12,810
Other Commodity [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[6]	169		6
Other Commodity [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[7]	1,188		581
On-balance sheet [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	4,068,893		3,514,454
Financing Receivable, Recorded Investment, Past Due	[4]	65,105	[1]	19,757	[5]
On-balance sheet [Member] | Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	3,867,418		3,352,959
On-balance sheet [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[6]	70,725		73,809
On-balance sheet [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[7]	130,750		87,686
On-balance sheet [Member] | Crops [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	2,347,023		2,157,098
Financing Receivable, Recorded Investment, Past Due		31,413	[1]	13,449	[5]
On-balance sheet [Member] | Crops [Member] | Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	2,240,054		2,080,227
On-balance sheet [Member] | Crops [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[6]	38,647		35,223
On-balance sheet [Member] | Crops [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[7]	68,322		41,648
On-balance sheet [Member] | Permanent Plantings [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	808,476		597,130
Financing Receivable, Recorded Investment, Past Due		22,330	[1]	3,245	[5]
On-balance sheet [Member] | Permanent Plantings [Member] | Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	760,251		568,221
On-balance sheet [Member] | Permanent Plantings [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[6]	7,024		1,139
On-balance sheet [Member] | Permanent Plantings [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[7]	41,201		27,770
On-balance sheet [Member] | Livestock [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	637,015		548,517
Financing Receivable, Recorded Investment, Past Due		7,367	[1]	669	[5]
On-balance sheet [Member] | Livestock [Member] | Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	603,653		504,784
On-balance sheet [Member] | Livestock [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[6]	19,846		33,075
On-balance sheet [Member] | Livestock [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[7]	13,516		10,658
On-balance sheet [Member] | Part-Time Farm [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	253,485		191,270
Financing Receivable, Recorded Investment, Past Due		3,352	[1]	2,394	[5]
On-balance sheet [Member] | Part-Time Farm [Member] | Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	241,208		179,288
On-balance sheet [Member] | Part-Time Farm [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[6]	5,208		4,372
On-balance sheet [Member] | Part-Time Farm [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[7]	7,069		7,610
On-balance sheet [Member] | Agriculture Storage and Processing [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	13,248		11,545
Financing Receivable, Recorded Investment, Past Due		0	[1]	0	[5]
On-balance sheet [Member] | Agriculture Storage and Processing [Member] | Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	13,248		11,545
On-balance sheet [Member] | Agriculture Storage and Processing [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[6]	0		0
On-balance sheet [Member] | Agriculture Storage and Processing [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[7]	0		0
On-balance sheet [Member] | Other Commodity [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	9,646		8,894
Financing Receivable, Recorded Investment, Past Due		643	[1]	0	[5]
On-balance sheet [Member] | Other Commodity [Member] | Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	9,004		8,894
On-balance sheet [Member] | Other Commodity [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[6]	0		0
On-balance sheet [Member] | Other Commodity [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[7]	642		0
Off-balance sheet [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	2,488,137		2,624,850
Financing Receivable, Recorded Investment, Past Due	[4]	1,276	[1]	1,281	[5]
Off-balance sheet [Member] | Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	2,279,950		2,492,349
Off-balance sheet [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[6]	119,295		54,994
Off-balance sheet [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[7]	88,892		77,507
Off-balance sheet [Member] | Crops [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	1,246,693		1,253,400
Financing Receivable, Recorded Investment, Past Due		862	[1]	373	[5]
Off-balance sheet [Member] | Crops [Member] | Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	1,133,150		1,201,144
Off-balance sheet [Member] | Crops [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[6]	77,671		20,422
Off-balance sheet [Member] | Crops [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[7]	35,872		31,834
Off-balance sheet [Member] | Permanent Plantings [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	375,745		440,310
Financing Receivable, Recorded Investment, Past Due		0	[1]	407	[5]
Off-balance sheet [Member] | Permanent Plantings [Member] | Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	336,780		403,256
Off-balance sheet [Member] | Permanent Plantings [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[6]	8,359		16,881
Off-balance sheet [Member] | Permanent Plantings [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[7]	30,606		20,173
Off-balance sheet [Member] | Livestock [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	672,728		757,327
Financing Receivable, Recorded Investment, Past Due		0	[1]	38	[5]
Off-balance sheet [Member] | Livestock [Member] | Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	627,220		724,056
Off-balance sheet [Member] | Livestock [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[6]	31,264		15,341
Off-balance sheet [Member] | Livestock [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[7]	14,244		17,930
Off-balance sheet [Member] | Part-Time Farm [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	154,223		132,804
Financing Receivable, Recorded Investment, Past Due		414	[1]	463	[5]
Off-balance sheet [Member] | Part-Time Farm [Member] | Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	148,085		125,440
Off-balance sheet [Member] | Part-Time Farm [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[6]	1,832		2,344
Off-balance sheet [Member] | Part-Time Farm [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[7]	4,306		5,020
Off-balance sheet [Member] | Agriculture Storage and Processing [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	34,820		36,506
Financing Receivable, Recorded Investment, Past Due		0	[1]	0	[5]
Off-balance sheet [Member] | Agriculture Storage and Processing [Member] | Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	31,502		34,537
Off-balance sheet [Member] | Agriculture Storage and Processing [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[6]	0		0
Off-balance sheet [Member] | Agriculture Storage and Processing [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[7]	3,318		1,969
Off-balance sheet [Member] | Other Commodity [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	3,928		4,503
Financing Receivable, Recorded Investment, Past Due		0	[1]	0	[5]
Off-balance sheet [Member] | Other Commodity [Member] | Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1]	3,213		3,916
Off-balance sheet [Member] | Other Commodity [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[6]	169		6
Off-balance sheet [Member] | Other Commodity [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Financing Receivable, Gross	[1],[7]	$ 546		$ 581

[1] Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.

[2] As of second quarter 2017, Farmer Mac revised its calculation of the original loan-to-value ratio of a loan to combine for any cross-collateralized loans: (i) the original loan principal balance amounts in the numerator and (ii) the original appraised property values in the denominator. In previous periods, the ratio was calculated on a loan-by-loan basis without considering the effects of any cross-collateralization. Prior period information has been reclassified to conform to the current period calculation and presentation.

[3] Geographic regions: Northwest (AK, ID, MT, OR, WA, WY); Southwest (AZ, CA, CO, HI, NM, NV, UT); Mid-North (IA, IL, IN, MI, MN, NE, ND, SD, WI); Mid-South (AR, KS, LA, MO, OK, TX); Northeast (CT, DE, KY, MA, MD, ME, NH, NJ, NY, OH, PA, RI, VA, VT, WV); Southeast (AL, FL, GA, MS, NC, SC, TN).

[4] Includes loans and loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs that are 90 days or more past due, in foreclosure, or in bankruptcy with at least one missed payment, excluding loans performing under either their original loan terms or a court-approved bankruptcy plan.

[5] Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.

[6] Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.

[7] Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected.

XML

Loans and Allowance for Losses and Concentrations of Credit Risk - Concentrations of Credit Risk (Details) - USD ($) $ in Thousands		9 Months Ended
		Sep. 30, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross	[1],[2],[3]	$ 6,557,030	$ 6,139,304
Financing Receivables, Borrower Exposure, Range One [Member] [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross		2,297,648	2,195,103
Financing Receivables, Borrower Exposure, Range Two [Member] [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross		2,500,101	2,398,843
Financing Receivables, Borrower Exposure, Range Three [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross		815,411	782,171
Financing Receivables, Borrower Exposure, Range Four [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross		568,471	469,681
Financing Receivables, Borrower Exposure, Range Five [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross		375,399	293,506
Financing Receivables, Original Loan-To-Value Ratio, Range One [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross	[2]	$ 1,274,050	1,220,432
Financing Receivables, Loan-To-Value Ratio Range, Lower Range Limit		0.00%
Financing Receivables, Loan-To-Value Ratio Range, Upper Range Limit		40.00%
Financing Receivables, Original Loan-To-Value Ratio, Range Two [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross	[2]	$ 1,622,767	1,466,047
Financing Receivables, Loan-To-Value Ratio Range, Lower Range Limit		40.01%
Financing Receivables, Loan-To-Value Ratio Range, Upper Range Limit		50.00%
Financing Receivables, Original Loan-To-Value Ratio, Range Three [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross	[2]	$ 2,268,852	2,078,099
Financing Receivables, Loan-To-Value Ratio Range, Lower Range Limit		50.01%
Financing Receivables, Loan-To-Value Ratio Range, Upper Range Limit		60.00%
Financing Receivables, Original Loan-To-Value Ratio, Range Four [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross	[2]	$ 1,130,748	1,167,395
Financing Receivables, Loan-To-Value Ratio Range, Lower Range Limit		60.01%
Financing Receivables, Loan-To-Value Ratio Range, Upper Range Limit		70.00%
Financing Receivables, Original Loan-To-Value Ratio, Range Five [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross	[2]	$ 233,963	191,664
Financing Receivables, Loan-To-Value Ratio Range, Lower Range Limit		70.01%
Financing Receivables, Loan-To-Value Ratio Range, Upper Range Limit		80.00%
Financing Receivables, Original Loan-To-Value Ratio, Range Six [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross	[2]	$ 26,650	15,667
Financing Receivables, Loan-To-Value Ratio Range, Lower Range Limit		80.01%
Financing Receivables, Loan-To-Value Ratio Range, Upper Range Limit		90.00%
Northwest [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross	[3]	$ 723,616	657,403
Southwest [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross	[3]	1,917,692	1,791,745
Mid-North [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross	[3]	2,205,750	2,104,867
Mid-South [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross	[3]	899,293	837,121
Northeast [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross	[3]	290,655	229,679
Southeast [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross	[3]	520,024	518,489
Crops [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross	[1]	3,593,716	3,410,498
Permanent Plantings [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross	[1]	1,184,221	1,037,440
Livestock [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross	[1]	1,309,743	1,305,844
Part-Time Farm [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross	[1]	407,708	324,074
Agriculture Storage and Processing [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross	[1]	48,068	48,051
Other Commodity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross	[1]	$ 13,574	$ 13,397

[1] Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.

[2] As of second quarter 2017, Farmer Mac revised its calculation of the original loan-to-value ratio of a loan to combine for any cross-collateralized loans: (i) the original loan principal balance amounts in the numerator and (ii) the original appraised property values in the denominator. In previous periods, the ratio was calculated on a loan-by-loan basis without considering the effects of any cross-collateralization. Prior period information has been reclassified to conform to the current period calculation and presentation.

[3] Geographic regions: Northwest (AK, ID, MT, OR, WA, WY); Southwest (AZ, CA, CO, HI, NM, NV, UT); Mid-North (IA, IL, IN, MI, MN, NE, ND, SD, WI); Mid-South (AR, KS, LA, MO, OK, TX); Northeast (CT, DE, KY, MA, MD, ME, NH, NJ, NY, OH, PA, RI, VA, VT, WV); Southeast (AL, FL, GA, MS, NC, SC, TN).

XML

Guarantees and Long Term Standby Purchase Commitments - Off-Balance Sheet Guaranteed Securities (Details) - Variable Interest Entity, Not Primary Beneficiary [Member] - USD ($) $ in Thousands		Sep. 30, 2017	Dec. 31, 2016
Guarantor Obligations [Line Items]
Guarantor Obligations, Maximum Exposure, Undiscounted		$ 894,839	$ 1,802,631
Farm & Ranch [Member]
Guarantor Obligations [Line Items]
Guarantor Obligations, Maximum Exposure, Undiscounted		354,823	415,441
USDA Guarantees [Member]
Guarantor Obligations [Line Items]
Guarantor Obligations, Maximum Exposure, Undiscounted		226,802	103,976
Institutional Credit [Member]
Guarantor Obligations [Line Items]
Guarantor Obligations, Maximum Exposure, Undiscounted		13,214	983,214
Revolving Credit Facility [Member] | Institutional Credit [Member]
Guarantor Obligations [Line Items]
Guarantor Obligations, Maximum Exposure, Undiscounted	[1]	$ 300,000	$ 300,000

[1] Relates to a revolving floating rate AgVantage facility subject to specified contractual terms. Farmer Mac receives a fixed fee based on the full dollar amount of the facility.

XML

Guarantees and Long Term Standby Purchase Commitments - Cash Flows from Off-balance sheet Guaranteed Securities (Details) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Guarantor Obligations [Line Items]
Proceeds from sale of Farmer Mac Guaranteed Securities	$ 404,246	$ 457,369
Proceeds from Fees Received	2,141	2,333
Payments to Acquire Loans and Leases Held-for-investment	(3,147)	$ (2,118)
Variable Interest Entity, Not Primary Beneficiary [Member]
Guarantor Obligations [Line Items]
Guarantor Obligations, Maximum Exposure, Undiscounted	$ 894,839		$ 1,802,631
Farmer Mac Guaranteed Securities [Member]
Guarantor Obligations [Line Items]
Weighted average remaining maturity, Loans underlying guarantees not held by transferor	10 years 1 month 18 days		10 years 8 months 18 days
Farmer Mac Guaranteed Securities [Member] | Variable Interest Entity, Not Primary Beneficiary [Member]
Guarantor Obligations [Line Items]
Guarantor Obligations, Current Carrying Value	$ 3,800		$ 5,500
Institutional Credit [Member] | Variable Interest Entity, Not Primary Beneficiary [Member]
Guarantor Obligations [Line Items]
Guarantor Obligations, Maximum Exposure, Undiscounted	$ 13,214		$ 983,214
Institutional Credit [Member] | Farmer Mac Guaranteed Securities [Member]
Guarantor Obligations [Line Items]
Weighted average remaining maturity, Loans underlying guarantees not held by transferor	1 year 1 month 8 days		8 months 8 days

XML

Guarantees and Long Term Standby Purchase Commitments - Long-Term Standby Purchase Commitments (Details) - Long-Term Standby Purchase Commitments [Member] - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Guarantor Obligations [Line Items]
Guarantor Obligations, Maximum Exposure, Undiscounted	$ 3,000.0	$ 3,100.0
Weighted average remaining maturity, Loans underlying guarantees not held by transferor	15 years 2 months 10 days	15 years 1 month 10 days
Guarantee obligations issued after January 1, 2003 [Member]
Guarantor Obligations [Line Items]
Guarantor Obligations, Current Carrying Value	$ 31.5	$ 31.8

XML

Equity - Common Stock Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2017	Sep. 30, 2016	Aug. 03, 2017	Sep. 08, 2015
Class of Stock [Line Items]
Dividends, Common Stock, Cash	$ 0.36	$ 0.26	$ 11,435,000	$ 8,145,000
Dividends, Preferred Stock, Cash			$ 9,886,000	$ 9,886,000
Common Class C, Non-Voting [Member]
Class of Stock [Line Items]
Stock Repurchase Program, Authorized Amount					$ 5,400,000	$ 25,000,000
Repurchase of Class C Common Stock			668,000
Stock Repurchased and Retired During Period, Value	19,600,000		$ 19,600,000
Series A Preferred Stock [Member]
Class of Stock [Line Items]
Dividends, Preferred Stock, Cash	0.3672	0.3672
Series B Preferred Stock [Member]
Class of Stock [Line Items]
Dividends, Preferred Stock, Cash	0.4297	0.4297
Series C Preferred Stock [Member]
Class of Stock [Line Items]
Dividends, Preferred Stock, Cash	$ 0.3750	$ 0.3750

XML

Equity - Capital Requirements (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Equity [Abstract]
Capital Requirements, Minimum Capital, Percentage of Aggregate On-Balance Sheet Assets Included In Core Capital	2.75%
Capital Requirements, Minimum Capital, Percentage of Aggregate Off-Balance Sheet Assets Included In Core Capital	0.75%
Capital Requirements, Critical Capital, Percentage of Core Capital of Total Minimum Capital	50.00%
Capital Required for Capital Adequacy	$ 515.8	$ 466.5
Capital	653.4	609.7
Excess Capital	$ 137.6	$ 143.2

XML

Fair Value Disclosures - Narrative (Details) - Level 3 [Member] - USD ($) $ in Billions	Sep. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets and Liabilities, Fair Value Disclosure	$ 5.5	$ 4.9
Fair Value, Assets and Liabilities Fair Value as Percent of Total Assets	31.00%	31.00%
Fair Value, Assets and Liabilities, Fair Value as Percent of Total Financial Instruments Measured at Fair Value	71.00%	65.00%

XML

Fair Value Disclosures - Fair Value Measurements, Recurring and Nonrecurring (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset	$ 2,020	$ 23,182
Derivative Liability	5,516	32,509
Loans and Leases Receivable, Net Amount	5,127,770	4,507,435
Real estate owned, at lower of cost or fair value	1,086	1,528
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset	2,020	23,182
Assets, Fair Value Disclosure	7,695,596	7,413,106
Derivative Liability	30,595	58,152
Financial and Nonfinancial Liabilities, Fair Value Disclosure	30,595	58,152
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset	50	0
Assets, Fair Value Disclosure	763,856	821,489
Derivative Liability	0	155
Financial and Nonfinancial Liabilities, Fair Value Disclosure	0	155
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset	1,970	23,182
Assets, Fair Value Disclosure	1,450,154	1,699,814
Derivative Liability	30,595	57,997
Financial and Nonfinancial Liabilities, Fair Value Disclosure	30,595	57,997
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset	0	0
Assets, Fair Value Disclosure	5,481,586	4,891,803
Derivative Liability	0	0
Financial and Nonfinancial Liabilities, Fair Value Disclosure	0	0
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure	1,091	3,148
Loans and Leases Receivable, Net Amount	636	2,799
Real estate owned, at lower of cost or fair value	455	349
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure	0	0
Loans and Leases Receivable, Net Amount	0	0
Real estate owned, at lower of cost or fair value	0	0
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure	0	0
Loans and Leases Receivable, Net Amount	0	0
Real estate owned, at lower of cost or fair value	0	0
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure	1,091	3,148
Loans and Leases Receivable, Net Amount	636	2,799
Real estate owned, at lower of cost or fair value	455	349
Farmer Mac Guaranteed Securities [Member] | Available-for-sale Securities [Member] | Institutional Credit [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	5,443,746	4,853,685
Farmer Mac Guaranteed Securities [Member] | Available-for-sale Securities [Member] | Institutional Credit [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	0	0
Farmer Mac Guaranteed Securities [Member] | Available-for-sale Securities [Member] | Institutional Credit [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	0	0
Farmer Mac Guaranteed Securities [Member] | Available-for-sale Securities [Member] | Institutional Credit [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	5,443,746	4,853,685
Farmer Mac Guaranteed Securities and USDA Securities [Member] | Available-for-sale Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	5,443,746	4,853,685
Farmer Mac Guaranteed Securities and USDA Securities [Member] | Available-for-sale Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	0	0
Farmer Mac Guaranteed Securities and USDA Securities [Member] | Available-for-sale Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	0	0
Farmer Mac Guaranteed Securities and USDA Securities [Member] | Available-for-sale Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	5,443,746	4,853,685
Investment Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure		2,515,851
Investment Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure		821,489
Investment Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure		1,676,632
Investment Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure		17,730
Investment Securities [Member] | Available-for-sale Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	2,234,966
Investment Securities [Member] | Available-for-sale Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	763,806
Investment Securities [Member] | Available-for-sale Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	1,448,184
Investment Securities [Member] | Available-for-sale Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	22,976
USDA Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	14,864	20,388
USDA Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	0	0
USDA Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	0	0
USDA Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	14,864	20,388
USDA Securities [Member] | Trading Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	14,864	20,388
USDA Securities [Member] | Trading Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	0	0
USDA Securities [Member] | Trading Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	0	0
USDA Securities [Member] | Trading Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	14,864	20,388
Floating Interest Rate [Member] | Floating rate auction-rate certificates backed by Government guaranteed student loans | Available-for-sale Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	18,518	17,730
Floating Interest Rate [Member] | Floating rate auction-rate certificates backed by Government guaranteed student loans | Available-for-sale Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	0	0
Floating Interest Rate [Member] | Floating rate auction-rate certificates backed by Government guaranteed student loans | Available-for-sale Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	0	0
Floating Interest Rate [Member] | Floating rate auction-rate certificates backed by Government guaranteed student loans | Available-for-sale Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	18,518	17,730
Floating Interest Rate [Member] | Asset-backed Securities [Member] | Available-for-sale Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	35,602	43,851
Floating Interest Rate [Member] | Asset-backed Securities [Member] | Available-for-sale Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	0	0
Floating Interest Rate [Member] | Asset-backed Securities [Member] | Available-for-sale Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	35,602	43,851
Floating Interest Rate [Member] | Asset-backed Securities [Member] | Available-for-sale Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	0	0
Floating Interest Rate [Member] | Corporate Debt Securities [Member] | Available-for-sale Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure		10,041
Floating Interest Rate [Member] | Corporate Debt Securities [Member] | Available-for-sale Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure		0
Floating Interest Rate [Member] | Corporate Debt Securities [Member] | Available-for-sale Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure		10,041
Floating Interest Rate [Member] | Corporate Debt Securities [Member] | Available-for-sale Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure		0
Floating Interest Rate [Member] | Government/GSE Guaranteed Mortgage Backed Securities [Member] | Available-for-sale Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	1,312,204	1,361,029
Floating Interest Rate [Member] | Government/GSE Guaranteed Mortgage Backed Securities [Member] | Available-for-sale Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	0	0
Floating Interest Rate [Member] | Government/GSE Guaranteed Mortgage Backed Securities [Member] | Available-for-sale Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	1,312,204	1,361,029
Floating Interest Rate [Member] | Government/GSE Guaranteed Mortgage Backed Securities [Member] | Available-for-sale Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	0	0
Floating Interest Rate [Member] | Subordinated Debt [Member] | Available-for-sale Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure		66,953
Floating Interest Rate [Member] | Subordinated Debt [Member] | Available-for-sale Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure		0
Floating Interest Rate [Member] | Subordinated Debt [Member] | Available-for-sale Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure		66,953
Floating Interest Rate [Member] | Subordinated Debt [Member] | Available-for-sale Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure		0
Floating Interest Rate [Member] | Senior Agency Debt [Member] | Available-for-sale Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	99,871	187,133
Floating Interest Rate [Member] | Senior Agency Debt [Member] | Available-for-sale Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	0	0
Floating Interest Rate [Member] | Senior Agency Debt [Member] | Available-for-sale Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	99,871	187,133
Floating Interest Rate [Member] | Senior Agency Debt [Member] | Available-for-sale Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	0	0
Fixed Interest Rate [Member] | Government/GSE Guaranteed Mortgage Backed Securities [Member] | Available-for-sale Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	4,965	7,625
Fixed Interest Rate [Member] | Government/GSE Guaranteed Mortgage Backed Securities [Member] | Available-for-sale Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	0	0
Fixed Interest Rate [Member] | Government/GSE Guaranteed Mortgage Backed Securities [Member] | Available-for-sale Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	507	7,625
Fixed Interest Rate [Member] | Government/GSE Guaranteed Mortgage Backed Securities [Member] | Available-for-sale Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	4,458	0
Fixed Interest Rate [Member] | US Treasury Securities [Member] | Available-for-sale Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	763,806	821,489
Fixed Interest Rate [Member] | US Treasury Securities [Member] | Available-for-sale Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	763,806	821,489
Fixed Interest Rate [Member] | US Treasury Securities [Member] | Available-for-sale Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	0	0
Fixed Interest Rate [Member] | US Treasury Securities [Member] | Available-for-sale Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure	$ 0	$ 0

XML

Fair Value Disclosures - Unobservable Input Reconciliation (Details) - Fair Value, Inputs, Level 3 [Member] - Fair Value, Measurements, Recurring [Member] - USD ($)		3 Months Ended				9 Months Ended
		Sep. 30, 2017		Sep. 30, 2016		Sep. 30, 2017		Sep. 30, 2016
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance		$ 5,322,025,000		$ 6,741,588,000		$ 4,891,803,000		$ 6,115,339,000
Transfers In						7,041,000
Purchases		234,644,000		382,397,000		1,054,554,000		1,698,586,000
Sales		(40,844,000)		(31,866,000)		(126,939,000)		(85,434,000)
Settlements		(31,392,000)		(123,932,000)		(362,780,000)		(842,537,000)
Realized and Unrealized Gains/(Losses) included in Income		(1,171,000)		(9,778,000)		5,082,000		28,415,000
Unrealized Gains/(Losses) included in Other Comprehen-sive Income		(1,676,000)		470,000		12,825,000		44,510,000
Ending Balance		5,481,586,000		6,958,879,000		5,481,586,000		6,958,879,000
Investment Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance				18,011,000				45,415,000
Purchases				0				0
Sales				0				(26,806,000)
Settlements				(1,887,000)				(2,213,000)
Realized and Unrealized Gains/(Losses) included in Income				1,606,000				1,728,000
Unrealized Gains/(Losses) included in Other Comprehen-sive Income				(148,000)				(542,000)
Ending Balance				17,582,000				17,582,000
USDA Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Trading Securities, Unrealized Gains		0		400,000		42,000		100,000
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance		16,294,000		1,992,546,000		20,388,000		1,917,319,000
Transfers In						0
Purchases		40,844,000		119,201,000		126,939,000		351,914,000
Sales		(40,844,000)		(31,866,000)		(126,939,000)		(58,628,000)
Settlements		(1,430,000)		(56,646,000)		(5,440,000)		(242,960,000)
Realized and Unrealized Gains/(Losses) included in Income		0		(424,000)		(84,000)		212,000
Unrealized Gains/(Losses) included in Other Comprehen-sive Income		0		(18,995,000)		0		35,959,000
Ending Balance		14,864,000		2,003,816,000		14,864,000		2,003,816,000
Available-for-sale Securities [Member] | Investment Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance		23,169,000		17,730,000		17,730,000		44,924,000
Transfers In						7,041,000
Purchases		0		0		0		0
Sales		0		0		0		(26,806,000)
Settlements		(111,000)		0		(334,000)		0
Realized and Unrealized Gains/(Losses) included in Income		0		0		0		6,000
Unrealized Gains/(Losses) included in Other Comprehen-sive Income		(82,000)		(148,000)		(1,461,000)		(542,000)
Ending Balance		22,976,000		17,582,000		22,976,000		17,582,000
Available-for-sale Securities [Member] | Farmer Mac Guaranteed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance		5,282,562,000		4,731,031,000		4,853,685,000		4,152,605,000
Transfers In						0
Purchases		193,800,000		263,196,000		927,615,000		1,346,672,000
Sales		0		0		0		0
Settlements		(29,851,000)		(65,399,000)		(357,006,000)		(597,364,000)
Realized and Unrealized Gains/(Losses) included in Income		(1,171,000)		(10,960,000)		5,166,000		26,475,000
Unrealized Gains/(Losses) included in Other Comprehen-sive Income		(1,594,000)		19,613,000		14,286,000		9,093,000
Ending Balance		5,443,746,000		4,937,481,000		5,443,746,000		4,937,481,000
Available-for-sale Securities [Member] | USDA Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance		0		1,967,759,000		0		1,888,344,000
Transfers In						0
Purchases		40,844,000		119,201,000		126,939,000		351,914,000
Sales		(40,844,000)		(31,866,000)		(126,939,000)		(58,628,000)
Settlements		0		(55,772,000)		0		(237,262,000)
Realized and Unrealized Gains/(Losses) included in Income		0		0		0		0
Unrealized Gains/(Losses) included in Other Comprehen-sive Income		0		(18,995,000)		0		35,959,000
Ending Balance		0		1,980,327,000		0		1,980,327,000
Trading Securities [Member] | Investment Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance				281,000				491,000
Purchases				0				0
Sales				0				0
Settlements				(1,887,000)				(2,213,000)
Realized and Unrealized Gains/(Losses) included in Income				1,606,000				1,722,000
Unrealized Gains/(Losses) included in Other Comprehen-sive Income				0				0
Ending Balance				0				0
Trading Securities [Member] | USDA Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance		16,294,000		24,787,000		20,388,000	[1]	28,975,000
Transfers In						0
Purchases		0		0		0		0
Sales		0		0		0		0
Settlements		(1,430,000)		(874,000)		(5,440,000)		(5,698,000)
Realized and Unrealized Gains/(Losses) included in Income		0	[1]	(424,000)	[2]	(84,000)	[1]	212,000	[2]
Unrealized Gains/(Losses) included in Other Comprehen-sive Income		0		0		0		0
Ending Balance		14,864,000	[1]	23,489,000		14,864,000	[1]	23,489,000
Institutional Credit [Member] | Available-for-sale Securities [Member] | Farmer Mac Guaranteed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance		5,282,562,000		4,697,584,000		4,853,685,000	[1]	4,121,244,000
Transfers In						0
Purchases		193,800,000		263,196,000		927,615,000		1,342,572,000
Sales		0		0		0		0
Settlements		(29,851,000)		(64,895,000)		(357,006,000)		(594,124,000)
Realized and Unrealized Gains/(Losses) included in Income		(1,171,000)		(10,960,000)		5,166,000		26,475,000
Unrealized Gains/(Losses) included in Other Comprehen-sive Income		(1,594,000)		19,732,000		14,286,000		8,490,000
Ending Balance		5,443,746,000	[1]	4,904,657,000		5,443,746,000	[1]	4,904,657,000
USDA Guarantees [Member] | Available-for-sale Securities [Member] | Farmer Mac Guaranteed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance				33,447,000				31,361,000
Purchases				0				4,100,000
Sales				0				0
Settlements				(504,000)				(3,240,000)
Realized and Unrealized Gains/(Losses) included in Income				0				0
Unrealized Gains/(Losses) included in Other Comprehen-sive Income				(119,000)				603,000
Ending Balance				32,824,000				32,824,000
Floating Interest Rate [Member] | Available-for-sale Securities [Member] | Floating rate auction-rate certificates backed by Government guaranteed student loans
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance		18,518,000		17,730,000		17,730,000		44,924,000
Transfers In						0
Purchases		0		0		0		0
Sales		0		0		0		(26,806,000)
Settlements		0		0		0		0
Realized and Unrealized Gains/(Losses) included in Income		0		0		0		6,000
Unrealized Gains/(Losses) included in Other Comprehen-sive Income		0		(148,000)		788,000		(542,000)
Ending Balance		18,518,000		17,582,000		18,518,000		17,582,000
Floating Interest Rate [Member] | Trading Securities [Member] | Asset-backed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance				281,000				491,000
Purchases				0				0
Sales				0				0
Settlements	[3]			(1,887,000)				(2,213,000)
Realized and Unrealized Gains/(Losses) included in Income				1,606,000				1,722,000
Unrealized Gains/(Losses) included in Other Comprehen-sive Income				0				0
Ending Balance				$ 0				$ 0
Fixed Interest Rate [Member] | Available-for-sale Securities [Member] | Government/GSE Guaranteed Mortgage Backed Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance		4,651,000				0
Transfers In						7,041,000
Purchases		0				0
Sales		0				0
Settlements		(111,000)				(334,000)
Realized and Unrealized Gains/(Losses) included in Income		0				0
Unrealized Gains/(Losses) included in Other Comprehen-sive Income		(82,000)				(2,249,000)
Ending Balance		$ 4,458,000				$ 4,458,000

[1] Includes unrealized gains of $34,000 attributable to assets still held as of September 30, 2017 that are recorded in "Gains/(losses) on trading securities."

[2] Includes unrealized losses of $0.4 million attributable to assets still held as of September 30, 2016 that are recorded in "Gains/(losses) on trading securities."

[3] Unrealized gains are attributable to assets still held as of September 30, 2016 and are recorded in "Gains/(losses) on trading securities."

XML

Fair Value Disclosures - Quantitative Information (Details) - Fair Value, Measurements, Recurring [Member] - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2017		Dec. 31, 2016		Jun. 30, 2017	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	$ 5,481,586		$ 4,891,803		$ 5,322,025	$ 6,958,879	$ 6,741,588	$ 6,115,339
USDA Securities [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	$ 14,864		$ 20,388		16,294	2,003,816	1,992,546	1,917,319
Minimum [Member] | Floating rate auction-rate certificates backed by Government guaranteed student loans | Market Approach Valuation Technique [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Range of Offered Quotes	94.00%		90.00%
Minimum [Member] | Institutional Credit [Member] | Farmer Mac Guaranteed Securities [Member] | Cost Approach Valuation Technique [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Discount Rate	2.00%		1.50%
Minimum [Member] | USDA Guarantees [Member] | USDA Securities [Member] | Cost Approach Valuation Technique [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Discount Rate	3.60%		4.00%
Fair Value Inputs, Prepayment Rate	7.00%		13.00%
Maximum [Member] | Floating rate auction-rate certificates backed by Government guaranteed student loans | Market Approach Valuation Technique [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Range of Offered Quotes	94.00%		90.00%
Maximum [Member] | Institutional Credit [Member] | Farmer Mac Guaranteed Securities [Member] | Cost Approach Valuation Technique [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Discount Rate	3.30%		3.30%
Maximum [Member] | USDA Guarantees [Member] | USDA Securities [Member] | Cost Approach Valuation Technique [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Discount Rate	5.30%		5.30%
Fair Value Inputs, Prepayment Rate	19.00%		18.00%
Weighted Average [Member] | Floating rate auction-rate certificates backed by Government guaranteed student loans | Market Approach Valuation Technique [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Range of Offered Quotes	94.00%		90.00%
Weighted Average [Member] | Institutional Credit [Member] | Farmer Mac Guaranteed Securities [Member] | Cost Approach Valuation Technique [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Discount Rate	2.20%		1.90%
Weighted Average [Member] | USDA Guarantees [Member] | USDA Securities [Member] | Cost Approach Valuation Technique [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Discount Rate	5.00%		5.00%
Fair Value Inputs, Prepayment Rate	17.00%		17.00%
Available-for-sale Securities [Member] | Farmer Mac Guaranteed Securities [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	$ 5,443,746		$ 4,853,685		5,282,562	4,937,481	4,731,031	4,152,605
Available-for-sale Securities [Member] | USDA Securities [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	0		0		0	1,980,327	1,967,759	1,888,344
Available-for-sale Securities [Member] | Institutional Credit [Member] | Farmer Mac Guaranteed Securities [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	5,443,746	[1]	4,853,685	[1]	5,282,562	4,904,657	4,697,584	4,121,244
Available-for-sale Securities [Member] | USDA Guarantees [Member] | Farmer Mac Guaranteed Securities [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value						32,824	33,447	31,361
Available-for-sale Securities [Member] | Fixed Interest Rate [Member] | Government/GSE Guaranteed Mortgage Backed Securities [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	$ 4,458		$ 0		4,651
Fair Value Inputs, Prepayment Rate	0.00%		0.00%
Available-for-sale Securities [Member] | Minimum [Member] | Fixed Interest Rate [Member] | Government/GSE Guaranteed Mortgage Backed Securities [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Discount Rate	3.70%		0.00%
Available-for-sale Securities [Member] | Maximum [Member] | Fixed Interest Rate [Member] | Government/GSE Guaranteed Mortgage Backed Securities [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Discount Rate	3.70%		0.00%
Available-for-sale Securities [Member] | Weighted Average [Member] | Fixed Interest Rate [Member] | Government/GSE Guaranteed Mortgage Backed Securities [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Discount Rate	3.70%		0.00%
Trading Securities [Member] | USDA Securities [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	$ 14,864	[1]	$ 20,388	[1]	$ 16,294	$ 23,489	$ 24,787	$ 28,975

[1] Includes unrealized gains of $34,000 attributable to assets still held as of September 30, 2017 that are recorded in "Gains/(losses) on trading securities."

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Fair Value Disclosures - Summary of Carrying Value and Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial derivatives	$ 2,020	$ 23,182
Guarantee and commitment fees receivable:	36,679	38,871
Derivative Liability	5,516	32,509
Guarantee and commitment obligation	35,316	37,282
Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	366,764	265,229
Loans	5,127,770	4,507,435
Financial derivatives	2,020	23,182
Debt securities of consolidated trusts held by third parties	1,333,417	1,142,704
Derivative Liability	30,595	58,152
Reported Value Measurement [Member] | Investment Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable Securities	2,234,966	2,515,851
Reported Value Measurement [Member] | Farmer Mac Guaranteed Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable Securities	7,602,556	6,002,916
Reported Value Measurement [Member] | USDA Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable Securities	2,107,149	2,029,613
Reported Value Measurement [Member] | Long-Term Standby Purchase Commitments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Guarantee and commitment fees receivable:	32,307	32,656
Guarantee and commitment obligation	31,491	31,796
Reported Value Measurement [Member] | Farmer Mac Guaranteed Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Guarantee and commitment fees receivable:	4,372	6,215
Guarantee and commitment obligation	3,825	5,486
Reported Value Measurement [Member] | Due within one year [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable:	8,112,928	8,440,123
Reported Value Measurement [Member] | Long-term Debt [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable:	7,399,961	5,222,977
Estimate of Fair Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	366,764	265,229
Loans	5,140,669	4,481,019
Financial derivatives	2,020	23,182
Debt securities of consolidated trusts held by third parties	1,310,240	1,107,513
Derivative Liability	30,595	58,152
Estimate of Fair Value Measurement [Member] | Investment Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable Securities	2,234,966	2,515,851
Estimate of Fair Value Measurement [Member] | Farmer Mac Guaranteed Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable Securities	7,601,376	6,006,694
Estimate of Fair Value Measurement [Member] | USDA Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable Securities	2,042,408	1,934,023
Estimate of Fair Value Measurement [Member] | Long-Term Standby Purchase Commitments [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Guarantee and commitment fees receivable:	31,986	34,720
Guarantee and commitment obligation	31,169	33,860
Estimate of Fair Value Measurement [Member] | Farmer Mac Guaranteed Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Guarantee and commitment fees receivable:	4,611	6,197
Guarantee and commitment obligation	4,065	5,467
Estimate of Fair Value Measurement [Member] | Due within one year [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable:	8,108,390	8,439,515
Estimate of Fair Value Measurement [Member] | Long-term Debt [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable:	$ 7,450,462	$ 5,260,497

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Business Segment Reporting - Core Earnings - Business Segments (Details) - USD ($) $ in Thousands	3 Months Ended				9 Months Ended
	Sep. 30, 2017		Sep. 30, 2016		Sep. 30, 2017		Sep. 30, 2016		Dec. 31, 2016
Segment Reporting Information, Profit (Loss) [Abstract]
Net interest income	$ 39,562		$ 35,563		$ 116,364		$ 103,561
Less: reconciling adjustments(1)(2)(3)	0	[1],[2],[3]	0	[4],[5],[6]	0	[7],[8],[9]	0	[10],[11],[12]
Net Effective Spread	0		0		0		0
Guaranty Fee Income	3,314	[3]	3,798	[6]	10,630	[9]	11,079	[12]
Other Non-Interest Income (Expense), Excluding Guarantee and Commitment Fees	985	[2],[13]	303	[5],[14]	4,209	[8],[15]	(9,918)	[11],[16]
Non-interest income	4,299		4,101		14,839		1,161
Provision for loan losses	(270)		(191)		(1,234)		(604)
Provision for Other Credit Losses	114		(222)		60		(114)
Noninterest Expense, Excluding Loan, Lease and Other Losses	(10,502)		(9,525)		(32,495)		(29,457)
Non-interest expense	10,616	[17]	9,303	[18]	32,555	[19]	29,343	[20]
Income Tax Expense (Benefit)	11,193		10,529		33,103		26,264
Net income	21,782		19,641		64,311		48,511
Net income	32,975		30,170		97,414		74,775
Preferred Stock Dividends, Income Statement Impact	(3,295)		(3,295)		(9,886)		(9,886)
Less: Net loss attributable to non-controlling interest	0		18		165		62
Net Income (Loss) Available to Common Stockholders, Basic	18,487		16,364		54,590		38,687
Segment Reporting Information, Additional Information [Abstract]
Total Assets	17,690,238		16,000,905		17,690,238		16,000,905		$ 15,606,020
On and Off Balance Sheet Program Assets, At Principal Balance	18,644,273		17,247,739		18,644,273		17,247,739
Farm & Ranch [Member]
Segment Reporting Information, Profit (Loss) [Abstract]
Net interest income	13,609		12,039		39,701		34,772
Less: reconciling adjustments(1)(2)(3)	(2,131)	[1],[2],[3]	(1,336)	[4],[5],[6]	(6,208)	[7],[8],[9]	(4,733)	[10],[11],[12]
Net Effective Spread	11,478		10,703		33,493		30,039
Guaranty Fee Income	4,236	[3]	3,516	[6]	12,722	[9]	11,390	[12]
Other Non-Interest Income (Expense), Excluding Guarantee and Commitment Fees	214	[2],[13]	276	[5],[14]	1,402	[8],[15]	451	[11],[16]
Non-interest income	4,450		3,792		14,124		11,841
Provision for loan losses	(270)		(191)		(1,234)		(604)
Provision for Other Credit Losses	114		(222)		60		(114)
Noninterest Expense, Excluding Loan, Lease and Other Losses	(4,077)		(3,673)		(12,588)		(11,946)
Non-interest expense	4,191	[17]	3,451	[18]	12,648	[19]	11,832	[20]
Segment core earnings before income taxes	11,467		10,853		33,735		29,444
Income Tax Expense (Benefit)	4,014		3,799		11,806		10,307
Segment core earnings before preferred stock dividends and attibution of income to non-controlling interest - preferred stock dividends	7,453		7,054		21,929		19,137
Preferred Stock Dividends, Income Statement Impact	0		0		0		0
Less: Net loss attributable to non-controlling interest			0		0		0
Segment core earnings	7,453		7,054		21,929		19,137
Segment Reporting Information, Additional Information [Abstract]
Total Assets	4,128,778		3,436,641		4,128,778		3,436,641
On and Off Balance Sheet Program Assets, At Principal Balance	6,557,030		6,004,728		6,557,030		6,004,728
USDA Guarantees [Member]
Segment Reporting Information, Profit (Loss) [Abstract]
Net interest income	5,288		5,753		15,747		15,743
Less: reconciling adjustments(1)(2)(3)	(433)	[1],[2],[3]	(564)	[4],[5],[6]	(1,508)	[7],[8],[9]	(1,658)	[10],[11],[12]
Net Effective Spread	4,855		5,189		14,239		14,085
Guaranty Fee Income	130	[3]	29	[6]	303	[9]	50	[12]
Other Non-Interest Income (Expense), Excluding Guarantee and Commitment Fees	9	[2],[13]	95	[5],[14]	34	[8],[15]	178	[11],[16]
Non-interest income	139		124		337		228
Provision for loan losses	0		0		0		0
Provision for Other Credit Losses			0		0		0
Noninterest Expense, Excluding Loan, Lease and Other Losses	(1,080)		(933)		(3,333)		(3,118)
Non-interest expense	1,080	[17]	933	[18]	3,333	[19]	3,118	[20]
Segment core earnings before income taxes	3,914		4,380		11,243		11,195
Income Tax Expense (Benefit)	1,370		1,533		3,935		3,918
Segment core earnings before preferred stock dividends and attibution of income to non-controlling interest - preferred stock dividends	2,544		2,847		7,308		7,277
Preferred Stock Dividends, Income Statement Impact	0		0		0		0
Less: Net loss attributable to non-controlling interest			0		0		0
Segment core earnings	2,544		2,847		7,308		7,277
Segment Reporting Information, Additional Information [Abstract]
Total Assets	2,165,749		2,062,195		2,165,749		2,062,195
On and Off Balance Sheet Program Assets, At Principal Balance	2,298,956		2,020,834		2,298,956		2,020,834
Rural Utilities [Member]
Segment Reporting Information, Profit (Loss) [Abstract]
Net interest income	2,230		2,963		8,181		8,682
Less: reconciling adjustments(1)(2)(3)	602	[1],[2],[3]	(320)	[4],[5],[6]	26	[7],[8],[9]	(939)	[10],[11],[12]
Net Effective Spread	2,832		2,643		8,207		7,743
Guaranty Fee Income	476	[3]	529	[6]	1,455	[9]	1,197	[12]
Other Non-Interest Income (Expense), Excluding Guarantee and Commitment Fees	5	[2],[13]	0	[5],[14]	15	[8],[15]	0	[11],[16]
Non-interest income	481		529		1,470		1,197
Provision for loan losses	0		0		0		0
Provision for Other Credit Losses			0		0		0
Noninterest Expense, Excluding Loan, Lease and Other Losses	(608)		(553)		(1,838)		(2,214)
Non-interest expense	608	[17]	553	[18]	1,838	[19]	2,214	[20]
Segment core earnings before income taxes	2,705		2,619		7,839		6,726
Income Tax Expense (Benefit)	947		917		2,744		2,355
Segment core earnings before preferred stock dividends and attibution of income to non-controlling interest - preferred stock dividends	1,758		1,702		5,095		4,371
Preferred Stock Dividends, Income Statement Impact	0		0		0		0
Less: Net loss attributable to non-controlling interest			0		0		0
Segment core earnings	1,758		1,702		5,095		4,371
Segment Reporting Information, Additional Information [Abstract]
Total Assets	1,073,525		1,008,903		1,073,525		1,008,903
On and Off Balance Sheet Program Assets, At Principal Balance	1,886,445		1,867,666		1,886,445		1,867,666
Institutional Credit [Member]
Segment Reporting Information, Profit (Loss) [Abstract]
Net interest income	15,431		12,226		44,364		36,084
Less: reconciling adjustments(1)(2)(3)	(1,068)	[1],[2],[3]	(799)	[4],[5],[6]	(3,025)	[7],[8],[9]	(2,160)	[10],[11],[12]
Net Effective Spread	14,363		11,427		41,339		33,924
Guaranty Fee Income	93	[3]	459	[6]	713	[9]	1,375	[12]
Other Non-Interest Income (Expense), Excluding Guarantee and Commitment Fees	0	[2],[13]	0	[5],[14]	0	[8],[15]	0	[11],[16]
Non-interest income	93		459		713		1,375
Provision for loan losses	0		0		0		0
Provision for Other Credit Losses			0		0		0
Noninterest Expense, Excluding Loan, Lease and Other Losses	(1,670)		(1,253)		(4,813)		(2,330)
Non-interest expense	1,670	[17]	1,253	[18]	4,813	[19]	2,330	[20]
Segment core earnings before income taxes	12,786		10,633		37,239		32,969
Income Tax Expense (Benefit)	4,475		3,722		13,033		11,538
Segment core earnings before preferred stock dividends and attibution of income to non-controlling interest - preferred stock dividends	8,311		6,911		24,206		21,431
Preferred Stock Dividends, Income Statement Impact	0		0		0		0
Less: Net loss attributable to non-controlling interest			0		0		0
Segment core earnings	8,311		6,911		24,206		21,431
Segment Reporting Information, Additional Information [Abstract]
Total Assets	7,612,572		6,045,227		7,612,572		6,045,227
On and Off Balance Sheet Program Assets, At Principal Balance	7,901,842		7,354,511		7,901,842		7,354,511
Corporate Segment [Member]
Segment Reporting Information, Profit (Loss) [Abstract]
Net interest income	3,004		2,582		8,371		8,280
Less: reconciling adjustments(1)(2)(3)	(305)	[1],[2],[3]	(345)	[4],[5],[6]	(946)	[7],[8],[9]	(897)	[10],[11],[12]
Net Effective Spread	2,699		2,237		7,425		7,383
Guaranty Fee Income		[3]	0	[6]	0	[9]	0	[12]
Other Non-Interest Income (Expense), Excluding Guarantee and Commitment Fees	233	[2],[13]	(388)	[5],[14]	626	[8],[15]	(1,288)	[11],[16]
Non-interest income	233		(388)		626		(1,288)
Provision for loan losses	0		0		0		0
Provision for Other Credit Losses			0		0		0
Noninterest Expense, Excluding Loan, Lease and Other Losses	(3,067)		(3,113)		(9,923)		(9,849)
Non-interest expense	3,067	[17]	3,113	[18]	9,923	[19]	9,849	[20]
Segment core earnings before income taxes	(135)		(1,264)		(1,872)		(3,754)
Income Tax Expense (Benefit)	(396)		(474)		(1,646)		(1,221)
Segment core earnings before preferred stock dividends and attibution of income to non-controlling interest - preferred stock dividends	261		(790)		(226)		(2,533)
Preferred Stock Dividends, Income Statement Impact	(3,295)		(3,295)		(9,886)		(9,886)
Less: Net loss attributable to non-controlling interest			18		165		62
Segment core earnings	(3,034)		(4,067)		(9,947)		(12,357)
Segment Reporting Information, Additional Information [Abstract]
Total Assets	2,709,614		3,447,939		2,709,614		3,447,939
Segment Reconciling Items [Member]
Segment Reporting Information, Profit (Loss) [Abstract]
Net interest income	0		0		0		0
Less: reconciling adjustments(1)(2)(3)	3,335	[1],[2],[3]	3,364	[4],[5],[6]	11,661	[7],[8],[9]	10,387	[10],[11],[12]
Net Effective Spread	3,335		3,364		11,661		10,387
Guaranty Fee Income	(1,621)	[3]	(735)	[6]	(4,563)	[9]	(2,933)	[12]
Other Non-Interest Income (Expense), Excluding Guarantee and Commitment Fees	524	[2],[13]	320	[5],[14]	2,132	[8],[15]	(9,259)	[11],[16]
Non-interest income	(1,097)		(415)		(2,431)		(12,192)
Provision for loan losses	0		0		0		0
Provision for Other Credit Losses	0		0		0		0
Noninterest Expense, Excluding Loan, Lease and Other Losses	0		0		0		0
Non-interest expense	0	[17]	0	[18]	0	[19]	0	[20]
Segment core earnings before income taxes	2,238	[21]	2,949	[22]	9,230	[21]	(1,805)	[22]
Income Tax Expense (Benefit)	783		1,032		3,231		(633)
Segment core earnings before preferred stock dividends and attibution of income to non-controlling interest - preferred stock dividends	1,455	[21]	1,917	[22]	5,999	[21]	(1,172)	[22]
Preferred Stock Dividends, Income Statement Impact	0		0		0		0
Less: Net loss attributable to non-controlling interest			0		0		0
Segment core earnings	1,455	[21]	1,917	[22]	5,999	[21]	(1,172)	[22]
Segment Reporting Information, Additional Information [Abstract]
Total Assets	0		0		0		0
On and Off Balance Sheet Program Assets, At Principal Balance	$ 0		$ 0		$ 0		$ 0

[1] Excludes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.

[2] Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "Gains/(losses) on financial derivatives and hedging activities" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

[3] Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.

[4] Excludes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.

[5] Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "Gains/(losses) on financial derivatives and hedging activities" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

[6] Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.

[7] Excludes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.

[8] Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "Gains/(losses) on financial derivatives and hedging activities" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

[9] Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.

[10] Excludes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.

[11] Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "Gains/(losses) on financial derivatives and hedging activities" on the consolidated financial statements, to determine the effective funding cost for each operating segment.

[12] Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.

[13] Includes reconciling adjustments for fair value adjustments on financial derivatives and trading assets. Also includes a reconciling adjustment related to the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities. In 2016 and prior periods, fair value adjustments on financial derivatives included variation margin payment amounts because those amounts were considered to be collateral of the related exposure and were accounted for as unrealized gains or losses. However, effective first quarter 2017, CME implemented a change in its rules related to the exchange of variation margin, whereby variation margin payments are considered to be a partial settlement of the respective derivatives contracts rather than as pledged collateral, and accounted for as realized gains and losses. See Note 4 for more information about this rule change. Farmer Mac believes that even though these variation margin amounts are now accounted for as realized gains or losses on financial derivatives and hedging activities as a result of the CME rule change, their economic character will remain the same as they were before the change. This is not expected to have a cumulative net impact on Farmer Mac's financial condition or results of operations reported in accordance with GAAP because the related financial instruments are expected to be held to maturity. Therefore, beginning in 2017, this reconciling adjustment includes realized gains and losses on financial derivatives centrally cleared through CME resulting from the exchange of variation margin. As a result, core earnings subsequent to 2016 will be presented on a consistent basis with core earnings in 2016 and prior periods.

[14] Includes reconciling adjustments for fair value adjustments on financial derivatives and trading assets. Also includes a reconciling adjustment related to the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities.

[15] Includes reconciling adjustments for fair value adjustments on financial derivatives and trading assets. Also includes a reconciling adjustment related to the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities. In 2016 and prior periods, fair value adjustments on financial derivatives included variation margin payment amounts because those amounts were considered to be collateral of the related exposure and were accounted for as unrealized gains or losses. However, effective first quarter 2017, CME implemented a change in its rules related to the exchange of variation margin, whereby variation margin payments are considered to be a partial settlement of the respective derivatives contracts rather than as pledged collateral, and accounted for as realized gains and losses. See Note 4 for more information about this rule change. Farmer Mac believes that even though these variation margin amounts are now accounted for as realized gains or losses on financial derivatives and hedging activities as a result of the CME rule change, their economic character will remain the same as they were before the change. This is not expected to have a cumulative net impact on Farmer Mac's financial condition or results of operations reported in accordance with GAAP because the related financial instruments are expected to be held to maturity. Therefore, beginning in 2017, this reconciling adjustment includes realized gains and losses on financial derivatives centrally cleared through CME resulting from the exchange of variation margin. As a result, core earnings subsequent to 2016 will be presented on a consistent basis with core earnings in 2016 and prior periods.

[16] Includes reconciling adjustments for fair value adjustments on financial derivatives and trading assets. Also includes a reconciling adjustment related to the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities.

[17] Includes directly attributable costs and an allocation of indirectly attributable costs based on staffing.

[18] Includes directly attributable costs and an allocation of indirectly attributable costs based on staffing.

[19] Includes directly attributable costs and an allocation of indirectly attributable costs based on staffing.

[20] Includes directly attributable costs and an allocation of indirectly attributable costs based on staffing.

[21] Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends and attribution of income to non-controlling interest reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.

[22] Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends and attribution of income to non-controlling interest reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.